Tag: FTC

FTC Guidance: MLM Compensation Structures

FTC Guidance: MLM Compensation Structures

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 […]

FTC Guidance on Business Opportunity Claims

FTC Guidance on Business Opportunity Claims

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 […]

LuLaRoe Lawsuits – News Roundup

LuLaRoe Lawsuits – News Roundup

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.
https://www.cbsnews.com/news/lularoe-is-accused-of-being-pyramid-scheme/

Fortune.com article explaining LuLaRoe and referencing the lawsuit filed in October alleging LuLaRoe is a pyramid scheme.
http://fortune.com/2017/11/01/lularoe-lawsuit/ 

Teen Vogue’s includes the court documents here:
https://www.teenvogue.com/story/lularoe-leggings-lawsuit-alleged-pyramid-scheme

 

Other Lawsuits

Additionally, previous legal battles over product quality and payment processes were also reported on by CBS News.
https://www.cbsnews.com/news/lularoe-legal-woes-multi-level-marketer-product-defects/

https://www.cbsnews.com/news/lularoe-multi-level-marketing-women-clothing/

Today reported on product quality lawsuits
https://www.today.com/style/lularoe-leggings-under-fire-after-customers-say-it-easily-tears-t108835

LuLaRoe also sued for improperly collecting sales tax
https://www.cbsnews.com/news/fashion-marketer-lularoe-sued-over-sales-tax-charges/
https://www.forbes.com/sites/kellyphillipserb/2017/02/27/popular-fashion-line-lularoe-sued-for-overcharging-customers-sales-tax/

 

Local news outlets also reported on the LuLaRoe lawsuits. Please comment with additions to our roundup! Thanks.

Last Week Tonight: Multi Level Marketing

Last Week Tonight: Multi Level Marketing

Check out this great video from John Oliver about Multi Level Marketing

Is LuLaRoe a Pyramid Scheme?

Is LuLaRoe a Pyramid Scheme?

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 […]