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Success By Health Shut Down by FTC

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A federal court granted the Federal Trade Commission’s request to temporarily shut down an alleged pyramid scheme known as “Success By Health” and to freeze the assets of the company and its executives.

In a complaint filed in federal court, the FTC alleges that Success By Health and its executives James “Jay” Dwight Noland, Jr., Lina Noland, Scott A. Harris and Thomas G. Sacca are operating a pyramid scheme that uses false promises of wealth and income to entice thousands of consumers to join. The FTC alleges that the defendants have taken more than $7 million from consumers and pocketed over $1.3 million for themselves.

The FTC alleges that less than 2 percent of participating consumers received more money from the defendants than they paid to them, and that those lucky few averaged less than $250 per month—a far cry from the defendants’ promises of “financial freedom.” After accounting for the costs of the program, products and events, enrollees lost millions of dollars, the FTC’s filings allege.

The FTC also alleges that Jay Noland is violating a 2002 court order stemming from a previous FTC case related to another failed pyramid scheme. Shortly before launching Success By Health in 2017, the FTC alleges, Noland told an audience, “People ask what do I do. I said, ‘I build pyramids, man.’”

The FTC alleges that Success By Health’s flagship product is an instant coffee called “MycoCafe” that includes a mushroom that the defendants claim has health benefits. However, the FTC alleges that selling the product to coffee drinkers took a back seat to recruiting more affiliates. Company training materials allegedly show that affiliates were pressured first and foremost to recruit more affiliates. The company’s “Four Steps to Success” pointedly do not include any advice on selling the company’s product, but instead prioritize spending lots of money on products and recruiting others to “duplicate” the same spending and recruiting.

The defendants told affiliates that “the masses” could earn more than $1 million each month in sales commissions, the FTC alleges. However, the marketing materials allegedly failed to disclose that to achieve that level of commissions, an affiliate would have to recruit more than 100,000 affiliates working underneath them, the vast majority of whom would be losing money at any given time.

The complaint alleges that when affiliates did try to sell the product to other consumers, they found themselves in competition with the company itself. Success By Health sells its products directly to the public for the same “wholesale” price paid by affiliates, severely limiting affiliates’ ability to follow the defendants’ instructions to apply a 50 percent “markup” before selling to the public.

The Commission vote authorizing the staff to file the complaint and contempt order was 5-0. The complaint was filed in the U.S. District Court for the District of Arizona.

NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

Success By Health Shut Down by FTC

by Leave a Comment

A federal court granted the Federal Trade Commission’s request to temporarily shut down an alleged pyramid scheme known as “Success By Health” and to freeze the assets of the company and its executives.

In a complaint filed in federal court, the FTC alleges that Success By Health and its executives James “Jay” Dwight Noland, Jr., Lina Noland, Scott A. Harris and Thomas G. Sacca are operating a pyramid scheme that uses false promises of wealth and income to entice thousands of consumers to join. The FTC alleges that the defendants have taken more than $7 million from consumers and pocketed over $1.3 million for themselves.

The FTC alleges that less than 2 percent of participating consumers received more money from the defendants than they paid to them, and that those lucky few averaged less than $250 per month—a far cry from the defendants’ promises of “financial freedom.” After accounting for the costs of the program, products and events, enrollees lost millions of dollars, the FTC’s filings allege.

The FTC also alleges that Jay Noland is violating a 2002 court order stemming from a previous FTC case related to another failed pyramid scheme. Shortly before launching Success By Health in 2017, the FTC alleges, Noland told an audience, “People ask what do I do. I said, ‘I build pyramids, man.’”

The FTC alleges that Success By Health’s flagship product is an instant coffee called “MycoCafe” that includes a mushroom that the defendants claim has health benefits. However, the FTC alleges that selling the product to coffee drinkers took a back seat to recruiting more affiliates. Company training materials allegedly show that affiliates were pressured first and foremost to recruit more affiliates. The company’s “Four Steps to Success” pointedly do not include any advice on selling the company’s product, but instead prioritize spending lots of money on products and recruiting others to “duplicate” the same spending and recruiting.

