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Young Living

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This is an old revision of this page, as edited by CircularReason (talk | contribs) at 04:12, 14 January 2019 (→Company: simplified changes on the basis of Rhode Island's critiques of previous edits. Tried to correct outdated citation and biased presentation of information. Not a YL employee but am familiar with the model.). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Young Living
Company typePrivate
IndustryMulti-level marketing
Founded1993 (1993)
FounderDonald Gary Young
Headquarters
Lehi, Utah
,

United States
Area served
International
Key people
Mary Young (CEO)[1]
ProductsEssential oils, home products

Young Living is a multi-level marketing company based in Lehi, Utah that sells essential oils and other related products. The company was founded in 1993 by Donald Gary Young,[2] a controversial figure previously convicted of the unlicensed practice of medicine.[3]

In September 2014, the U.S. Food and Drug Administration warned Young Living against marketing its products as treatments or cures for Ebola virus,[4][5] and other conditions, including "Parkinson’s disease, autism, diabetes, hypertension, cancer, insomnia, heart disease, post-traumatic stress disorder (PTSD), dementia, and multiple sclerosis, that are not amenable to self-diagnosis and treatment by individuals who are not medical practitioners."[6]

Company

Young Living operates as a multi-level marketing company where customers may simply buy products or pay to join the company as "Distributors." While most of Young Living's active customers join in order to receive the discount and do not actively work as distributors,[7] those who do "can sell directly to customers and earn commissions on sales to distributors recruited into a hierarchical network called 'downlines'."[2]

Distributors who do rise in ranks and commissions depending on the volume of products sold by themselves and those who have signed up under them. The 2017 disclosure reports earnings ranging from $15 per month to upwards of $20,000 per month.[8]

Prohibited marketing claims

In September 2014, the U.S. Food and Drug Administration warned Young Living against marketing its products as possible treatments or cures for Ebola virus,[4][5] and other conditions, including "Parkinson’s disease, autism, diabetes, hypertension, cancer, insomnia, heart disease, post-traumatic stress disorder (PTSD), dementia, and multiple sclerosis, that are not amenable to self-diagnosis and treatment by individuals who are not medical practitioners."[6] The letter named specific essential oil products, "such as, but not limited to, "Thieves," "Cinnamon Bark," "Oregano," "ImmuPower," "Rosemary," "Myrtle," "Sandalwood," "Eucalyptus Blue," "Peppermint," "Ylang Ylang," "Frankincense," and "Orange," are promoted for conditions that cause them to be drugs under section 201(g)(1)(B) of the Federal Food, Drug, and Cosmetic Act (the Act) [21 U.S.C. § 321(g)(1)(B)], because they are intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease."[6] The warning further stated that the marketing and distribution of these essential oil products as drugs without FDA approval are violations of the Act.[6]

Litigation

In August 2013, Young Living filed suit against doTerra for theft of trade secrets, alleging that the company had recreated their production process illegally.[2][9] Chemist Robert Pappas, who has spoken at the conventions of doTerra, has said the oils, which were tested by the Centre national de la recherche scientifique, did not apparently match any oils sold by doTerra.[10] Additionally, Pappas has given a court deposition saying that Young Living utilized synthetic chemicals in some of their organic products.[11] Young Living lost the case in 2017[12] and in 2018 a judge ordered it to pay doTerra's legal fees.[13]

In September 2017 on a ruling against Young Living, the US Department of Justice announced a fine of $760,000 and guilty plea on federal misdemeanor charges for the illegal trafficking of rosewood oil and spikenard oil in violation of the Lacey Act of 1900 and the Endangered Species Act of 1973.[14]

References

  1. ^ "Local biz: New executives at doTerra and Young Living Essential Oils (Press release)". Herald Media. July 7, 2015. Retrieved July 18, 2015.
  2. ^ a b c Harvey, Tom (August 1, 2013). "Essential oils rivalry spills into Utah courts". The Salt Lake Tribune. Retrieved June 19, 2014.
  3. ^ https://news.google.com/newspapers?nid=1314&dat=19830310&id=6tkvAAAAIBAJ&sjid=qe4DAAAAIBAJ&pg=7124,4646687&hl=en
  4. ^ a b Ohlheiser, Abby (September 24, 2014). "FDA warns three companies against marketing their products as Ebola treatments or cures". Washington Post. Retrieved September 26, 2014.
  5. ^ a b Sepkowitz, Kent (December 5, 2014). "Honey Boo Boo, Snake Oil, and Ebola: The Weird World of Young Living Essential Oils". Daily Beast. Retrieved January 16, 2015.
  6. ^ a b c d Mitchell, LaTonya (September 22, 2014). "Warning Letter: Young Living". U.S. Food and Drug Administration. Retrieved November 17, 2014.
  7. ^ Monroe, Rachel (October 9, 2017). "Something in the Air". The New Yorker. New York: Condé Nast. Retrieved October 8, 2017. According to a public income statement, more than ninety-four per cent of Young Living's two million active members made less than a dollar in 2016, while less than one-tenth of one per cent—that is, about a thousand Royal Crown Diamonds—earned more than a million dollars.
  8. ^ "Income Disclosure Statement Forms | Young Living Essential Oils". www.youngliving.com. Retrieved January 5, 2019.
  9. ^ "Young Living Essential Oils, LC (Plaintiff) v. doTERRA, Inc., et al. (Defendants)" (PDF). United States District Court for the District of Utah Central Division. July 18, 2013. Retrieved August 20, 2014.
  10. ^ Markosian, Richard (August 21, 2014). "Report Used in Young Living Farms Case Against DoTERRA Suspect". Utah Stories. Retrieved September 6, 2014.
  11. ^ Keeson, Arvid (August 15, 2014). "Damning Evidence That Young Living and DoTERRA's Essential Oils are Adulterated". Utah Stories. Retrieved September 6, 2014.
  12. ^ Harvey, Tom (July 17, 2017). "Utah jury finds doTERRA creators did not breach contracts after leaving Young Living Essential Oils". The Salt Lake Tribune.
  13. ^ Carlisle, Nate (July 12, 2018). "Judge finds Young Living acted in 'bad faith,' orders it to pay doTERRA $1.8 million". The Salt Lake Tribune.
  14. ^ "Essential Oils Company Sentenced for Lacey Act and Endangered Species Act Violations to Pay $760,000 in Fines, Forfeiture, and Community Service, and to Implement a Comprehensive Compliance Plan". US Department of Justice. September 18, 2017. Retrieved September 20, 2017. Several company employees and contractors harvested, transported, and distilled rosewood (Aniba roseaodora or Brazilian rosewood) in Peru and imported some of the resulting oil into the United States, through Ecuador. The importation of illegally harvested wood and timber products harms law-abiding American companies and workers and threatens forest resources around the world
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