https://consumerist.com/2017/10/27/new-lularoe-lawsuits-accuse-company-of-running-a-pyramid-scheme/

LuLaRoe is a multilevel-marketing company that has brought brightly colored leggings and dresses to communities across the country since its debut five years ago. Yet the company’s sales representatives say that the company is really peddling false hope and intense stress alongside leggings and the dream of being an independent businessperson, and two new class action lawsuits against the company accuse it of exactly that.

Specifically, class actions filed this week [PDF] and two weeks ago [PDF] both accuse the company of running what California law calls an “endless chain scheme,” an even better term than “pyramid scheme.” That’s a term for a marketing scheme where selling actual merchandise to new participants isn’t the point, but recruiting new participants is.