Huiqin Xiong signed up as a Jeunesse distributor in August, 2015.

Xiong, who goes by the name “Helen”, claims to have lost “approximately $10,000” trying to work her Jeunesse business.

On August 10th Xiong filed a class-action lawsuit against Jeunesse in California.

Jeunesse Global and top distributor Kim Hui are named defendants in the suit.

According to Xiong, Hui makes over $6 million a year as a Jeunesse distributor.

Xiong asserts Hui earns her money not from selling Jeunesse products to retail customers, but from

distributors signed up below her on the tall pyramid Defendants have constructed.

In support of this allegation, Xiong quotes Hui as stating “in a video published online”;

So the first way to make money is retail commissions, right.

You know we as distributors we get the product at wholesale and then when people buy it, they buy it retail … so we get a little retail commission.

Now that will be the smallest pay you ever get. OK?

I forget about retail commissions for me … I’m in this not to sell product. I’m here to build a global distribution.

I’m not a salesperson; I’m a business builder.

It would seem that, by her own admission, the majority of Kim Hui’s Jeunesse income is derived not from retail sales but via distributor recruitment.

And this, by extension, occurs company-wide.

In reality, few of Jeunesse’s products are ever sold to anyone other than its Distributors.

Because its Distributors are the actual customers and ultimate users of its products, Jeunesse requires an ever-expanding network of new Distributors in order to keep the pyramid scheme running.

Furthermore, Xiong alleges, even if a Jeunesse affiliate tried to generate retail sales, they are routinely undercut by distributors selling on Amazon for “less than … wholesale prices”.

Particularly in the Chinese-American community, Jeunesse encourages Chinese to sell at wholesale price and to take advantage merely of the “commissions” paid by down-stream

distributors

The wholesale price being the amount Jeunesse distributors pay for products ordered.

In her lawsuit Xiong identifies herself as an employee and claims Jeunesse represented to her that she could

make “streams of income” and “wealth,” by recruiting others to become Jeunesse distributors.

That didn’t happen and,

like the thousands of Jeunesse distributors before and after, Plaintiff failed.

She failed even though she was committed and put in the time and effort.

She failed because she was doomed from the start by a Jeunesse marketing plan that systematically rewards recruiting distributors over retail sales of product.

Based on her experience as a distributor, Xiong concludes Jeunesse

run(s) an illegal pyramid scheme.

They take money in return for the right to sell products and the right rewards for recruiting other participants into the pyramid.

Another interesting component of Xiong’s lawsuit is the purported benefits of Jeunesse products, as provided by Jeunesse board members.

A

🤖 Quick Answer

What allegations does the Jeunesse California class-action lawsuit raise regarding the company's business model?
The lawsuit claims Jeunesse operates as a pyramid scheme without genuine retail sales. Plaintiff Xiong alleges that top distributors like Kim Hui earn income primarily from recruiting downline distributors rather than selling products to retail customers, contradicting the company's stated compensation structure based on retail commissions.

Who are the main parties involved in the Jeunesse class-action case filed in August?
Huiqin Xiong, a distributor who joined in 2015 and lost approximately $10,000, filed the lawsuit against Jeunesse Global and top distributor Kim Hui. Xiong claims Hui earns over $6 million annually through the recruitment-based compensation structure rather than legitimate retail operations.

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