The defendants told affiliates that “the masses” could earn more than $1 million each month in sales commissions, the FTC alleges. However, the marketing materials allegedly failed to disclose that to achieve that level of commissions, an affiliate would have to recruit more than 100,000 affiliates working underneath them, the vast majority of whom would be losing money at any given time.

The complaint alleges that when affiliates did try to sell the product to other consumers, they found themselves in competition with the company itself. Success By Health sells its products directly to the public for the same “wholesale” price paid by affiliates, severely limiting affiliates’ ability to follow the defendants’ instructions to apply a 50 percent “markup” before selling to the public.

The Commission vote authorizing the staff to file the complaint and contempt order was 5-0. The complaint was filed in the U.S. District Court for the District of Arizona.

NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

ISA Foundation Announces $601,000 in Grants to 21 U.S. Nonprofits

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Isagenix’s nonprofit foundation, the ISA Foundation, announced $601,000 in grants to help 21 U.S.-based 501(c)(3) nonprofit organizations.

The grants, which will help with projects ranging from nourishing food-insecure families to assisting communities after natural disasters, range from $5,000 to $100,000 and will aid people in the United States, Puerto Rico, Mexico, and Haiti. The 21 recipients include:

  • Emeril Lagasse Foundation: Based in New Orleans, Louisiana, the foundation’s mission is to create opportunities to inspire, mentor and enable youth to reach their full potential through culinary, nutrition and arts education. The ISA Foundation’s $33,000 grant will support a new program to teach healthy living habits to fatherless youth in New Orleans.
  • IDEA Public Schools: Based in Weslaco, Texas, IDEA provides high-quality prekindergarten through 12th grade education with an emphasis on low-income communities and ensures students have fresh, healthy food at school. The ISA Foundation’s $40,000 grant will help expand IDEA’s farming program, which infuses classrooms with hands-on learning focused on cultivating and eating fresh, locally grown food.
  • Partnership for a Healthier America: Based in Washington, D.C., the nonprofit’s goal is that all children—especially those disproportionately affected—will live healthier lives, growing up to be adults free from obesity, diabetes, heart disease and other chronic conditions. The ISA Foundation’s $50,000 grant will help the group expand its fresh food initiative to uplift the health and well-being of food-insecure children and families nationwide by providing more fresh food in food banks.

“Each grant cycle has brought tremendous nonprofit organizations to our attention, allowing us to partner with people who are as passionate as we are about providing much-needed assistance to communities around the world,” said Isagenix Chief Legal Officer and ISA Foundation Board Member Justin Powell. “We’re honored to help our latest grant recipients fulfill their missions and make a lasting impact.”

Since its inception in 2018, the ISA Foundation has awarded more than $2.5 million to nonprofit partners in the United States and Canada that align with the foundation’s focus on healthy nutrition and support for underserved children, wellness education for all, and aid for those affected by natural disasters.

 

ISA Foundation Announces $601,000 in Grants to 21 U.S. Nonprofits

by Leave a Comment

Isagenix’s nonprofit foundation, the ISA Foundation, announced $601,000 in grants to help 21 U.S.-based 501(c)(3) nonprofit organizations.

The grants, which will help with projects ranging from nourishing food-insecure families to assisting communities after natural disasters, range from $5,000 to $100,000 and will aid people in the United States, Puerto Rico, Mexico, and Haiti. The 21 recipients include:

  • Emeril Lagasse Foundation: Based in New Orleans, Louisiana, the foundation’s mission is to create opportunities to inspire, mentor and enable youth to reach their full potential through culinary, nutrition and arts education. The ISA Foundation’s $33,000 grant will support a new program to teach healthy living habits to fatherless youth in New Orleans.
  • IDEA Public Schools: Based in Weslaco, Texas, IDEA provides high-quality prekindergarten through 12th grade education with an emphasis on low-income communities and ensures students have fresh, healthy food at school. The ISA Foundation’s $40,000 grant will help expand IDEA’s farming program, which infuses classrooms with hands-on learning focused on cultivating and eating fresh, locally grown food.
  • Partnership for a Healthier America: Based in Washington, D.C., the nonprofit’s goal is that all children—especially those disproportionately affected—will live healthier lives, growing up to be adults free from obesity, diabetes, heart disease and other chronic conditions. The ISA Foundation’s $50,000 grant will help the group expand its fresh food initiative to uplift the health and well-being of food-insecure children and families nationwide by providing more fresh food in food banks.

