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Watch LuLaRich () free Season 1 Episode 4 online in HD on Dailymotion (2021).
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00:12uh lindsay what do you say to people when they say we are a pyramid scheme quick answer we're
00:20not a pyramid scheme my husband thought we were at first he told me i was going to share a
00:23sale
00:23with bernie madoff because he was convinced that there was no way that i could make this kind of
00:27money doing something legally um so of course i had to prove him wrong so i have the biggest skeptic
00:31right in my house next to me the reason we are not a pyramid scheme is because in a pyramid
00:36scheme
00:36you have to keep signing people up to make money because the product is not in 2017 lularoe changed
00:44the bonus checks they changed how these bonus checks were working for the uplines your bonus
00:50checks are switching from from the bonuses are based on actual sales sally needs to sell
00:58in order for you to get a bonus check are you aware that lularoe changed uh its bonus plan
01:06in june of 2017 yes what was the change
01:14that my understanding is that it would be based on sales versus ordering
01:27when the bonus structure changed my check dropped in half
01:30did our check go down i think that doesn't have my bonus checks went from like six thousand dollars
01:37to like eight hundred dollars we've always been planning this we've talked about for the last
01:43year we need to get away from being a pyramid scheme okay so that that takes that last piece
01:49off the table of anybody being able to say that we're a pyramid scheme so the way we get away
01:55from a
01:55pyramid scheme and incentivize you as leaders is we change it
02:17in 2017 lularoe was changing a lot
02:23the complaints were rolling in and people were posting is this a pyramid scheme
02:32lularoe was making a change because at that point in time some of the nuts and bolts about how they
02:37operated the business potentially make them more liable for claims that they are a pyramid scheme
02:45first they changed the bonus checks and then you know there's question about did lularoe have a
02:51proper return policy so lularoe implemented a 100 buyback policy basically for anyone that
03:01wanted to get out of lularoe you could send back your inventory and lularoe would send you a check for
03:08a hundred percent of the wholesale cost i think originally it was put in place to encourage more
03:14people to onboard and to quelch some of the fear that people had because joining lularoe
03:20cost a couple thousand dollars in the original correspondence it says this policy has no
03:27expiration date they told us on the mentor call that the buyback policy was never going away
03:34we did as we were told we disseminated that information down to our teams two different
03:39things happened one a bunch of people that were on the fence with lularoe joined that whole if you can't
03:44sell it thing was gone the other thing that happened was a mass exodus i lost probably 20 people within
03:53two weeks the great exodus
03:57a lot of people took advantage of this program to go ahead and get out of lularoe
04:04i believe lularoe paid over a hundred million dollars in reflux during that time currently what is
04:10lularoe's policy with respect to returns of merchandise from retailers you know that's something
04:17mark takes care of i don't do that ifr leaves they can still submit qualifying products to return yes and
04:28damage products to return yes has that always been the case yes
04:41subject to the policies and procedures
04:50september 13th of 2017
04:522017 is a day that i will keep in my mind probably until the day to die on that day
05:01i found out lularoe
05:02said you know that 100 buyback guarantee that we gave you yeah that that's not going to happen
05:12a couple months after the buyback policy was implemented there was an emergency mentor call
05:18they told us the 100 buyback program was done with it is going back to the original policy with an
05:27additional stipulation of all kinds of things you couldn't return anything that was seasonal or elegant
05:34everything had to be in the original packaging with the tags and they said anybody that was a leader
