Is Younique a Pyramid Scheme?

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

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

Have you dealt with this company in the past but now find yourself in the middle of a problem that they won’t solve? Are you wondering now if maybe these problems are indicative of a pyramid scheme? If so, you wouldn’t be the first.

What is Younique?

Younique Products is a company that offers a range of skincare and cosmetics products such as mascara, self tanner, face masks, face serums, lipsticks, moisturizers skin cleanser, and more. The company was started in 2012 with products that are allegedly inspired by nature, none of which have been tested by the FDA. The products are sold by distributors referred to as independent presenters who present the products to others. Their flagship product, the most popular is the Moonstruck 3D fiber lashes mascara which is said to enhance your eyelashes.

Younique Allegations and Lawsuits

A class action lawsuit was filed against the company in 2017 alleging that they used deceptive marketing practices for one of their mascara products, Moonstruck 3D fiber lashes. They stated that the product was composed of 100% natural green tea fibers but in reality it contained zero green tea leaf fibers and was instead made of ground-up nylon. The company responded to this particular lawsuit by including a clause to their new independent presenter agreement forbidding any presenter from joining an existing or future class action lawsuit against the company.

The BBB has seen many complaints, even though the company has an A+ rating. These complaints have quite a bit to do with billing and collections issues, specifically returned items that have yet to be refunded, issues with shipping, and other account/financial problems.

Why is Younique not Considered a Pyramid Scheme? 

It costs $99 to sign up, but beyond that there are no stipulations that you have to purchase a certain amount of product every month or every year, nor are there requirements for attending different events and otherwise paying out of pocket. They do sell real products with an emphasis on their products including makeup and skincare products. They also don’t emphasize recruitment over the sale of their product line, indicative of a legitimate MLM company.

There are no income disclosure statements offered by the company, and legal MLM companies typically provide income disclosure statements. Therefore it is currently impossible to determine any discrepancies between what the company claims a distributor can make and what distributors are actually making. This is not a good sign but it’s not proof that they are pyramid scheme.

They also have deceptive sales and marketing tactics but thus far these have legally been tied to the products and not to the way the company is run.  This, again, might not make them the best company on the market but it does not make them a pyramid scheme.

What can I do?

If you have dealt with this company as a seller or a consumer and brought your complaint to the attention of the company, but they aren’t doing anything about it, you still have options including consumer arbitration.  


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