“Each grant cycle has brought tremendous nonprofit organizations to our attention, allowing us to partner with people who are as passionate as we are about providing much-needed assistance to communities around the world,” said Isagenix Chief Legal Officer and ISA Foundation Board Member Justin Powell. “We’re honored to help our latest grant recipients fulfill their missions and make a lasting impact.”

Since its inception in 2018, the ISA Foundation has awarded more than $2.5 million to nonprofit partners in the United States and Canada that align with the foundation’s focus on healthy nutrition and support for underserved children, wellness education for all, and aid for those affected by natural disasters.

 

doTERRA Announces New Sustainable Shipping Solutions

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doTERRA recently announced that it is introducing new sustainable shipping solutions for North America in early 2020 as part of its ongoing commitment to sustainability.

According to the company, changes include replacing plastic bubble wrap and air pillows with paper options; using shipping boxes made from sustainable forestry that contain less corrugate and include more recycled materials; and printing with soy-based ink. Customers should expect to see changes in the next few months.

“Environmental stewardship is a vital component of doTERRA’s mission and is imperative to our customers,” said Corey Lindley, doTERRA president and founding executive. “We are innovative in how we protect the environment through Co-Impact Sourcing, which places the good of the environment over the company’s bottom line. We have a responsibility to care for the resources we have been given and continue to actively investigate and act on opportunities to improve our environmental stewardship. These sustainable shipping improvements are yet another step in our journey of fulfilling doTERRA’s commitment to the environment.”

In addition to implementing sustainability efforts directly at the supply chain source, doTERRA has found other ways to lessen its environmental impact through community development projects, global events, corporate buildings and internal initiatives. In 2018, doTERRA’s Global Convention made history by becoming the largest zero waste event in the State of Utah. In 2019, the company installed multiple electric vehicle charging stations at its global headquarters and opened a product center in Alaska that is reducing the amount of trucks, planes and fuel needed to service doTERRA’s regional customers.

“A key focus for doTERRA is continually assessing operations and innovating ways to be more environmentally friendly,” said David Stirling, doTERRA CEO and founding executive. “Our customers will continue to see improvements in the weeks, months and years ahead.”

doTERRA also is making it easier for customers to do their part. Resources were added to Source to You to encourage customers to properly recycle or up-cycle essential oil bottles, supplement bottles and packaging. United States residents can enter their zip code to find the nearest drop-off locations for brown/amber glass recycling.

doTERRA Announces New Sustainable Shipping Solutions

by Leave a Comment

doTERRA recently announced that it is introducing new sustainable shipping solutions for North America in early 2020 as part of its ongoing commitment to sustainability.

According to the company, changes include replacing plastic bubble wrap and air pillows with paper options; using shipping boxes made from sustainable forestry that contain less corrugate and include more recycled materials; and printing with soy-based ink. Customers should expect to see changes in the next few months.

“Environmental stewardship is a vital component of doTERRA’s mission and is imperative to our customers,” said Corey Lindley, doTERRA president and founding executive. “We are innovative in how we protect the environment through Co-Impact Sourcing, which places the good of the environment over the company’s bottom line. We have a responsibility to care for the resources we have been given and continue to actively investigate and act on opportunities to improve our environmental stewardship. These sustainable shipping improvements are yet another step in our journey of fulfilling doTERRA’s commitment to the environment.”

In addition to implementing sustainability efforts directly at the supply chain source, doTERRA has found other ways to lessen its environmental impact through community development projects, global events, corporate buildings and internal initiatives. In 2018, doTERRA’s Global Convention made history by becoming the largest zero waste event in the State of Utah. In 2019, the company installed multiple electric vehicle charging stations at its global headquarters and opened a product center in Alaska that is reducing the amount of trucks, planes and fuel needed to service doTERRA’s regional customers.