05:39wasn't going to get anything refunded until the bonuses had been removed so no leaders can't return
05:45inventory until their bonuses are paid i've got so so much stuff it's like insane i have at least
05:54fifteen thousand dollars worth of inventory i could get no refund
06:01i'll never forget this one lady who called me and she was like lularoe you should be ashamed of
06:07yourself and she was crying during the entire call right after the buyback policy i went to the bathroom
06:14had my breakdown and then i thought to myself am i really helping people like i thought i would
06:20as i got through crying the answer to that question was no if i was helping anybody it was mark
06:26and d
06:26and accumulate more money they didn't have to answer for
06:30i decided to leave lularoe because i could not stand and hear my team saying i might have to
06:47go into foreclosure on my house if i can't get this refund for this inventory because
06:52i'm two months behind on my mortgage payment and i'm gonna lose my house
06:58i went into a really deep spiral of like depression and anxiety from being in this company
07:05a lot of realization that i had been a part of it that i had been predatory
07:14you know people say things like you couldn't do it or you your sales were dwindling at the end my
07:19sales are dwindling at the end because i didn't want to do it anymore i didn't want to be a
07:23part of the
07:25the bullshit
07:30i sat down on my ipad and i typed out this long like diatribe of like this is why i'm
07:35leaving
07:35i thought you know what if i put it on social media and it's public
07:40then that's the end right like i'm gonna post my resignation letter on facebook i'm going out of
07:47business i was like oh my god it's out there
07:53former and current lularoe retailers and customers are flooding social media with complaints consultants
07:58all over the country have now taken to social hundreds of other women online saying they too
08:03are waiting for their refund we're told the accounting department doesn't have phones
08:07many women who have bought into the program are going to be left thousands of dollars in debt all
08:12thanks to a new policy
08:15something just went viral and to this day for me i don't understand it all of a sudden they all
08:20just
08:21ran off kind of you know and it was like no no no no wait what is what's going on
08:27you know and
08:27that's heartbreaking no one in the world wants to wear leggings that feature a bee crawling up your
08:35couch i just i wish there wouldn't have been the negativity the only time it's acceptable to say
08:43we don't want smart people is in a training manual for selling lularoe it's so unnecessary
08:50lularoe ended its make good refund program on july 31st the company says it's still processing the
08:56remaining claims one woman tweeted lularoe hope you are ready for a big lawsuit with holding
09:01approved refunds is illegal
09:15i grew up in new jersey born and raised first one in my family to go to law school when
09:21my daughter
09:22was about five years old she met her first male attorney ever and when she asked him what he
09:28did for a living and he said that he was a lawyer she laughed because she thought only i believe
09:32she
09:33said mommies and girls are lawyers the way i found out about lularoe was actually through some of the
09:41moms in the neighborhood i met kelly by coincidence we were both involved in local networking groups mostly
09:51for moms that were business owners entrepreneurs professional women supporting professional women
09:57she called me and said do you do class action work i think i need a lawyer she had about
10:03twenty
10:03thousand dollars worth of inventory and when she tried to return them she she couldn't
10:09do you do class action work in december of 2016 i found out i was pregnant
10:18but when i was almost five months pregnant
10:22i lost the baby
10:24i felt so alone
10:27and so ashamed
10:29there's something wrong with my body that i would
10:32lose the child there's something wrong with me as a salesperson an entrepreneur
10:37that i couldn't make it work they confirmed my 100 percent return of my inventory in june of 2017.
