Young Living Pyramid Scheme Alleged In Recent Class Action Lawsuits

Two Young Living participants have filed class action lawsuits claiming the multilevel marketing company is nothing more than an illegal pyramid scheme.

They point to the company’s structure and the reality that participants can only make money if they recruit more members.

The participants say they and many others were particularly taken in by Young Living’s supposed spiritual component. The company is based around members selling essential oils to make “spiritual and material riches” that never pan out, the plaintiffs claim.

These two Young Living pyramid scheme class action lawsuits are not the only criticism that the company has garnered.

News sources have investigated the possibility that Young Living is peddling its essential oils as a way to fight the coronavirus. 

In the Young Living controversy class action lawsuits, the participants say the company misleads both its participants and the public. Though the company advertises that participants can make money by participating, the vast majority lose money while shelling out for monthly membership dues.

Julie O’Shaughnessy of Texas and Lindsay Penhall of California say they had agreed to buy a starter kit, which contained a range of essential oils and wellness products, for between $100 and $260.

The women say they then paid membership dues each month to receive essential oils they could sell at a premium.

The membership also supposedly allowed them to collect a commission off of new recruits and the sales of their recruits.

The plaintiffs noted they were also encouraged to “aggressively” recruit other people to the endeavor in the interest of making a profit. O’Shaughnessy said she found it difficult, but not impossible, to recruit new people.

O’Shaughnessy says she had purchased more than $4,700 in Young Living products, but only earned $385 from her work. The Young Living controversy class action lawsuit claims this was common with other participants, who were left with bottles of essential oils and little to show for their involvement with the company.

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.

According to O’Shaughnessy, more than 50% of new members in 2016 did not make money on any commissions. Instead, most members lost money instead of gained it, losing an average of $1,175 in 2016.

The two women say there was little opportunity to make money, though they were shelling out monthly fees to maintain their membership.

In their eyes, what makes Young Living a classic pyramid scheme is that the only way to make money is by creating a “downline,” collecting commissions off of people a member recruits.

They argue the essential oils are not the true way members make money, and instead just serve to confuse customers and members.

Allegedly, the company’s function is made all the more mystifying by its marketing and supposed links to spirituality and wellness. 

Recent news reports suggest the Young Living controversy is even larger, asserting that the company is continuing to mislead individuals by making false claims about the nature of the products.

According to recent accusations, the company might have advertised that its products may strengthen the immune system and ward off illnesses.

Critics worry the company is attempting to profit off the fear around the coronavirus and say the company is intentionally misleading the public.

However, Young Living has made statements distancing itself from any potential coronavirus-related claims and the Young Living controversy.

Business Insider reports the company has stated: “Since January 2020, Young Living has actively searched for and removed more than 1,500 improper COVID-related product or business opportunity claims made independently by members across social media and other channels, including freezing member accounts and terminating members to force member compliance,” implying that any potential messaging was the fault of the members, not the company.

Have you had someone try to recruit you into a multilevel marketing company? Share your experiences in the comments below.

Lindsay Penhall is represented by Christopher D. Moon and Kevin O. Moon of Moon Law APC.

The California Young Living Pyramid Scheme Class Action Lawsuit is Lindsay Penhall v. Young Living Essential Oils LC, Case No. 3:19-cv-02340, in U.S. District Court for the Southern District of California.

Julie O’Shaughnessy is represented by Nix Patterson LLP, Duggins Wren Mann & Romero LLP and DuBois Bryant & Campbell LLP.

The Texas Young Living Pyramid Scheme Class Action Lawsuit is Julie O’Shaughnessy v. Young Living Essential Oils LC d/b/a Young Living Essential Oils, Case No. 1:19-cv-00412-LY, in U.S. District Court for the Western District of Texas.

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