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{{Short description|Multi-level marketing company}}
{{pp-semi-indef}} {{pp-semi-indef}}
{{semiprotected|small=yes}} {{semiprotected|small=yes}}
{{Infobox company {{Infobox company
| company_name = MonaVie | name = MonaVie
| company_logo = ] | logo = ]
| company_type = ] | type = ]
| founded = ({{Start date and age|2005|01}}) in ], ], ]
| foundation = 2005
| location_city = ], ] | location_city = ], ]
| location_country = United States | location_country = United States
| area_served = Worldwide
| area_served = ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ], ]
| key_people = Dallin Larsen, Henry Marsh, Dell Brown, Randy Larsen, Jeff Cohen, Rob Ferguson, Kale Carlie, Jeff Graham | key_people = {{Unbulleted list|Dallin Larsen (] & ])|] (Founder & vice-chairman)|Maurício Bellora (])}}
| industry = ] ] | industry = {{Unbulleted list|]| ]| ]}}
| fate = ] in 2015
| products = ] juice: MonaVie Original Blend, MonaVie Original Gel Packs, MonaVie Kosher Blend, MonaVie Active Blend, MonaVie Active Gel Packs, MonaVie Pulse Blend, MonaVie Pulse Gel Packs, MonaVie (M)mūn Blend, E<sup>MV</sup>
| products ={{Unbulleted list|MonaVie Active|MonaVie Essential|MonaVie Pulse}}
| operating_income = | operating_income =
| revenue= | revenue=
| num_employees = 450 (from 2009)
| num_employees = 450<ref name=inc.></ref>
| subsid = The MORE Project
| homepage = | website = {{url|http://www.monavie.com/}}
| footnotes = <ref name=Execs>{{cite web|url=http://www.monaviebackoffice.com/Web/US/en/executive_team.dhtml |title=MonaVie Executive Team |access-date=2008-12-19 |url-status=dead |archive-url=https://web.archive.org/web/20090203113547/http://monaviebackoffice.com/Web/US/en/executive_team.dhtml |archive-date=February 3, 2009 }}</ref><ref>{{cite news|title=Exclusive Interview With New MonaVie CEO Mauricio Bellora|url=http://www.obtainer-online.com/news/en/exclusive-interview-with-new-monavie-ceo-mauricio-bellora.html|access-date=21 March 2014|newspaper=Obtainer Online|date=21 May 2013}}</ref><ref name=inc.></ref><ref name = MORE />
}} }}

'''MonaVie''' is a beverage company distributing products made from blended fruit juice concentrates with freeze-dried ] powder and ] through a ] (MLM) ]. MonaVie has been the subject of controversy, as health benefit claims for its products have not been scientifically confirmed or approved by regulatory authorities,<ref name=weil/><ref name=bowden/><ref name=mensjournal/><ref name=PBP/><ref name=FDA/> its CEO was previously involved in false health claims of another beverage,<ref name=SLT121011/><ref name=Fedcourt/><ref name=newsweek/><ref name=FTC/> the business plan is similar to a ],<ref name="newsweek"/><ref name=Forbes/><ref>{{cite news|title=MonaVie Juice: The $35 Per Bottle Pyramid Scheme|url=http://www.huffingtonpost.com/2010/07/19/monavie-juice-pyramid-sch_n_651845.html|newspaper=|date=July 10, 2010}}</ref> and very few distributors actually make a profit.<ref name="newsweek"/><ref name=Forbes/><ref name="Courant"/><ref name="http://www.deseretnews.com/article/700250138/Henry-Marsh-a-success-story.html?pg=3"/>
'''MonaVie''' is a defunct, American ] company that manufactured and distributed products made from blended fruit juice concentrates, powders, and ]s. The company was the subject of several controversies. Health claims for its products had not been scientifically confirmed or approved by regulatory authorities,<ref name=weil /><ref name=bowden /><ref name=mensjournal>{{cite news | title = Superjuices on Trial | author = Jamie Beckman | publisher = ] | date = December 4, 2008 | url = http://www.mensjournal.com/essential/print-view/superjuices-on-trial-not-so-super-20121009 | access-date = 2008-12-12 | archive-url = https://web.archive.org/web/20140324114325/http://www.mensjournal.com/essential/print-view/superjuices-on-trial-not-so-super-20121009 | archive-date = March 24, 2014 | url-status = dead }}</ref><ref name=PBP /><ref name=FDA /><ref>{{Skeptoid | id= 4086| number= 86| title= MonaVie and Other "Superfruit" Juices| date= February 5, 2008| quote= ...products like MonaVie that have no proven health value rarely find their way into medical or nutritional literature.| access-date=October 25, 2020}}</ref> and its chairman had been previously involved in false health claims concerning another beverage company.<ref name=SLT121011 /><ref name=Fedcourt /><ref name=newsweek>{{cite news|last=Dokoupil|first=Tony|title=MonaVie Acai Juice: Cure-All or Marketing Scheme?|url=http://www.newsweek.com/monavie-acai-juice-cure-all-or-marketing-scheme-87651|access-date=9 January 2014|newspaper=Newsweek|date=1 August 2008}}</ref><ref name=FTC /> According to '']'', MonaVie's business plan resembled a ].<ref name=newsweek /><ref name=Forbes /> In 2015, the company ] on a ]182 million loan and went into ].<ref name=forcelose/><ref name=haltorder/> Florida-based ] took over MonaVie’s assets when it purchased the note for $15 million.<ref>{{Cite news|title=Utah's MonaVie, which once touted $1B in annual sales, now foreclosed on for $15M|work=Salt Lake Tribune|url=https://archive.sltrib.com/article.php?id=2567635&itype=CMSID}}</ref>


==Company overview== ==Company overview==
MonaVie juice was launched in January 2005 by MLM company ], founded in 2003 as a distributor of ] and ] supplements. Also in 2005, the executives of Monarch founded MonaVie LLC/MonaVie Inc., a privately-held MLM company based in ], ]. The newly formed company took over the bottling, distribution, and marketing of MonaVie juice products. Both Monarch Health Sciences and MonaVie, Inc. were founded by Dallin Larsen, who graduated from ] with a B.S. degree in finance.<ref name=monaviedef14>{{cite web|url=http://www.secinfo.com/dS9Jj.6k8.htm|title=Usana Health Sciences Inc · DEF 14A For 27 May 1999 |accessdate=2007-09-15|publisher=sec.edgar-online.com}}</ref> Larsen previously held senior executive positions with the MLM companies ] and ]. According to company sources, MonaVie juice was developed by Ralph E. Carson, now the company's Chief Science Officer. MonaVie also owns and operates a charity organization, the MORE Project.<ref name=more>{{cite web|url=http://www.themoreproject.org |title=The MORE Project by MonaVie |accessdate=2010-03-09}}</ref> Dallin Larsen, who held senior executive positions with the multi-level marketing companies ] and ], founded Monarch Health Sciences in 2003 as a distributor of ] and ] supplements. Monarch Health Sciences launched MonaVie juice in January 2005, and the same year founded MonaVie LLC/MonaVie Inc., a privately held multi-level marketing company based in ], ]. The newly formed company took over the bottling, distribution, and marketing of MonaVie juice products.<ref name=SLT121011/><ref name=monaviedef14>{{cite web|url=http://www.secinfo.com/dS9Jj.6k8.htm|title=Usana Health Sciences Inc · DEF 14A For 27 May 1999 |access-date=2007-09-15|publisher=sec.edgar-online.com}}</ref> MonaVie also owned and operated a charity organization, The MORE Project.<ref name = MORE>{{cite web | url = http://www.themoreproject.org/ | title = MORE Project | access-date = 23 Oct 2013}}</ref>

