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Is Medifast a Pyramid Scheme?

Were you victimized by Medifast? Tell us about your experience.

Before answering the question “Is Medifast a Pyramid Scheme,” make sure you understand the difference between an MLM and a Pyramid Scheme.

Have you used Medifast and now you have a complaint or problem with the company? Is customer service not proving helpful at all and now you’re wondering if they are a pyramid scheme? You aren’t the only one.

What is Medifast?

Medifast is a meal replacement program. It’s designed for weight loss and they provide ready to eat snacks and pre-packaged meals that are brought to your home. These meals include things like dehydrated meals, dried shake powders and snacks and they change based on your meal plan. They have very strict guidelines on how to use these meals as well as information on how to continue your particular diet when going out to restaurants and other educational materials.  You can also get support online through support groups and health coaches while undergoing the weight loss program.

Medifast Allegations and Lawsuits

A lot of the consumer complaints that have been lodged against the company has to do with the fact that they don’t like the food and when they try to return it they have to pay the shipping cost to have the food returned. Other customers have received orders that weren’t the right food and when they tried to return it and get the right food, customer service said they had to pay for the shipping to return the incorrect package.

A handful of other complaints have to do with customers who followed the program and lost significant weight very quickly because of the reduced caloric intake but then when they try to loosen those restrictions, they went back to their former eating habits and have battled with eating disorders ever since and fluctuating weight loss.

The company did pay a 3.7 million dollar settlement for their deceptive ads. The Federal Trade Commission charged them with violating an agency order that prevented companies from making unsupported claims about weight loss. There was no class action lawsuit but the FTC did stipulate that the company cannot misrepresent to consumers what level of weight-loss they will achieve and that it’s prohibited to make any statement about the weight loss and health benefits of their low calorie meal replacement program because there’s no scientific evidence to back it up. However, the settlement was in response to a fine and not money that would go to customers who were deceived by the program.

Why is Medifast not Considered a Pyramid Scheme?

This company is not considered a pyramid scheme because they focus on selling their products.  They have a range of products that are the focus of the company. There aren’t individual distributors whose income is contingent upon recruitment, there aren’t distributors who have to invest upfront and regularly in products that may or may not get sold. There is no initial cost for someone to get involved as an employee or a worker of any kind. The products are only sold online not in grocery stores but if you purchase a certain amount you can get free shipping. 

People who use the products pay a lot of money for just a 30-day allotment of pre-packaged meal replacement but purportedly that’s in exchange for the time you would spend going to and from the store in preparing the food yourself. And the biggest issue is that some people simply don’t lose weight using the product but that doesn’t mean it’s a pyramid scheme, it just means that for whatever reason it wasn’t effective for that person. Realistically these plans have severe calorie restrictions and that’s what causes weight loss which may or may not be a sustainable long-term weight loss option.

What can I do?

If you had a problem with being overcharged or not getting a refund, or any other issue and customer service from Medifast has not solved it, rest assured you still have options including consumer arbitration. We can help. 








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