10:47some may say stella why didn't you hurry up and package your stuff
10:51as soon as you resigned why didn't you put your stuff in boxes and just ship it along the way
10:56well my postpartum depression became extremely severe that summer
11:02every time i sat in that pile of clothes trying to label and count it i cried
11:09so no i didn't do things quickly and properly
11:15but when i did i was left with approximately twenty thousand dollars worth of inventory
11:23her story was just so compelling and i started to investigate started reaching out to other people and
11:29it was just the kind of thing that that you can't walk away from so i took it on
11:35this case really started as a breach of contract
11:39lula ro announced that they had a hundred percent buyback program which is risk-free
11:44buy what you want it's not going anywhere if you don't want to sell these leggings anymore
11:49we'll pay the shipping give you your money back
11:52and then they decided overnight we're not going to do that anymore
11:55lula rose said that it was only a temporary policy but there were a lot of recordings and
12:02information distributed to these women saying the hundred percent money-back guarantee is not going
12:07anywhere very simply you promised if we didn't want to sell the stuff anymore there was no risk
12:12you broke your promise
12:16we started digging a flood of information came in the women out there were just hungry to tell their story
12:23we set up a website to gather information and see who else was out there and the response was
12:30mind-blowing you know these were people that were desperate for someone to stand up for them and they
12:35just didn't know where to go we went out to california we filed the case and we said not only
12:43is it for
12:43these women they're also standing up for everyone else that you did this to the new class action lawsuit
12:49alleges the buyback as easily as wet toilet paper section lawsuit accusing lularoe of being a pyramid
12:55scheme we sell product through to a consumer and it's highly desirable product that is not a pyramid
13:02scheme the company is accused of encouraging some retailers to borrow money take out credit cards some
13:07even asked to sell their breast milk there's always two sides to every story but anytime anybody asks you
13:12to sell your breast milk i think i have some questions i'll think twice about that one always find the
13:17most interesting detail in the story gail well that sort of jumped at me
13:23i stopped trying to keep track of how many lawsuits have been filed against lularoe
13:28it's dozens
13:30the first effective leggings lawsuit was filed and quickly there were a number of other lawsuits filed in
13:40other states lularoe was sued a whole bunch of times for copyright infringement people started
13:48doing google image searches on artwork on lularoe's leggings we were instructed from the beginning if
13:57i'm gonna take something a piece of art from google wherever we sourced it from you had to take a
14:04little
14:04piece from it and then change that little piece at least 20 percent in order to not you know get
14:09sued or whatnot but some designers didn't didn't really abide by those rules i guess
14:19a lot of it seems to have not been created by lularoe the demand was so so insanely unrealistically high
14:30that
14:30it forced some of our designers to rip off some other artists just to meet the number
14:39i would just periodically check to see if there were new lawsuits and in late november of 2018 i got
14:46wind
14:47of something the my dyer lawsuit was the first lawsuit that just called mark and deanne scammers essentially
14:56my dyer is a supplier of clothing my dyer claimed that lularoe owed them 49 million dollars and one of
15:06the claims that they're making is that lularoe knew that they would not be able to pay those bills and
15:13they placed new orders with my dyer anyway essentially with the intention to defraud my dyer
15:22the lawsuit between my dyer and lularoe it's not just a lawsuit it's also a rift between two friends
15:31mark stidham became friends with my dyer ceo daniel kang
15:37and from white dyer they're bros kang like stidham is a huge lover of luxury cars and they both fell
15:50into this clique known as the ghost squadron they are men in california who owned conasegs a very fancy
16:01swedish car that goes very fast they actually appeared together in a car throttle documentary
16:09mark said he's just a real down-to-earth person he's the token uh patriarch he'll tell us the stories
16:16of the old days and that's what keeps the humor within the system where this falls apart is once you
16:23start having quality issues with the lularoe products this starts some really nasty infighting
16:29between my dyer and lularoe my dyer made allegations that lularoe were hiding money in llc's because
16:42they knew litigation was on the way in fact the company is tied to dozens of llc's 17 llc's were
16:52set
16:52up in december 2017 alone lularoe is countersuing my dyer they are claiming that no we don't owe you
17:03money you owe us money basically it's turned into that meme of spider-man pointing at himself
