Young Living Class Action Says Essential Oil Co. Is ‘Cult-Like’

A recent class action lawsuit claims that Young Living Essential Oils is a “cult-like” pyramid scheme that makes false claims regarding its business model.

Young Living offers numerous essential oils for various semi-medicinal purposes. The company is structured as a multi-level marketing (MLM) organization, and relies heavily on recruitment and sales.

To join the company, new members reportedly have to purchase a basic starter kit from another member, costing between $100 and $260.

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.

In order to make money from the system, members are reportedly required to “aggressively” recruit new members and encourage their recruits to continue the trend.

The Young Living Essential Oils class action claims that to be eligible to receive commissions, members are required to enroll in the Essential Rewards program. This enrollment is reportedly maintained by purchasing a monthly minimum amount of Young Living products. This amount may be more than $100 a month.

Due to this complicated compensation scheme, members may assume that they will receive commissions if they satisfy all of the criteria. However, the Young Living class action says this isn’t true.

Young Living allegedly refuses to pay their members monthly commissions if they do not earn more than $25 in a single month. If the commission is less than $25, members are allegedly issued a Young Living credit which can be used to purchase more product.

Plaintiff Julie O’Shaughnessy argues that Young Living is a “cult-like organization” and an “illegal pyramid scheme” that violates the Racketeer Influenced Corrupt Organizations (RICO) Act.

The company allegedly makes false promises about the financial success and alternative lifestyle of selling Young Living Essential Oils.

“Of course, the promise of riches and alternative health remedies are simply the hook used to grow Young Living’s base of recruits, which is the true purpose of the organization and the source of immense profits—for the Defendants, not the Members,” the Young Living class action lawsuit claims.

These false promises allegedly led to hundreds of thousands of consumers such as O’Shaughnessy paying significant monthly payments to participate in the pyramid scheme.

The average loss for Young Living members in 2016 was reportedly $1,175, far from the successful lifestyle represented by Young Living.

O’Shaughnessy reportedly joined Young Living as a representative in 2015. She paid $100 to become a member and allegedly went on to pay thousands of dollars to participate in the alleged pyramid scheme, all of which is now “lost.”

The RICO class action argues that O’Shaughnessy’s experiences are not unique and may be common to individuals ensnared in the Young Living pyramid scheme.

O’Shaughnessy seeks to represent a Class of individuals who joined Young Living before Dec. 31, 2016 and enrolled as Essential Rewards members.

The Young Living RICO class action lawsuit seeks damages, injunctive relief, court costs, and attorneys’ fees.

The proposed Class is represented by Nix Patterson LLP, Duggins Wren Mann & Romero LLP, and DuBois Bryant & Campbell LLP.

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

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