USANA Health Sciences, Inc. (NYSE: USNA) is a multi-level marketing company that pays out commission to their associates who are suppose to have at least 5 customers. USANA admits that paying associates who do not have customers would technically be paying associates to recruit and acknowledge that doing so is illegal.
I have written a report that shows how USANA is paying associates to recruit and have asked USANA to disclose the number of active associates that received a commission check and of those how many are non-distributing associates.
Read The Report: USANA Watchdog Report on USANA - Paying To Recruit
When the wider-picture is examined, 'USANA,' is a classic, self-perpetuating, blame-the-victim 'MLM income opportunity' racket copied from the 'Amway/Nutrilite' original.
ReplyDeleteIn reality, the diversionary 'USANA 5 customer rule' (which has not been, and cannot be, enforced) has served no other purpose other than to prevent, and/or divert, investigation of a dissimulated closed-market swindle a.k.a. pyramid fraud, in which a never-ending chain of victims have been induced to make regular, losing, investment payments (in the false-expectation of future reward) and, in turn, recruit more victims to make regular, losing, investment payments (in the false-expectation of future reward).
These unlawful payments have been arbitrarily defined by the instigators of USANA as 'lawful retail sales,' but no quantifiable evidence exists to support this 'commercial' fairy story.
Classically, the 'USANA' fraud has been dissimulated behind effectively-unsaleable pseudo-medical wampum. Therefore, this diversionary 'rule' should be seen as an attempt to obstruct justice and, as such, it clearly forms part of an overall pattern of ongoing, major racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970 and clarified by subsequent US Supreme Court rulings).
David Brear (copyright 2013)
ex-silver director 2009
ReplyDeleteI just read the report!! the definition is clear. Why hasn't Usana been shut down?
Usana has caused many people I know life altering financial decisions and worse of all psychology effects!! During my time in Usana many of my downline and uplines even, have ruined their lives due to Usana. What is the FTC waiting for. Somebody up there read this and I will volenteer to give them everything I know about usana. Its so easy to have an under cover associate get into these trainings (brainwashing on saturdays) and record how they brainwash. I still have access to saturday trainings and I'm willing to bring Usana down. come on FTC do your job. I'm sure Watchdog will help as well.
Its no different than FHTM (which was recently shut down by the FTC)
ReplyDeleteWhistle-blower Joseph Isaacs, who was made famous by exposing the Fortune Hi-Tech Marketing (FHTM) pyramid scheme and fraud back in 2010 has just released his memoir called, “Skapegoat – the FHTM Blame Game Story” via Amazon at http://www.amazon.com/dp/B00C43JKQG
This compelling, true and personal, story is about a successful semi-retired 30+ year entrepreneur that turned whistle-blower after getting involved with an illegal Ponzi style MLM called Fortune Hi-Tech Marketing (FHTM) in 2009. Top FHTM leaders and its founder Paul Orberson tried to destroy his life after he developed a FREE Facebook style tool-set for the industry. Subsequent to FHTM receiving their 2nd cease and desist from Montana, he filed a complaint with the Kentucky BBB explaining their fraudulent ways, in an effort to get reimbursement for unwanted inventory. Shortly thereafter they make him the global scapegoat for everything bad happening to FHTM.
Mr. Isaacs was hit with a frivolous lawsuit claiming trademark violation for marks they never owned. The “fortune mark” is owned by Time, Inc. and FHTM was under an order to stop using it themselves. This was a foolish attempt to gag him and stifle his "Freedom of Speech" rights to prevent FHTM from being further branded as an "Illegal Pyramid Scheme". The stress of the harassing litigation caused multiple life-threatening heart attacks. Mr. Isaacs almost died in 2011 from the heart issues caused by FHTM. This story will keep you mesmerized by the deceit, sexual harassment, lies, judicial manipulation, influence peddling and the drama that unfolds over the next couple of years.
His campaign for truth-telling finally bears fruit when FHTM was shut down on the morning of January 28th, 2013 when the FTC and Kentucky AG raided the Fortune Hi-Tech Marketing corporate offices in Lexington, Kentucky. Employees were sent walking and all files were confiscated. Northern District of Illinois Federal Judge Darrah issues a temporary restraining order. Receiver Rob Evans and Associates was appointed.
"This is the beginning of the end for one of the most prolific pyramid schemes operating in North America," Kentucky Attorney General Jack Conway said. "This is a classic pyramid scheme in every sense of the word. The vast majority of people, more than 90 percent, who bought in to FHTM lost their money."