17:12it's just a hot mess
17:26this whole situation it was surreal
17:32it took a huge emotional toll on me
17:35and i decided at that point that the fight was no longer worth it i sent in my letter of
17:44resignation i thanked them for the opportunity but just said my values no longer aligned with theirs
17:51so how much money are you owed by lularoe today if you take the incorrect bonuses the returns the
18:02defective items i am owed approximately a hundred thousand dollars
18:11after i left everyone was told not to talk to me
18:15to have no association with me or they would be terminated
18:23when someone left lularoe you were not to communicate with them
18:27so it wasn't until i left lularoe that sam reached out to me
18:37sam actually contacted me when i left lularoe to invest in his marijuana business
18:46i asked him is there some type of agreement for a guaranteed return if i put in 30 000
18:52he said ha ha no agreement but hey let's do the 30k yeah you'll get 90 back yo
19:03and then he sent me a picture of all this money and sent it to me
19:09i knew that something just wasn't right and then i did a reverse screenshot on the image he sent me
19:17of
19:17the dollar bills and found it on google so it wasn't actually his money he had stolen a screenshot from
19:25google images
19:31i was investing in what i believe to be a marijuana farm
19:35it ended up being fake according to charging documents the utah county attorney's office says
19:40samuel schultz made promises the profits from marijuana grow operation a pot farm that never existed
19:46it was ponzi scheme i didn't keep anyone's money i had my own money into it so
19:58you can't make up these stories
20:07that summer of 2018 it had just become a circus it had become something that it wasn't supposed to be
20:23for convention 2018 lularoe spent so much money on kelly clarkson when they owed many retailers
20:30money and they made so many retailers go through all these hoops to get their money back and yet
20:36they had that to spend on kelly clarkson honestly to this day i will not listen to kelly clarkson at
20:42all
20:43i am full-on boycott which is sad because i loved kelly clarkson as a singer i love that duet
20:49with jason aldean uh don't you want to stay that's one of my all-time favorite songs and
20:52i can't listen to it anymore because of her
21:01right after kelly clarkson that's when we had the infamous meeting they had a meeting with people
21:08who were high profile and mark basically threatened us they had us put on a piece of paper an x
21:15or an o
21:16if we were all in with the company or not and then hand the papers in they had us raise
21:21our hands in
21:22public if we were in for the company long term or short term just very awkward there were always
21:30questions and for the most part up until that point they'd been able to explain everything away
21:36well now there are questions that they they couldn't answer and it was absolutely unacceptable to
21:43question mark so one monday morning after convention we got an email that said somebody in the company
21:51that's a high profile person was terminated and we were like oh my gosh we're like who was it we're
21:57calling everybody on our team we're like did you get terminated what's going on the next thing i know
22:03went to go check the email and sure enough about four hours later we were privately sent an email
22:08that said it was actually us um that was terminated we were stuck with all of this inventory um we
22:18tried
22:18to sell some of it we gave most of it away we just took a massive loss
22:34so tonight the company lularoe facing another lawsuit the washington state attorney general says
22:41lularoe tricked people into joining a pyramid scheme
22:47in early 2019 the washington state attorney general filed a civil lawsuit accusing lularoe of
22:54violating washington state law regarding pyramid schemes this was huge lawsuit claims that you
23:02essentially could not have a successful business just selling the product that the primary way
23:08people involved with this company have success is if they recruit people underneath them
23:15and that that's a pyramid scheme when i started with lularoe the compensation plan was based on
23:24wholesale orders so at that point i mean it doesn't really matter which way which way you
23:31to present it that is the definition of a pyramid scheme
23:38that's like really weird for me to say out loud in the washington state lawsuit that's your home state
23:47what do you know about that i just i don't know enough about it and that's a big thing that's
23:56a big lawsuit
24:02it's one thing when people file civil suits is it a little scarier when a state files a suit against
24:08you
24:10can i tell you right now that my tongue is bleeding because i would like to tell you what i
24:16think about
24:16that suit and in in real terms my attorneys if they were sitting here they'd probably tell me to shut
24:21up
24:21right now but um as part of the case they've had hundreds of thousands of pages of discovery exchanged
