{ According to the lawsuit, Young Living fails to track and enforce what the complaint calls the “70/30 rule.” The rule stems from a 1979 Federal Trade Commission ruling that aimed to prevent MLM companies from encouraging their representatives to “inventory load.” Under the “rule,” representatives must sell at least 70 percent of their inventory before purchasing more, the suit explains. Subscribe dataLayerNews.related_tags = sanitize_gpt_value2("Essential oil, Essential oils, claims substantiation, Claims"); This is not to mention the “significant additional outlays” of time and money that Young Living members must pay in order to maintain their businesses, the case says. April 19, 2019. The company said it plans to appeal. When a recruit signs up to be a Young Living distributor, he or she must purchase a “starter kit” that ranges in price from $35 (the “basic” kit) to $165 (the “premium” kit) and can be even more expensive depending on the options selected, the case says. }); Young Living, a multi level marketing company based in Lehi, UT, is one of the world’s largest and fastest growing sellers of essential oil products. Erin works primarily on ClassAction.org’s newswire, reporting on cases as they happen. The lawsuit describes Young Living as having a “complex and intentionally hard-to-understand multi-layer compensation/participation structure,” which, according to the complaint, is largely focused on recruiting new members. Faced with the reality that their “only opportunity” to earn enough income is through recruitment, most Young Living members find that they must spend hundreds of dollars every month on the company’s products in order to remain eligible to receive commissions from their downline, the case alleges. Jury finds doTERRA committed no wrongdoing against Young Living, lawsuit ... We hope that Young Living will now move forward with its own ... white-collar crime top October 2019… vOut = vOut.toLowerCase(); In both 2016 and 2018, the complaint states, over 96 percent of Young Living’s members lost money working for the company, with many totaling a loss of hundreds or even thousands of dollars. And in 2018, the company was ordered to pay $1.8 million in a lawsuit against a competitor that the judge determined was filed by Young Living in “bad faith.” Young Living is not a stranger to class actions either. Essential Oils in Lehi, UT. Double ouch. Jared Turner, Benjamin Riley, Mary Young, The Young Living Foundation, Inc. and Young Living Essential Oils, LC: Case Number: 1:2019cv00412: Filed: April 12, 2019: Court: US District Court for the Western District of Texas: ... 2019: DEMAND for Trial by Jury by Julie O'Shaughnessy. Young Living is a multi-level marketing company based in Lehi, Utah.Founded by Donald Gary Young in 1993, it sells essential oils and other related products.. 27-Jul-2020 at 15:21 GMT. Rather, the entire system is designed for one purpose: to recruit new Members to grow the illegal pyramid, which only benefits Defendant and those very few Members at the top.”. for (var i=0; i < aTags.length; i++) Keep in mind that it could take months or years for this lawsuit to reach resolution. The NAD decision is not the only legal and regulatory hurdle currently facing Young Living. According to O’Shaughnessy, more than 50% of new members in … - Last updated on Victim of 2019 botched raid cancels meeting with Lightfoot | … is actually an illegal pyramid scheme that thrives at the expense of its members. In 2019 the company was listed as the world’s 10th largest MLM with annual revenues of almost $2 billion by industry publication Direct Selling News​, which publishes an annual list. Subscribe, By Hank Schultz After joining, the new member allegedly pays a cash bonus to the “upline” member who recruited him or her and is then given the opportunity to earn commissions and certain bonuses by building a “downline” made up of new distributors recruited by the member and his or her recruits. “But most pernicious of all,” the lawsuit says, “is that Defendant’s immense wealth is derived from a vast, illegal pyramid scheme that has caused countless unwitting victims to lose substantial sums of money.”. After a 5 year court battle, Young Living's $350 million lawsuit against four former executives has been dismissed. The case further alleges that company founder Gary Young has also been the subject of some controversy, noting that he was prosecuted for practicing medicine without a license and once ran a now-shuttered “Young Living Research Clinic” in Utah where he allegedly employed a “quack physician” convicted of manslaughter. In 2016 the company ranked 20th on the list with a reported $1 billion revenue. Founded in 1993 by D. Gary Young, Utah-based Young Living is set up as a multilevel marketing (MLM) operation whose flagship product is essential oils, the case explains. This browser does not support PDFs. Rather than offering the ability to “create abundance,” Young Living has allegedly provided most of its members with nothing but an opportunity to lose money while lining the company’s pockets. Sign up to our free newsletter and get the latest news sent direct to your inbox. 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SAN DIEGO (Legal Newsline) – A California woman alleges she lost thousands of dollars in an alleged scheme run by Young This summer, the years-long lawsuit between Young Living and their competetor doTerra was thrown out, and doTerra was exonorated of all wrongdoing. 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. v. young living essential oils, lc d/b/a young living essential oils, the young living foundation, inc., mary young, jared turner, benjamin riley, In the case, Young Living alleged that doTERRA founders violated their employment contracts and stole trade secrets. Copyright - Unless otherwise stated all contents of this web site are © 2021 - William Reed Business Media Ltd - All Rights Reserved - Full details for the use of materials on this site can be found in the Terms & Conditions, Related topics: Learn more about the benefits of being a member! vOut +=', '; “Rather, this is the very definition of an illegal pyramid scheme. over 96 percent of Young Living’s members lost money working for the company, Last Updated on December 11, 2019 — 10:12 AM. Lightfoot, who won office in April 2019, later said she was informed by staff in November 2019 of emails but didn't have a recollection of them. In the NAD ruling, which was the result of a challenge by competitor S.C. Johnson & Son Inc, Young Living was directed to drop the ‘therapeutic grade’ claim on its products because the claim “conveys an unsupported message that the essential oils confer a beneficial healing physical or mental health effect on the body or mind.”, Young Living countered that it did not agree with that assessment, saying that the results of its consumer research show that end users are not inferring a treatment benefit from the term ‘therapeutic grade.’. According to the case, while the plaintiff claims to have lost nearly $2,000 participating in the defendant’s alleged scheme, Young Living, by contrast, racked in over $1.5 billion in sales in 2017. Like always, we’ll do our best to keep you updated when the time comes. In order to make money from the system, … NAD however evaluated the same consumer research and concluded that those some consumers could in fact be making a connection of treatment benefit. Typically, you don’t need to do anything to join a class action lawsuit. The case, which alleges that Young Living’s business model constitutes an illegal pyramid scheme, is now set to go to trial. In response, Young Living filed a lawsuit against doTERRA for stealing their “trade secrets” but the case was eventually dismissed and Young Living was forced to pay doTERRA’s almost $2 million in legal fees. Essential oils purveyor Young Living has been ordered to cease making ‘therapeutic grade’ claims on its products, according to a National Advertising Division … The Lawsuit Against $1.5 Billion Essential Oil "Scammer" Young … Please download the PDF to view it: Download PDF. var reg = new RegExp('\\W+', "g"); UPDATE 12/10/19: A new pyramid scheme lawsuit has been filed against Young Living in California federal court. Before commenting, please review our comment policy. The company sells a variety of essential oil-based personal care, aromatherapy and dietary supplement products. The … Filed in California federal court, the 33-page lawsuit claims Young Living’s promises of financial gain are “nothing more than a pipe dream” and that the company is actually an illegal pyramid scheme that thrives at the expense of its members. There’s potential to earn free products, transform your financial future, and bring life changing solutions to homes around the world. contact, 27-Jul-2020 The suit argues that despite Young Living’s promises that members can “take control of [their] future” and “achieve [their] dream of independence and security,” most members end up losing money instead of making it—the tell-tale mark of a pyramid scheme, the case says. 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