Other company officers:
*Dallin Larsen, Chairman and CEO<ref name=Execs2>{{cite web|url= http://www.monavie.com/company/executive-management#executive-team |title= The Monavie Executive Team |accessdate=2011-08-15|publisher=}}</ref>
* ], Vice Chairman<ref name=Execs>{{cite web|url= http://www.monaviebackoffice.com/Web/US/en/executive_team.dhtml |title= MonaVie Executive Team |accessdate=2008-12-19|publisher=}}</ref>
*Dell Brown, President, Chief Operations Officer<ref name="Execs"/>
*Devin D. Thorpe, Chief Financial Officer (2008-2011)<ref name=Execs/><ref name=Thorpe>{{cite web|url=http://www.prweb.com/releases/2011/7/prweb8661751.htm |title=Devin Thorpe Joins John Clawson to Launch White Coat Nutrition |accessdate=2012-9-01}}</ref>
*Jeff Graham, Senior Vice President<ref>{{cite web|url=http://monaviemediacenter.com/jeff-graham-named-senior-vice-president |title=Jeff Graham Named Senior Vice President &#124; MonaVie On The Move |publisher=Monaviemediacenter.com |date= |accessdate=2010-09-19}}</ref>

In September 2009, MonaVie, Inc. was ranked eighteenth on '']'''s 500/5000 ranking of the fastest-growing private companies (based on claimed revenue from 2005 to 2008) in the United States (#1 in Food & Beverage category; #3 in revenue)<ref name=inc./> However, as a privately-held company, MonaVie isn't required to publish financial data, making such claims difficult to judge.<ref name="newsweek"/> In June 2009, MonaVie CEO Dallin Larsen was one of eight Utah business owners to receive the Entrepreneur of the Year in the Utah Region award from accounting firm ].<ref>{{dead link|date=September 2010}}</ref> In November 2009, Mr. Larsen was announced as the National Entrepreneur of the Year for Emerging Markets, by ].<ref>{{cite web|url=http://www.ey.com/US/en/About-us/Entrepreneur-Of-The-Year/US_EOY_Article_2009_National_Winners |title=The Entrepreneur Of The Year Awards 2009 National Winners - Ernst & Young - United States |publisher=Ey.com |date= |accessdate=2010-09-19}}</ref>


MonaVie products are sold by non-employee distributors who are eligible to receive commissions based on product sales. Individual distributors are encouraged to build their own sales networks by recruiting new distributors to sell the products (referred to in multilevel marketing parlance as a "downline"); the recruiter can, in theory, receive additional commissions based on sales by their downlines.<ref name=newsweek/><ref name=CompPlan>{{cite web| title = MonaVie compensation plan| author = | publisher = Monavie LLC| date = August 29, 2009 | url = http://media.monavie.com/pdf/us/compensation_plan_en.pdf| accessdate = 2009-12-04}}</ref> MonaVie products were sold by non-employee distributors who were eligible to receive commissions based on product sales. Individual distributors were encouraged to build their own sales networks by recruiting new distributors to sell the products (referred to in multi-level marketing parlance as a "downline"); the recruiter could have, in theory, received additional commissions based on sales by their downlines.<ref name=newsweek/><ref name=CompPlan>{{cite web| title = MonaVie compensation plan| publisher = Monavie LLC| date = August 29, 2009| url = http://media.monavie.com/pdf/us/compensation_plan_en.pdf| access-date = 2009-12-04| url-status = dead| archive-url = https://web.archive.org/web/20100922190626/http://media.monavie.com/pdf/us/compensation_plan_en.pdf| archive-date = September 22, 2010}}</ref>


==Products==
==Product overview==
MonaVie produced a variety of blended bottled fruit juices, ] ]s, ]s and ] products.<ref>{{cite web | url = http://www.monavie.com/products/health-juices | title = Health Juices by MonaVie | publisher = MonaVie | access-date = 2012-04-21 }}</ref> MonaVie Kosher, one of the company's juice products, was certified as ] according to Jewish dietary laws by the Orthodox Union of North America and the ].<ref name="MonavieKosher">{{cite web |url=http://www.monavie.com/en/products/health-juices#!MONAVIE-KOSHER |title=Health Juices by Monavie |access-date=28 August 2013 |publisher=MonaVie}}</ref>
The MonaVie product line includes bottled juices, MonaVie Original, Active, Kosher, Pulse, and (M)mūn in addition to gel pack versions of these products an energy drink, and most recently snack bars<ref>. Retrieved January 15, 2012.</ref> E<sup>MV</sup>. The original MonaVie juice is a blend of 19 fruit juices in unpublicized proportions, including white grape, apple, ], ], purple grape, ], ], ], ], ], ], ], ], ] fruit, pear, banana, cupuaçu, ] and ].<ref>{{cite web|url=http://www.monavie.com/Web/CA/en/monavie_original.dhtml | title= The Premier Açai Blend | accessdate=2010-07-23 | publisher=MonaVie Corporate Website)}}{{dead link|date=August 2011}}</ref>

A ] for Opti-Acaí, a primary product ingredient for MonaVie juices, was submitted to the ] in 2004 by developers Alexander G. Schauss and Kenneth A. Murdock.<ref name=wipo>{{cite web|url= http://wipo.int/pctdb/en/wo.jsp?IA=US2004008739&wo=2004084833&DISPLAY=DESC |title= Jucara and açai fruit-based dietary supplements (WO 2004/084833). K2A Inc. (Application Number PCT/US2004/008739)|accessdate=2008-08-21|publisher=World Intellectual Property Organization (WIPO)}}</ref> and approved by the ] on July 21, 2009.<ref>. Retrieved October 21, 2009.</ref>


===Product research and physiological context=== ===Product research and physiological context===
An analysis conducted by contract laboratory ] indicated that MonaVie contained low levels of the antioxidant vitamin, ], and phytochemicals such as ] and ] associated with antioxidant activity ].<ref name=mensjournal/> An analysis conducted by contract laboratory ] indicated that MonaVie contained low levels of antioxidant ] and of phytochemicals such as ] and ] associated with antioxidant activity ].<ref name=mensjournal/>


