Vitamin Marketer USANA Hit With Proposed Class-Action Lawsuit

June 27, 2007

  • June 27, 2007 at 9:14 am
    JOE says:
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    Come now, thats ridicoulsy, Barry Minkow must of hired him or something. Check his background, and find out if hes had any relationship with Barry Minkow, if so then put in him in jail for hurting the business. I STILL CANT BELIEVE WHAT IM HEARING…..he is sueing the company because he cant sell the product? Like i said in my subject, do you sue yourself if you opened a up restaurant and had no customers, you own a business, owning a business requires capital, if you dont know how to run business then dont get started, no body puts a gun to your head.
    Usana products are quality, cant compare walmart shoes to nikes. GRR…people Barry and this guy makes me so angry, they are trying to hurt my business..i gotta provide for my family you know, and i work really hard, please stop hating…

  • July 2, 2007 at 4:10 am
    Easydollar says:
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    To start with, Barry Minkow was convicted in a fraud case earlier. Would you find him credible enough?
    Although I may agree that the prices is quite high, considering its one of the best products in the market, and other mlms also have inflated prices on their products, what is the deal here?
    Anyway, typically 90% of people who join mlms in any companies failed or does not make money. It is a known fact that it takes work, just like a normal business.
    So, what is the case again?

  • July 3, 2007 at 9:32 am
    Diane DeCarlo says:
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    I find this article full of “opinions” not truth….. I have been involved with Usana for over 4 years and I have not experienced any of said complaints. It grieves me that there is no balance to the claims. The said distributor said he could not consume nor sell a monthly “quota” there is no such thing.
    You can choose at any time to decrease the amount of products you purchase……. if he was finding it difficult he could have/should have chosen to reduce his autoship. That’s how easy it is.. I have no problem sharing the products with people, they get what they want and find that it’s worth purchasing a more expensive product that is what it says it is…..Like shopping at Nordstorms compared to Target.
    I hope that in the future there is more research done on both sides to present a “truer” picture of Usana.

  • July 4, 2007 at 10:17 am
    Jacob says:
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    I am all for WORKING to sell Usana, but Usana PREVENTS me from doing the best sales job I can. When I try to sell them by setting up a WEB SITE, the compliance department says ITS NOT ALLOWED. When I try to reduce my prices to get people interested, the compliance department says THATS NOT ALLOWED. I have TOO MUCH stock of Usana, and I WANT TO WORK TO SELL IT. However, they won’t let me!

    Once I purchase the products at full price, I should be able to sell them any way I can…

    Don’t you agree?

  • July 4, 2007 at 2:50 am
    Roy Blocher says:
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    I started a franchise nearly two decades ago and lost far, far more than the so called grieved party quoted in this article. Yet no one blamed the franchisee, that “it” didn’t work. What about HIM working for himself? Network marketing allows an ease of entry and an upside potential that is unmatched in any other approach to generating an income. But you have to work.

    That he saw fault with Usana is a demonstration of his ignorance of their status in both network marketing (best company, nine years in a row) and in nutritional supplementation (highest rating, Comparative Guide to Nutritional Supplements, all 4 editions).

    The so called class action, that probably is scrounging for participants, is doomed to fail as it is based on a group of people’s unwillingness to work.

    As for me, I have worked my tail off and have much to show for it as a result. I will quit my regular job this year and live a life with a time freedom and a financial freedom most only dream of.

    Get to work folks, IT doesn’t work, YOU do. And it’s worth the effort.

    Oh, I don’t see anyone claiming gross overpricing of Mercedes compared to Saturn, or a 5 star hotel compared to a one star. Yet Minkow makes that claim by comparing 1 star vitamins to Usana’s 5 star Gold Medal rated nutritionals (compare both in the Comparative Guide to see what I mean.)

    And the press just reprints the information like it is truth with no attempt to verify or present the alternative, and in this case more accurate view.

    Sit an watch folks, Usana will be the Microsoft or IBM of nutritional science within the next decade. And Minkow? He will be renounced as fraudulant once again.

    And the potshots at Dr. McNamara are unjustified. He is a fine man, working very hard to support people he brings into the business as well as many, many others throughout Usana. He gives hours and hours of his time away. He is a giver, not a taker in life.

  • July 5, 2007 at 8:06 am
    MARY says:
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    I completely agree with you. You are supposed to be in business for yourself, “Independant” but you have no rights to do anything to actually market the products. We know people who spent a fortune building a website and doing other marketing things plus training courses and DVDs. The website didn’t actually have the word USANA anywhere on it – they just had links to USANA approved material. USANA cancelled their distributership. Without giving them any chance to defend themselves and with no clear reason given. So three years of hard work and expense was all for nothing! All the people they had in their downline and preferred customers were taken away just like that. So much for residual income!

  • July 8, 2007 at 9:21 am
    Mary says:
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    Dear Roy,

    Actually the “people I know” isn’t hearsay, I know them very well. It was my husband and myself but I didn’t give our names because the wonderfully caring Usana company were quite threatening when they took away our distributership. And no, we weren’t given the facts of what we had done wrong. In fact the first letter telling us that this was going to happen they got the actual website wrong! It was someone elses! Yes, some so called comittee were supposed to have revied the “evidence” but we weren’t allowed to know what that was so it was impossible to put our side or argue with the “facts” presented.
    In our case we didn’t see the policies until after we had paid their money and signed up! The policies don’t protect the associates, they only protect Usana and the Gold Directors and above. For some strange reason people who are Gold and above are allowed to create their own advertising and many also have web sites. The Usana web site (paid for by the associates at very inflated prices,) provided, is a waste of time since no one makes money from selling the product. (Its vastly overpriced to allow the few pwople who make it to the top to earn huge comission cheques) The only way to make real money is to sponsor lots of people who then sponsor lots of people who sponsor lots of people…… What you need, and aren’t supposed to have, is a recruiting web site.

