A lipstick party is similar to a Rainbow Party. All the girls put different colored lipsticks and give guys blow jobs in the dark. when the lights are turned back on, the guys try to guess which girl gave them the blow job. Referenced on The O.C. on 5-04-06
At a Lipstick Party:
Guy #1: Okay, this looks like more of a rose than a pink. Was it... Sarah?
Girl #1: No, Silly! Sarah's is a light fuscia! Mine's rose!
Guy #1: I think my dick would look good with a little fuscia...