doTerra, an essential oils multi-level marketing company, launched in 2008 from its headquarters in Utah, United States. David Stirling serves as its CEO and President. Stirling and several other doTerra founding executives previously worked for Young Living, a rival essential oils MLM operation. Stirling himself held the position of Young Living's Chief Operating Officer before his departure.
Stirling maintained his exit from Young Living was not intended to launch a competing venture. He stated his "entire heart and soul" were with Young Living and its distributors. He claims the thought of starting a rival company had never occurred to him. Stirling recounted a meeting with Young Living owners in Ecuador two months before his termination. He said certain views and ideologies were shared, intended for integration into the company's mission. Stirling expressed concerns that some of these were contrary to what he could support. He knew his time at Young Living would be short after that meeting.
Shortly after leaving Young Living, Stirling met with former associates, including Dr. David Hill, Emily Wright, and Greg Cook. They discussed the world's need for a better way to share essential oil healing. Stirling indicated a strong collective feeling that moving forward was "the right thing to do." He noted that while many Young Living distributor friends might have joined doTerra early on, they were careful not to approach them. He also stated that doTerra did not, and does not, possess any Young Living distributor lists, calling such an act illegal. Stirling expressed pride that most early doTerra leaders were new to essential oils, discovering the oils' power and effectiveness. He asserted doTerra's mission was not to compete with or destroy other essential oil companies, but to become a large multinational entity partnering with hospitals and research universities globally.
Despite Stirling's claims, the parallel operations and the defection of key personnel from Young Living made a lawsuit appear likely. Young Living filed suit in mid-2013. The complaint accused doTerra of stealing Young Living's trade secrets, violating duties owed to Young Living, and improperly recruiting its employees and distributors. This legal action brought the intense competition within the essential oil MLM sector into public view.
The case was dismissed in October 2014. Fourth District Court Judge Christine Johnson dismissed all claims made by Young Living Essential Oils LC against doTerra Inc. The ruling ended a contentious period of litigation between the two prominent players in the essential oils market.
Multi-level marketing companies like doTerra rely heavily on a network of independent distributors to sell products and recruit new members. These distributors often purchase products at wholesale prices and resell them, while also earning commissions on sales made by their "downline" recruits. Autoship programs, frequently called Loyalty Rewards Programs or LRPs, are a common feature. These programs encourage distributors and customers to place recurring monthly orders. Such consistent purchases are often tied to qualifying for commissions, bonuses, and maintaining specific leadership ranks within the compensation plan. Distributors are incentivized to enroll in autoship to ensure they meet minimum volume requirements, thereby unlocking their full earning potential.
The essential oil market itself has seen substantial growth, with companies often promoting the therapeutic benefits of their products. This growth has attracted scrutiny from regulatory bodies, particularly regarding health claims. The Federal Trade Commission (FTC) monitors MLMs to distinguish legitimate direct selling from pyramid schemes, which are illegal. The primary distinction often hinges on whether the company primarily rewards product sales to genuine retail customers or recruitment of new distributors. Concerns often arise when the financial incentive for recruitment outweighs the incentive for product sales.
The essential oil MLM industry operates within a competitive framework where companies vie for market share and distributor loyalty. Companies in this sector navigate a complex environment of consumer health trends, scientific validation, and regulatory compliance. The dismissal of Young Living's lawsuit allowed doTerra to continue its expansion plans without the immediate threat of legal entanglement from its former corporate home.