A far more intellectually-rigorous, and accurate, analysis of both the 'FHTM' and 'USANA' rackets, reveals that (just as in the case of the 'Amway/Nutrilite' original), other than an insignificant minority of santimonious schills at the top of these economically-incestuous pyramids, the so-called 'FHTM' and 'USANA' bosses (and their criminal associates) have been conspiring to hide overall, rolling loss/churn rates of effectively-100% for their so-called 'risk-free MLM Income Opportunities.'
ReplyDeleteSelf-evidently this is racketeering on a grandiose scale, and the US Federal Trade Commission (which has no powers to investigate, or prosecute, racketeers) has, therefore, been a significant part of the problem, and not the solution to it. Indeed certain former senior officials at the FTC, ought themselves to be facing racketeering charges in connection with denying the existence this American-spawned financial, and psychological, holocaust (with a small 'h').
In the final analysis, telling lies, or witholding key-information in order to take people's money, is universally defined as fraud which is a form of theft.
David Brear (copyright 2013)
Usana seems so shady. My boyfriend joined and would talk about it so I got curious but once I heard he needed to buy the products before anything the alarm bells started ringing. It doesn't help that I went to one of their events to tag along and it seemed like a cult gathering. He finally quit since recruiting is not his strong point but now he has product he can't sell stuck in his room. All I can see from this company is that it pushes you to sell/recruit your friends and family which really puts people off.
ReplyDeleteAaron Dinh and NEX. fake lies, fake stories, fake personality. Stay AWAY or they will take your money and your families money. Don't believe me? Learn the hard way and find out yourself.
Deleteask him: rented Lambo? million dollar club? how many has he personally recruited.
the answers will answer your future in this business. you can't even surpass him because he doesn't want you to. he wants to be center or attention. so forget about being a millionaire. lambo is a waste of money. help the poor not waste on nonsense materialistic things.
they have these pretty girls to lure you in. they don't want you. they want a pro pack and your families pro pack.
ruined lives, ruined industry.... manipulated fake stock prices to fool people.. retention rate is steady as it was in the 90s so how can it rise above 60$? easy because they read this blog. today everyone is smarter and researching online and know about MLM scams. as Jim Rohn would say talk to 10 and get 3 and you'll make a fortune. That was true in the 80's when people didn't know about MLM. Nowadays the saying is fool 1 and you'll fool their whole family.
want an advice? Go to college and work on a better future providing for your family and treat people well (not USE them). Or you can start an honest business that has real demand for the products with real needs/wants for the service/product.
Its COMMON SENSE, you need to BUY the products! How can you be an effective distributor if you yourself do NOT use the products..?!?
ReplyDeleteRECRUITING? Of course, there is no advertisement, endorser, commercials... Its all word of mouth advertising, sharing, referal marketing... Distributors themselves are WALKING ADVERTISEMENT!!
Amazed on how you maintain this BLOG only for USANA!!! How much are younpaid for to put such EFFORT with all those "research" that you do..
If I were you watchdog, I will just sue Dr Myron Wentz for putting up this company, you call SCAM!!! Anyways, you are backed up by your so called "references"
If distributors want to use the products, then why does USANA have to force them to purchase it in order to keep their business center "active" and be eligible for commission from their downline's own forced purchases? Most distributors do not sell the product - they sell the business opportunity instead. It's easier to convince someone they can become wealthy by signing up as a distributor rather than actually try to resell over priced dirt.
ReplyDeleteUSANA does advertise. In 2012 USANA's advertising expense was $3.9 million according to their SEC filings. That's a lot isn't it?
Are you talking about the AUTOSHIP? Of course, its a business!! How can USANA sustain the incentives for all distributors if there is NO product movement?! This is just FAIR. USANA is investing to Research and Product Development, and they have employees too.. So SIMPLE. Why you cant understand that? SIGH.
DeleteAlso, buy buying the products every month means USANA knows that all distributor are "actively" taking it or sharing the products. That's the VISION of USANA, in case you do not know.
AGAIN, I challenge you... Go to court and sue Dr Myron Wentz if you think that this is all SCAM!!
Try their HEPASIL, it has N-acetyl and L-cystine...its good for BRAIN neurons. I think you need it:)
-cherry the fruit
If USANA relied on whether or not the associate truly wanted to purchase at least $100 worth of product every 4 weeks, and there was not required minimum purchase in order to be eligible for commissions, then USANA would go out of business in just a couple months.
DeleteYou wrote "Are you talking about the AUTOSHIP? Of course, its a business!! How can USANA sustain the incentives for all distributors if there is NO product movement?! "
Easy, lower the price of the products and stop paying 43% of their net revenue out as commission bonuses which only the top 1% of associates make a profit from. USANA has had about 1.5 million associates join since they began in 1992. However, 1.485 million of them never made a profit. Great Business, eh!?
