Is Young Living a Pyramid Scheme?

Were you victimized by Young Living? Tell us about your experience.

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

Do you have a problem with Young Living? Are you a little unsure of how the company works and now you’re wondering whether they are a legitimate company or pyramid scheme? Don’t worry, you aren’t the only one.

What is Young Living?

Young Living is an MLM based out of Utah that sells essential oils and related products. It’s been in operation since 1993 and was started by Donald Gary Young, previously convicted for practicing medicine without a license. 

Young Living Allegations and Lawsuits

The FDA issued a warning against the company in 2014. In this the company was advised that many of their essential oil products and the intended uses for which they were marketed were in violation of FDA rules. This included the products for treating serious conditions like heart disease, multiple sclerosis, cancer, Parkinson’s disease, autism, and viral infections including Ebola. The FDA noted that the company was marketing new drugs like cinnamon bark, Sandalwood, eucalyptus blue, and frankincense which were not generally recognized as safe and effective for the conditions prescribed on the company website and social media pages. These drugs have also not been FDA-approved. The FDA stated:

“Your products, “Thieves,” “Cinnamon Bark,” “Oregano,” “ImmuPower,” “Rosemary,” “Myrtle,” “Sandalwood,” “Eucalyptus Blue,” “Peppermint,” “Ylang Ylang,” “Frankincense,” and “Orange,” are prescription drugs as defined in section 503(b)(1)(A) of the Act [21 U.S.C. § 353(b)(1)(A)] for some of the claims made for them because, in light of their toxicity or other potentiality for harmful effect, the method of their use, or the collateral measures necessary to their use, they are not safe for use except under the supervision of a practitioner licensed by law to administer it.”

The warning also explains that their “products fail to bear adequate directions for use for all of their claims.”

A class-action lawsuit was filed against the company for deceitful recruitments and lies about the potential financial achievements that distributors could make. In this lawsuit it is claimed that Young Living told hundreds of thousands of distributors that they could achieve great riches just by participating however, cost distributors much more than they ever made. 94% of members made $0 a month from the company and the average monthly income for those who did make money was just $1 per month. When taking into account the money that consultants or distributors had to spend out-of-pocket, 97.5% of members actually lost money instead of earning money. In 2016 the average member lost $1,175. In 2018 89% of members earned only $4 for the entire year and when taking into account the money they had to pay out-of-pocket, 96.7% of distributors lost money rather than earning money. 

Why is Young Living Considered a Pyramid Scheme? 

People who join to be a distributor have to purchase a starter kit and that ranges from a basic to a premium kit that costs either $35 or $165 respectively. After joining, members have to pay a cash bonus to the person who recruited them under the auspices that when they recruit people below them, those people will give them the same type of cash bonus. 

The system promoted the recruitment of new members over that of selling their products. Pyramid schemes are notorious for emphasizing recruitment over the sale of good products and that’s what this company did. 

More importantly, in order for distributors to remain eligible to receive any commission from anyone in their downline, they had to spend hundreds of dollars every month on company products. Legitimate MLM companies will not require monthly purchases of products for the sake of monthly purchases of products.

What can I do?

If you have a problem with Young Living and their customer service hasn’t been very helpful, you still have options including consumer arbitration. We can help. 


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