BehindMLM
reviewed LifeVantage
back in 2015.

Although retail was possible, we found LifeVantage’s overall business model was focused mostly on autoship affiliate recruitment.

This combination of token retail with affiliate recruitment is at the core of modern-day MLM pyramid schemes.

The FTC took action against
Vemma
and
Herbalife
a few years ago for use of the model, but for whatever reason we haven’t seen anything since.

LifeVantage meanwhile have had three years to clean up their act.

If a lawsuit filed earlier this year is to be believed however, nothing much has changed.

In a January 24th filed complaint, Brian Smith identifies himself as a LifeVantage affiliate who paid over $1000 to sign up in 2016.

Smith runs Cancer Survivors Who Can Charities, Inc., a non-profit organization.

Smith alleges that he was

approached by a LifeVantage Distributor who suggested that LifeVantage products would be helpful to the members of his cancer organization.

Upon attending two LifeVantage meetings, he was only informed of LifeVantage’s more expensive Product Pack signup options.

Smith was told he had to sign up with a Product Pack and after choosing the most expensive $1200 pack, Theresa Cannavo, filled in his distributor application.

Eight months in Smith cancelled his autoship, having realized he’d joined

a pyramid scheme, designed to only make money for LifeVantage and a few top promotors at the expense of Plaintiff and people like him.

During his time as a Distributor, Smith learned that:

(1) he would have to recruit others to become LifeVantage Distributors in order to recoup the money he paid to become a Distributor;

(2) he was required to make monthly purchases of Protandim products to get any commissions and remain a Distributor;

(3) it was nearly impossible for him to break even based on retail product sales alone, and;

(4) he would have to pay additional costs to attend meetings to learn the “selling secrets” of the top-earning Distributors.

At the root of Smith’s pyramid claims are allegations of little to no retail sales taking place.

LifeVantage is nothing more than a pyramid scheme dressed up as a multi-level marketer (an “MLM”) of dietary supplements.

LifeVantage induces people to become Distributors with sales pitches promising wealth and business independence, and its marketing and compensation system encourages its Distributors to recruit others into the system with the same promises of wealth and business independence.

Distributors pay money to participate in the business opportunity, which funds LifeVantage’s payments and “bonuses” to other Distributors.

Despite LifeVantage’s claims of retail sales, little money comes in to the system from actual retail users of LifeVantage products disconnected from the business opportunity.

The majority of its retail sales are monthly sales to its Distributors purchasing product in order to participate in the compensation system and remain eligible to receive bonuses.

Dis

🤖 Quick Answer

What are the main allegations against LifeVantage in the class-action lawsuit?
The lawsuit, filed by affiliate Brian Smith in January 2024, alleges that LifeVantage operates as a pyramid scheme with snake oil practices. Smith claims the company prioritizes autoship affiliate recruitment over genuine retail sales, a business model combination that the FTC previously targeted in cases against Vemma and Herbalife for violating consumer protection regulations.

What was BehindMLM's 2015 assessment of LifeVantage's business structure?
BehindMLM's 2015 review found that while retail was technically possible, LifeVantage's operational model focused predominantly on autoship affiliate recruitment. This combination of limited retail activity with heavy emphasis on recruiting affiliates represents a characteristic feature of modern multi-level marketing pyramid schemes under regulatory scrutiny.

**What evidence does the plaintiff

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