USANA forgot to mention Riley Timmer's resignation until after markets closed. Can they do anything right?

None of USANA's press releases today regarding the resignation of their executives ever mentioned Riley Timmer's resignation. It wasn't until USANA's 4:00 PM conference call did a caller ask when Riley Timmer's resignation was given. USANA took a while to respond and admitted his resignation came the same day as all the others.

When the President & Chief Operating Officer (Fred Cooper), Chief Financial Officer (Jeffrey Yates),  Vice president of Sales (Mark Wilson), and Vice President of Finance (Riley Timmer) all resign on the same day, then there is something much more serious that USANA is not willing to admit. I have a feeling it has more to do with the issues I have raised on this blog regarding their overpriced products, saturated markets, underground China recruiting, and the fact 99% of their distributors don't make a penny worth of a profit while enriching the top 1%. And to top it off, USANA told this top 1% of distributors (Gold Directors and Up) about their executives resigning 1 day before announcing it to their shareholders.

It amazes me how USANA can get away with so much questionable activities like giving away 3 iPads to distributors who purchase Myron and Dave's book "The Healthy Home" (violates lottery laws), or the underground recruiting of Chinese Nationals into their Hong Kong distributor market (MLM is banned in mainland China). When will stock analysts start asking tough questions and demanding answers to those questions? One caller asked when USANA was made aware of these resignations. After dancing around the question, USANA finally answered "Recently"... Well, Recently could have been 4 weeks ago. Then, instead of the analyst demanding a specific date, this analyst just accepted USANA's answers. I'm starting to believe USANA writes the questions for the analysts to ask...

I feel sorry for anyone who invests in USANA. How can anyone invest in a company that makes its money off the backs of 99% of their distributors who are all losing money because they are forced to purchase the overpriced product just to participate in the scheme.

I have several questions that I believe USANA should answer:

1) How many "Professional Packs" were sold to new associates and distributors?

2) How many starter kits were sold to new associates including those that were free during promotional periods?

3) How many associates have or had a subscription to USANA's DownLine Management software?

4) How many associates and distributors renewed their membership?

5) How much of the net revenues came from associates and distributors maintaining their Personal Sales Volume?

Too bad USANA would never answer these questions. It would reveal too much...

Don't be Fooled! Editorial Reviews on the Back Cover of The Healthy Home are USANA Affiliates

 

Who's who on the back cover of The Healthy Home?

On the back cover of Myron Wentz and Dave Wentz's latest book "The Healthy Home" are three editorial reviews. Lets take a look.

“Dave and Dr. Wentz have conspired to create an innovative and imaginative approach to living simply. As a physician, I would offer one bit of advice: heed the constructs, sentiments, and words written in this book. We cannot wait for the scientific method to verify the claims made. As individuals we must act now! We should follow our intuition and adhere to The Healthy Home.” - Peter W. Rugg, M.D., FACEP

Missing from Peter Rugg's title: USANA Scientific Advisory Council Chairperson, USANA distributor (ID# 3079662)

Interesting that Peter implies the book is full of unverified claims that the scientific method has yet to prove.

“The Healthy Home is an amazing revelation of 'truths' on everyday products that parents use for their children. This book will empower parents to take measures to protect their children from toxins that may threaten the health of our future generations.” - Christine Wood, M.D., pediatrician and author of How to Get Kids to Eat Great & Love It

Missing from Christine Wood's title: USANA Scientific Advisory Council member, USANA Distributor (ID# 348)

Amazing revelation of 'truths' on everyday products, yet Peter Rugg implies the scientific method has not verified them yet. Can they really be called truths?

“I have met few individuals more generous, more approachable, and more caring than Dr. Wentz. He believes in true health and is seeking to discover its secrets with a passion that is as spiritual as it is scientific. In this brilliant collaboration with his son, Dave, we are able to witness the passage and expansion of simple truths from generation to generation.” - Denis Waitley, Ph.D., bestselling author of The Psychology of Winning

Missing from Denis Waitley's title: Former member of USANA's Board of Directors, chairman of USANA's Athletic Advisory Council, USANA Distributor (ID# 1069)

The problem with these editorial reviews is the fact each member is financially tied to the authors of the book. Interesting that Myron and Dave chose to leave off the fact these members not only worked with USANA, but each hold their own distributorship as well. Why was this conveniently left off the back cover? I believe it was so it gave the appearance of third party credibility. 