Despite promotion by MonaVie of the juice having key polyphenol antioxidants from açai and other fruits in the blend,<ref>{{cite web|url=http://www.monavie.com/Web/CA/en/science.dhtml |title=The Science of MonaVie Açai Juices |publisher=Monavie.com |date= |accessdate=2010-09-19}}{{dead link|date=August 2011}}</ref> there remains no physiological evidence that any fruit polyphenols have such actions ] or that ] (ORAC) has any relevance in the human body. On the contrary, research indicates that although polyphenols are good ]s in vitro, antioxidant effects in vivo are probably negligible or absent.<ref name="Williams RJ, Spencer JP, Rice-Evans C 2004 838–49">{{cite journal |author=Williams RJ, Spencer JP, Rice-Evans C |title=Flavonoids: antioxidants or signalling molecules? |journal=Free Radical Biology & Medicine |volume=36 |issue=7 |pages=838–49 |year=2004 |month=April |pmid=15019969 |doi=10.1016/j.freeradbiomed.2004.01.001}}</ref><ref name="LPI">"", by David Stauth, ''EurekAlert!''. Adapted from a news release issued by Oregon State University</ref> As interpreted by the U.S. ] (FDA), ] and ], dietary polyphenols have little or no direct antioxidant food value following digestion.<ref name="Williams RJ, Spencer JP, Rice-Evans C 2004 838–49"/><ref name = Lotito>{{cite journal |author=Lotito SB, Frei B |title=Consumption of flavonoid-rich foods and increased plasma antioxidant capacity in humans: cause, consequence, or epiphenomenon? |journal=Free Radic. Biol. Med. |volume=41 |issue=12 |pages=1727–46 |year=2006 |pmid=17157175 |doi=10.1016/j.freeradbiomed.2006.04.033}}</ref><ref> U.S. Department of Health and Human Services, Food and Drug Administration, Center for Food Safety and Applied Nutrition, June 2008</ref><ref name=efsa>, EFSA Panel on Dietetic Products, Nutrition and Allergies (NDA)2, 3 European Food Safety Authority (EFSA), Parma, Italy, EFSA Journal 2010; 8(2):1489</ref> Unlike controlled test tube conditions, the fate of polyphenols ] shows they are poorly conserved (less than 5% retained hours after consumption), with most of what is absorbed existing as chemically-modified metabolites destined for rapid excretion.<ref name="LPI"/> MonaVie promoted that the juice had key polyphenol antioxidants from ] and other fruits in the blend;<ref>{{cite web|url=http://www.monavie.com/Web/CA/en/science.dhtml |title=The Science of MonaVie Açai Juices |publisher=Monavie.com |access-date=2010-09-19 |url-status=dead |archive-url=https://web.archive.org/web/20100725061330/http://www.monavie.com/Web/CA/en/science.dhtml |archive-date=July 25, 2010 }}</ref> however, there is no physiological evidence that any fruit polyphenols have such actions ] or that ] (ORAC) has any relevance in the human body.<ref name=USDAx>{{cite web |url=http://www.ars.usda.gov/services/docs.htm?docid=15866 |title=Withdrawn: Oxygen Radical Absorbance Capacity (ORAC) of Selected Foods, Release 2 (2010) |date=16 May 2012 |publisher=United States Department of Agriculture, Agricultural Research Service |access-date=13 June 2012}}</ref> Research shows that although polyphenols are good ]s in vitro, antioxidant effects in vivo are probably negligible or absent.<ref name="Williams RJ, Spencer JP, Rice-Evans C 2004 838–49">{{cite journal |vauthors=Williams RJ, Spencer JP, Rice-Evans C |title=Flavonoids: antioxidants or signaling molecules? |journal=Free Radical Biology & Medicine |volume=36 |issue=7 |pages=838–49 |date=April 2004 |pmid=15019969 |doi=10.1016/j.freeradbiomed.2004.01.001}}</ref><ref name="LPI">"", by David Stauth, ''EurekAlert!''. Adapted from a news release issued by Oregon State University</ref> As interpreted by the United States ], ] and ], dietary polyphenols have little or no direct antioxidant food value after digestion.<ref name="Williams RJ, Spencer JP, Rice-Evans C 2004 838–49"/><ref name = Lotito>{{cite journal |vauthors=Lotito SB, Frei B |title=Consumption of flavonoid-rich foods and increased plasma antioxidant capacity in humans: cause, consequence, or epiphenomenon? |journal=Free Radic. Biol. Med. |volume=41 |issue=12 |pages=1727–46 |year=2006 |pmid=17157175 |doi=10.1016/j.freeradbiomed.2006.04.033}}</ref><ref>{{cite web | url = https://www.fda.gov/OHRMS/DOCKETS/98fr/FDA-1995-N-0400-GDL.pdf | title = Guidance for Industry, Food Labeling; Nutrient Content Claims; Definition for "High Potency" and Definition for "Antioxidant" for Use in Nutrient Content Claims for Dietary Supplements and Conventional Foods | publisher = ] }}</ref><ref name=efsa>{{cite journal | title = Scientific Opinion on the substantiation of health claims related to various food(s)/food constituent(s) and protection of cells from premature aging, antioxidant activity, antioxidant content and antioxidant properties, and protection of DNA, proteins and lipids from oxidative damage pursuant to Article 13(1) of Regulation (EC) No 1924/20061 | author = EFSA Panel on Dietetic Products, Nutrition and Allergies | journal = ] | year = 2010 | volume = 8 | issue = 2| pages = 1489 (1–63) | doi = 10.2903/j.efsa.2010.1489 | doi-access = free }}</ref> Unlike controlled test tube conditions, most polyphenols are not absorbed following digestion, and what is absorbed is metabolized and excreted.<ref name="LPI"/>


===Interactions and adverse effects=== ===Interactions and adverse effects===
A clinical ] showed an association between MonaVie ingestion throughout pregnancy and ] closure of the ] resulting in cardiac hypertrophy and dysfunction (]) at birth.<ref name=kapadia>{{cite journal | doi = 10.1038/jp.2009.140 | author = Kapadia V, Embers D, Wells E, Lemler M, Rosenfeld CR. | date = April 2010| title = Prenatal closure of the ductus arteriosus and maternal ingestion of anthocyanins.| journal = J Perinatol | volume = 30 | issue = 4 | pages = 291–4 | url = http://www.ncbi.nlm.nih.gov/pubmed/20351708 | pmid = 20351708 }}</ref> Monavie Active may cause fluctuations in ] (]) in patients treated with ] or other ] ]; avoidance of this combination has therefore been recommended.<ref name=katcher>{{cite journal | doi = 10.2146/ajhp090542 | author = Katcher S, Leung S. | date= January 2010| title = Potential interaction between MonaVie Active and Warfarin.| journal = Am J Health Syst Pharm | volume = 67 | issue = 2 | pages = 107–8 | url = http://www.ncbi.nlm.nih.gov/pubmed/20065263 | pmid = 20065263 }}</ref> A clinical ] showed an association between MonaVie ingestion throughout pregnancy and ] closure of the ] resulting in cardiac hypertrophy and dysfunction (]) at birth.<ref name=kapadia>{{cite journal | doi = 10.1038/jp.2009.140 |vauthors=Kapadia V, Embers D, Wells E, Lemler M, Rosenfeld CR | date = April 2010| title = Prenatal closure of the ductus arteriosus and maternal ingestion of anthocyanins.| journal = J Perinatol | volume = 30 | issue = 4 | pages = 291–94 | pmid = 20351708 | doi-access = free }}</ref> Another case report noted that MonaVie Active may cause fluctuations in ] (]) in patients treated with ] or other ] ], and it was recommended that this combination should be avoided.<ref name=katcher>{{cite journal | doi = 10.2146/ajhp090542 |vauthors=Katcher S, Leung S | date= January 2010| title = Potential interaction between MonaVie Active and Warfarin.| journal = Am J Health Syst Pharm | volume = 67 | issue = 2 | pages = 107–08 | pmid = 20065263 }}</ref>


==Distributor earnings== ==Distributor earnings==
Around 14% of distributors make a profit, according to MonaVie Executive VP Henry Marsh quoted from a 2009 article published in '']''.<ref name="http://www.deseretnews.com/article/700250138/Henry-Marsh-a-success-story.html?pg=3">http://www.deseretnews.com/article/700250138/Henry-Marsh-a-success-story.html?pg=3 Retrieved July 22, 2009</ref>


