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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’
Most of the claims here are false. To become a wholesale member, you purchase a starter kit, which can cost as little as $45, and you gain wholesale pricing, 24% less than retail. You do not have to pursue building a business, even as a wholesale member. You do not and are strongly encouraged to not “aggressively” pursue new members. You are not required to join Essential Rewards, even if you are pursuing building a YL business. Commissions earned of less than $25 are paid as an account credit. There is no actual “loss” unless you are purchasing resources to help you build a business, and most Young Living members simply purchase the items for their own personal use. And there is never any guarantee of making an income. So funny, all the claims here!
To many people not earning money
Much better oils at non mlm price , about time this was shut down and save people lots of bucks
I was told from day one, I only needed to spend $50 per year to remain an active YL member. Essential Rewards is voluntary, and I happily participate. No one MAKES you purchase ANYTHING. I know several people quite successful in their YL careers, because they put the time and effort into it, as they would any other job/ business. YL products are top quality, if she was trying to sell them as a business opportunity and couldn’t, that’s on her, not YL.
There are too many untruths in this article to even begin to try and argue. Huge eye roll on this one.
Abdolute rubbish this one! My wife make over 2k last year hardly doing much more than just talking with her friends. We use the oils, but anyone who knows anything about young living knows there is so much more than just oils to buy from young living.
YL is no different than companies like Melaluca or Amway. Those companies require an enrollment fee for their starter kit. If you want to make money you can. I am a YL Essential Rewards member because it only makes sense. I love the product, use it everyday. I purchase every month itemslike tooth paste, cleaner, dog shampoo, etc. My reward points let me get extra stuff. I hate selling. Never have, never will. I lube sharing info aboutYL oils. It is fabulous, I ? my oils. Guilt like? Like the girl scouts during cookie season…lol
You can join for free and never but anything …this is hilarious.
Oh whatever! I’ve been a YL user for over 10 years. I was never pushed into one thing. I only signed up with the basic membership (was like $30 then) so I could buy it wholesale. Not once has it ever been anything but an educational and beneficial experience. I can tell you story after story of amazing results from use of the oils. I even tried other brands, none of which even compare to the quality of YL oils. This lawsuit is only about a person who used poor judgement and over spent what she couldn’t afford. I’m so sick of stupid lawsuits that only encourages people to not accept responsibility for their own actions.
I started years before 2016 with YL.
Lovely products. Believably healing when health is a concern.
A middle aged woman.
Pray, only Jesus heals!
Our own bodies heal….. Heart & flesh may fail….. Mortal life does cease!
Sing the song “Amazing Grace’s words & believe in God’s Grace!, but never BELIEVE in false prophets.
Unfortunately Pure Essential oils have labels with tiny tiny print.
Estrogen/Progesterone alternative, SHOCK WAVES, after using YL, you learn deceit thrives in every every sellers dictionary to protect their ASS, not help heal YOU, but profit off you in an Elitist World of Earthly Gardens of Eden in our Modern World.
It says has cancer causing substance in it.
Bag him bug, thought I found a CURE…….
This is such bs. Everything said in this article is false. You are not forced to sign up in ER. You are not made to buy the most expensive kit. I bought the $50 basic kit. I was never told it had to purchase a minimum of $100 when I signed up for ER. I started buy $50 a month. Only after I had a person under my line was I supposed to start ordering $100 a month and I sometimes don’t even do that. Her entire case is so laughable. Young Living is not nor has it ever been a “cult”. This lady is so far out there. She is an attention seeker.