In a doTerra lawsuit, former doTERRA employees and other competitors have accused the company of violating the Federal Trade Commission laws. Although the company’s legal team insists that its products are not in violation of the law, plaintiffs’ attorneys claim that they are. In addition to fraud, they claim that doTERRA violated FTC policies and other laws. Young Living has not responded to the lawsuit as of this writing. However, the company’s compliance team responded quickly to the NAD’s recommendation to remove certain claims from its website.
Young Living lost the doTerra lawsuit
In 2012, Young Living filed a class-action lawsuit against doTERRA, a company that sells essential oils for medical purposes. The lawsuit alleged that Young Living’s marketing practices violate the Federal Trade Commission Act and the Food, Drug, and Cosmetic Act, by falsely marketing and promoting its products as drugs. The company also allegedly falsified evidence to make the case longer and cost them more money. In this article, we will discuss the reasons why Young Living lost the lawsuit.
The official story of Young Living is full of miracles. The founder of the company purportedly recovered from a life-threatening logging accident by fasting for 253 days. However, the company’s biggest turn-around was a bureaucratic threat. In 2014, the Food and Drug Administration issued a warning letter to the company for promoting its oils as a cure for diabetes, Parkinson’s disease, and autism.
Doterra appealed NAD’s recommendation to discontinue some of its claims
DoTerra has responded to the NAD’s recommendation to remove some of its claims, saying that the recommendations were misinterpreted and applied the wrong legal standard. Young Living did not immediately comment on the decision. Despite the ruling, critics have long complained that multi-level marketing companies don’t play by the rules. They use armies of members and contractors to make claims about their products, and these contractors can say whatever they want.
DoTerra argued that its products provide “health benefits” beyond those associated with aromatherapy. The NAD found that the evidence was not sufficient to support its claims. The appeals panel found that the “Certified Pure Therapeutic Grade” claim should be discontinued. The company appealed to the National Advertising Review Board but was unable to convince the agency to reverse the ruling.
DoTERRA acted swiftly
In the recent DoTERRA lawsuit, the company acted quickly. The company’s legal team argued that Young Living Essential Oils LC had no basis for the lawsuit. According to the company’s general counsel, the judge found that the lawsuit was untimely and ill-advised. The company also argued that the statute of limitations prevents juries from hearing their arguments.
The lawsuit also argued that doTERRA failed to provide a reasonable basis for its health benefits claims. The company had not provided the evidence supporting its “Certified Pure Therapeutic Grade” claim. The agency recommended that doTerra cease marketing these claims. However, doTERRA appealed this decision to the National Advertising Review Board, which upheld the agency’s ruling. The company has since apologized for the misrepresentation.
DoTERRA’s compliance team
DoTERRA’s compliance team is currently involved in a lawsuit over the alleged misrepresentation of its products. According to the company, the FDA’s warning letter was based on unsupported claims made by doTERRA distributors. DoTERRA’s response to the FDA’s letter consists of sending a company-wide email reiterating their company policy and instructing distributors to include the policy on their websites and in their marketing materials. The company contacted the individuals cited in the warning letter and promised to improve their compliance monitoring system. DoTERRA has hired additional staff to help ensure distributors are following corporate guidelines.
DoTERRA’s compliance team is analyzing marketing materials and training for possible violations. It also reviews disease names associated with its products. In addition, the compliance team will notify distributors if they are making claims that are not in compliance with the company’s policies. These efforts will help doTERRA stay ahead of the lawsuit. Further, doTERRA will have to answer questions from the FTC related to its policies regarding marketing claims.
Young Living’s legal team
A judge has ruled that Young Living knowingly misled a courtroom when they fought against former Doterra employees. Judge Christine Johnson ordered Young Living to pay their attorneys $1.8 million. Doterra had previously fought against the trade secret claim in bad faith, but a jury threw out that case last year. The company is awaiting the outcome of its appeal. A representative of Young Living said the case has “prolonged the legal proceedings.”
The official story of Young Living is full of miracles – its founder purportedly recovered from a life-threatening logging accident by fasting for 253 days. But its most significant turning point was a bureaucratic threat. In 2014, the Food and Drug Administration issued a warning letter to the company. Members claimed Young Living products treated autism, diabetes, and Parkinson’s disease.