According to an article published in '']'', reporting on MonaVie's 2007 income disclosure statement, "fewer than 1% qualified for commissions and of those, only 10% made more than $100 a week." More than 90% were counted as wholesale customers, whose earnings '']'' reported were mostly discounts on sales to themselves. According to a top recruiter, the dropout rate in 2008 was around 70%.<ref name="newsweek"/> An article published in the '']'' reported that about 45% of the company's distributors earned an annualized average check of less than $1,600, and 37% took home about $2,000; approximately 2% earned an annualized average check of more than $29,000, and just 7 out of 80,000 distributors (<0.01%) took home more than $3 million, according to the MonaVie 2008 income disclosure statement.<ref name=Courant>{{cite web| title = Acai's Payoff| author = Janice Posada| publisher = ]| date = July 19, 2009 | url = http://articles.courant.com/2009-07-19/news/acai-marketing-suncon0719.art_1_monavie-acai-berry-antioxidants/2| accessdate = 2010-01-07}}</ref><ref name="http://media.monavie.com/pdf/us/compensation_plan_en.pdf"> http://media.monavie.com/pdf/us/compensation_plan_en.pdf Retrieved July 13, 2009.</ref> According to a 2011 article published by the ], 85% of Monavie's distributors earned commission checks in 2009 averaging $35 a week or less, while the company's top 7 distributors earned an average of $3.4 million a year.<ref name="SLCtrib">{{cite web| title=State of supplements: Elusive wealth, strong lure Around 14% of distributors made a profit, according to MonaVie Executive VP Henry Marsh quoted from a 2009 '']'' article.<ref name=Robinson>{{cite news|last=Robinson|first=Doug|title=Henry Marsh: a success story|url=http://www.deseretnews.com/article/700250138/Henry-Marsh-a-success-story.html?pg=all|archive-url=https://web.archive.org/web/20121022213338/http://www.deseretnews.com/article/700250138/Henry-Marsh-a-success-story.html?pg=all|url-status=dead|archive-date=October 22, 2012|access-date=18 October 2013|newspaper=Deseret News|date=12 August 2008}}</ref> A '']'' article, reporting on MonaVie's 2007 Income disclosure statement, stated "fewer than 1% qualified for commissions and of those, only 10% made more than $100 a week." More than 90% were counted as wholesale customers, whose earnings were mostly discounts on sales to themselves. According to a top recruiter, the dropout rate in 2008 was around 70%.<ref name="newsweek" /> An article published in the '']'' reported that about 45% of the company's distributors earned an annualized average check of less than $1,600, and 37% took home about $2,000; roughly 2% earned an annualized average check of more than $29,000, and just 7 out of 80,000 distributors (<0.01%) took home more than $3 million, according to MonaVie's 2008 Income Disclosure statement.<ref name=Courant>{{cite web| title = Acai's Payoff| author = Janice Posada| publisher = ]| date = July 19, 2009 | url = https://www.courant.com/2009/07/19/acais-payoff/| access-date = 2010-01-07}}</ref><ref name=compensation_plan_en>{{cite web |url= http://media.monavie.com/pdf/us/compensation_plan_en.pdf |title= Link |url-status= dead |archive-url= https://web.archive.org/web/20100922190626/http://media.monavie.com/pdf/us/compensation_plan_en.pdf |archive-date= 2010-09-22 }} Retrieved July 13, 2009.</ref> According to a 2011 article in '']'', 85% of MonaVie's distributors earned commission checks in 2009 averaging $35 a week or less, while the company's top seven distributors earned an average of $3.4 million a year.<ref name="SLCtrib">{{cite news| last= Oberbeck|first=Steven|date= 22 February 2011| access-date= 13 August 2014| title=State of supplements: Elusive wealth, strong lure | url=http://www.sltrib.com/sltrib/home/51183138-76/average-companies-distributors-earn.html.csp?page=2|publisher=Salt Lake Tribune}}</ref>
| url=http://www.sltrib.com/sltrib/home/51183138-76/average-companies-distributors-earn.html.csp?page=2}}</ref>

According to the 2009 Income Disclosure Statement<ref></ref> approximately 87% of the people that signed a distributor agreement between July 2008 and June 2009 were not counted as distributors as they didn't satisfy the 4 criteria (sign agreement, sponsor at least one person, receive at least one non-retail bonus, and has been active in the bonus period). Of the remaining 13% that were recognized as distributors for further calculations, 50% earned an average annual paycheck of $1213. And 35% earned an average paycheck of $1817. Less than 2% of the 13% (or less than a quarter of a percent) of the people who signed the distributor agreement earned an average annual paycheck of $29,310 or more.


==Criticism== ==Criticism==

===Nutritional value disputed=== ===Nutritional value===
Physician ] and nutritionist Jonny Bowden claim that the nutritional and health benefits of MonaVie juice are not proven and that the product is exorbitantly priced relative to more ] conventional ]-rich foods, such as blueberries, ], and ].<ref name=weil>{{cite news| title = Thumbs Down on MonaVie?| author = ]| journal = | publisher = drweil.com| date = 8 February 2008| url =http://www.drweil.com/drw/u/QAA400351/Thumbs-Down-on-MonaVie.html| accessdate = 2008-08-24}}</ref><ref name=bowden>{{cite news| title = New Rules: No More Claiming Mona Vie Cures Cancer!| author = Johnny Bowden | publisher = The Huffington Post | date = June 11, 2008 | url =http://www.huffingtonpost.com/dr-jonny-bowden/new-rules-no-more-claimin_b_106562.html| accessdate = 2008-08-24}}</ref> According to '']'', a nutritional analysis conducted by ChromaDex, an independent contract testing laboratory, showed that MonaVie Active juice "tested extremely low in ] and ]" and that "even ] (which also tested poorly) has more phenolics".<ref name=mensjournal>{{cite news| title = Superjuices on Trial| author = Jamie Beckman | publisher = ] | date = December 4, 2008 | url =http://www.mensjournal.com/superjuices-on-trial| accessdate = 2008-12-12}}</ref> The report also noted that "MonaVie’s ] level was 5 times lower than that of Welch’s ]," a product priced at a fraction of the cost of MonaVie for the same serving volume. Physician ] and nutritionist Jonny Bowden claimed that the nutritional and health benefits of MonaVie juice were unproven and that the product was overpriced relative to more ] conventional ]-rich foods. Weil and Bowden also criticized the product for being sold through multi-level marketing.<ref name=weil>{{cite web | title = Thumbs Down on MonaVie?| author = Weil A| publisher = drweil.com| date = 2008-02-08 | url = http://www.drweil.com/drw/u/QAA400351/Thumbs-Down-on-MonaVie.html | access-date = 2012-04-21 | author-link = Andrew Weil}}</ref><ref name=bowden>{{cite web | title = New Rules: No More Claiming Mona Vie Cures Cancer!| author = Bowden J | work = ] | date = 2008-06-11 | url =http://www.huffingtonpost.com/dr-jonny-bowden/new-rules-no-more-claimin_b_106562.html | access-date = 2012-04-21 }}</ref> A '']'' nutritional analysis showed that MonaVie Active juice "tested extremely low in ] and ]" and that "even ] (which also tested poorly) has more phenolics". The report also noted that "MonaVie’s ] level was 5 times lower than that of Welch’s ]", a product priced at a fraction of the cost of MonaVie for the same serving volume.<ref name = mensjournal/> Ralph Carson, the original developer of MonaVie and the company’s chief science officer cautioned that the juice was "expensive flavored water" and that “any claims made are purely hypothetical, unsubstantiated and, quite frankly, bogus." Carson added that he did not know how much açai was in the product.<ref name=SLT121011/>


