LuLaRoe consultants are suing the company after alleging they lost thousands of dollars in 'pyramid scheme' and were told to target elderly people

pulse

November 10, 2017 3:49 PM

Two former LuLaRoe consultants lost thousands of dollars working for the company and are accusing it of being a pyramid scheme.

LuLaRoe is facing another lawsuit claiming that it is a pyramid scheme.
Two of the plaintiffs say the company incentivized recruitment and inventory purchases more than sales.

Cheryl Hayton and Tiffany Scheffer were lucky.

Each is a former salesperson for LuLaRoe, a women's clothing company that offers its merchandise through a network of sellers rather than brick-and-mortar stores or a website. While they say they left the company after losing thousands of dollars, others allegedly had it worse.

Scheffer joined the company in April 2016 and recruited Hayton, her mother, shortly thereafter. Each had years of experience in sales (Hayton owned an event and balloon design business, while Scheffer worked in retail and customer service), and assumed their experience with LuLaRoe would be similar.

They realized the money was in recruiting, not selling

"They were telling you, every time you sell your clothes, purchase more, purchase more," Hayton said. "The more you buy the more you sell. The more you buy the more you sell. And that's where a lot of women got in a lot of trouble."