Young Living Essential Oils Hit By Class Action Lawsuit
Multi-level marketing outfit Young Living Essential Oils finds itself among the defendants in a proposed class action lawsuit that alleges the “cult-like” organization’s sale of essential oils for ostensibly medical purposes is nothing more than a pyramid scheme that prioritizes paid recruitment of new members over sales profits.
Filed in Texas federal court, the 38-page RICO case states proposed class members forked over hundreds and sometimes thousands of dollars to the defendants—Young Living Essential Oils, LC; The Young Living Foundation, Inc.; and the companies’ CEO, COO and CSO—in search of “the ever-elusive promise of financial success and an alternative lifestyle.”
According to the lawsuit, the promises made by Young Living Essential Oils to those who bought in to peddle its products, and continued to pay monthly for the privilege, were simply the hook to grow its mass of recruits, which the plaintiff claims is the true goal of the company.
“Young Living falsely represents to its Members that participation in Young Living—which necessarily requires regular monthly payments—will result in spiritual and material riches as long as they continue to solicit additional recruits to become Members of the Young Living family,”
the suit reads.
In truth, the defendants, the plaintiff alleges, have created an illegal pyramid scheme that “overwhelmingly” relies on the recruitment of new members more than the sale of products.
The very structure of Young Living, according to the case, ensures that new members will “almost certainly lose large sums of money” while they attempt to recruit others from a dwindling pool of candidates.
The suit, citing public company disclosures, states 94 percent of Young Living Essential Oils’ members “earn an average of $1 per month in sales commissions,” with more than half of those who joined in 2016 reportedly pulling in no commissions at all.
As the case tells it, the plaintiff paid $100 in 2015 to become a Young Living member and has since spent thousands more to participate in the operation, costs the woman claims are now lost.
The file can be found here:
https://www.courthousenews.com/wp-content/uploads/2019/04/Snake-Oil.pdf
As first reported by: Class-action.org
About Young Living Essential Oils
Young Living Essential Oils, LC, based in Lehi, Utah, is the world leader in essential oils, offering the highest quality oil-infused products available. Young Living takes its industry leadership seriously, setting the standard with its proprietary Seed to Seal® quality commitment, which involves three critical pillars: Sourcing, Science, and Standards.
These guiding principles help Young Living protect the planet and provide pure, authentic products that its members can feel confident about using and sharing with friends and family. Young Living’s products—which all come from corporate-owned farms, partner farms, and Seed to Seal-certified suppliers—not only support a healthy lifestyle but also provide opportunities for over 6 million global members to find a sense of purpose and whole-life wellness by aligning their work with their values and passions.
For more information, visit YoungLiving.com
Get more information, facts and figures about Young Living, click here for the Young Living overview.
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If at any time a company pays a distributor to recruit more than sell a product then there is a huge potential for abuse. Network marketing and MLM is a great platform for marketing a product when done right. Watch out for companies that pay big bonuses for bringing in new distributors. Be aware of companies that front load products. Affiliate marketing 3 a better option because you are only paid on the sales of products. DO you recruit? Yes but again override commissions are only paid when product is sold. It’s why I feel like we are a very safe option
I? doTERRA being sued as well?
If not, what is the difference between them, both are MLM
No doTERRA is not being sued. We educate customers on proper use of the products, and sell products. We don’t recruit with promises of using the oils will bring and financial success, customers do not have any obligation to ever order again, but they order how much they want, whenever they want.
We are a multi-level marketing company also, but being ethical about what our purpose is. Our purpose is to educate everyone around us on how to be a self advocate for our care and use natural remedies to do this.
Read more here: https://www.doterra.com/US/en/about-our-story
No one forced the Plaintiff to continue purchasing products. If she wanted to make money, she could sell the product. It takes work. Nothing is given to you on a silver platter! Hopefully the court will throw the case out. Common sense folks.
Yes the claims made are not valid. There are no requirements or obligations to purchase or recruit.