===Misleading advertising and health claims=== ===Misleading advertising and health claims===
Bowden, '']'' correspondent Tony Dokoupil,<ref name=newsweek>{{cite web| title = A Drink’s Purple Reign | author = Tony Dokoupil | publisher = ]| date = August 2, 2008 | url = http://www.newsweek.com/id/150499/page/1 | accessdate = 2008-08-24}}</ref> and '']'' reporter Carolyn Susman<ref name=PBP>{{cite web| title = On Health: FDA checks product claims on the Web | author = Carolyn Susman | publisher = ]| date = July 16, 2008 | url = http://www.palmbeachpost.com/health/content/accent/epaper/2008/07/16/a3d_susman_0716.html | accessdate = 2008-09-04}}</ref> commented on the use of misleading promotional testimonials by MonaVie distributors in which the product was said to prevent and treat a variety of medical conditions. Dokoupil noted that “the FDA warned MonaVie about medicinal claims on its Web site” in reference to the ]'s action against MonaVie distributor Kevin Vokes in July 2007. According to an ], Vokes had promoted MonaVie as a drug in violation of the ] by claiming that it was effective for treating inflammation, high cholesterol, and muscle and joint pain.<ref name=FDA>{{cite web| title = FDA warning letter to MonaVie distributor Kevin A. Vokes| author = Jennifer A. Thomas | publisher = FDA ] Division of Enforcement | date = July 6, 2007 | url =http://www.fda.gov/downloads/Drugs/GuidanceComplianceRegulatoryInformation/EnforcementActivitiesbyFDA/CyberLetters/ucm056937.pdf | accessdate = 2008-08-24}}</ref> The FDA was ultimately satisfied with the company's response<ref name=newsweek/> after the claims on the offending website had been greatly dialed down.<ref name=PBP/> In a 2008 article in '']'' magazine, reporters Emily Lambert and Klaus Kneale described MonaVie as a ] and noted that a MonaVie video testimonial by distributor Louis "Lou" B. Niles implied that the product could cure cancer.<ref name=Forbes>{{cite web| title = Climb to the Top | author = Emily Lambert and Klaus Kneale | publisher = ]| date = August 11, 2008 | url = http://www.forbes.com/forbes/2008/0811/050.html | accessdate = 2008-09-09}}</ref> Bowden,<ref name = bowden/> '']'' correspondent Tony Dokoupil,<ref name=newsweek /> '']'' reporter Carolyn Susman,<ref name=PBP>{{cite web| title = On Health: FDA checks product claims on the Web | author = Carolyn Susman | publisher = ]| date = July 16, 2008 | url = http://www.palmbeachpost.com/health/content/accent/epaper/2008/07/16/a3d_susman_0716.html |archive-url= https://web.archive.org/web/20110617035910/http://www.palmbeachpost.com/health/content/accent/epaper/2008/07/16/a3d_susman_0716.html|archive-date=June 17, 2011 }}</ref> and ''Salt Lake City Tribune'' correspondent Tom Harvey<ref name=SLT121011/> commented on the use of misleading promotional testimonials by MonaVie distributors in which the product was said to prevent and treat a variety of medical conditions. Harvey also stated that MonaVie's rise, based on odds "stacked against low-level distributors who poured in the billions of dollars that fueled the company's spectacular growth," raised questions about the foundations of other companies in Utah's nutritional supplement industry. In 2007, the US ] (FDA) issued an ] to MonaVie distributor Kevin Vokes, for violations of the ] relating to online promotional material claiming that MonaVie was an effective treatment for inflammation, high cholesterol, and muscle and joint pain.<ref name=FDA>{{cite web| title = FDA warning letter to MonaVie distributor Kevin A. Vokes| author = Jennifer A. Thomas | publisher = FDA ] Division of Enforcement | date = July 6, 2007 | url =https://www.fda.gov/downloads/Drugs/GuidanceComplianceRegulatoryInformation/EnforcementActivitiesbyFDA/CyberLetters/ucm056937.pdf | access-date = 2008-08-24}}</ref> The FDA considered the issue resolved after therapeutic claims on the offending website were scaled down.<ref name=PBP/><ref name=newsweek/> In a 2008 '']'' magazine article, reporters Emily Lambert and Klaus Kneale described MonaVie as a ], referencing a video testimonial by distributor Louis "Lou" B. Niles that implied the product could cure cancer.<ref name=Forbes>{{cite web| title = Climb to the Top |author1=Emily Lambert |author2=Klaus Kneale |name-list-style=amp | work = ]| date = August 11, 2008 | url = https://www.forbes.com/forbes/2008/0811/050.html | access-date = 2008-09-09}}</ref>


Company executives have repeatedly acknowledged ongoing problems with MonaVie distributors making unlawful claims that the juice can treat and prevent diseases. A ''Newsweek'' article published August 2, 2008, noted that CEO Dallin Larsen "realizes that his sales team can get him in hot water with the Feds", and in reference to the company's ability to investigate distributors suspected of making false claims, Larsen commented that "it’s next to impossible; like herding cats."<ref name=newsweek/> A November 4, 2008 statement from the company noted: "many distributors, perhaps unwittingly, have engaged in methods of advertising that are in violation of MonaVie’s policies. Such actions put our business and yours at an unnecessary risk."<ref name=MVPP>{{cite web| title = Compliance Update: Advertising and Unauthorized Claims Policies (Monavie Policies and Procedures)| author = | publisher = Monavie LLC| date = Tuesday, November 4, 2008 | url = http://monaviemedia.net/us/category/policies-and-procedures/| accessdate = 2009-08-05}} {{Dead link|date=October 2010|bot=H3llBot}}</ref> In a May 14, 2009 ''Bloomberg News'' article, MonaVie executive vice-president and cofounder Randy Larsen was quoted saying that "the company is struggling with independent distributors who promote the juice as a miracle drug."<ref name=Bloomberg>{{cite web| title = ‘Superfood’ Promoted on Oprah’s Site Robs Amazon Poor of Staple | author = Adriana Brasileiro| publisher = ]| date = May 14, 2009 | url = http://www.bloomberg.com/apps/news?pid=20601086&sid=ai8WCgSJrhmY&refer=latin_america| accessdate = 2009-06-06}}</ref> Company executives had repeatedly acknowledged ongoing problems with MonaVie distributors making unlawful claims that the juice can treat and prevent diseases. In a 2008 ''Newsweek'' article, CEO Dallin Larsen stated that "his sales team can get him in hot water with the Feds", and that it was "next to impossible" for the company to investigate distributors suspected of making false claims.<ref name=newsweek/> Later in 2008, the company issued a statement acknowledging that many of its distributors, "perhaps unwittingly", violated its advertising policies.<ref name=MVPP>{{cite web| title = Compliance Update: Advertising and Unauthorized Claims Policies (Monavie Policies and Procedures)| publisher = Monavie LLC| date = November 4, 2008 | url = http://www.monavie.com/en/news/compliance-update-advertising-and-unauthorized-claims-policies?category=recent| access-date = 2013-10-23}}</ref> In a 2009 ''Bloomberg News'' article, MonaVie executive vice-president and cofounder Randy Larsen stated that "the company is struggling with independent distributors who promote the juice as a miracle drug."<ref name=Bloomberg>{{cite web| title = 'Superfood' Promoted on Oprah's Site Robs Amazon Poor of Staple | author = Adriana Brasileiro| publisher = ]| date = May 14, 2009 | url = https://www.bloomberg.com/apps/news?pid=20601086&sid=ai8WCgSJrhmY&refer=latin_america| access-date = 2009-06-06}}</ref>


