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Latest Scandal (?) Hitting LuLaRoe
Are you familiar with the business model behind multi-level marketing companies like Mary Kay? If so, you know the basic outline of LuLaRoe (LLR)’s scheme. The company has “independent retailers” across the United States; they order inventory from the main office in California and then the retailers, usually stay-at-home mothers, sell the dresses, skirts, t-shirts, and more via Facebook groups, live video sales, and pop-up sales in their homes and street fairs.
The business has been the subject of controversy after controversy in the last year: from potential tax fraud to changing the terms of contract with retailers unexpectedly. I wrote about the downward spiral LLR has been taking over the last year for the Federalist; it’s an interesting case study in how to build and then destroy a business in a short amount of time.
One of the reasons I bought LLR clothing last year was because I had friends selling the products; I wanted to support them, and because they were selling, I felt an affinity for a company giving these friends a way to earn extra money while at home caring for their children. A great deal of their success was because women felt personally invested and attached to the business because their friends, cousins and coworkers were associated.
Over the last year, LLR has done wonders destroying that personal relationship customers felt with the brand. The latest headlines about the business seemed like more of the same; one read “Lularoe Sided with Retailer Who Mocked Those with Special Needs and People Are Not Happy.”
The retailer in question was running a live sale on Twitter where he was expected to be entertaining and keep customers watching in hopes they would buy when this happened:
The incident sparked an internet firestorm, leading the retailer, his wife and his sister-in-law (who has no relationship with the business but who is visibly special needs) to post an apology video.
Incredibly, the apology video may be worse than the actual offending video, where the retailer’s main offense was speaking in a manner you’d expect from a middle school boy, not a grown man running a business. Nevertheless, the incident has spiraled and sparked the internet rage machine, which already had its sights on the company.
After LLR decided to accept the apology from the retailer, the National Down Syndrome Society (NDSS) decided to end its relationship with the company over the incident. The comments on LLR’s Facebook page on its decision to remain partnered with the small retailer instead of remaining with the NDSS are just about as bad as you might expect them to be:
Statement by Mark and DeAnne Stidham, co-founders, LuLaRoe: We are deeply saddened and disappointed to announce our…
Posted by LuLaRoe on Friday, January 26, 2018
I’m torn: This isn’t the first time LLR has opted to air on the side of profits instead of ethics. On the other, the Internet Rage Machine (read the book So You’ve Been Publicly Shamed for more on the frightening phenomenon) seems fixed on three seconds of stupid during a clothing sale on Facebook for a failing clothing company and a small business owner.
Interested in hearing thoughts: Is this much ado about nothing or did LLR just self inflict the fatal blow?
Published in Culture
This matches with what I’ve heard about the company. At first I heard lots of women talk about how much they loved the stuff. Then our former daycare provider started selling it last year and had to invest what I thought was a substantial amount of money for just being a consultant. Seemed fishy to me. Like a lot of others, she’s now having to sell her stock at a loss just to get it off her hands. From what she and others have said, it sounds like first-time consultants got the hardest to sell product – ugly patterns and odd sizes. (That sounds to me like the exact opposite of what a successful MLM should do, but who knows.) She didn’t have a lot of money to start with, so she’s not at all happy with how it worked out.
As for the internet rage machine, it’s hard to not have sympathy for anyone that unjustly attracts its attention. But that doesn’t make me think any better of Lularoe.
This is one of those times that I am firmly on the side of the internet rage machine. Any, and I mean ANY, untoward comment or representation of a developmentally disabled person is absolutely unacceptable! Remember when Obama compared his bowling skills to that of a Special Olympics competitor? I’m tired of people taking refuge in what is viewed as the last group you can make fun of, the developmentally disabled. The use of the term “retard”, “retarded” etc (when not used in the clinical sense) grates my last nerve!
Now, my view may be a bit skewed as my twin sister is developmentally disabled (And she is a proud state medalist in the Louisiana Special olympics in….wait for it… bowling!) I have been brawling on the playground with those who made fun of her since I was 6 years old. The worst was when my sister thought the other kids were including her and they were really mocking her…. I’m getting heated just remembering those days. <deep, calming breath>
Anywho, for grown adults to mimic, mock or otherwise act a fool in re: a developmentally disabled person for whatever reason is simply NOT OK, civilized or overlook-able in my book. Crash and burn baby…crash and burn!
I’m glad I never bought any of those crappy leggings!
/rant over
-DP
What’s the inside scoop on Rodan & Fields?
First thing i thought watching the video is that pillsbury doughboy has no business making fun of anyone…..or wearing that tight of a t shirt. lol
That was a terrible thing that guy did. I’d be joining in the rage.
There’s a scene in Parenthood that I just love. The setup was great. Adam, always calm and cool-headed, was having a terrible day when everything that could go wrong did, ending his day with this:
Lulularoe or whatever it was called always seemed caddis and mean girls to me.
Plus, no way I’m wearing tights.
I just don’t think they are responsible to cut business ties with an idiot, unless the business contract has a cut-loose-idiots clause.
That man who mocked someone has a social penalty to pay, and people near him, and far from him will call it due.
In principle, it isn’t Lulularoe’s problem. Until the rage mob comes for them. Oh well, too bad for them.
I must have blocked all the Lulularoe people on my FB, because this is the first I’ve heard of it.