Is New U Life a Pyramid Scheme?

Were you victimized by New U Life? Tell us about your experience.

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

If you have dealt with this company in the past, you might not have been completely satisfied. Maybe you worried about the DEA’s control of human growth hormone and whether working for the company would be completely legal, or maybe you’re simply dealing with an accounting issue but now you’re worried. Is New U Life a pyramid scheme or do they just have problems with their customer service?

What is New U Life?

The company offers products that they claim will unify your mind and body and transform your life. The company sells its products through distributors and they have over 100,000 distributors. Their flagship product is the somaderm gel, which is currently the only FDA-registered, transdermal product that you can get without a prescription which contains only legal homeopathic growth hormone. 

New U Life Allegations and Lawsuits 

This company has an A+ rating from the Better Business Bureau with a relatively positive set of customer reviews and just over 100 complaints filed over the last three years. Most of the complaints have to do with delivery issues, refunds, and cancellation of orders. 

They claim that their flagship product was approved by the FDA, but it continues to be listed as an “unapproved homeopathic”.

This company has also made news because look how quick they are to sue their distributors. In one case, they sued Patti Sinclair for comments she had made. She had made two comments on MLM websites one of which said that there were great companies in the MLM industry effectively but this one ruined the reputation of the industry. For that she was sued.

They also sued Georgia Hargett. This lawsuit was over private Facebook messages that were sent to other distributors and a statement she made about how the company was a group of people who were deceptive. In both lawsuits the distributors allegedly breached their contract which stipulates:

“IMCs must not disparage, demean, or make negative remarks to third parties or other IMCs about New U Life, its owners, officers, directors, management, other New U Life IMCs, New U Life’s products, the Marketing and Compensation plan, or New U Life’s directors, officers and employees.”

Why is New U Life Not Considered a Pyramid Scheme?

In spite of issues with their products and the way the company is run, and the fact that they will sue you the minute you say anything publicly about them, they are not considered a pyramid scheme. They directly sell health and wellness products and the focus for distributors is to earn commissions and bonuses for selling the products first and foremost. A lot of their products were in high demand especially the anti-aging products and the weight loss products. Most of the complaints lodged against the company had to do with things like refunds and billing issues and not on deceptive or fraudulent practices as it related to the people working for them.

Moreover, in order to get started you don’t have to spend as much money as other companies. They are up front about the potential earnings (or lack thereof) on their published earnings summary on their website. They make it very clear that there’s no guarantee of success and that 95% of their distributors earned $0. They also don’t require you to invest in regularly purchasing inventory, another sign of a legitimate MLM.

What can I do?

Still, just because the company is not considered a pyramid scheme doesn’t mean that they aren’t without their problems. If you’ve had a problem with this company that you’ve tried to get fixed but customer service is getting you nowhere and the company doesn’t seem to be fixing anything, you have options including consumer arbitration. We can help. 


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