===Dallin Larsen and Dynamic Essentials/Royal Tongan Limu=== ===Dallin Larsen and Dynamic Essentials/Royal Tongan Limu===
MonaVie CEO and founder Dallin Larsen was previously a senior executive with an MLM company that sold a similar juice product prior to being shut down by the FDA for illegal business practices.<ref name=SLT121011>{{cite news|last=Harvey|first=Tom|title=Utah juice companies offer few prospects|url=http://www.sltrib.com/sltrib/mobile/53061545-90/monavie-company-distributors-percent.html.csp|accessdate=January 10, 2012|newspaper=]|date=December 10, 2011}}</ref><ref name=newsweek/> In 2001, Larsen became vice president of sales for Dynamic Essentials in Lake Mary, Florida, which sold a fruit juice called ],<ref name=Fedcourt/><ref name=newsweek/> where he claimed to have increased revenue 300 percent. But in 2002, during Larsen’s tenure, the FDA issued a letter to Dynamic Essentials warning that claims on the company’s website that the juice could "treat various diseases such as cancer, arthritis, and attention deficit disorder" were in violation of federal law.<ref name=FTC>{{cite web| title = NBTY, Inc. to Pay $2 Million Penalty For Alleged Violations of FTC Order | author = | publisher = U.S. ]| date = October 12, 2005 | url = http://www.ftc.gov/opa/2005/10/nbty.shtm | accessdate = 2009-10-21}}</ref> Dynamic Essentials sometime after that ceased operation. In October 2003, the FDA said it witnessed the voluntary destruction of 90,000 bottles of Royal Tongan Limu.<ref name=SLT121011/> MonaVie CEO and founder Dallin Larsen was a senior executive with an multi-level marketing company that sold a similar juice product prior to being shut down by the FDA for illegal business practices.<ref name=SLT121011>{{cite news|last=Harvey|first=Tom|title=Utah juice companies offer few prospects|url=http://www.sltrib.com/sltrib/mobile/53061545-90/monavie-company-distributors-percent.html.csp|access-date=January 10, 2012|newspaper=]|date=December 10, 2011}}</ref><ref name=newsweek/> In 2001, Larsen became vice president of sales for Dynamic Essentials, a Florida-based company selling a fruit juice called ],<ref name=Fedcourt/><ref name=newsweek/> where Larsen claimed to have increased revenue 300%. In 2002, during Larsen’s tenure, the FDA warned Dynamic Essentials that claims on the company’s website that the juice could "treat various diseases such as cancer, arthritis, and attention deficit disorder" were illegal.<ref name=FTC>{{cite web| title = NBTY, Inc. to Pay $2 Million Penalty For Alleged Violations of FTC Order | publisher = U.S. ]| date = October 12, 2005 | url = http://www.ftc.gov/news-events/press-releases/2005/10/nbty-inc-pay-2-million-penalty-alleged-violations-ftc-order | access-date = 2014-08-26}}</ref> Dynamic Essentials ceased operating soon after. In 2003, the FDA saw the voluntary destruction of 90,000 bottles of Royal Tongan Limu.<ref name=SLT121011/>


===Pyramid scheme allegations=== ===Pyramid scheme allegations===
In spring of 2008, Larsen formed a business partnership with former ] distributor (] in the US) Orrin Woodward, founder of an Amway distributor sales network company known as TEAM. Woodward subsequently became a distributor and speaker for MonaVie, mixing his TEAM organization structure and distributor sales tools (e.g. sales brochures, audio/video recordings, etc.) concept with MonaVie's compensation plan. In 2008, Forbes magazine reporters Emily Lambert and Klaus Kneale noted: In 2008, Larsen formed a business partnership with former ] distributor (] in the US) Orrin Woodward, founder of an Amway distributor sales network company known as TEAM. Woodward subsequently became a distributor and speaker for MonaVie, mixing his TEAM organization structure and distributor sales tools (e.g. sales brochures, audio/video recordings, etc.) concept with MonaVie's compensation plan. Woodward received a $3 million loan from MonaVie which he did not have to repay if he met certain recruiting distributor goals, according to a lawsuit Amway filed against MonaVie in 2008.<ref name=SLT121011/> A '']'' magazine article in 2008 described MonaVie as a ], and TEAM as "a pyramid atop a pyramid", in which MonaVie vendors were sold motivational lectures, using a multi-level model, which were purported to help them increase their sales of MonaVie's products. The article proposes that this system takes advantage of ambiguities in the Federal Trade Commission's regulation of pyramid schemes, and that only 1% of members make any money from their involvement with the company.<ref name="Forbes"/>
<blockquote>
“TEAM is one step ahead of all these juice selling schemes. It is a pyramid atop a pyramid. It is selling motivational aids to help MonaVie vendors move the juice. But wait. If you can't earn back the $258 you've spent on the motivational lectures by selling $39 juice bottles, you could earn it back in another way—getting people to buy $258 motivational lectures. If you're good, you flog the lectures to other people, who sell them to yet others. Everybody gets rich. Everybody, that is, except the last round of buyers. That's the theory, anyway. The reality is that a mere 1% of Team members make any money from involvement with the firm.”<ref name="Forbes"/> </blockquote>

Regarding ] issues, Lambert and Kneale elaborated: <blockquote>
”In a 1979 regulatory action involving , the Federal Trade Commission attempted to draw lines between legitimate and fraudulent pyramids. The ones that are legit focus on getting revenue from consumer goods sold to retail customers. The FTC did not, however, define ‘retail’ in that case. That leaves plenty of wiggle room for guys like Orrin Woodward; he counts the vast majority of people in his pyramid, who seemingly try but fail to make money, as retail customers.”<ref name="Forbes"/> </blockquote>


==Litigation== ==Litigation==
The company, its executives, and various senior distributors were involved in five lawsuits between 2007 and 2009.<ref name=Fedcourt/><ref name=AmazonThunder1/><ref name=AmazonThunder2/><ref name=MVvsFV/><ref name=MVsuit/><ref name=2.75B/><ref name="2.75B"/><ref name=coloradocourt/><ref name=imagenetixdocket/><ref name=CST/> MonaVie was the plaintiff in trademark infringement suits against rival companies Fruitology (2007) and Amazon Thunder (2007) and was the defendant in false advertising suits filed by ] (2008), Imagenetix (2008), and ]/] (2009). The company, its executives, and various senior distributors have been part of significant lawsuits since the company's founding. MonaVie was the defendant in a false-advertising/trademark infringement suit against Imagenetix, Inc (2008),<ref name=mitchell1 /> a multi-issue legal battle with ] (2008),<ref name=Fedcourt/><ref name=harvey1 /> a false advertising suit by ] and ] (2009),<ref name=CST /><ref name=SLTOPrah /> two class action lawsuits (2010, 2013),<ref name=nuyten1/><ref name=Classaction1/><ref name=Classaction2/><ref name=Armstrong/><ref name=Bucher/><ref name=Pontreli/> and a copyright infringement suit against Zrii (2010).<ref name=harvey3 /> Also, MonaVie filed several suits against former sales representatives for breach of contract.<ref name=harvey2/>


===Trademark infringement and false advertising cases===
On July 11, 2007, Monarch Health Sciences, the company that launched MonaVie, filed a lawsuit with the federal ] in Utah against rival açaí juice manufacturer Amazon Thunder,<ref name=AmazonThunder1>{{cite web| title = Monarch Health Sciences, Inc. vs. Amazon Thunder, Inc. et al. | author = ] for the District of Utah, Central Division | publisher = www. dockets.justia.com | date = July 11, 2007| url = https://ecf.utd.uscourts.gov/cgi-bin/show_public_doc?2007cv0509-15| accessdate = 2008-09-28}}</ref> alleging that owner/founder Todd Reum had made “harmful, false, and defamatory statements" about MonaVie which "purportedly injured Monarch’s reputation”.<ref name=AmazonThunder2>{{cite web| title = Monarch Health Sciences, Inc. vs. Amazon Thunder, Inc. and Todd Reum | author = United States District Court for the District of Utah, Central Division| publisher = | date = November 15, 2007| url = https://ecf.utd.uscourts.gov/cgi-bin/show_public_doc?2007cv0509-15| accessdate = 2008-09-27}}</ref> The suit sought $75,000 in damages. On November 15, 2007, the Utah district court ruled to dismiss the case against Reum.