24:29dan was deposed with the title of president mark stidham was deposed with the title of ceo listed
24:38kenny brady vice president of sales for lularoe and we welcome you to lularoe well we're excited that
24:45you're part of this company can you tell me what the make good program is i don't recall we create
24:52freedom we serve others we strengthen families do you recall what the happiness policy is
25:02i don't recall where dreams are achieved your lives are blessed we do it through love confidence
25:08purpose trust and growth oh my gosh did the make good program have to do with addressing defective product
25:16i don't recall
25:21jordan brady the former head of leadership and culture
25:26what was your understanding of what a pyramid scheme was i don't remember what my understanding
25:31of the pyramid scheme was at that time we need to get away from being a pyramid scheme
25:36did you review this video in preparation for your deposition yes so the way we get away from a pyramid
25:45scheme and incentivize you as leaders is we change it
25:52so you have to put those comments in context and and you also need to know my son jordan
25:59you will love him and you meet him and and and jordan has a tremendous amount of enthusiasm yes he's
26:06such he's so fun no most of us are not always precise with language and so a thing that he
26:13said that he
26:15thought was clarifying a safe harbor actually sounded like we were afraid that we weren't safe to begin
26:22with we never were never have been a pyramid not and we're not a pyramid today every dollar made in
26:29this business is made by people selling product jordan hasn't done anything that he should be worried about
26:38at nor have we what about lularoe is different in your mind from mlms our ifr's purchase product from us
26:51we're a wholesale supplier to them the majority of their income is derived from selling that product
26:58to an end user the washington state attorney general's case put together a handy graphic this
27:06is how much was being made in bonuses and that is how much was being made in retail profit and
27:14it's
27:14actually slightly negative mark and deanne always put an emphasis on our recruitment until we change to
27:23sales-based compensation structure they actually had us write down how many people we knew and can
27:31name by name and they had like categories split up into it our goal was to gather as many people
27:37as possible
27:39it was never intended as that kind of self-perpetuating program where where you're just continually looking
27:48for new people in the program if mark and deanne have ever made a statement that they put no emphasis
27:56on recruitment or team building that is absolute nonsense their whole model was built on team building
28:10real quick i want you to know how much money they're making what do they make in their last bonus
28:17check
28:17and what are their sales i'm in riverton utah and our last check was 307 000
28:27i i can't even say it it's like blows my mind and our personal sales were about 18 a little
28:33over 18 000.
28:40um why did you ask these retailers what their sales checks and bonus checks were why not i love it
28:51it's inspiring and it gives people excitement so i mean when you reached kind of the pinnacle of this
28:58whole thing you guys at one of the vision events presented a check for 1.4 million dollars to a
29:07husband and wife no i don't think we did that yeah that represented their earnings to date in the
29:16company so that so that was sort of a ceremonial check or what was that meant to convey it was
29:23meant to
29:24thank you for all your hard work look at how what they have accomplished so how did they earn that
29:32much money and how long did they work she started doing 16 parties a week how long did she do
29:37that
29:37oh my gosh probably well she still i think she did that i don't know two or three years yeah
29:47what percentage of the 1.4 million was her selling at those parties oh i'd have to what percentage was
29:57her bonus for the people underneath yeah that 1.4 million would have represented her bonus checks
30:02that was that would have been her bonus checks uh we don't track our retailers profits uh
30:10it's really easy to get the impression that the way to make money at lularoe is to recruit people
30:17the recognition of huge achievement is not meant to mislead it's meant to inspire and if you're misled by it
30:41we're not a pyramid scheme my husband thought we were at first he told me i was going to share
30:45a sale
30:46with bernie madoff because he was convinced that there was no way that i could make this kind of
30:49money doing something legally there are things that i did that i would not do again and i'm not saying
30:55that
30:55i committed any crimes i didn't i didn't i don't know that i necessarily did anything wrong whether
31:02my income came from bonuses or sales it really just depended on where you know my focus was and what
31:10i
31:10was able to do so there were times when you're bringing in more money from your sales than from
31:18bonuses i'm not going to speak to that if lularoe were to be found guilty then i feel that every
