as well as other partner offers and accept our, Photographic illustration by Hollis Johnson/Business Insider; Source photograph via "Seed to Seal: D. Gary Young", Photo by Bryan Bedder/Getty Images for Young Living, Visit Business Insider's homepage for more stories. She said that, while she did write some of her own scripts, particularly because of differences between selling in Canada and the US, her uplines discouraged her from doing so and going off-script. FTC Chairwoman Creates Framework for MLM Regulatory Environment, What Social Media can Teach us about Consumer Protection, What You Should Know about Market America #MLM truthinadvertising.org/what-you-shoul…, The makers of Gatorade, recently challenged claims made by BodyArmor about its SuperDrink and Lyte sports drinks adlawaccess.com/2020/10/articl…, Grubhub Accused Of Adding 150,000 Restaurants To App Without Permission news9.com/story/5f9b2b3e…. A nationwide class-action lawsuit has been filed against Young Living Essential Oils, a Utah-based MLM that says it believes “everyone deserves a life of abundance and wellness.” The suit also names as defendants CEO Mary Young, COO Jared Turner and Chief Sales Officer Benjamin Riley, along with currently unknown alleged co-conspirators who are “high-level members of the Young Living pyramid scheme.”. "I just thought the stuff they were sharing was really interesting," she told Insider. The 36-page complaint goes to great lengths to explain how the vast majority of distributors lose money with Young Living, stating that “the overwhelming majority of Young Living Members lose money by paying far more into the scheme than they receive, while those few at the top reap untold riches, funded by all of the lower level Members paying into the system.” But its main allegation is that defendants are perpetuating a pyramid scheme. An MLM is considered legal as long as the main source of income for individuals derives from the sale of products — not the recruitment of people into the company. Even before Trump took office, MLMs had long been entrenched in the GOP. "This — since it was on a more personal level and I wasn't buying it at a store, but through someone nice and welcoming — I thought it must be great. The royal crown diamond, the highest of the 10 levels, can make more than $3 million annually. Tighe pointed to the FTC's "70-30 rule." In its statement, the Young Living spokesperson said: "Business Insider's allegations disparaging Young Living's business model reflect a flawed understanding of the company. Lavender Fields from Young Living Farms in Mona, Utah: photo by C. Wayne Fox. While Young Living members worked to keep their businesses afloat, the founders of the company earned a lavish lifestyle in a $1.3 million 10,000-square-foot mansion, trips to far-flung countries, and private planes. At Young Living, new members are often told by their "uplines" — the term for the person who recruits them into the company — that, with hard work, they too can live the dream of unlimited earning potential. The Company offers essential oils, diffusers, blends, and accessories for home, personal and animal care, and health. At first glance, the annual income that Young Living members could make seems impressive, according to the company's 2018 income-disclosure statement. She said her social-media pages were quickly flooded; every time she went online, anything and everything had to do with essential oils. As such, the average loss per Member in 2016 was approximately $1,175.” O’Shaughnessy seeks to represent a class of all Young Living distributors who joined the MLM prior to Dec. 31, 2016 and enrolled as Essential Rewards members. Sign up for Insider Select. FitzPatrick analyzed Young Living's 2018 income-disclosure statement for Insider. According to the class-action complaint, which seeks more than $5 million in damages, Young Living’s promises of attaining riches amount to a “pipe dream.” In late April, the Court of Appeals for the Fifth Circuit in Texas ordered the case to proceed in district court. But if they are already building a downline and earning a commission check, it's gonna be much harder. That option is popular among "preferred customers," the members who, by signing up, receive discounts on the products but, unlike the "business builders," aren't recruiting and earning commission. Yes, anybody can do it! She provided Insider with three Young Living scripts, one for a "Spring Cleaning Class" about how to use Young Living products to clean the home, a class on the benefits of the drink Ningxia Red, and a class called "Intro to Oils. Just fifteen minutes from all of the construction madness in and around Utah County, remnants of road-rage and stress fade away as the vast expanse of farms begins to unfold. Robert FitzPatrick, the president of Pyramid Scheme Alert, a consumer group, told Insider that Young Living's "preferred customer" designation doesn't make sense. Although by the way he practices business and treats family you’d never guess it. "The highest commission I ever got was $300," Cassie said. Receive news, updates and the latest ad alerts. When they recruit successfully, we'll call them 'salespeople' or 'business builders.'". In Young Living, that means attaining