“A key focus for doTERRA is continually assessing operations and innovating ways to be more environmentally friendly,” said David Stirling, doTERRA CEO and founding executive. “Our customers will continue to see improvements in the weeks, months and years ahead.”

doTERRA also is making it easier for customers to do their part. Resources were added to Source to You to encourage customers to properly recycle or up-cycle essential oil bottles, supplement bottles and packaging. United States residents can enter their zip code to find the nearest drop-off locations for brown/amber glass recycling.

SeneGence Officially Opens in Hong Kong

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Global beauty brand SeneGence recently announced that SeneGence Hong Kong is officially open for business.

According to the company, several SeneGence skin care and color variations of the flagship product LipSense® will be available for Hong Kong Distributors. The full Distributor benefits model is now available after entering the market in October 2019.

“SeneGence’s global expansion is bringing products that really work and a career that really works to millions of women worldwide,” says Joni Rogers-Kante, founder and CEO. “It’s so exciting to have another country join the SeneGence family.”

SeneGence is known for LipSense, the original long-lasting liquid lip color. The company also has a full line of long-lasting, anti-aging cosmetics and skin care products formulated for a variety of skin types.

SeneGence Officially Opens in Hong Kong

by Leave a Comment

Global beauty brand SeneGence recently announced that SeneGence Hong Kong is officially open for business.

According to the company, several SeneGence skin care and color variations of the flagship product LipSense® will be available for Hong Kong Distributors. The full Distributor benefits model is now available after entering the market in October 2019.

“SeneGence’s global expansion is bringing products that really work and a career that really works to millions of women worldwide,” says Joni Rogers-Kante, founder and CEO. “It’s so exciting to have another country join the SeneGence family.”

SeneGence is known for LipSense, the original long-lasting liquid lip color. The company also has a full line of long-lasting, anti-aging cosmetics and skin care products formulated for a variety of skin types.

Kannaway Named Most Popular CBD MLM by HealthMJ

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Medical Marijuana, Inc. subsidiary Kannaway® has been named the Most Popular Cannabidiol (CBD) MLM Company in HealthMJ’s new 2020 list.

“As the first company to offer CBD products through a direct selling channel in 2014, it’s exciting to be acknowledged as a top leader in the industry still today,” said Kannaway CEO Blake Schroeder. “The CBD industry has experienced transformational growth over the past year, especially with the passing of the 2018 Farm Bill, and it’s been a tremendous experience to see Kannaway innovate and establish many of the quality and safety standards needed for the market to thrive.”

A recent Brightfield Group report shows that more than 50 percent of CBD consumers in the U.S. first learn about CBD from friends or family, making direct selling companies a perfect fit for the CBD industry. Nielsen projects the U.S. hemp-based CBD market could be a $2.25 billion to $2.75 billion industry this year. Also, Direct Selling News estimated that direct selling companies sold over $300 million worth of CBD-related products in 2018.

“As Kannaway continues to thrive in today’s rapidly growing CBD market, we are honored to be recognized,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “The company also received several exciting awards recently, including Stevie® Awards, BIG Awards for Business and Golden Bridge Awards, and we look forward to receiving more accolades in 2020.”

Kannaway Named Most Popular CBD MLM by HealthMJ

by Leave a Comment

Medical Marijuana, Inc. subsidiary Kannaway® has been named the Most Popular Cannabidiol (CBD) MLM Company in HealthMJ’s new 2020 list.

“As the first company to offer CBD products through a direct selling channel in 2014, it’s exciting to be acknowledged as a top leader in the industry still today,” said Kannaway CEO Blake Schroeder. “The CBD industry has experienced transformational growth over the past year, especially with the passing of the 2018 Farm Bill, and it’s been a tremendous experience to see Kannaway innovate and establish many of the quality and safety standards needed for the market to thrive.”

A recent Brightfield Group report shows that more than 50 percent of CBD consumers in the U.S. first learn about CBD from friends or family, making direct selling companies a perfect fit for the CBD industry. Nielsen projects the U.S. hemp-based CBD market could be a $2.25 billion to $2.75 billion industry this year. Also, Direct Selling News estimated that direct selling companies sold over $300 million worth of CBD-related products in 2018.

“As Kannaway continues to thrive in today’s rapidly growing CBD market, we are honored to be recognized,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “The company also received several exciting awards recently, including Stevie® Awards, BIG Awards for Business and Golden Bridge Awards, and we look forward to receiving more accolades in 2020.”

