Huiqin Xiong signed up as a Jeunesse distributor in August, 2015.
Xiong, who goes by the identify “Helen”, claims to have misplaced “roughly $10,000” making an attempt to work her Jeunesse enterprise.
On August tenth Xiong filed a class-action lawsuit towards Jeunesse in California.
Jeunesse International and prime distributor Kim Hui are named defendants within the swimsuit.
In keeping with Xiong, Hui makes over $6 million a 12 months as a Jeunesse distributor.
Xiong asserts Hui earns her cash not from promoting Jeunesse merchandise to retail clients, however from
distributors signed up under her on the tall pyramid Defendants have constructed.
In help of this allegation, Xiong quotes Hui as stating “in a video printed on-line”;
So the primary technique to generate profits is retail commissions, proper.
we as distributors we get the product at wholesale after which when individuals purchase it, they purchase it retail … so we get a bit of retail fee.
Now that would be the smallest pay you ever get. OK?
I overlook about retail commissions for me … I’m on this to not promote product. I’m right here to construct a worldwide distribution.
I’m not a salesman; I’m a enterprise builder.
It might appear that, by her personal admission, the vast majority of Kim Hui’s Jeunesse revenue is derived not from retail gross sales however through distributor recruitment.
And this, by extension, happens company-wide.
In actuality, few of Jeunesse’s merchandise are ever bought to anybody apart from its Distributors.
As a result of its Distributors are the precise clients and supreme customers of its merchandise, Jeunesse requires an ever-expanding community of recent Distributors as a way to maintain the pyramid scheme operating.
Moreover, Xiong alleges, even when a Jeunesse affiliate tried to generate retail gross sales, they’re routinely undercut by distributors promoting on Amazon for “lower than … wholesale costs”.
Notably within the Chinese language-American neighborhood, Jeunesse encourages Chinese language to promote at wholesale worth and to take benefit merely of the “commissions” paid by down-stream
distributors
The wholesale worth being the quantity Jeunesse distributors pay for merchandise ordered.
In her lawsuit Xiong identifies herself as an worker and claims Jeunesse represented to her that she may
make “streams of revenue” and “wealth,” by recruiting others to change into Jeunesse distributors.
That didn’t occur and,
just like the 1000’s of Jeunesse distributors earlier than and after, Plaintiff failed.
She failed though she was dedicated and put within the effort and time.
She failed as a result of she was doomed from the beginning by a Jeunesse advertising and marketing plan that systematically rewards recruiting distributors over retail gross sales of product.
Primarily based on her expertise as a distributor, Xiong concludes Jeunesse
run(s) an unlawful pyramid scheme.
They take cash in return for the precise to promote merchandise and the precise rewards for recruiting different members into the pyramid.
One other attention-grabbing part of Xiong’s lawsuit is the purported advantages of Jeunesse merchandise, as supplied by Jeunesse board members.
All 4 of the medical doctors on the board of Jeunesse declare that some
Jeunesse merchandise can actually manipulate human genes and cells, even going as far as to say that Jeunesse merchandise can really gradual the getting old course of and treatment most cancers.
Vincent Giampapa is quoted as stating “plant extracts, herbs (and) enzymes” utilized in Jeunesse merchandise ‘can really off sure of those genes which can be detrimental getting old genes”.
William Amzallag is quoted as stating one of many objectives behind Jeunesse’s Reserve product was to ‘swap on a really particular gene which is known as survival gene‘.
So uh, rub some Jeunesse cream on and alter your genes? No worries!
Jeunesse’s operations in China additionally will get a point out, with Xiong alleging
Jeunesse additionally recommends its Chinese language distributors to switch merchandise out of Hong Kong to keep away from and flout Chinese language legal guidelines regarding imports from international locations resembling the US.
Thus, Jeunesse encourages its distributors to violate legal guidelines of different international locations.
Xiong’s assertion that she is an worker of Jeunesse is attention-grabbing. We’ve only recently seen the similar declare made in a lawsuit filed towards Nerium – additionally in California.
Xiong claims she’s a Jeunesse worker based mostly on the “vital management” the corporate ‘exerts … over its representatives‘.
From a authorized standpoint, the reclassification of Jeunesse distributors as workers brings with it violations of the Labor Code with respect to payroll and wages.
Xiong has filed her lawsuit as a class-action, which if licensed will embrace Californian Jeunesse associates who signed up after August, 2014.
Xiong claims that round a 3rd of Jeunesse’s US gross sales are generated from inside California.
Particular causes of motion listed within the lawsuit embrace
- violations of California’s Penal and Civil Codes (countless chain scheme)
- unfair and misleading practices
- false promoting and
- violations arising from misclassification as non-employees
Along with damages, the class-action additionally seeks an injunction that will prohibit Jeunesse from persevering with to pay commissions unrelated to retail gross sales.
As of but Jeunesse haven’t filed a response to the lawsuit.
BehindMLM reviewed Jeunesse in 2015. Primarily based on its compensation plan, we discovered Jeunesse’s enterprise mannequin primarily targeted on affiliate autoship recruitment.
Replace 14th December 2018 – Helen Xiong’s Jeunesse lawsuit has been stayed pending entry of a remaining order within the not too long ago settled RICO class-action lawsuit.