If you shopped online in 2016 or 2017, chances are a friend or family member was hosting a LuLaRoe leggings party. The brand exploded onto the fashion scene almost overnight, and just as quickly, it became a symbol of everything that can go wrong with a multi-level marketing company. So it’s no surprise people still type “is LuLaRoe still in business” into Google years later.
The short answer is yes, LuLaRoe hasn’t closed its doors. But the company that exists today looks nothing like the retail giant it once was. This article breaks down where LuLaRoe came from, what it looks like now, and whether it has any real future ahead of it.
What Is LuLaRoe and How Did It Start?
LuLaRoe was founded in 2012 by DeAnne Brady and her husband, Mark Stidham. The name itself comes from their granddaughters, Lucy, Lola, and Monroe. What began as a small operation selling maxi skirts out of a garage quickly turned into one of the fastest-growing direct sales companies in the country.
By 2014, the product line had grown to include buttery-soft leggings, tunics, and dresses. The business model relied on independent sellers, called consultants, who bought inventory in bulk and resold it directly to customers, often through Facebook parties. Within just a few years, LuLaRoe had built a passionate following, especially among stay-at-home moms looking for flexible income.
Is LuLaRoe Still Selling Clothes and Engaging Retailers?
Yes, LuLaRoe is still selling clothing, though on a much smaller scale than during its peak. Consultants continue to buy wholesale inventory and sell it to customers online and at small pop-up events. The company hasn’t shut down, but its retail footprint has shrunk dramatically since its glory days. Most sales today happen through Facebook Live videos, Instagram, and small private shopping groups rather than the massive in-person parties that once defined the brand. Leggings remain the signature product, alongside dresses and tunics that longtime fans still recognize.
LuLaRoe’s Legal Troubles and Reputation
LuLaRoe’s reputation took a serious hit starting around 2017. Complaints about ripped leggings, poor stitching, and inconsistent sizing flooded social media, and consultants began accusing the company of ignoring quality control problems. What was once viewed as a fun and dependable brand gradually started losing the trust of many shoppers, making some customers question its reliability. Things got worse when legal disputes piled on top of the product complaints. Lawsuits over refund practices, supplier disputes, and allegations tied to its business structure made headlines and chipped away at whatever trust remained. For a company that had grown on word-of-mouth enthusiasm, that erosion of goodwill was hard to recover from.
The MLM Model and Its Impact on LuLaRoe’s Business
LuLaRoe’s multi-level marketing structure was both the reason for its meteoric rise and the root of its biggest problems. Consultants were encouraged not just to sell clothes but to recruit new sellers underneath them, earning bonuses based on their downline’s performance. This created explosive early growth, but it also meant many consultants made more money recruiting than actually selling clothing. As the market became saturated with sellers competing for the same customers, income for the average consultant dropped sharply. Regulators eventually took notice, and the company’s compensation plan came under fire for resembling a pyramid scheme more than a legitimate retail business.
What Legal and Financial Setbacks Did LuLaRoe Face?
In 2019, Washington State’s Attorney General sued LuLaRoe, alleging its compensation model prioritized recruitment over actual retail sales. The company settled that case in 2021 for roughly $4.75 million, agreeing to reform how it disclosed potential earnings to new consultants. The legal pressure didn’t stop there. In 2024, a California jury found the company’s founders liable for fraud and awarded a striking $164 million in damages. Combined with years of supplier disputes, these setbacks have left LuLaRoe financially and reputationally bruised, even as it continues to operate.
Why Did LuLaRoe Lose Its Momentum After 2017?
There wasn’t one single event that sank LuLaRoe; it was a slow combination of problems. Quality control issues turned early fans into vocal critics, and an abrupt change to the return policy in 2017, cutting refunds and shifting shipping costs onto consultants, pushed many sellers to quit entirely. At the same time, the market simply became too crowded. With tens of thousands of consultants all selling the same limited-print leggings to overlapping audiences, exclusivity disappeared and so did the excitement that once drove sales. Legal scrutiny added another layer of doubt right as customer patience was already running thin.
Customer Reviews and Brand Reputation
Today, opinions about LuLaRoe are decidedly mixed. Some loyal customers still swear by the comfort of the leggings and continue buying from consultants they’ve known for years. Others describe the brand as a relic, pointing to inconsistent quality and a lack of trust in random online sellers. Many remaining consultants now treat LuLaRoe as a side hustle rather than a full-time income source, selling mostly to small, repeat customer bases. That shift reflects a broader reality: the brand still has a niche audience, but it’s no longer the cultural phenomenon it once was.
Can LuLaRoe Reinvent Itself or Is It Doomed to Fade?
LuLaRoe has made some changes in recent years, including lowering the cost for new consultants to join and shifting bonus structures to reward actual sales over recruitment. Whether that’s enough to turn things around is another question entirely. For LuLaRoe to have a real second act, it likely needs more than tweaked pricing or new print releases. Rebuilding trust after years of quality complaints and lawsuits takes time, and it’s not yet clear whether the brand has a strategy that goes beyond simply surviving.
Final Verdict: Is LuLaRoe Still in Business?
Yes, LuLaRoe is still in business in 2026, but it’s a much smaller, more subdued version of the brand that once dominated Facebook feeds everywhere. It continues to sell leggings and other apparel through independent consultants, even as it deals with the fallout from years of legal battles and reputation damage. Whether LuLaRoe fades further into the background or finds a way to rebuild trust remains to be seen. For now, it survives, but its story is as much a cautionary tale about MLM business models as it is about fashion.
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