subject: The Multi-levels Of The Monavie Scams [print this page] Started in 2005 by Monarch Health Sciences, MonaVie distributes acai berry products through the controversial multi-level marketing model. They have been criticized for its misleading advertising and health claims and business practices. They've been the subject of numerous lawsuits and their CEO, Dallin Larsen was previously involved with another juice company that was shut down in 2003 for making false claims about its product, Royal Tongan Limu Juice. There are many elements to the acai juice scams.
MonaVie distributes its products through the technically legal practice known as multi-level marketing. Although legal throughout the United States and 100 other countries, multi-level marketing is controversial because of its similarity to a pyramid scheme; accusations of price fixing; high start up costs; emphasis on recruitment of new sales people over sales; exaggerated compensation schemes; exploitation of personal relationships and cult-like behavior.
As with other multi-level marketing companies, MonaVie compensates its sales people through a highly complex incentive program. This plan is described in their brochures with colorful charts and and a variety of acronyms designed to entice with luxurious rewards and bonus programs.
In their program the distributor builds two legs to their downline but only qualify for commissions and bonuses based on the shorter leg. The longer leg is essentially useless since bonuses end wherever the shorter leg ends. They also focus on recruiting rather than selling their product with promises of higher earnings for those who bring more distributors into the fold. They require their distributors to purchase at least four bottles a month. Since those bottles rarely actually sell the distributor must eat that cost as a loss. If the distributor doesn't make these minimum purchases they aren't allowed to claim their commissions.
Acai juice is an extremely expensive but nearly worthless product. The acai berry is native to Latin America and is sold as a supplement in juice, tablets, yogurt, smoothies, and powders. Distributors claim that these berries are a good source of phytonutrients, vitamins, minerals, amino acids and antioxidants. They supposedly offer a variety of benefits. MonaVie asserts on their website that their products promote healthy joints; help balance cholesterol levels; strengthen the immune system; increase energy; and protect the body from free radicals.
However, in studies conducted by Chromadex labs, MonaVie products were actually shown to contain low levels of the antioxidant vitamin C and the phytochemicals associated with antioxidant activity. In spite of marketing to the contrary there is no evidence that fruit polyphenols have any antioxidant value in the human body or that MonaVie's much touted oxygen radical absorbance capacity has purpose within the human body. While polyphenols act as antioxidants in the controlled environment of a laboratory, in the body they are likely extremely limited or even absent. According to the FDA, the Linus Pauling Institute, and European Food Safety Authority polyphenols have no direct antioxidant food value after being digested. In fact, polyphenols are poorly conserved in the body with less than 5% being present in the body a few hours after consumption. Most of the polyphenols that are absorbed are converted into metabolites and rapidly excreted.
Technically legal like other multi-level marketing based businesses, MonaVie earns a profit not by selling its products but rather by recruiting sales people. It uses flashy brochures to entice people to join and promises bonuses, higher earnings and rewards to members who bring new distributors into the flock. This model benefits a few people at the top while often costing those at the bottom a small fortune. Even when the juice is sold, it has little real nutritional value and is advertised with misleading and even false claims.