31:31direct sales company should be investigated as well because i've never seen lularoe do something that
31:37other companies haven't done a multi-level marketing company is a legally permissible business model if
31:47done the right way when you have a multi-level marketing company you have to follow factors
31:54that are set out by the state and federal courts and the laws of our country that say this is
32:00how to
32:00do it in a way that's safe and people are not just taking advantage of someone that's trying to make
32:05a living you have to have a buyback policy the 70 rule people are supposed to be only buying more
32:16inventory after they sold about 70 and you have to make sure that sales are going to at least 10
32:23different customers and not just selling to other reps or other distributors that were trying to make
32:28money the attorney general in the state of washington did research into the lularoe enterprise and
32:36determined that at some point in 2017 there were significant changes made to the company in the
32:41way they were operating what the washington state case does is says that's great you changed your
32:47practices in 2017 on paper but we're going to keep checking to make sure the state of washington
32:55may be successful in prosecuting lularoe as an illegal pyramid scheme under their state statute but in
33:03reality successful prosecutions are rare until the government looks at this entire field
33:17this is political theater is it fair to say that lularoe grew at an overwhelming rate check to the floor
33:29lularoe grew at an unprecedented rapid rate
33:37not overwhelming we're still here
33:43if you could ask mark and deanne questions
33:48what would you ask them
33:49huh they're real snarky yeah they're real snarky
33:57they would lie to you anyway i don't have any question to ask them because i wouldn't even get the
34:02truth
34:05so i i will give you a little bit of my philosophy of litigation okay when you've done something wrong
34:12and somebody calls you to task for it you don't see any of those in the public with us do
34:17you know
34:17why because i settle them i take care of it i own it i say you're right we did that
34:22wrong
34:22and we will take care of you sorry sorry that you had to sue me in order to get enough
34:27attention to get that handled
34:31in regards to my case as much as i can say it's been resolved by both parties
34:47at this point we've gone our separate ways and i'm okay with that because at the end
34:54my mission was to get a message across just because you're a large company doesn't mean you can take advantage
35:02of people
35:12the day that i left lularoe i was still making six figures a year but it didn't bring me joy
35:18anymore
35:19after my husband and i separated i felt like i had failed to accomplish what the whole point was of
35:29like
35:30what i was doing with lularoe was to like strengthen my family but if i was to be really committed
35:36to my
35:36business i had to pick one or the other i still had the reward at the end of the day
35:42right i still
35:43had the money to sort of justify that much time away from my kids there are a lot of people
35:48who didn't
35:53actually i'll just say this i know that the experience that i had cannot be replicated
35:57i know that now i did reach out to deanne and she said that she thought it was sad that
36:06i was walking
36:06away from the business that i had worked really hard for and that she would encourage me to take
36:13my children to church so that they had a sense of stability in their life
36:29i had to sell my house i had to sell both of the vehicles that i had bought i remember
36:40them coming to
36:41pick up my vehicle and my son running out and said mommy why are you crying it's just a car
36:51and that really spoke to me
36:56at that point though it was a lost cause between me and my husband
37:02on the weeks i don't have my children i eat cheese and crackers for dinner to save money
37:09and i'm also having to claim bankruptcy for the credit cards that i still owe on
37:18i'm trying to be non-judgmental i was judgmental for the years i was in lularoe because i thought i
37:27was
37:28better than everyone else now i realized that everyone has a story
37:35for any current lularoe retailers i hope that they get out before it's too late
37:45i waited until it was too late and i was one of the first to leave
37:57when i decided to leave it was kind of 50 50 there were some people that were super let down
38:04and upset
38:05and then a lot of people that were like oh yay we have our friend back or um our mom
38:13back
38:17my hope would just be that anyone who was in that position knows that it's not anything with them
38:23it's just like it's okay some things just don't work out
38:30knowing my part in this and knowing that i got a lot of women into this company is something that
38:36took me a really long time to not have pain and tears over i don't want anybody to go through
38:45what i
38:45went through multi-level marketing companies target women mostly stay-at-home moms single moms
