5 MLM Companies Facing Lawsuits


There are plenty of job opportunities, but not all of them are legitimate. When some branded business appears across your page, you hit the pause button. You can ask yourself whether the business is legit, a scam, or pesky MLM. If it’s an MLM, you tend to go ahead, but not everyone is. People are tricked into joining MLM schemes every day, and while they aren’t all bad, some are. If you’re looking to see which ones are on the wrong side of the law, check out the five franchises facing lawsuits.

1. Photographers:

Paparazzi is a popular jewelry franchises. The pieces cost $5, which is a huge draw for customers who love accessories. While they have a few stylish pieces to choose from, the false advertising has got them in hot water last month. In April, it was a class action lawsuit Suggestion. Members of the lawsuit suggest that although Paparazzi advertises his jewelry as nickel and lead-free, this is not the case. An independent laboratory not only found these substances in jewelry, but also detected dangerous levels of arsenic and cadmium.

2. LuLuRoe

LuLuRou has made headlines for the past two years. New documentaries on Hulu shed light on their business practices behind the scenes. Not only did we hear from the CEO, but employees and disgruntled customers were able to voice their concerns. Damaged merchandise and strange prints were among some of the complaints, but not what eventually brought them to court. The state of Washington has sued the company over its pyramid scheme business model. To date, more than 50 lawsuits have been filed against them. Yikes!

3. Isagenix

Isagenix is ​​a popular health brand. The company manufactures alternative weight loss powders. One of the company’s most famous sellers sued the company in 2021 after falling ill. Upon further examination, I found that the alternative powders were over-immunized. This resulted in her overdosing on vitamins and minerals, resulting in an irregular heartbeat and depression. Meal replacement products were withdrawn in 2020 and 2021 following several other reports of product-related illnesses.

4. Rodin + Fields

Rodan and Fields are cosmetic brand franchises. They have all the kids of skin care products that will help rejuvenate, tighten and moisturize your skin. While the company has many luxury items to choose from, one product has got them in hot water. Rodan + Fields Lash Boost was meant to strengthen and moisturize eyelashes. Instead, three lawsuits claim that a key ingredient, isopropyl alcohol, was responsible for the discoloration of the iris and eye irritation. They also noted that the company failed to report the potential risks of this ingredient. Although they initially denied the allegations, they settled down.

5. Herbalife

Herbalife helps you balance your nutrition with many wellness products including meal replacement shakes, teas, and vitamins. Recently, the company settled a lawsuit for RICO in federal court but a number of them are on the books. They have been involved in numerous class actions, sued by former distributors, and fined by the Federal Trade Commission. They have compensation that can reach a billion dollars. This includes the RICO lawsuit, $123 million payment to the Department of Justice and the Securities and Exchange Commission, $200 million to the Federal Trade Commission, and several payments in other lawsuits.

These are just a few of the MLM companies facing lawsuits, but you can find more in the posted video.

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