That would allow the ability to sustain the incentive for all their products by product movement to RETAIL CUSTOMERS. Right now, the movement only goes to the associate. The product is overpriced and is hardly ever retailed. Even top associates in the company admit that.
You wrote "USANA is investing to Research and Product Development"
$4.5 million investment into research and product development for 2012 is not something USANA associates should be bragging about. That's a measly 0.7% of their net sales. How about this, next time you tell someone how USANA invests in Research and product development, tell them how much was invested and what percentage of their net sales it was.
You wrote "buy buying the products every month means USANA knows that all distributor are "actively" taking it or sharing the products. That's the VISION of USANA, in case you do not know. "
Buy buying 100/200 Personal Volume Points worth of product every 4 weeks means USANA knows their fraudulent pyramid scheme being funded because almost all of the commissions paid out was funded from these mandatory 4 week purchases. USANA doesn't know if the associate is taking it, sharing it, or throwing it in the garbage - Nor do they even care.
In response to "Go to court and sue Dr Myron Wentz if you think that this is all SCAM!! "
It would cost millions in attorney fees to take on a lawsuit like that. And what damages would I be suing for? I can't just sue someone just because they are committing a crime. It's the FTC's responsibility to take on USANA. It's the attorney generals. It's the state of Utah.
USANA Watch Dog, do you own a business? A small store perhaps? Monthly, you have to pay utility bills, you have to keep your stocks for your business to keep it active, am I right? The same goes with USANA Business Center.. USANA never forced anybody to buy. You can opt out for Business Center (No Autoship) and just being a user will do. Whenever you need the product then you buy it. You are most welcome.
DeleteOne does not need to own a business to know what a fraud is. USANA forces their distributors to "personally purchase" over $1300 worth of product each year (Over $200 just to start) in order to participate in the compensation plan and keep the volume points from your downline's own purchases. Obviously one does not "need" to purchase the product every 4 weeks, but they won't get a commission and will lose all volume points they may have at the time. They'll be considered inactive and eventually purged from the distributorship.
DeleteBottom line - a distributor MUST personally purchase product. The Majority of distributors are "Non-distributing associates" and are forbidden (by USANA) to resell the inventory they have to purchase. This is "Inventory Loading" and is indicative of a pyramid scheme.
Tell me - what kind of business is it where you are forced to purchase inventory that you are not allowed to resell? Doesn't sound like a business to me. Sounds like a scam.
The Usana Opportunity is a Serious Business, End Of Story, not some pussy foot around 'geee I hope money just comes my way' business. The Usana Opportunity can be related to a $300,000 start up cost Franchise that you do need to work hard for and work consistently for. Usana does not force us Associates to purchase at all by the way. The tiny amount of money to keep 'active' is very generous of Usana...for me actually never enough...I have to place extra orders in to share products with 2 family.
ReplyDeleteUsana's pay cheques have saved my ass with Morgage and general bills because I treated it like a SERIOUS BUSINESS.
As with any network marketing opportunity if you want money out of it you need to get off your lazy ass and put some effort into it.
Network Marketing is a very unique creature, unless you are prepared to FULLY LEARN the systems, embrace the world of Network Marketing and become good at it than certainly run the other way.
P.S. Usana and any of my upline have never suggested that I should recruit loads of Associates and few customers infact the other way as the vision is for Health not wealth. If your friend did not earn good money with Usana it was probably because he/she was not a good example of health and did not SHARE health and was probably to $$$$$$ focused.
With Usana's amazing products it has been amazingly easy to acquire lots and lots of customers.
you said "I have to place extra orders in to share products with 2 family." did you mean "to 'sell' products with 2 families"? because i doubt you would actually just 'share' it with them...
Deleteand when you say "effort", is it effort in recruiting or actually selling the product?
and most of your statements makes me feel like im reading a script given by an associate's coach.
Samantha,
DeleteShare health? From my experience taking the Essentials had no affect on my health at all.
And after reading different articles on Usana and dealing with associates, so many lies are told to sell their products. The FTC should really stop this scam.
To Serious Business
ReplyDeleteThe retail price USANA products is so high that they are very hard to sell.
The profit margin is so low that the distributor cannot make a profit.
The Ebay price is 40 to 50% of the official retail price.
To make money in an MLM you must trick people into believing that is is a business opportunity, which it isn't. You have to sign up a down line and they must do the same. This makes you a dream seller, a huckster, and a fraud. This is a product based pyramid scheme.
You should be ashamed of yourself. How can you look at yourself in the mirror. If your customers read this blog, you will be in trouble.
It is hard to do the right thing. As you say is easy to the wrong thing.
Do you know who was put in your up line today?
Samantha, I agree with you!