    As a Ruby director, you are profiting from masses of little people who are not, and will not, make any money. We actually were making some money, not a great deal in comparision with what we were spending but it might have eventually have worked for us. But that was with us both working very hard, constantly paying for leads, taking numerous training courses and buying training books,DVDs and CDs (the Usana training is faily basic) paying for ads which of course we weren’t actually supposed to have (no mention of the Usana word) making hundreds of phone calls, travelling hundreds of miles to give presentations. Trying to organsise training of the people we found and get them actually doing something. We were always told that people “do what you do” if that were trues we would be diamond directors by now! We recruited quite a number of people but they didn’t do anything very much.
    What we were supposed to do, since advertising was not permitted, was to talk to family and friends and get them to join. If you don’t have many family members and/or you have just moved to an new area and don’t have a cirle of friends then what?
    So no, Usana isn’t the miracle answer to a great lifewith fantastic residual income. Its a confidence trick. And every day another “big name” on the board seems to have been economical with the truth. I just hope that Dr Wentz is the real thing! Of course he seems to have little to do with the day to day running any more which is maybe where the problem lies.

  • July 8, 2007 at 10:42 am
    Roy Blocher says:
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    Wow, I can feel the emotion in your writing. I am very sorry for your experience. And Mary, if I could change it…

    I have a feeling though that me responding here may not get your ear in the way I would hope, so I’m not sure how to respond. But there are a couple points I’d like to touch on if you would allow me to.

    First you have accused me of profiting from others. That hurts, and is unfair since you don’t know my business or my people. So let me give just a couple examples to give you an idea. How about the stay at home mom, in Usana for a couple years, building a little customer base primarily, making a hundred bucks a week, maybe a few hundred a couple times a quarter. Then her husband up and leaves her with her son. She turns to us and says she doesn’t want to leave home and put her son in daycare. We team up with her and today she is home, supported by her Usana income, bought the house from her husband, and never worked a job outside the home a single day. She is NOT yet a Gold director.

    Or the couple who, after some confrontations in the public schools decide to get their kids in private schools but no way do they have the money. Today they are, paid for from their Usana income. They are NOT yet gold directors.

    Or the mom in MD paying for her son’s college… or the young couple in grad school who never filled out an application for a job because they would have to take a cut in pay compared to their Usana income. Now they are Gold, and did it the same month they graduated.

    And finally me. I had no special opportunity. I got in like you. I had a sponsor who cared and encouraged me, but my wife and I did it. It took three years to Gold. And today I am looking at quitting a job I hate to do something that matters, helping people solve financial and health concerns for themselves and their families.

    Gold directors and above come under the very same policies their teams do, no special privileges. As Golds though we are given some responsibility to approve our downline’s stuff, but unless it’s obvious we bounce it up.

    I’ve already said more than you probably want to read, though there are some other statements you’ve made that are inaccurate, but I’ll end with this. Mary, I wish I’d had you and your husband in my organization. As hard as you worked, with some guidance along the way you’d be writing from my point of view. Success in Usana depends on work, training, and teamwork. It would appear you were missing two of those.

    Bless you Mary, I hope you find a path to the success you seek.

    Roy

    PS If you want to carry on this conversation off line I’m willing, but I think we’ve worn out our welcome here. Email me at roy@blocher.com

  • July 8, 2007 at 2:03 am
    Roy Blocher says:
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    Jacob and Mary,

    I am sorry for the situation you find yourself in, Jacob. The policies and procedures, which you stated you read before you validated your application, or if not were prominently a part of your Business Development System training, explain clearly what we can and cannot do. They specifically protect all of us from hurting each other’s business and are therefore very appropriate. They are only a few pages long, so I suggest you read them again. You will find they are not as restictive as you imply.

    Since Usana provides a website on which you can sell usana products and even have people enroll as associates or preferred customers, I am not sure why you would need to spend a great deal on another one.

    Further, one of the strengths of Usana is our ability to stay out of the “fulfillment” business. That is, we carry NO inventory. Everything is shipped directly from Usana to our customers. So why on earth do you have stock??? And if you do, return it!! We have a return policy that is very generous.

    Further, spending bundles on DVD’s etc? What’s that? Did you review your eBDS each month as you were trained to do? That training system was a whopping $20 and provides comprehensive training. You need nothing else.

    Mary, the “people I know” approach is essentially hearsay and on the surface cannot be taken as fact. Usana NEVER takes the kind of action you have described without discussion with our Independent Distributor Council made up of other Usana Associates. On the rare occasion that a distributorship is lost, everyone involved knows EXACTLY why and has had a chance to fix it. You have incomplete information which is therefore misleading others.

    Jacob, Mary, Usana is the greatest opportunity on the face of the earth for the common person to make an independent income that most only dream about. You can never say, truthfully, that IT didn’t work. IT works. The 10’s of thousands making incomes from Usana and other network marketing companies proves that. So if you are in Usana, call your upline, get some guidance and get to work. If you are not in yet, find someone who is in and working and get in, listen up, get to work and someday soon you will say “wow, that was worth the effort.”

    Roy
    Ruby Director
    Independent Usana Associate

  • December 30, 2007 at 10:05 am
    sherl says:
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    I agree with you. Americans love lawsuits. They can’t make money from their own business, sue sombody! That’s a get-rich-fast road!?

    Usana provides the best-quality vitamins and minerals. I’ve been using their products for many years. I didn’t make money because I’ve never been a USANA distributor. I’m just a customer. I don’t have the ability to manage a business.

    They have the best vitamins.



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