It reeks of the same problem that the Third Edition of the Comparative Guide to Nutritional Supplements has. Written by Lyle MacWilliam (who was also on USANA's Scientific Advisory Council), the book ranked vitamins and ranked USANA #1. On the back of its cover were all USANA affiliates giving their review without ever disclosing such USANA affiliation. In fact, Christine Wood and Denis Waitley were two of the editorial reviewers on that book as well!

USANA's Use of "The Healthy Home" Book as Entry Into Company Run Nation Wide Lottery May Violate State & Federal Laws

"The Healthy Home" hits 5 best seller lists during first couple weeks of book release. However, ...

Screenshot of USANA's website showing The Healthy Home

It appears USANA is currently violating both Utah State and Federal gambling laws. USANA's requirement for distributors to purchase Myron Wentz's book "The Healthy Home" in order to participate in a lottery to win an iPad may land USANA in a heap of trouble. State and Federal Regulators need to be made aware of this potential crime currently taking place. The lottery runs from March 27, 2011 to April 15, 2011.

According to PRNewsWire, USANA has made the Best Sellers list for The New York Times, USA Today, L.A. Times, Publisher's Weekly, and Amazon.com for the book's extraordinary sales.

According to Utah State Laws for gambling

     76-10-1102.   Gambling.
     (1) A person is guilty of gambling if he:
     (a) participates in gambling;
     (b) knowingly permits any gambling to be played, conducted, or dealt upon or in any real or personal property owned, rented, or under the control of the actor, whether in whole or in part; or
     (c) knowingly allows the use of any video gaming device that is:
     (i) in any business establishment or public place; and
     (ii) accessible for use by any person within the establishment or public place.
     (2) Gambling is a class B misdemeanor, provided, however, that any person who is twice convicted under this section shall be guilty of a class A misdemeanor.

According to Federal Laws regarding lotteries:

    * The federal lottery statutes made it illegal to transport lottery materials across state lines, or ship them to other countries
    * The Interstate Wagering Amendment of 1994 made it illegal to procure a ticket for someone in a different state than that in which the lottery was held

Let this also be a reminder to the general public that Myron and Dave Wentz's book "The Healthy Home" made it to several Best Sellers lists solely because they used their book as $13.19 raffle tickets for USANA distributors and USANA preferred customers to purchase and have the right to participate in a company run lottery to give away 3 iPads. The "general public" as Dave Wentz calls it, has virtually nothing to do with the sales of his book.

Myron Wentz's “The Healthy Home” makes NY Times best seller list by being sold as raffle tickets in lottery drawing held by USANA.

Myron Wentz (founder of USANA) and his son Dave Wentz (CEO of USANA) authored a book called “The Healthy Home” which was released on March 22, 2011. Their book made it to number 7 on the NY Times best selling book list for “Hard Cover Advise and Misc”. What is not mentioned on any press releases is the fact the book is being sold as raffle tickets to win an iPad in a lottery operated by the authors.

USANA is currently running a lottery drawing exclusively for their distributors and preferred customers to win iPads. In order to participate in this lottery drawing, the USANA distributor or preferred customer must purchase Myron Wentz's new book “The Healthy Home” from Amazon.com for $13.19. Distributors can enter as many times as they wish, but are advised to do so during different weeks of the contest to help bolster the book's best seller rankings.

USANA explains this contest in a document on their Ask Andy website which is used by their distributors to access important information regarding USANA: http://obs.usana.com/UPLOADS/usana/2011/87/87-1_CAA.html. (A copy of this document is provided in full at the bottom of this blog entry)
 

"Here’s how it works—Purchase a copy of The Healthy Home on Amazon.com between March 27 and April 15 and e-mail a copy of your electronic receipt to contest@myhealthyhome.com. Not only will you receive a special Healthy Home pin at USANA’s 2011 International Convention, but your name will also be put into one of three special drawings for a chance to win one of three iPads!

