Review: The Amazon Prime series 'LuLaRich' looks at LuLaRoe, a clothing company accused of running a pyramid scheme
Washington state’s civil suit against the company and its founders, DeAnne and Mark Stidham —which the Stidhams paid $4.
As pyramid-like as that might sound, the Stidhams insist, on camera, that what they were engaged in was multilevel marketing—they were offering a product for sale, which is not what defines a pyramid scheme. But what the women interviewed by directors Jenner Furst and Julia Willoughby Nason explain, at length, is that the primary focus of LuLaRoe was always on recruitment of new players, not retail sales.
The couple, who founded the company in 2012—and who, by December 2016, had 60,000 consultants and $1.3 billion in wholesale retail orders, according to the series—defend themselves the best way: as if they didn’t have to. They speak freely to the filmmakers at LuLaRoe’s Corona, Calif., offices, rebutting all accusations. They are less casual during depositions before Washington state attorneys; their children were part of the company and testify as well. There is much that no one remembers.
What’s ultimately unsatisfying about the four-part series, which could easily have been two parts, has to do with the slipperiness of the law, something explained by legal writer Jill Filipovic and by Robert Fitzpatrick, an author and expert on multilevel marketing. According to Mr. Fitzpatrick, LuLaRoe was a pyramid scheme because it was unsustainable as anything else.
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