doTerra (style d? TERRA ) is a Pleasant Grove, Utah based multi-level marketing company that sells essential oils and other related products. doTerra was founded in 2008 by David Stirling and former executive, employee and distributor of Young Living, a company that also sells essential oils, and Nuskin. Stirling is the president and CEO.
In 2014, the US Food and Drug Administration issues an FDA Warning Letter for doTerra to market its products as a possible treatment or cure for Ebola, cancer, autism, and other conditions that violate the Food, Drug and Cosmetic Act. Distributors then proceed to market the product by claiming benefits for the prevention or treatment of influenza, autism, and other medical conditions.
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Histori
In 2013, doTerra reported had about 450 employees of the company; 350 in Utah's headquarters, and 100 in offices in Taiwan, Japan, Europe and in Australia. By 2017, doTerra reports about 1,650 company employees. By 2016, doTERRA reported having more than 3 million independent distributors (ie, non-employee salespeople), which the company calls "Wellness Advocates." According to the company's multi-level marketing organization, salespeople are expected to hire other salespeople to increase their own profits.
In 2014, the company sells more than 150 products such as supplements, personal care items, and essential oils. Its products are marketed for use in cooking, cleaning, and health. In 2013, about 75% of the company's business is in the United States.
In 2017, the company funded a "playground and sensory park" located at the 10,000 square foot autism center built by Utah Valley University.
Data violation of distributor 2016
In April 2016, doTerra sent a letter to a distributor informing them that a breach in a system where personal information was stored had occurred in March 2016. Personal information obtained in violation includes: name, date of birth, social security number, address, telephone number, address email, debit and credit card numbers, username, and password. The company explained that "third-party vendors" were wrong, but refused to name the vendor. To compensate, the company offers 24-month credit monitoring through AllClear, a credit monitoring company. Many distributors have voiced concern over the amount of information gained and long-term effects.
2017 burn reports
In April 2017, a woman reportedly suffered second and third degree burns on her wrists and neck after applying doTerra essential oil and using a tanning bed.
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Distributors' earnings
The US Federal Trade Commission, citing a 2011 investigation involving about 350 multilevel marketing firms including doTerra, notes that most distributors for such operations end up losing money, usually because they can not manage to sell the products they need. to buy. doTerra requires its distributors to spend at least $ 100 per month on a company's products in order to qualify for a sales commission. According to the company, one-third of their distributors get nothing from their sales efforts.
Prohibited marketing claims
On September 22, 2014, the US Food and Drug Administration issued an FDA Warning Letter for doTerra to market its products as a possible treatment or cure for Ebola, cancer, autism, and other conditions that violate the Food, Drug and Cosmetic Act. marketing executive doTerra McKay Brown released a statement that seeks to distance the company from claims that "its products cure or cure diseases including Ebola virus or other diseases", and he claims that they are working to improve marketing materials to ensure compliance with the FDA. regulations.
doTerra distributors have widely marketed the company's essential oils as an additional treatment for autism and ADHD, despite legal restrictions on such claims and the scarcity of published scientific studies on the effects of products on people with autism. Some salespeople have offered personal stories alleging that their children each benefited from essential oils as a way to overcome this restriction.
Response to natural disasters
In 2017, a charity affiliated with doTerra (the DoTERRA Hand Held Organization) began collecting donations from its distributors after Hurricane Harvey to cover the cost of providing a product package containing samples of the company's products to the refugees in Dallas. However, after collecting donations, doTERRA says that they can not post because of weather conditions. Pacific Standard describes the incident as "a modern example of irregularities masquerading as altruism - a type of fraud often found in multi-level marketing organizations". The help package is finally delivered.
After the California forest fire 2017, it was reported that the DoTerra representatives promoted the company's products for air purification and to protect against smoke effects from fires. Air pollologists argue that the products do not actually clear smoke from the air, and by releasing volatile compounds they can make air quality worse and potentially harmful to people with respiratory problems.
Legal Charges
In August 2013, Young Living filed a lawsuit against doTerra for the theft of trade secrets, alleging that the company had recreated their production process illegally. Chemist Robert Pappas said that the oil, which was tested by the National Center de la recherche scientifique, did not match the oil sold by doTerra. One of the unintended consequences of the lawsuit between the two companies has been the court's deposition by Pappas stating that Young Living and doTerra use synthetic chemicals in their organic products. In October 2014, the Fourth District Court rejected the claims made against doTerra.
References
External links
- Official website
Source of the article : Wikipedia
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