…

* Week 1: March 27–April 2 (we need to sell 1,000 copies of the book this week)

* Week 2: April 2–9 (we need to sell 1,500 copies this week)

* Week 3: April 10–15 (we need to sell 2,500 copies this week)

...

Q. Who can participate in the drawing?

A. This drawing is only for USANA Associates or Preferred Customers living in the United States."

Distributors interested in participating in the lottery to win a $500 iPad only need to purchase a $13.19 raffle ticket from Amazon.com called “The Healthy Home”.

Amazingly, USANA's CEO Dave Wentz made the following statement regarding their position on the NY Times Best Seller list in the following article:

"The response to our book has been incredible," says Dave Wentz. "Although the book was released less than three weeks ago, we have gotten calls from reporters and TV and radio stations from all over North America. We have received over 3,000 'likes' on Facebook in a short time and gotten a lot of great feedback from our readers. Clearly, the topics we address in The Healthy Home are a huge interest to the general public." (my emphasis in bold)

What GENERAL PUBLIC is Dave Wentz referring to? Dave knows that the book is primarily being sold to USANA distributors who purchase the book in hopes of winning a $500 iPad in a lottery drawing. The general public has nothing to do with the purchases of The Healthy Home. Clearly, the statement made by Dave regarding "interest to the general public" was an attempt to mislead the general public.

I believe the authors are conducting a highly unethical method to appear on Best Seller lists. It would be very interesting to find out what Amazon thinks about this lottery system. Also, what about the other outlets that sell the book? What do they think about the fact the authors are holding this lottery exclusively with Amazon.com?

Below is USANA's Lottery Information found on their Ask Andy website: http://obs.usana.com/UPLOADS/usana/2011/87/87-1_CAA.html

---

Amazon.com Contest

The Healthy Home launched with a bang, but we're not done. Our sights are set at the top of the best-seller lists, and we need your help. Purchas at Amazon.com, and you could win an iPad!

 
Buy Copies of The Healthy Home at Amazon.com by April 15

---

Participate in USANA’s efforts to help make The Healthy Home a best seller and you could win an iPad!

The Healthy Home launched on March 22 with incredible success, but the journey is just beginning. To make this book a truly powerful vehicle for spreading Dr. Wentz’ vision and for building your business, we need to make it a best seller. To do so, we need you! And in case you need a little extra incentive, we’ll be awarding incredible prizes to those who help.

To become a best seller, we’ll need to sell a certain number of copies of The Healthy Home on Amazon.com within the next three weeks.

Here’s how it works—Purchase a copy of The Healthy Home on Amazon.com between March 27 and April 15 and e-mail a copy of your electronic receipt to contest@myhealthyhome.com. Not only will you receive a special Healthy Home pin at USANA’s 2011 International Convention, but your name will also be put into one of three special drawings for a chance to win one of three iPads!

There will be an iPad drawing at the end of each of the three weeks during which Amazon.com will be reporting sales of The Healthy Home for possible inclusion on the top best-seller lists. 

• Week 1: March 27–April 2 (we need to sell 1,000 copies of the book this week) 
• Week 2: April 2–9 (we need to sell 1,500 copies this week)  
• Week 3: April 10–15 (we need to sell 2,500 copies this week)

The number of books we need to sell is not impossible. We can do it, and any help from you will make a big difference. So talk to your Preferred Customers (because they can participate, too), talk to your downlines, and talk to your uplines—spread the word and create a strategy to determine the best week for each of you to make your purchases. And if you plan on purchasing more than one copy of the book from Amazon.com, buy them one at a time and during different weeks to help bolster our chances of making the best-seller list and your chances of winning an iPad.

Together, we can make a difference. Many of you have already bought copies of The Healthy Home, and your efforts are reflected in the early success of the book. But with a little more help—even the purchase of just one more copy through Amazon.com by April 15—you can help make The Healthy Home an even greater sales tool than it already is. Let’s spread the vision of Dr. Wentz to the world together.

