In January of 2018, the FTC released business practice guidance to multi-level marketing companies. As part of this guidance, the FTC described illegal mlm compensation structures. “Pyramid scheme” is another term for this type of illegal MLM. The “unlawful MLM structure” description comes from court […]
In January of 2018, the Federal Trade Commission of the United States released guidance on how multi-level marketing companies and participants should talk about business opportunities. The FTC is one of the government agencies which regulates all kinds of businesses, including multi-level marketing companies. Why […]
Pyramid Scheme Allegations
CBS News story with detailed information around the $1 billion lawsuit filed in October alleging LuLaRoe is a pyramid scheme. Also references LuLaRoe’s own legal action against critics.
Fortune.com article explaining LuLaRoe and referencing the lawsuit filed in October alleging LuLaRoe is a pyramid scheme.
Teen Vogue’s includes the court documents here:
Additionally, previous legal battles over product quality and payment processes were also reported on by CBS News.
Today reported on product quality lawsuits
LuLaRoe also sued for improperly collecting sales tax
Local news outlets also reported on the LuLaRoe lawsuits. Please comment with additions to our roundup! Thanks.
Check out this great video from John Oliver about Multi Level Marketing
Probably, it’s hard to tell. LuLaRoe claims to be a ‘Multi Level Marketing’ company. MLMs share many qualities with Pyramid Schemes but are a bit different. Because they share so many qualities it can be incredibly difficult to tell if the company is a legitimate […]