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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’
If Young Living is supposed to be a cult-like then Doterra is also and any other product or company that pays an incentive.. Mary Kay, Avon and so on… Sounds to me this is head hunting for free an easy money
I don’t get why this is an issue. All of the MLM businesses are the same. DoTerra, Young’s competitor for example, does exactly the same! Why aren’t the lawyers going after them? Is it because Mr. Young is no longer with us & the defendant feels the company is an easy target? Something to think about. Why didn’t she just quit the co.?
I love Young Living products! If they were more affordable my house would be stocked up.
I agree with Vicki Smith. Also you don’t have to get into the Essential Rewards program, you can opt out anytime. I do $50.00 a month. I don’t have anyone under me. I DO LOVE THE PRODUCTS!!
Total nonsense! First you can join YL on your own, it doesn’t have to be from a member. Second, Premium Starter Kits come with DIFFUSERS not atomizers and 13 oils that are certainly more than samples. Third, Essential Rewards is an amazing program for personal growth as well as team growth. To earn commission a $100 monthly order is required but to personally enjoy the many perks a minimum $50 monthly order is required. Without all that, a $50 order within a year is all that is needed to maintain membership. I’ve been in this for my personal growth for 5 years and if someone wants to come along on my wellness journey they’re welcome. I live and love these gifts of nature and will defend the their powerful benefits so the uneducated become educated!
I have used YL oils since 1993. They are what they say they are and, in my experience, far more effective than many other oils on the market. The option to make a business from selling oils is just that, an option. If you want other essential oils, you are able to do so. Take your power and do that. Those of us who want to use YL have taken our power and done that. It’s that simple.
Very well said Karen Collins and very TRUTHFUL!!!
Totally false information. I am with YL because I love the oils. I have researched a lot of different essential oil companies and none compares with the YL as being 100%pure. No one makes you sign up for rewards and no one has ever said to me that I have to spend a ton of money to be a member. I am a member because I love the benefits of the oils and supplements that I get. Many people have become very successful in earnings because they put alot of effort into sharing and telling people about YL, they make it their job to share.
This is ridiculous… been loving their oils for more than 2 years, I wouldn’t trust any other company’s oils. And cult-like? That’s laughable! More family-like than anything! I’ve never been involved with a more caring, compassionate group of people! Even their customer service is beyond comparison.
Some greedy people trying to profit from lies. But it happens. Shameful.
This article is what is wrong with the world today. Too many people lying, misstating facts, and looking for easy money. There should be some accountability for articles being written. Get some integrity and if you ever write another article do some research so you have some semblance of truth. This article should be take down or you should be sued, fined, or otherwise shown the errors of your way.
Essential oils have become a buzz word in recent years. Now everyone knows about oils! Problem exists that most oils are bought in bulk from manufacturers in different countries..brought to the company selling them and that company puts their label on it. Similar to your big box stores. YL’ssignature is growing their own plants andthey bottle their own pure brand of oils.
As a Naturopathic doctor I have used YL for 3 yrs now..I recommended them to people as needed. This lawsuit is going because this person was not successful. I use the oils and do not recruit..the rep that signed her probably led her to believe Something different. Cult? Lool..she needs to consult her Bible for that..they anointed Christ’s body with oils after death as they do in many cultures today. These oils are very powerful and healing. The three kings allegedly brought Frankenscence/Myrr to the manger for baby Jesus. Those oils are used for bleeding/wound healing..those oils were probably for Mary.
Not sure how that suit will turn out..Cult..Lool