Stella & Dot’s 2020 Social Retail Rollout

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Consultants to pay one enrollment fee and access all three Stella & Dot brands.

Last October Jessica Herrin, Founder and CEO of Stella & Dot Family of Brands jumped on Facebook to announce their 2020 Social Retail initiative. “Social retail is our innovative go to market strategy where we are bringing together our family of brands into one powerful platform that allows an individual to sign up and essentially have their own shop where they can share all or just the brands they are passionate about,” said Herrin.

Currently, Stella & Dot has three brands in which consultants can sell: Stella & Dot, which is focused on fashion accessories and apparel, Keep Collective, meaning-based accessories, and EVER, their clinical skincare line.

“Social retail is our innovative go to market strategy where we are bringing together our family of brands into one powerful platform.” –Jessica Herrin, CEO & Founder, Stella & Dot

The Power of Choice

Herrin mentioned that in today’s consumer landscape people want the power of choice, and now Stella & Dot consultants can customize their business to their authentic love, and work it their way. “In a lot of social selling companies, ours included before this innovation, you had to sign up with one brand,” she said. “And then if you wanted to sell a different category you had to pay another enrollment fee where you would receive another  box of stuff, versus just easily being able to share what you love.” Now consultants will be able to sell all three brands with no extra fees.

“Do you love fashion? Enroll with Stella & Dot,” Herrin told viewers. “Do you love meaning-based accessories? Keep Collective is for you. Do you love clinical skincare? Then EVER, our best of beauty winning brand is exactly where you want to go enroll. Pick the product where you have the most passion.

Enhanced Mobile App

Herrin also mentioned they are about to launch an enhancement to their mobile app that will allow consultants to drag and drop items into a shoppable inspiration board that they can then text to customers. “You could have a personalized suggestion like, Hey this is the skincare regimen that I feel would be right for your skin type or here’s a personalized item that tells your story from Keep Collective,” said Herrin of the new app features.

“My dream, my mission, my quest is to help get more financially fierce business owners out there, more women with their own side gig and working on their own terms.”

Stella & Dot’s 2020 Social Retail Rollout

by Leave a Comment

Consultants to pay one enrollment fee and access all three Stella & Dot brands.

Last October Jessica Herrin, Founder and CEO of Stella & Dot Family of Brands jumped on Facebook to announce their 2020 Social Retail initiative. “Social retail is our innovative go to market strategy where we are bringing together our family of brands into one powerful platform that allows an individual to sign up and essentially have their own shop where they can share all or just the brands they are passionate about,” said Herrin.

Currently, Stella & Dot has three brands in which consultants can sell: Stella & Dot, which is focused on fashion accessories and apparel, Keep Collective, meaning-based accessories, and EVER, their clinical skincare line.

“Social retail is our innovative go to market strategy where we are bringing together our family of brands into one powerful platform.” –Jessica Herrin, CEO & Founder, Stella & Dot

The Power of Choice

Herrin mentioned that in today’s consumer landscape people want the power of choice, and now Stella & Dot consultants can customize their business to their authentic love, and work it their way. “In a lot of social selling companies, ours included before this innovation, you had to sign up with one brand,” she said. “And then if you wanted to sell a different category you had to pay another enrollment fee where you would receive another  box of stuff, versus just easily being able to share what you love.” Now consultants will be able to sell all three brands with no extra fees.

“Do you love fashion? Enroll with Stella & Dot,” Herrin told viewers. “Do you love meaning-based accessories? Keep Collective is for you. Do you love clinical skincare? Then EVER, our best of beauty winning brand is exactly where you want to go enroll. Pick the product where you have the most passion.

Enhanced Mobile App

Herrin also mentioned they are about to launch an enhancement to their mobile app that will allow consultants to drag and drop items into a shoppable inspiration board that they can then text to customers. “You could have a personalized suggestion like, Hey this is the skincare regimen that I feel would be right for your skin type or here’s a personalized item that tells your story from Keep Collective,” said Herrin of the new app features.

“My dream, my mission, my quest is to help get more financially fierce business owners out there, more women with their own side gig and working on their own terms.”