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LuLaRoe customers have also flooded the Better Business Bureau with more than 200 complaints, alleging in some cases that they were charged incorrect sales tax and double-charged for merchandise. They also complain that the companys products were of poor quality and that they had difficulty reaching customer service to discuss their gripes. As a result, BBB gave LuLaRoe a grade of F. On July 27, 2016, BBB notified the business of our concerns and requested their voluntary cooperation in eliminating the pattern of consumer complaints, BBB said on its website. As of today, the business has not responded to our request. Websters attorney Carlson said he was pleased that LuLaRoe acknowledged the problem. Thats encouraging to hear, he said. Of course, the universe of consumers who have been impacted by this issue is much larger than those who have come forward to request refunds. Hopefully, they will take a similar approach regarding a broader universe in response to the litigation. LuLaRoe was founded in 2012 by Deanne Stidham, who came up with the companys name by combining the names of her three oldest grandchildren (Lucy, Lola and Monroe). Stidham started by designing skirts at her familys kitchen table, and they took off once word spread on social media. As Business Insider noted last year, thousands of people many of whom are millennial moms are earning massive profits selling LuLaRoe. Stidhams husband, Mark, is LuLaRoes CEO. MLMs operate using independent sales representatives who make money through both product sales and recruiting additional people to their teams.

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