FREQUENTLY ASKED QUESTIONS

Q. Who can participate in the drawing?
A. This drawing is only for USANA Associates or Preferred Customers living in the United States.

Q. What do I win?
A. Anyone who purchases a copy of The Healthy Home from Amazon.com between March 27 and April 15 will receive a special Healthy Home pin at USANA’s 2011 International Convention. The name of each entrant will also be placed in a drawing for one of three iPads.

Q. Can I enter the drawing multiple times?
A. Yes, as long as you have more than one receipt. Multiple copies of the book shown on a single receipt will only be entered into the drawing once. Therefore, it is important that you purchase each copy of The Healthy Home separately during this period.

Q. Where do I send my receipt?
A. E-mail an electronic copy of your receipt from Amazon.com to contest@myhealthyhome.com.

RULES

1. This is an individual-based promotion.
2. Participants must reside in the United States.
3. Only one Healthy Home pin and/or iPad will be awarded per distributorship.
4. No purchase necessary. Participants can be entered into the drawing by mailing a postcard with their name and Associate or Preferred Customer identification number to the following address:
   
   Healthy Home Contest
   c/o USANA Health Sciences
   3838 W. Parkway Blvd.
   Salt Lake City, UT 84120
5. Employees of USANA and their family members may not participate in this promotion.
6. Any manipulation of this promotion, i.e., sponsorship manipulation, downline purchasing (placing a sales order in a Business Center other than where the sale was generated), forgery of receipts, etc., will result in disqualification from this promotion, in addition to any sanctions under the Associate Agreement.
7. By entering, each entrant accepts and agrees to be bound by these rules and by the decisions of USANA, which shall be final and binding in all respects.
8. Taxes, if applicable, are the sole responsibility of the prize winner. The fair market value of all prizes will be reported to the IRS pursuant to IRS regulations.
9. Prizes are non-negotiable and cannot be redeemed for cash.
10. No substitutions or transfer of prizes is permitted. USANA reserves the right to substitute a prize for one of equal or greater value in the event that an advertised prize is unavailable.
11. USANA is not responsible for lost, late, or misdirected online entries or transactions for incorrect, inaccurate, or incomplete entry information whether caused by a contestant, equipment, or technical malfunction or for any human error, technical error, or malfunctions. USANA reserves the right to halt or modify the promotion at any time during the promotion period if events beyond their control compromise the promotion's fairness or integrity.
12. USANA, in its sole discretion, may disqualify any entrant from participating in the promotion, refuse to award prizes, and require the return of any prizes if entrant engages in any conduct USANA deems to be improper, unfair, or otherwise adverse to the operation of the promotion or detrimental to other entrants. Such improper conduct includes, but is not limited to, falsifying personal information required during the promotion.
13. USANA reserves the right to modify these rules for clarification purposes without materially affecting the terms and conditions of the promotion.
14. This promotion may not be used for any form of gambling.
15. If for any reason the Internet portion of the program is not capable of running as planned, including infection by computer virus, bugs, tampering, unauthorized intervention, fraud, technical failures, or any other causes beyond the control of USANA which corrupt or affect the administration, security, fairness, integrity, or proper conduct of this promotion, USANA reserves the right, at its sole discretion, to disqualify any individual who tampers with the entry process, and to cancel, terminate, modify, or suspend the promotion.
16. USANA assumes no responsibility for any error, omission, interruption, deletion, defect, delay in operation or transmission, communications line failure, theft or destruction, or unauthorized access to, or alteration of, entries or transactions.
17. USANA is not responsible for any problems or technical malfunction of any telephone network or lines, computer on-line systems, servers, or providers, computer equipment, software, failure of any e-mail entry or transaction to be received on account of technical problems or traffic congestion on the Internet or at any website, or any combination thereof, including any injury or damage to participant's or any other person's computer related to, or resulting from, participation or downloading any materials in this promotion.
18. USANA reserves the right to use names, images, and likenesses of promotion winners for printed and online media to market USANA products and promotions.