Bogus USANA Claims

USANA and their distributors make a lot of claims that are bogus. If you have heard a bogus claim that should be added to this list, email me and let me know. This list will grow as time permits.

(Claim) "This company sells vitamins. In a pyramid scheme there's no product." - USANA Spokesman Joseph Poulos
(A) Dozens of companies that offer product have been shut down for operating a pyramid scheme. Even the FTC acknowledges product-based pyramid schemes.

(Claim) Any organization (the coca cola company, ford motor company, the Government of the united states, etc, etc, etc) is a pyramid. just take a look at the structures and you will see it.
(A) Those organizations have structure in place. There are many different tasks that need to be accomplished for the company to function as a whole. Some tasks are more difficult and require extensive training and knowledge. Best of all, every employee in the company makes money. Now take a look at USANA's distributorship. All the distributors have the same task and require no training or education. Success is dependent on the size of one's downline instead of on actual sales to retail customers. Every participant is required to personally purchase over $110 worth of product every 4 weeks. 99% of participants lose money while only 1% profit.

(Claim) According to a 2004-2006 USANA survey, 17% of distributors joined to improve their financial future.
(A) According to the Direct Selling Association (DSA), a 2002 national MLM survey shows that the primary reason 67% of people sign up in MLM is to make money. This completely contradicts USANA's internal survey. I believe 100% of USANA distributors joined with the primary intent to make money, otherwise they would only be preferred customers. Both distributors and preferred customers get the product at the same price. However, distributors are required to purchase over $110 worth of product every 28 days to remain "active" and commission eligible. Preferred customers only need to buy $20 every 28 days to remain active.

(Claim) Comparative Guide to Nutritional Supplements is an independent nutritional guide and has ranked USANA's Essentials #1 in the world since 1999.
(A) Every single edition of the Comparative Guide since 1999 was researched, edited and laid out by a USANA distributor named Gregg Gies, distributor ID#285320. Gregg was also co-owner of Nutrisearch, the organization responsible for the Comparative Guides. The author of the book Lyle Macwilliam was on USANA's medical advisory board from 2003 to 2006. The book is nothing more than a bias recruiting tool for USANA distributors.

(Claim) The grape seed extract in USANA products tells cancer cells to kill themselves. - 2006 USANA's Medical Advisory Board Member Ladd McNamara.
(A) I witnessed in person Ladd making these claims. It was against the law for Ladd McNamara to make such a claim since he was also a USANA distributor. All distributors are restricted from making unsubstantiated health claims, especially when they involve curing cancer. Ladd McNamara told me he can make these health claims because he is a doctor. Until it becomes a medical fact that grape seed extract can cure anything, it is illegal for USANA distributors to make such claims. It is medical fact that vitamin C prevents scurvy and that is okay to state.

(Claim) No one forces USANA associates to purchase product.
(A) False. USANA's 10K SEC filings state the following "To be eligible to earn commissions, an Associate must purchase a certain amount of product each month ("Qualifying Purchases"), which they may resell to consumers or use personally." These purchases made by the associates satisfy the "Personal Sales Volume" (PSV) points that each and every participating associate must make. I consider this PSV to be an incorrect term and actually confuses the new distributors. It would be more appropriately called "Personal Purchase Volume"... Failing to make this personal purchase will result in the loss of all Group Sales Volume you may have accumulated that has yet to be paid out as a commission and will not be able to participate in the business opportunity's compensation plan until the PSV requirement is met. This personal purchase requirement is the main issue contributing to the pyramid scheme.

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