Concerns About a Multi-level Marketing Scheme Operated by a Foreigner

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sabelotodo

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Mar 6, 2014
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I'm a US citizen and I live in a medium-sized Dominican city (I'm not mentioning which one, to preserve privacy). I recently came across a multi level marketing scheme from a company called USANA that is being promoted here by another US citizen. I've got concerns about it, so I'd like to know what the Dominican or international laws are surrounding the issue.

The man that is running this thing is recruiting private high school students for this, and playing it off as if he is a non-profit volunteer / missionary. The legitimacy of USANA is questionable, though it's technically legal in the US. He's also doing some things that seem to be a little bit shady, such as recruiting people who are 14 and 15 years old to participate in this (that would certainly be illegal in the US). While it's technically legal in the US, there are tons of lawsuits against it because of it's questionable business practices.

On a non-legal note; I have an ethical concern about multi-level marketing schemes being operated by US citizens. It seems like it's generally richer foreigners taking advantage of poorer Dominican citizens to make themselves richer. My concern is increased by the fact that he's doing this under the guise of doing good things or selflessly helping people and there?s a lot of emotional manipulation involved both for the US ?partners? that he is recruiting to support his endeavor and the DR ?entrepreneurs? he is getting to buy into this program. The people being taken advantage of have been my friends for several years and they are people that I care about. My conscience is telling me that something is not ok with this, and since I know about it, I feel that I can?t turn a blind eye.

I really appreciate your advice or thoughts about this issue. I'd like to know if there are any legal avenues I can pursue to help protect people. Thanks!
 
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mike l

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Sep 4, 2007
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What type of multi level marketing?

Herbalife and Tupperware are two types of multilevel marketing and provide a great source of income to many that live in 3rd world countries
 
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La Rubia

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Jan 1, 2010
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mike l said:
What type of multi level marketing?

Herbalife and Tupperware are two types of multilevel marketing and provide a great source of income to many that live in 3rd world countries
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Don't forget Avon.

I'm also wondering what it is he's having 14-15 year olds do?

If they are friends of yours, I'd try to convince them of the dangers. You'll have more luck in the shorter run.
 
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mountainannie

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Dec 11, 2003
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elizabetheames.blogspot.com
Amway is also big here.


If you have concerns, you can probably just print out a list of the various lawsuits against USANA and tell the kids to take them to their parents.

there are enough of these marketing schemes that are reputable without going for something that is shady... But the bigger issue is why target teens? And why get it mixed up with missionary work?

If I were in your shoes, I would talk with the parents and express my concerns.
 
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sabelotodo

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Mar 6, 2014
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La Rubia said:
I'm also wondering what it is he's having 14-15 year olds do?
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He's having them find US missionaries who will give them contact info of their friends in the states to call and try to sell product to as a part of supporting the missionaries' cause.
 
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sabelotodo

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Mar 6, 2014
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mountainannie said:
If you have concerns, you can probably just print out a list of the various lawsuits against USANA and tell the kids to take them to their parents.
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This is an idea I might try. A few of their parents are educated enough to care. Some of them are deadbeats though, and I doubt they'd do anything with such a list.
 
Xavier_Onassis

Xavier_Onassis

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Aug 6, 2006
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Multilevel marketing, as a rule, sucks. I don't think I consider Avon to be such a scheme, at least as it works in the US. I find it weird that religious organizations in the US are often closely related to pyramid and multilevel schemes.
 
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Mauricio

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Nov 18, 2002
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I'd be careful slandering a big company like USANA. I don't know how they do business but they are big and noted on NYSE. One of the biggest direct selling companies in the world.

Criticizing a guy who runs a multi level marketing business somewhere is one thing but calling a established multi million dollar company a semi-legit business is a whole different thing.
 
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greydread

Platinum
Jan 3, 2007
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From Corporatenarc.com:

USANA stands for, well we're not sure what it stands for.

We've looked at the USANA distributor corporate site as well as reading their founders message, their company history and their companies 'USANA Story' section.

However we were unable to locate the meaning of the USANA scam distributor acronym.

USANA scam , whatever it stands for, is a MLM or multi level marketing company based out of Salt Lake City in the United States .

We've heard quite a few complaints about the possibility of a MLM USANA business scam so we decided to see what distributors were saying about it.

It seems as if USANA distributors has quite a bad rep throughout the internet. A few people have coined it a 'cheap and greasy mlm occupation'. In fact much talk of the USANA multi level marketing business scam has been started here.

It must be noted that many of these distributors could be talking about the way companies like USANA and their employees make money.

As a typical Multi level marketing scheme USANA place a very high priority on distributor recruitment. It is important to sell their products but the more people you recruit to sell USANA products the more money the MLM Distributor Company will make.

A direct result of the USANA multi level marketing business model is that customer service and customer loyalty suffer immensely. Since the USANA MLM Distributor Company has so many distributors they have no way to keep track of how all their distributors sell their products or recruit new members.

It is a given that some USANA distributors will act unprofessionally with only the almightily recruitment on their minds. Although USANA may not endorse this conduct they cannot be absolved from some responsibility for their distributors.