ReplyDeleteThe uplines make more money because they have worked longer in developing their downlines + Preferred customer accounts. But this doesn't mean that the downlines cannot outgrow their uplines.
The Binary system allows downlines to support the upline to making money up until a certain level (when one business center is full). After that, the upline cannot make any more money than the 5000 points generated from that side. If the downline works harder and maximizes his own business centers with PC (so that you guys won't call this a scam), then the accumulated Business center volume points will turn out to be a greater income than that upline (should this upline choose not to work as hard).
Do you understand this? I can draw a picture if you'd like....although I don't think it's possible. If you can suggest a chat site or similar ways where we can discuss more in details and in faster speed, I would welcome the opportunity.
I'm a law student. I was never really convinced about the money that I am going to earn. During our final exams I was very sick and regret why I didn't take those supplements. Where the hell would I get all those nutrients that will surely boost my immune system?? Now Im a user all I want is to keep healthy and stay away from processed foods. I believe in their products and I do some research, being a license pharmacist (preparatory course) I strongly believe that each and every chemical component is what I need to survive my college of law since sleepless nights and meals not on time will weakened my immune system. Health is Wealth. I realized that when I have those wealth but I almost lose my health. It may be a scam if you invest with no products at all. Please be there with me (usana)til I graduate next year. I just want to be a lawyer for the poor ones.
ReplyDeleteXexel, you should try to lead a healthier lifestyle consisting of a good diet, exercise and sufficient sleep.
DeleteIf you were sick over your exam period due to stress or a lack of preparation and sleep, vitamin supplemets would not have helped. The source of the problem is WAY bigger than what USANA could offer.
Remember (as marked on the labels) vitamin supplements are only beneficial if your dietary intake is inadequate, and should not replace real food.
This comment has been removed by a blog administrator.
DeleteIf you want to post something, do not use fowl language. It will not be tolerated on this blog. I almost let this one by, but you had to end it with "#&(@ sake, ..."
DeleteFrom what is written here and everywhere else this looks like a scam with a capital S. The product might be good but if you're telling me you have to spend $110 per month just to stay 'active' geez stay well clear!
ReplyDeleteTo be eligible for comission is the better phrasing. I do understand that this investment may not make sense if you are not using the products, but if you do, this should not be a problem. First rule in a business if believing in the product, in this case I may say, given all the yays and nays in this blog, through your own experience.
DeleteAt least $110 EVERY 4 weeks depending on the country. In Australia it's $185 every 4 weeks.
ReplyDelete$185 every 4 weeks?! That's heaps lol.. I didn't realise that was a mandatory requirement to be a distributor.
DeleteNo wonder people I know in Sydney have so much USANA product (essentials, fish oils, probiotics, nutrimeals, rev drinks) in their pantries.
These products start to stockpile when they don't eat/drink them all within the standing order period lol... I mean taking 8 essentials per day is a big effort in itself lol
Did you ask them how they find the product? Afterall, it is an effort indeed (coined term is pill fatigue).
DeleteThe ones that have left USANA do not stay as customers. So I imagine that the products are nothing special.
DeleteThe ones that are still active associates still tell me how wonderful USANA is and try to get me to be a customer.
They all have left over product from one month to the next. You miss popping a few pills a couple of days and you will have excess pills the next month lol...
And I'm sick of getting offered the Rev drink. It tastes like Borocca. Disgusting.
I'm not sure what your real purpose in here for wasting your time trying to pin down a company that has helped millions of people, donated much for charities, created charity hospitals for the oppressed and war torn areas, maintained people's good health and much more goodness than bad. What have you really done to help yourself, your family, your country and the world? If you are doing better than what USANA does then congratulations... What's with all that negativity in you... Why waste time researching and spending too much and for what purpose? With all the things you said and wrote here, I'm wondering how much did they really pay you to post this?
ReplyDeleteretepimage83@hotmail.com
I make the same amount of money writing these articles as the majority of USANA distributors make in commissions - absolutely nothing!
DeleteDo you have anything in mind to suggest what kind of business should I involve with?
ReplyDeleteOne that does not encourage signing up new sales representatives over retailing product. In USANA and pretty much every other Multi-Level Marketing company, the primary focus is recruiting. The majority of USANA's net sales each quarter comes from new sales reps who have just joined and had to purchase over 200 PSV to activate their business center(s). Many of them buy the $1200 professional pack. 80% of these new distributors will drop out within their first year.
DeleteInvolve yourself in a company where the success rate is very high rather than very low. In USANA, 99% of its sales reps do not even make a profit. That's worse than a simple product-less binary pyramid scheme where 90% of people do not make a profit. Sad to say, USANA is worse than the classic pyramid scheme.