‘The Rise And Fall Of LuLaRoe’ Investigates Scandal Behind Marketing Company

The Rise and Fall of LuLaRoe, a new documentary coming to discovery+ on December 13th, explores the popular multi-level marketing company LuLaRoe, known for its colorful prints, “buttery” soft leggings and inclusive sizing. The film features interviews with the company’s former warehouse workers, designers and retailers, many of whom were stay-at-home moms hoping to earn an income working part-time and build a community. Now, the company, plagued by lawsuits, has been accused of running an illegal pyramid scheme, among other allegations. It has also been accused of cult-like behavior by its former retailers and selling faulty products. Many of those interviewed in The Rise and Fall of LuLaRoe detail the seduction of working for the company, the pressure to continue buying LuLaRoe clothing boxes to sell and the eventual threat this work posed to their savings, homes, and close relationships when they couldn’t earn with the company.

LuLaRoe, which still exists today, offers incentives to its thousands of recruits, such as flashy events with musical guests like Katy Perry, trips to Cancun and potential “bonuses” for running virtual boutiques out of their homes and recruiting others to do the same.

The fruit a partnership between Buzzfeed Studios and their senior culture writer and reporter, Stephanie McNeal, The Rise and Fall of LuLaRoe features never-before-seen interviews detailing the psychological techniques the company used and the lengths its retailers were willing to go. McNeal has covered LuLaRoe extensively since its first class-action lawsuit in 2017. In 2020, she published a 10,000-word feature article, which would become the basis for the film. The film also features interviews with Cultish author Amanda Montell, cult expert Rick Ross, The Dream host Jean Marie and blogger Christina Hinks.

I spoke to McNeal about how she thinks social media has impacted multi-level marketing (MLM). We also discussed what she believes the future holds for LuLaRoe and why pyramid schemes continue to work.

Risa Sarachan: What have you been most surprised to learn in your research?

Stephanie McNeal: I am surprised to see how many people are still joining or are still a part of LuLaRoe to this day. Their message is very persistent and has a lot of longevity, which I didn’t initially expect.

Sarachan: What do you predict will be the future of the company?

McNeal: I have no idea! LuLaRoe continues to surprise me. I will say that I think that the outcome of their legal battle with their former supplier, Providence Industries, which has yet to go to trial, will likely be a huge factor in its future.

Sarachan: What are your thoughts on the relationship between social media and multi-level marketing (MLM)?

McNeal: I think social media has supercharged MLMs. MLMs have been around for a long time, but previously your potential pool of recruits and customers was limited to how many people you could sell to at a physical event or how many doors you could knock on.

Now, your pool is essentially limitless because everything is online. You can reach hundreds, thousands, or even millions of potential customers through Instagram and Facebook groups. Additionally, MLM sellers can recruit downlines from literally anywhere. It’s really made it so these companies can reach more people and do so quickly.

Sarachan: Do you feel LuLaRoe is a cult?

McNeal: I don’t know if I would say that definitively one way or the other. I will say I believe the former retailers who say they felt as if they were in a cult or were recruited using tactics that felt cult-like. 

Sarachan: With everything we know about them now, why do you think pyramid schemes continue to work?

McNeal: I think the dream they sell is very powerful. Americans are taught from a young age we can achieve anything through hard work, and that’s what MLMs tell people they can help them achieve. It’s a perfect storm.

This interview has been edited and condensed for clarity.

The Rise and Fall of LulaRoe premieres December 13th on Discovery+