the coveted rank of "royal crown diamond.". But, for the majority of people, that dream never materializes. Members have unparalleled access to reach more people, post more videos and photos, and create virtual communities with others also trying to grow their own businesses and push out the products. The class also featured a section on why other oils are so much cheaper than Young Living's, concluding "most essential oils are sold more cheaply because companies cut corners. Jennifer, a 24-year-old stay-at-home mom in Vancouver, British Columbia, was scrolling through Instagram in late December 2017 when a post caught her eye. Young Living is also one of many DSA member companies that TINA.org investigations found making illegal disease-treatment claims and exaggerated income claims. Young Living’s very structure ensures that every new Member will almost certainly lose large sums of money, chasing the elusive promise of ‘abundance’ by trying to recruit additional new Members from an ever-shrinking pool of available candidates. Since then, it has become a world leader in essential oils sold throughout the world, including Canada, Japan, the United Kingdom, and the United States. In a statement, a Young Living spokesperson said: "Young Living disputes many of these claims as outdated, misleading, or exaggerated. After agreeing to the business, she told Insider, she was invited to even more Facebook groups — she was a member of at least 25, she said — which offered everything from mentorship on how to grow her business to brainstorming ideas on how to recruit new members. But a three-part Insider investigation involving interviews with more than 80 people and a review of thousands of pages of documents, obtained through records requests and from sources, about Young Living and its founder has suggested a dramatically different picture from the all-American story espoused by the company. Former members told Insider that they were often encouraged by their uplines to spend even more money than the required $50 or $100 — usually hundreds more — to unlock monthly promotions or earn free products. There are more MLMs per capita in Utah, the Mormon capital of the world, than any other state. Jennifer said she fell deep for Young Living during her year and a half with the company. The company's full statement to Insider can be read here. "You're not making any commissions on what you buy for yourself for your PV, but you're still having to buy that amount monthly, even if you're not moving it, even if you're not selling it, because otherwise you don't have the opportunity to make a commission on the sales of the people below you. Why would you need all these recruiters to sell something this good? will result in spiritual and material riches as long as they continue to solicit additional recruits to become Members of the Young Living family. "I have to make the best of it, to not make the same naive mistakes that I did, and just enjoy the time with your baby, or just focus on school or whatever it is, instead of on a MLM.". We are grateful that our members and customers appreciate Young Living and its products and practices. How Young Living lures desperate people into its multilevel sales network, where 89% of members make, on average, $4 annually. "After that, the new stores would take business from the old stores. It's shameful. Young Living is focused on sharing the highest quality, purest essential oils with the world and giving back to the communities in which we operate in whatever ways we can. He said that many MLMs are nothing more than money-transfer schemes in which those at the top get the most money on every transaction, while the majority of those involved make almost nothing. The lawsuit, which was filed April 12, further gives a shoutout to Young Living’s founder and Mary Young’s husband, Gary Young, who died in early 2018, stating that: Mr. Young’s colorful 30 year history as the founder and CEO of Young Living included such memorable moments as: (a) being prosecuted for practicing medicine without a license on multiple occasions; (b) running a now shuttered “Young Living Research Clinic” in Springville, Utah (subsequently replaced by a Young Living clinic in Ecuador) where he employed a quack physician convicted of manslaughter; and (c) allegations he nearly killed a patient through vitamin C infusions which caused renal failure. When Jennifer finally made the decision to leave Young Living, she initially felt depressed over losing the group of women she had spent most of her time interacting with. Account active ", Young Living; Samantha Lee/Business Insider. In truth, Young Living is nothing more than a cult-like organization falsely peddling the ever-elusive promise of financial success and an alternative lifestyle.". While Young Living members can attempt to make money by selling essential oils to their community, some former members and experts believe the real profit tends to come from recruiting others underneath you and earning commission from those downlines. ", Immediately, Jennifer was told by Young Living members that she should buy the company's Premium Starter Kit, which includes some of its most popular oils.

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