⚫ In 2008, Imagenetix, Inc. sued the MonaVie company, its board of directors, and several of its senior distributors for $2.75 billion over trademark infringement alleging that MonaVie Active juice contained the ingredient ].<ref name=mitchell1>{{cite news|last=Mitchell|first=Lesley|title=Suit against Utah firm claims false advertising|url=http://archive.sltrib.com/article.php?id=9290047&itype=NGPSID|access-date=24 October 2013|newspaper=Salt Lake Tribune|date=17 May 2008}}</ref><ref name="2.75B"/><ref name=imagenetixdocket>{{cite web| title = Imagenetix, Inc. vs. Monavie LLC et al. | publisher = ] for the Southern District of California | date = May 5, 2008 | url = http://www.mlmwatchdog.com/files/imagenetix_monavie_1/Imagenetix_MonaVie_Complaint.pdf| access-date = 2008-09-20}}</ref> The case was settled out of court and the lawsuit was dropped.<ref>, May 20, 2008</ref> Soon after, Imagenetix announced that it had entered into a new business relationship with MonaVie, the terms of which were not disclosed.<ref></ref>
On November 8, 2007, MonaVie, Inc. filed a trademark infringement suit against Fruitology, a rival acai beverage (Fruitavie) manufacturer, in Utah District Court. MonaVie voluntarily dismissed the suit on March 20, 2008.<ref name=MVvsFV>{{cite web| title = MonaVie Inc vs. Fruitology | author = | publisher = Docket #2:07cv00920; United States District Court for the District of Utah, Central Division | date = March 17, 2008 | url = http://www.legalmetric.com/cases/trademark/utd/utd_207cv00920.html | accessdate = 2009-08-08}} {{Dead link|date=October 2010|bot=H3llBot}}</ref>


In 2010, MonaVie sued Zrii, a competing multilevel marketing drink company, claiming that Zrii copied its distributor compensation plan. MonaVie sought an injunction to prevent Zrii from continuing to use the plan, force the destruction of all the existing copies of the plan, and claim damages.<ref name=harvey3>{{cite news|last=Harvey|first=Tom|title=MonaVie alleges Zrii copied its pay plan|url=http://archive.sltrib.com/article.php?id=9796187&itype=storyID|access-date=25 October 2013|newspaper=The Salt Lake Tribune|date=18 June 2010}}</ref>
On March 17, 2008 MonaVie preemptively filed a lawsuit with the Utah district court asking for a ruling as to whether ] and ] had been over-reaching the boundaries of its non-compete agreements and address whether or not such agreements are enforceable for independent distributors.<ref name=MVsuit>{{cite web| title = MonaVie LLC vs. Quixtar, Inc./Amway Corp | author = | publisher = United States District Court for the District of Utah, Central Division | date = March 17, 2008 | url = http://media.monavie.com/legal/Complaint.PDF| accessdate = 2008-09-16}}</ref>


⚫ In 2009, television celebrities ] and ] filed lawsuits against 40 companies who sold açaí or related products. The parties alleged that the companies had fabricated quotes "falsely purporting to speak in Dr. Oz's and/or Ms. Winfrey's voice about specific brands and products that neither of them has endorsed."<ref name=CST>{{cite journal| title = Oprah Winfrey and Dr. Oz suing over 'false' açaí berry endorsement claims| author = Mark Bieganskion | journal = ]| date = August 20, 2009| url = http://blogs.suntimes.com/oprah/2009/08/oprah_winfrey_and_dr_oz_suing.html| access-date = 2009-08-20}}</ref> MonaVie was one of the defendants.<ref name=SLTOPrah>{{cite journal| title = Oprah sues Utah companies over false endorsements| author = Tom Harvey| journal = ]| date = August 22, 2009| url = http://www.sltrib.com/ci_13179813?source=most_viewed| access-date = 2010-11-17| archive-url = https://web.archive.org/web/20100113022542/http://www.sltrib.com/ci_13179813?source=most_viewed| archive-date = January 13, 2010| url-status = dead}}</ref> Winfrey’s website stated that “consumers should be aware that neither Oprah Winfrey nor Dr. Oz are associated with nor do they endorse any açaí berry product, company or online solicitation of such products, including MonaVie juice products."
⚫ On March 18, 2008, Quixtar North America filed a multi-count federal court complaint against the MonaVie company and 16 of its distributors (John Brigham Hart, Lita Hart, Jason Lyons, Carrie Lyons, Lou Niles, Farid Zarif, and 10 anonymous defendants) for unfair competition.<ref name="2.75B">Laura Hancock, , ''Deseret News'', May 16, 2008</ref> The complaint alleged that MonaVie competed unfairly by making false claims about its products.<ref name=Fedcourt>{{cite web| title = Quixtar Inc. Plaintiff, vs. MonaVie, Inc., MonaVie LLC, John Brigham and Lita Hart, Jason and Carrie Lyons, Lou Niles, Farid Zarif, John Does 1-10,| author = | publisher = ] for the District of Utah, Central Division| date = March 18, 2008 | url = http://www.amquix.info/pdfs/monavie/2-08-cv-00209-db-02.pdf| accessdate = 2008-08-24}}</ref> According to a company press release, MonaVie filed to dismiss the Amway/Quixtar lawsuit on April 15, 2008.<ref name=emediawire>{{cite web| title = MonaVie Files to Dismiss Quixtar Lawsuit| author = | publisher = eMediaWire | date = April 16, 2008| url = http://www.emediawire.com/releases/monavie/quixtar/prweb867764.htm| accessdate = 2008-12-12}}{{dead link|date=August 2011}}</ref> On November 12, 2008, MonaVie et al. filed a lawsuit in the Colorado District Court against Quixtar<ref name=coloradocourt>{{cite web| title = Mona Vie, Inc. et al. v. Quixtar Inc. ] for the District of Colorado | date = November 12, 2008| url = http://dockets.justia.com/docket/court-codce/case_no-1:2008cv02464/case_id-110216| accessdate = 2008-12-12}}</ref>


⚫ In 2010, a ] lawsuit was filed against MonaVie in the ] of ], alleging that MonaVie and its distributors, through the use of false and misleading advertising had engaged in ] and other criminal activities.<ref name=nuyten1>{{cite news|last=Nuyten|first=Ted|title=Class Action Lawsuit Filed Against MonaVie in Arkansas – USA|url=http://www.businessforhome.org/2011/10/class-action-lawsuit-filed-against-monavie-in-arkansas-usa/|access-date=25 October 2013|newspaper=Business for Home|date=30 October 2011}}</ref><ref name=Classaction1>{{cite web|title=Class Action Complaint: Oliver v Monavie – In the Circuit Court of Miller County, Arkansas (Case number CV-2010-644-1)|url=http://media.monavie.com/pdf/corporate/Official_Complaint_Arkansas_Class_Action_Suit.pdf|publisher=Monavie LLC|access-date=November 9, 2011}}</ref><ref name=Classaction2>{{cite web|title=Protective Order to Preserve Documents During Pending Litigation: Oliver et al. v Monavie – In the Circuit Court of Miller County, Arkansas (Case number CV-2010-644-1)|url=http://media.monavie.com/pdf/corporate/Judge_Mandate_Arkansas_Class_Action_Suit.pdf|publisher=Monavie LLC|access-date=November 9, 2011}}</ref>
⚫ On May 5, 2008, the MonaVie company, its board of directors, and several of its senior distributors were sued by Imagenetix, Inc. for $2.75 billion over trademark infringement arising from false claims that Monavie Active juice contained the ingredient Celadrin.<ref name="2.75B"/><ref name=imagenetixdocket>{{cite web| title = Imagenetix, Inc. vs. Monavie LLC et al. | author = | publisher = ] for the Southern District of California | date = May 5, 2008 | url = http://www.mlmwatchdog.com/files/imagenetix_monavie_1/Imagenetix_MonaVie_Complaint.pdf| accessdate = 2008-09-20}}</ref> The case was settled out of court and the lawsuit was dropped on May 20, 2008.<ref>, May 20, 2008</ref> On June 2, 2008 Imagenetix announced that it had entered into a new business relationship with MonaVie, the terms of which were not disclosed.<ref></ref>


