Sister Wives stars Meri, and Christine Brown are at risk of losing a huge source of income. They each work for LuLaRoe, which is in the middle of a legal battle forcing the company to make drastic changes.
Meri and Christine both sell the clothing, which makes up a significant portion of their income.
Thanks to their reality TV fame and social media following, both women, have made a nice chunk of change working for LuLaRoe. They even went on a cruise that was a reward for high earners only.
Now the family may face more financial hardships as the company’s future is up in the air.
What is LuLaRoe?
LuLaRoe is a multi-level marketing company that hires independent consultants to sell their products. The company has been around since 2012 thanks to founders Deanne Brady and her husband, Mark Stidham.
Like most direct sales companies, LuLaRoe offers consultants a commission on products sold. Plus, each person builds a team and earns money off of team sales too. LuLaRoe has the same business model as other direct-level marketing companies.
LuLaRoe legal woes
However, LuLaRoe is now in the middle of a legal battle. The company is facing a lawsuit that accuses LuLaRoe of being a pyramid scheme and misleading income claims.
In January 2019, the State of Washington filed the suit against Deanne, Mark, and others claiming a majority of LuLaRoe consultants in Washington lost money.
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LuLaRoe Denim and Liv T. Two amazing pieces that a so incredibly versatile and perfect together! When I started my LuLaRoe journey 3-1/2 years ago, I wanted to make a difference in my own life, and in the lives of other women. I wanted to feel confident and peaceful with myself, and help others who may need the same thing. I don’t know how many times a day I get ladies telling me how much they love the denim, how comfortable it is, or how many times ladies tell me that Liv T is ‘so them’. These clothes tell a story. They help make us feel comfortable and beautiful. They are changing lives. And yes, I’m All In! 💙💙💙 #LivingMyWhy #BecauseICan #LoveWhatIDo #LoveWhoIAm #LuLaRoeRetailer #FashionRetailer #SocialRetailer #LuLaRoeForLife #LuLaRoeAllIn #FlagstaffFashion #LuLaRoeFlagstaff #LuLaRoeArizona #LuLaRoeDenim #LLRDenim #LuLaRoeLiv #Comfort #Fashion #Confidence @lularoeretailers @lularoe
According to The Sun, the lawsuit accuses LuLaRoe of “primarily rewarding participants on recruitment of new participants rather than on bona fide retail sales, thereby resulting in a substantial percentage of participants losing money.”
Recently the company revealed it is closing a warehouse in Corona, California, and firing 167 employees as the LuLaRoe company is facing money troubles due to the lawsuit.
Business Insider is reporting LuLaRoe warehouses’ in Blythewood, South Carolina, and Fontana, California, will remain open. All shipping will move to South Carolina.
LuLaRoe has denied all accusations against them. They will continue to fight in court with the next hearing set for August.
Sister Wives fans know the Brown family has been struggling financially. It was the reason for the move to Arizona.
Meri also has her bed and breakfast in Utah, but LuLaRoe is Christine’s primary income source. Christine even raised money for her daughter’s surgery by selling the clothes. Both Meri and Christine hold weekly, and at times daily Facebook lives to showcase the items.
LuLaRoe has not said it is shutting down or minimizing consultants. Right now, Christine and Meri Brown’s primary source of income is still in tac, but their future with the company is not rock solid.
Sister Wives is currently on hiatus on TLC.