If USANA scam choose a more legitimate, customer oriented, business model rather then choosing the convent multi level distributor marketing model a company like USANA would likely not be coined as the USANA business scam.
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sabelotodo

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Mar 6, 2014
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Mauricio said:
I'd be careful slandering a big company like USANA.
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This is a hilarious statement. Slander means making false statements. I have said nothing more than truth and opinion, there are no lies in what I've said. Slander also means that the false statements are made against an individual. Corporations, public figures and other non-personal entities cannot be slandered.

On the other hand, if I were making false claims about the guy running this, that could get me into big trouble.
 
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windeguy

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Jul 10, 2004
42,211
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USANA Health Sciences
1,882 followers on Google+
USANA Health Sciences, Inc., or USANA, is a Utah-based multilevel marketing company that produces various nutritional and skin-care products. Wikipedia
Stock price: USNA (NYSE) $72.24 -3.71 (-4.88%)
Mar 7, 10:30 AM EST - Disclaimer
Customer service: +1 801-954-7200
Founder: Myron W. Wentz
Founded: 1992
Headquarters: Salt Lake City, UT
CEO: Dave Wentz
Recent posts
What's Up, USANA? - Weight Loss, Nutrition, Health and Supplement News...
 
Xavier_Onassis

Xavier_Onassis

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Multilevel marketing depends on your selling your friends, and turning them into your sales lackeys. I know of no MLM company that sells anything that is not available in a store somewhere for less at a better quality, or both. Amway had a major recruiting drive here in Miami in the 1980's. I know of no one who was successful at peddling Amway. I attended one of their information meetings (of course, I did not know that it was MLM or Amway) and the whole thing sounded exceedingly fishy. I mentioned that there were no free samples, so the products could be evaluated, then I think I mentioned the word for a large piece of Egyptian funereal architecture and was invited to leave.
 
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Mauricio

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Nov 18, 2002
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sabelotodo said:
This is a hilarious statement. Slander means making false statements. I have said nothing more than truth and opinion, there are no lies in what I've said. Slander also means that the false statements are made against an individual. Corporations, public figures and other non-personal entities cannot be slandered.

On the other hand, if I were making false claims about the guy running this, that could get me into big trouble.
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Wrong. False accusations against a company are slander as well. In this case it would be libel, since it's written, but it's basically the same thing, you are defaming a company with your insinuations. But just go ahead since you know it all.
 
Xavier_Onassis

Xavier_Onassis

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While a company might THREATEN you with a lawsuit, they are unlikely to initiate one unless they believe that your "slander" is likely to be worth the trouble. I think you can say stuff like (ahem) "Amway sucks, because everyone I know who has tried it has lost money". USANA may be a giant corporation for you, but I have never heard of it.

Merely insinuating in general terms, for instance saying, "multi level marketing generally does not produce the results it promises" will never get you sued. Now if you are more specific and say something like "My pal Bob went to a USANA meeting and a couple of sales managers bludgeoned him with a dull meat axe, sauteed him in butter, and then grilled him until golden brown and ate him with a bottle of vintage Reisling, then you might get sued. Of course, this is entirely fictitious and I have no friend named Bob. But you get the idea.
 
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dv8

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Sep 27, 2006
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Xavier_Onassis said:
Merely insinuating in general terms, for instance saying, "multi level marketing generally does not produce the results it promises" will never get you sued. Now if you are more specific and say something like "My pal Bob went to a USANA meeting and a couple of sales managers bludgeoned him with a dull meat axe, sauteed him in butter, and then grilled him until golden brown and ate him with a bottle of vintage Reisling, then you might get sued. Of course, this is entirely fictitious and I have no friend named Bob. But you get the idea.
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his name was steve and he was chased with a lovely bottle of merlot?
 
Xavier_Onassis

Xavier_Onassis

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There are good reasons that Amway does not tell those invited to its recruiting meetings that they are Amway meetings. Multilevel marketing is a great idea for the guy at the top of the pyramid. It sucks for pretty much everyone else. It used to be that the best advertising that Mary Kay had were all those pink Cadillacs with the Mary Kay logo on them. Of course, the cars are leased, not owned, and lately I have seen Mary Kay logos on a humble Chevy Cruze.
 
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davetuna

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Jun 19, 2012
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Xavier_Onassis said:
Multilevel marketing depends on your selling your friends, and turning them into your sales lackeys. I know of no MLM company that sells anything that is not available in a store somewhere for less at a better quality, or both. Amway had a major recruiting drive here in Miami in the 1980's. I know of no one who was successful at peddling Amway. I attended one of their information meetings (of course, I did not know that it was MLM or Amway) and the whole thing sounded exceedingly fishy. I mentioned that there were no free samples, so the products could be evaluated, then I think I mentioned the word for a large piece of Egyptian funereal architecture and was invited to leave.
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actually I know a few people who have built successful businesses around MLM. the money is in the network and not so much the selling......great opportunity if you stick with it and build it right.

dave
 
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rubio_higuey

Gold
Feb 7, 2007
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There is a new MLM scheme going around called Wenyard ... you basically pay 500 Euros and up to join a virtual trading floor to trade virtual shares (game-like) and get option bonuses plus commissions on subscribing other people ... I still don't quite understand why people would join in ... most of the people that Whatsapped me say that you "invest money" (or they invest) so most people actually think it's some kind of brokerage platform.

So basically you are paying hard core cash to play a virtual trading game, and make money on others joining. I have already seen two SUV's with big stickers on their back windows.
 
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