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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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189 thoughts onYoung Living Class Action Says Essential Oil Co. Is ‘Cult-Like’
Add me to this class action lawsuit PLEASE!
This lawsuit is frivolous and ludicrous, brought by an apparently envious, hateful, and unsuccessful woman. The facts are these: No one is obliged to purchase from Young Living. It’s just like any company in that you order products, and you receive them. (Pyramid schemes are where you pay and no product or service is involved.) You don’t order more than you need or want. (It is, in fact, against policy to stockpile.) Furthermore, no one is obliged to do the Young Living business. It’s just an option. In addition, Essential Rewards, the OPTIONAL monthly ordering program, can be cancelled at any time. And it is OPTIONAL even when doing the business!
Thanks for this feedback. Where you say it is “against policy to stockpile” can you please help me find where I can see this policy. I would like to be able to cite this in the future.
My uplines frequently bragged about stockpiling products that were frequently going out of stock.
Preys On innocent people with the worst structure and has all of the markers of a cult the founder was obviously mentally ill . Another money hungry Corp feeding dangerous oil use to build an empire when these oils can become toxic since they are concentrated and not safe for everyone and not regulated . Gullible people fall into predatory hands .
And are you still making a profit? These mlm businesses only make the owner & handful at top rich. You won’t make enough to live off of while giving all your money to products that won’t be used and losing friends & ,family because you harass them constantly to join. Its a sick scam that would be completely illegal except for a product that,they offer. Thats only difference. They sell “business positions positions” not products.
Clearly you didn’t see the cult youtube video.
There are a lot of holes in this biased article, please don’t take this article as fact and make sure to research the other side of the argument, before drawing conclusions. (Especially for something that there is no verdict yet!) Do this with I am about to say below too, healthy skepticism is a good thing!
Let’s be real. You won’t get paid for doing nothing, you have to put work in and this is hard work. You don’t need to sell this product when you become a member…When I decided to I was never been promised that I would make money, I was told it is possible, if you put in the hard work and that it won’t happen over night.
Plus, you don’t need to spend “thousands” of dollars to share with people. All you need is the starter kit to show people (which the one that come with just 1 bottle of Stress Away EO that’s listed in this article is $45, and it’s basically a membership fee for life, like a Sam’s Club membership, but a one time fee)
The only money I have put in, is a starter kit (the kit I got includes 12 oils, a diffuser, hand sanitizer, 2 Ningxia’s samples, household cleaner sample, roller top filaments and a product guide for $165 + $10 back in rewards points + a free 5ml oil that month), sending a small gift to my enrollees (which was my choice, to thank them) and my own orders- which I didn’t start spending the $100 to receive a commission until it was covered by my paycheck.
I enjoy the Young Living community and team I am a part of. I don’t expect to become a millionaire, but I personally know many people who earn a good income (with a lot of hard work) and have been able to quit their jobs to share Young Living full time.
Could it be that the company’s fees to become a member, rewards etc changed after this lawsuit date in 2016? I have not researched this, although it may explain why so many people have different experiences etc
No one should half to be required to pay 100 per month to make money..period. thats like paying your work a fee just because you work there..duh yall are making ly billionairs do your research
Add me
99% of the things said about the requirements to participate in the YL business model is false. I can’t figure how people count the money they spent on products as money lost. You received products for the money you spent. If you didn’t like the products or they did not work for you, you should not have continued to purchase. A person CANNOT build a business selling products they do not believe have value. If you tried to do that, you are delusional and only fooling yourself.
Add me.
I too, lost a lot of money, trying to meet the protocol. I Believed in some of the products. The cost of oils were over priced. No reward for the classes, compensation for personal cost.
add me