Before commenting, please review our comment policy. 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. Sign up to our free newsletter and get the latest news sent direct to your inbox. contact, 27-Jul-2020 function sanitize_gpt_value2(gptValue) 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.”. 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. If the case settles, anyone affected should receive notice (usually by mail) with instructions on what to do next. Regulation, Free newsletter 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. var reg = new RegExp('\\W+', "g"); vOut += aTags[i].trim().replace(reg, '-').substring(0,40); var aTags = gptValue.split(','); The company sells a variety of essential oil-based personal care, aromatherapy and dietary supplement products. You can find out more about the process here. 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. { 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. var vOut=""; According to the lawsuit, this isn’t the first time Young Living has come under fire for potentially shady business practices. for (var i=0; i < aTags.length; i++) Lawsuit Calls Young Living Essential Oils A “Pyramid Scheme”. 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.. Keep in mind that it could take months or years for this lawsuit to reach resolution. 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. $(document).ready(function() { The NAD decision is not the only legal and regulatory hurdle currently facing Young Living. Fourth District Judge … 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. 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: Young Living Essential Oils Reviews - Great Business in 2019 or … “This is not ‘abundance,’” the complaint scathes. is actually an illegal pyramid scheme that thrives at the expense of its members. vOut = vOut.toLowerCase(); See BBB rating, reviews, complaints, & more. Related tags: Despite being “well aware” of the 70/30 rule, Young Living, the case argues, encourages members to violate the rule and continuously purchase more products without having to provide proof that any sales have been made. Young Living, the $1.5 Billion Essential Oil Co., is a "Cult-Like … While there’s certainly a lot of science that backs up certain medicinal uses of essential oils, they … The company said it plans to appeal. 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. In order to make money from the system, … “In short,” the complaint reads, “this is not a system designed to sell product to those outside the pyramid. 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. 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… 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​​. 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.”. 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.’. Please download the PDF to view it: Download PDF. In the case, Young Living alleged that doTERRA founders violated their employment contracts and stole trade secrets. - Last updated on 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. 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. Essential Oils in Lehi, UT. DoTERRA was formed in 2008 by a fired chief operating officer of Young Living, David N. Sterling, and other … Essential oils purveyor Young Living has been ordered to cease making ‘therapeutic grade’ claims on its products, according to a National Advertising Division … In April 2019 Young Living was hit by a class action lawsuit. This browser does not support PDFs. UPDATE 12/10/19: A new pyramid scheme lawsuit has been filed against Young Living in California federal court. 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 class action lawsuit states that this kit includes one bottle of “stress away” essential oil, samples of other oils, an atomizer, and other resources for new members. 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. Essential oils purveyor Young Living has been ordered to cease making ‘therapeutic grade’ claims on its products, according to a National Advertising Division decision. The case, which alleges that Young Living’s business model constitutes an illegal pyramid scheme, is now set to go to trial. 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. } class action complaint page 1 of 36 2909581.3 united states district court western district of texas austin division julie o’shaughnessy, individually, and on behalf of all others similarly situated, plaintiff. 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. 27-Jul-2020 at 15:21 GMT. 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. 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The Lawsuit Against $1.5 Billion Essential Oil "Scammer" Young … 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.” ​. After a 5 year court battle, Young Living's $350 million lawsuit against four former executives has been dismissed. “Rather, this is the very definition of an illegal pyramid scheme. if(i!=(aTags.length-1)) return vOut; 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. 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. vOut +=', '; Victim of 2019 botched raid cancels meeting with Lightfoot | … Young Living lost that lawsuit last year; doTERRA argued the suit never had merit and Young Living should pay its legal fees. In 2018, the company ranked 15th with an annual revenue figure of $1.52 billion. In 2017, Young Living reportedly paid $760,000 after pleading guilty to the illegal trafficking of rosewood and spikenard oil in violation of the Lacey Act and Endangered Species Act. Subscribe, By Hank Schultz Double ouch. Essential oil, Essential oils, claims substantiation, Claims Through the painstaking steps of our proprietary Seed to Seal® process, we produce pure, authentic essential … v. young living essential oils, lc d/b/a young living essential oils, the young living foundation, inc., mary young, jared turner, benjamin riley, NAD however evaluated the same consumer research and concluded that those some consumers could in fact be making a connection of treatment benefit. To reach the level at which a member can earn the “riches” represented by Young Living is “near impossible,” according to the complaint, and would involve building a downline of “thousands” of recruits. } In 2012, Young Living accused David Stirling, Emily Wright, Justin Harrison, and Lillian Shepherd of breaking nonsolicitation agreements in their employment contracts. Subscribe 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 … I was so sure the ruling would go in Young Living’s favor, that this … 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. Not mentioned in the complaint are allegations that Young ran another clinic in Tijuana, Mexico where an undercover reporter was told he was suffering from cancer after he submitted fake blood samples taken from “a healthy 7-year-old, 20-pound tabby cat” and a chicken. Become a Member. This organization is not BBB accredited. In 2014, the company received a warning letter from the U.S. Food and Drug Administration in which the agency accused Young Living of promoting some of its essential oil products as unapproved new drugs for the treatment of all kinds of diseases, including Ebola, Parkinson’s disease, autism, diabetes, hypertension, cancer, multiple sclerosis, and dementia. Lawsuit has been filed against Young Living was hit by a class action lawsuit transform your financial future and... Newsletter Subscribe, by Hank Schultz contact, 27-Jul-2020 - last updated on 27-Jul-2020 at 15:21 GMT settles. 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