Were you victimized by It Works? Tell us about your experience.
Have you been struggling with this company, and now you’re starting to think they are a pyramid scheme? Are you trying to get compensation because the company used deceptive sales tactics to mislead you, or you’re having billing issues?
It Works! is a company specializing in body products. They have a range of products related to Skin Care, nutrition, and body shape including things like green powders, skin care products and slimming body wraps. Products are sold by distributors called “wrapeneurs” and they make money through direct sale of the products and through the recruitment of new distributors who join their team.
The Better Business Bureau actually has an alert current on this company because they’ve received a pattern of complaints from consumers that all say they have tried to cancel with the business, but even after canceling the continue to receive products and additional charges. The Better Business Bureau also stipulates that there is a pattern of complaints about additional charges that consumers were not informed would be occurring as well as a cancellation fee. There have been complaints about consumers and never receiving refunds even though the company indicates that refunds are processed on the same day.
One former distributor has made public allegations against the company to warn those considering it. In these allegations a Knoxville distributor stated that she invested $99 in the company upfront and was told that she would make $1,000. This $99 was for the starter kit and a requirement to join the company after which she had to spend $80 per month on products for herself or to sell to others. She also had to endure additional cost for running her website and hosting wrap parties. Her commissions were based on how many loyal customers and distributors she was able to enroll.
She was told at national conferences that in order to make money she had to sell the entire line of products and wraps and they needed loyal customers who would Select Auto shipment memberships for regular, monthly memberships. Only those people who used the auto shipment Services would be considered loyal customers and it was this type of guaranteed recurring customer that earned more income for the distributors. The alleged benefit of signing up for this Auto shipment is to get a discount but you need at least three months of products and you must agree to the auto shipment in order to get the discount otherwise, if you cancel, you have to pay an additional $50 fee.
In this allegation she also makes it clear that the company had to promote a line of supplements that they called fat burners and were told to market it as a magic pill that people could take and then eat whatever they wanted.
It Works is considered a pyramid scheme because the money made by Distributors is based on long-term loyal customers and recruitment rather than general sales to the public. Pyramid schemes have an emphasis on recruitment over sales because they aren’t truly invested in selling the product but instead and getting immediate money from more people. A legitimate MLM will not give you income based primarily on the number of people you recruit. They also fall under the definition from the Federal Trade Commission of a pyramid scheme because they have portrayals of access success and money that can be made by joining the program which are untrue. Moreover those who do join in order to sell end up paying a great deal of money out of pocket for extra things like running the website, hosting the required parties, and making monthly purchases of products to sell. Legitimate MLM companies won’t force their Distributors to buy on a regular basis but instead will simply allow them to buy products once they run out of inventory and need more to sell.
If you have dealt with this company as a distributor or a consumer, and you have an issue that they haven’t dealt with or have ignored, you still have options including consumer arbitration.
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