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Fashion company accused of overcharging customers "As of today, the business has not responded to our request." Webster's attorney Carlson said he was pleased that LuLaRoe acknowledged the problem. "That's find out here encouraging to hear," he said. "Of course, the universe of consumers who have been impacted by this issue is much larger than those who have come forward to request refunds. Hopefully, they will take a similar approach regarding a broader universe in response to the litigation." LuLaRoe was founded in 2012 by Deanne Stidham, who came up with the company's name by combining the names of her three oldest grandchildren (Lucy, Lola and Monroe). Stidham started by designing skirts at her family's kitchen table, and they took off once word spread on social media. As Business Insider noted last year, thousands of people -- many of whom are millennial moms "are earning "massive profits" selling LuLaRoe. Stidham's husband, Mark, is LuLaRoe's CEO. MLMs operate using independent sales representatives who make money through both product sales and recruiting additional people to their teams. According to "Stay On the Level," a website that reviews MLM operators, new LulaRoe representatives can expect to invest between $5,000 and $7,000 in new products.

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