38:55retired women at home people on disability people of color people in low income people that don't have
39:02the advantages that other people have there are so many ways that you can have legitimate
39:08work from home business opportunities that do not require an upline or a downline
39:17the reason that we were so successful in exposing lularoe and investigating lularoe
39:23was because so many people came together and shared information that's the reason i got into lularoe in
39:31the first place was to create a community the women who are fueling lularoe are the women that in
39:38communities across america run ptas that get people to the polls that are incredibly effective politically
39:47they're well connected in their communities and they're connected to each other
39:51and they are one of the most potent and effective but completely under recognized sources of power
39:58this is an example of how women can come together and expose wrongdoing
40:08i found more support and effective than i ever found in lularoe
40:14my main goal when i left lularoe was to help 75 women get out because that's the number of people
40:19that were on my team and in the last three years i've helped thousands thousands of women
40:25i'm trying to like find the rainbow after the storm i guess
40:33this is what happens when you stop caring about ethics and morals and are completely consumed by greed
40:42do i believe they knew what they were doing yes
40:45did they think they were going to be as successful as they was into doing what they were doing no
40:51it was an experience i'll just say that that was stressful and messed up and that's not the way it
40:57should be but that demand to pump out art like with a gun against my head you know at the
41:04end of
41:04the day i could at least say that made me a better designer being there um would i do that
41:11again probably
41:12not um probably just stick to bartending and graphic design
41:21you guys should be held accountable whether you be sued or whether the story be told because remember
41:27you started in the trunk of your car so you never forget you was just selling skirts sweetheart out the
41:32trunk of your car and then now look at you so the least you could do is show the people
41:36that put you
41:36where you are from the respect i have a vision that one day all of us former home office folks
41:45and the retailers that choose to join us there's a miguel's you could see the home office from this miguel's
41:51the back patio i had visions of all of us sitting on the porch sipping our beverage of choice
41:59me it's cranberry juice and vodka full full disclosure and watching the repo men take everything out
42:04all the computers the phones the pictures the tables the desks and mark and deanne on the first floor
42:11crying with federal agents somewhere near them will i get my vision i hope so
42:26it is over four million dollars that's going to the state of washington the position
42:33lularoe has taken publicly is that they deny any wrongdoing they made a business decision to stop
42:42the litigation that has been going on since 2019 as part of the settlement lularoe does have to change
42:49some of what the sellers said were its most egregious policies including an updated refund policy
42:55it's certainly not nothing what it doesn't do is overhaul laws around mlms and pyramid schemes the thing
43:03most people don't realize is no multi-level marketing company has ever ever actually stopped it's one
43:11one pulsating giant mini tentacled pyramid scheme out there if one happens to fail it only diffuses out
43:24the top leaders move on to other companies or start new ones the downliners are moved into other schemes
43:35the scheme will only migrate transform it's a hydra
44:03what is the vision for the company what's lularoe 2.0
44:08there is still right this minute as we sit here talking a huge opportunity to sell clothing to
44:16women in america hi loves how are you this is jill dramer your lularoe fashion retailer i have a ton
44:22of
44:23nickies and a i want to keep working and doing lularoe i i get excited i have new inventory coming
44:30this week new product new styles and i'm going to get on camera i'm going to model them for my
44:36customers i'm going to show them how they fit how to style them and i'm going to package and ship
44:42we are creating something that we didn't even know that we did seven years ago that is creating that
44:49sense of courage and and confidence and security you get to take charge you get to be the boss
44:57you know it's like it's easy and if they could just understand you've got to work it and you've
45:04got to decide okay this is what i'm doing i'm going to put my head down i'm going to put
45:07my heart and
45:08soul into it for 90 days
45:16lularoe is a cautionary tale of a company that grew too fast for its own good history will ultimately
45:21remember lularoe as an unethical immoral family because history is written by the victors in the
45:27words of general martog from star trek deep space 9 and history will remember our side prevailing over
45:33that
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