BY: Rod Johnston | IN: Class Action & Commercial Litigation
Distributors within LifeVantage Corporation’s sales network are raising allegations that the company operates an unlawful multilevel marketing scheme that doesn’t deliver on promised earnings and has cheated them out of hundreds of thousands of dollars.
What is LifeVantage?
LifeVantage describes itself as “a burgeoning science-based nutraceutical company dedicated to helping people achieve healthy living through a combination of scientifically validated products and an attractive business opportunity.” Through a network of independent distributors, it markets its health and skin care products online worldwide and locally in the U.S., Australia, Canada, Hong Kong, Japan, Mexico, the Philippines, and Thailand.
LifeVantage products have been marketed for a range of illnesses and maladies including allergies, Alzheimer’s, autism, cancer, canine health, diabetes, Hepatitis C, Lyme disease, and psoriasis. Truth in Advertising, Inc. (TINA.org), an independent non-profit that investigates and exposes false advertising and deceptive marketing claims, has added LifeVantage to its list of companies that consumers have asked it to investigate. Protandim is the company’s flagship line of products, a combination of common herbal ingredients claiming to fight aging, improve sleep quality, and repair and rejuvenate damaged cells – claims that have not been evaluated by the U.S. Food and Drug Administration.
LifeVantage’s Alleged Pyramid Scheme
LifeVantage actively recruits distributors from among its customers and Preferred Customers (customers who choose to have product automatically shipped), promising various commissions and bonuses within its Elite Pro sales ranks. The number of independent distributors worldwide is approximately 65,000.
To become a distributor, an individual is required to complete an application and pay $50 for a Start Kit or $630 for a Full Product package. Distributors are required to maintain a monthly minimum Personal Volume (PV) to earn full commissions, and higher PV levels from sales to preferred and retail customers are eligible for bonuses.
Distributors also generate income by enrolling other distributors, then earn commissions on their enrollees’ sales.
It is believed that because distributors’ incomes are largely dependent upon the number of “downline” distributors they enroll – and not product sales – LifeVantage’s misrepresents its earning promises, which has allegedly caused thousands of distributors to lose millions for dollars beginning with their initial Start Kit purchase.
Are You a LifeVantage Independent Distributor?
Sommers Schwartz’s Complex Litigation Group consists of class action lawyers experienced in pyramid scheme and illegal multilevel marketing lawsuits. We are currently interviewing LifeVantage distributors who believe they were recruited with misleading and false statements promising unachievable earnings levels. Please contact us today if you wish to discuss your experience and the right to recover your losses.
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Rod Johnston is a member of the Complex Litigation Group, participating in the firm’s direct and class action litigation on behalf of those harmed as a result of wage and overtime violations and consumer fraud.