that the financial success of its members is “overwhelmingly dependent” on their recruitment of new members rather than the sale of products. The Young Living pyramid scheme class action lawsuit cites Young Living’s 2015 income disclosure statement, which reported that members made an average of $30 in 2015 and $25 in 2016. dataLayerNews.related_tags = sanitize_gpt_value2("Essential oil, Essential oils, claims substantiation, Claims"); According to O’Shaughnessy, more than 50% of new members in … “In short,” the complaint reads, “this is not a system designed to sell product to those outside the pyramid. }); 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. Please download the PDF to view it: Download PDF. Young Living, the $1.5 Billion Essential Oil Co., is a "Cult-Like … Subscribe, By Hank Schultz NAD went further to say that Young Living did not submit sufficient scientific evidence to back claims that its essential oils: Young Living issued a statement in which it said it “disagrees with, and will appeal to NARB ​(National Advertising Division Review Board), NAD’s failure to credit valid survey data and published research in support of ‘therapeutic grade’ claims and claims that certain, carefully formulated products promote stability, calmness, relaxation, sleep, stress and tension relief, clarity, focus, energy, rational decision making, and alertness.” ​. Young Living Essential Oils Reviews - Great Business in 2019 or … 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. vOut = vOut.toLowerCase(); 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. 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 lost that lawsuit last year; doTERRA argued the suit never had merit and Young Living should pay its legal fees. DoTERRA was formed in 2008 by a fired chief operating officer of Young Living, David N. Sterling, and other … The National Advertising Division is part of Better Business Bureau’s National Programs. In April 2019 Young Living was hit by a class action lawsuit. 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. 27-Jul-2020 at 15:21 GMT. 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. 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. 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. You can find out more about the process here. According to the lawsuit, the median monthly income of 94 percent of Young Living’s members in 2016 was $0, with the average monthly income amounting to a “dismal” $1. “This is not ‘abundance,’” the complaint scathes. Erin works primarily on ClassAction.org’s newswire, reporting on cases as they happen. Because they are classified as independent contractors rather than employees, members must shoulder the cost of traveling to Young Living conferences, organizing sales events, and paying for employment taxes and health insurance, the suit explains. Learn more about the benefits of being a member! The … The company was named as the defendant in another proposed class action lawsuit filed in April 2019 over similar allegations as in the one detailed here. The Lawsuit Against $1.5 Billion Essential Oil "Scammer" Young … Related tags: 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.”. - Last updated on Though not all MLM businesses are illegitimate, the lawsuit argues Young Living exhibits the “defining characteristic” of an illegal pyramid scheme—that the financial success of its members is “overwhelmingly dependent” on their recruitment of new members rather than the sale of products. Young Living is not a stranger to class actions either. 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. Essential Oils in Lehi, UT. According to the lawsuit, this isn’t the first time Young Living has come under fire for potentially shady business practices. 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: Essential oil, Essential oils, claims substantiation, Claims The judge ruled that Young Living pursued the lawsuit in bad faith. April 19, 2019. Sign up to our free newsletter and get the latest news sent direct to your inbox. $(document).ready(function() { over 96 percent of Young Living’s members lost money working for the company, Last Updated on December 11, 2019 — 10:12 AM. There’s potential to earn free products, transform your financial future, and bring life changing solutions to homes around the world. This organization is not BBB accredited. Free newsletter Not every company chooses to submit financial information for the assembly of the list every year, and Young Living was not listed in the 2020 version. { 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. According to the class-action complaint, which seeks more than $5 million in damages, Young Living’s … Typically, you don’t need to do anything to join a class action lawsuit. This summer, the years-long lawsuit between Young Living and their competetor doTerra was thrown out, and doTerra was exonorated of all wrongdoing. After a 5 year court battle, Young Living's $350 million lawsuit against four former executives has been dismissed. April 2019: A class-action lawsuit was filed against Young Living and three of its executives alleging that the MLM company is a pyramid scheme and that members are rewarded for recruiting others to join instead of selling … If the case settles, anyone affected should receive notice (usually by mail) with instructions on what to do next. Victim of 2019 botched raid cancels meeting with Lightfoot | … This time a California woman alleges she lost thousands of dollars in an alleged scheme run by Young Living Essential Oils in its effort to recruit distributors. for (var i=0; i < aTags.length; i++) Double ouch. Young Living is a company that flaunts the belief that essential oils, which are popular folk remedies, can be useful for curing everything from the common cold to ebola. According to a proposed class action lawsuit filed this week, Young Living Essential Oils, LC sells not just essential oils, but a “convincing lie” that has deceived recruits into believing they could transform their financial futures by signing up with the company as distributors. In April, the company lost a bid to force a class action lawsuit filed in California to go to arbitration​​. See BBB rating, reviews, complaints, & more. NAD cases are mostly brought by competitors, but the organization also independently reviews claims, especially recently in regards to the many products popping up that are making coronavirus claims​​. Before commenting, please review our comment policy. UPDATE 12/10/19: A new pyramid scheme lawsuit has been filed against Young Living in California federal court. Young Living are quite protective of this “seed to seal” process, having gone so far as to file a lawsuit against rival essential oil opportunity doTerra in 2013. The NAD decision is not the only legal and regulatory hurdle currently facing Young Living. 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. NAD however evaluated the same consumer research and concluded that those some consumers could in fact be making a connection of treatment benefit. “Rather, this is the very definition of an illegal pyramid scheme. 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In the case, Young Living alleged that doTERRA founders violated their employment contracts and stole trade secrets. In 2016 the company ranked 20th on the list with a reported $1 billion revenue. 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. is actually an illegal pyramid scheme that thrives at the expense of its members. vOut += aTags[i].trim().replace(reg, '-').substring(0,40); 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.. And Defendant’s misleading and deceptive representations concerning a consumer’s ability to earn income does not only violate Defendant’s self-professed values—it’s unlawful.”. 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