Current and former high-level doTERRA wellness advocates agree to civil penalties and injunctions
By: David Bland
“The FTC, in my opinion, is going to continue to push on egregious misleading claims no matter the form; I do not think their enforcement efforts will be limited to COVID-type claims.” —Katrina Eash, partner, Winston & Strawn LLP.
The U.S. Department of Justice (DOJ), together with the Federal Trade Commission (FTC), announced on March 3 permanent injunction orders and civil penalty judgments against three current and former distributors for doTERRA International LLC. doTERRA, a Utah-based direct seller founded in 2008, markets essential oils, health supplements and personal-care products.
The government actions were in response to allegedly deceptive COVID-19 product claims made in public webinars by the high-ranking distributors in January 2022. The distributors —a California-based pediatrician, a Georgia-based nurse practitioner, and a Utah-based former registered nurse—allegedly promoted their products to prevent, reduce the severity of, or cure COVID-19 and Long COVID-19. The doTERRA representatives also made claims about counteracting negative side effects of the COVID-19 vaccine.
Harnessing social media to foster curiosity, engagement and authenticity
By: Jenna Lang Warford
“The currency of social media is conversations.” — Scott Kramer, CEO, MultiBrain
Creating community on social media is a more complicated endeavor than creating brand recognition through savvy product placement and endorsements. Direct selling companies that crack the community code are using multiple platforms, incorporating comp plan tweaks and providing the field with strategic new training.
“After $2.35B in sales in 2021, we grew by 23% in 2022. This year, our recruiting is up 89%, January over January,” says Gordon Hester, PM International’s general manager of sales for the U.S. and Canada.
“When a company’s sales go backwards, there’s a tendency to say, ‘Whoa, we need to figure this out.’ No, you need to figure out how to get your field engaged. You’re seeing more companies that say, ‘We’re going to control (customer engagement).’ And the reality is, that’s the complete opposite of what you should do.”
PEOPLE ON THE MOVE – April
Hyeyoung Moon, LG H&H Americas
LG H&H Americas, owner of The Avon Co. (N.A.), has named Hyeyoung Moon as CEO. Moon will lead LG H&H USA, Avon, and Boinca. Prior to joining LG H&H, Moon was global head of marketing at Amazon Business. She also held roles in strategy, product management and marketing at Starbucks for 15 years.
Liza Maldonado, The Avon Co.
LG H&H Americas has promoted Liza Maldonado to head of direct selling for the U.S., Puerto Rico and the Caribbean, The Avon Co. (N.A.). Maldonado previously led Avon Puerto Rico and Caribbean as general manager. She has over 25 years of experience in the beauty industry, including 11 years at L’Oreal.
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