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Lawsuit calls Young Living Essential Oils a pyramid scheme

Federal Court

By Marian Johns | Dec 19, 2019

Youngliving

SAN DIEGO (Legal Newsline) – A California woman alleges she lost thousands of dollars in an alleged scheme run by Young Living Essential Oils in its effort to recruit distributors. 

Lindsay Penhall, on behalf of herself and a class of all others similarly situated, filed a complaint Dec. 6 in the U.S. District Court for the Southern District of California against Young Living Essential Oils LC alleging violation of California's Penal Code and Civil Code, negligent misrepresentation and unjust enrichment.

Penhall, a San Diego resident who became a Young Living essential oils distributor in 2018, claims the company "falsely represents to its members that participation in Young Living – which necessarily requires hefty monthly payments – will result in material riches as long as they continue to solicit additional recruits to become Members of the Young Living family." 

She claims in reality, the program is "nothing more than an unlawful pyramid scheme." 

Penhall also alleges in 2016, the median monthly income for 94 percent of Young Living members was zero dollars per month and an average monthly income of $1 per month. She also alleges members incur hundreds in expenses to remain eligible for commissions. 

"In fact, in 2016, the average member lost $1,175," the suit states. 

The suit states the plaintiff lost nearly $2,000.

Penhall seeks monetary relief exceeding $5 million, trial by jury, interest and all other just relief. She is represented by Christopher Moon and Kevin Moon of Moon Law PC in San Diego. 

U.S. District Court for the Southern District of California case number 3:19-CV-02340-JLS-RBB

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