In 2013, a class action lawsuit was filed against MonaVie in the ] alleging that the company had used unfair and deceptive business practices, and false advertising, in violation of the New Jersey Consumer Fraud Act. According to the lawsuit, MonaVie and its distributors used false and misleading claims of curative benefits to promote the company’s juice products, which were sold at an unjustly inflated price.<ref name=Armstrong>{{cite web|last=Armstrong|first=Cheryl|title=Fraudster's Doing It Again, Class Claims|url=http://www.courthousenews.com/2013/08/05/59975.htm|publisher=Courthouse News Service|access-date=2014-04-21|date=August 5, 2013}}</ref><ref name=Bucher>{{cite web|last=Bucher|first=Anne|title=MonaVie Class Action Lawsuit Says Juice Claims Are Bogus|url=http://www.topclassactions.com/lawsuit-settlements/lawsuit-news/4663-monavie-class-action-lawsuit-says-juice-claims-are-bogus/|publisher=Top Class Actions|access-date=2014-04-21|date=August 7, 2013}}</ref><ref name=Pontreli>{{cite web|title=Lisa Pontrelli v. MonaVie Inc., Case No. 2:13-cv-04649|url=http://www.plainsite.org/dockets/download.html?id=33125609&z=bdfec989|publisher=U.S. District Court for the District of New Jersey|access-date=2014-04-21|date=August 1, 2013}}</ref> In 2014, a similar class action lawsuit was filed against MonaVie in the ]. The suit alleged that the company had deceptively advertising its juices, such as MonaVie Active, MonaVie Essential, MonaVie Pulse. According to the complaint, the company had promised that its juices would provide a variety of health benefits, including increased energy and improved joint health, without scientific proof to support such claims.<ref name="idfspokesperson">{{cite news|url=https://idfspokesperson.com/2016/04/08/monavie-reviews-purple-juice-business/|title = MonaVie – The purple juice business goes down the drain|newspaper=Idaho Falls Spokesperson|date=6 April 2016|access-date = 27 April 2018}}</ref> In addition, the plaintiffs claimed that the company failed to warn consumers that the juices contain ingredients – such as ] and lead – that could cause health problems.<ref name=Buhler>{{cite web|title=Diane Buhler and Eric Lieberman. Plaintiffs, v. Mona Vie, Inc (Case 9:14-cv-80723-DMM); United States District Court Southern District of Florida|url=http://www.classaction.org/media/pdf/buhler-v-monavie.pdf|access-date=May 23, 2015|date=May 29, 2014}}</ref>
⚫ An August 20, 2009 article in the ] reported that television celebrities ] and ] filed suit against 40 companies that are either selling açaí or related products, with their name endorsements on them." According to their complaint, such companies are "fabricating quotes or falsely purporting to speak in Dr. Oz's and/or Ms. Winfrey's voice about specific brands and products that neither of them has endorsed."<ref name=CST>{{cite journal| title = Oprah Winfrey and Dr. Oz suing over 'false' açaí berry endorsement claims| author = Mark Bieganskion | journal = ]| publisher = | date = August 20, 2009| url = http://blogs.suntimes.com/oprah/2009/08/oprah_winfrey_and_dr_oz_suing.html| accessdate = 2009-08-20}}</ref> MonaVie Inc. was one of the companies named as a defendant in the lawsuit.<ref name=SLTOPrah>{{cite journal| title = Oprah sues Utah companies over false endorsements| author = Tom Harvey| journal = ]| publisher = | date = August 22, 2009| url = http://www.allbusiness.com/legal/legal-services-litigation/12872593-1.html| accessdate = 2010-11-17}}</ref> Winfrey’s website elaborated that “consumers should be aware that neither Oprah Winfrey nor Dr. Oz are associated with nor do they endorse any açaí berry product, company or online solicitation of such products, including MonaVie juice products."


In 2014, K2A LLC, a company formed by Alex Schauss and Kenneth Murdock, filed a lawsuit claiming that MonaVie owed tens of millions of dollars for infringing on a patent held by K2A for the freeze-dried açai berry used in MonaVie's products. K2A claimed that they had terminated their 2004 licensing agreement on Oct. 18, 2013 and that MonaVie continued to sell products that infringed on the patents. The lawsuit alleged that MonaVie had not made any royalty payments since June 2009 and failed to deliver shares in the company that were promised to K2A. The court was petitioned to declare that the licensing agreement has been terminated and to award K2A at least 10 percent of MonaVie’s gross sales, plus triple damages.<ref name=Royalties>{{cite news|last=Harvey|first=Tom|title=MonaVie hasn't paid patent royalties, suit claims|url=http://www.sltrib.com/sltrib/money/57547320-79/monavie-agreement-company-patents.html.csp|access-date=2014-04-18|newspaper=The Salt Lake Tribune|date=February 14, 2014}}</ref> In January 2015, MonaVie announced that it had settled the case for an undisclosed sum.<ref name=K2Asettlement>{{cite news|title=Utah-based MonaVie settles lawsuits over royalties|url=http://www.sltrib.com/news/2080604-155/utah-based-monavie-settles-lawsuits-over-royalties|access-date=May 22, 2015|newspaper=Salt Lake Tribune|date=January 20, 2015}}</ref>
⚫ In December 2010 a ] lawsuit was filed against Monavie in the ] of ]. The suit alleges that Monavie and its distributors, through the use of false and misleading advertising implying potential health benefits of the products, had engaged in ], fraud, negligence, unjust enrichment, and violation of the ]. On October 4, 2011, Monavie was issued a protective order by Arkansas Circuit Court judge Joe E. Miller, barring destruction or alteration of all advertising and documents (including e-mails, websites, and blog entries) relevant to the case. The court further mandated that the document preservation order be distributed by Monavie to each of its employees and distributors.<ref name=Classaction1>{{cite web|title=Class Action Complaint: Oliver v Monavie -- In the Circuit Court of Miller County, Arkansas (Case number CV-2010-644-1)|url=http://media.monavie.com/pdf/corporate/Official_Complaint_Arkansas_Class_Action_Suit.pdf|publisher=Monavie LLC|accessdate=November 9, 2011}}</ref><ref name=Classaction2>{{cite web|title=Protective Order to Preserve Documents During Pending Litigation: Oliver et al. v Monavie -- In the Circuit Court of Miller County, Arkansas (Case number CV-2010-644-1)|url=http://media.monavie.com/pdf/corporate/Judge_Mandate_Arkansas_Class_Action_Suit.pdf|publisher=Monavie LLC|accessdate=November 9, 2011}}</ref>

===Dispute with Amway===

⚫ In 2008 Quixtar, a sister company of Amway, filed a multi-count federal court complaint against the MonaVie company and 16 of its top-level distributors who had previously worked with Amway. The complaint alleged that MonaVie competed unfairly by making false claims about its products, and that the former distributors had violated their contracts with Amway.<ref name=Fedcourt>{{cite web| title = Quixtar Inc. Plaintiff, vs. MonaVie, Inc., MonaVie LLC, John Brigham and Lita Hart, Jason and Carrie Lyons, Lou Niles, Farid Zarif, John Does 1–10| publisher = ] for the District of Utah, Central Division| date = March 18, 2008 | url = http://www.amquix.info/pdfs/monavie/2-08-cv-00209-db-02.pdf| access-date = 2008-08-24}}</ref><ref name=harvey1 /><ref name="2.75B">Laura Hancock, , ''Deseret News'', May 16, 2008</ref> Shortly after, MonaVie filed a lawsuit with the Utah district court asking for a ruling as to whether Quixtar had been over-reaching the boundaries of its non-compete agreements and to address whether or not such agreements are enforceable for independent distributors.<ref name=harvey1 /><ref name=MVsuit>{{cite web| title = MonaVie LLC vs. Quixtar, Inc./Amway Corp | publisher = United States District Court for the District of Utah, Central Division | date = March 17, 2008 | url = http://media.monavie.com/legal/Complaint.PDF| access-date = 2008-09-16}}</ref> MonaVie filed to dismiss the Amway/Quixtar lawsuit.<ref name=emediawire>{{cite web|title=MonaVie Files to Dismiss Quixtar Lawsuit |publisher=eMediaWire |date=April 16, 2008 |url=http://www.emediawire.com/releases/monavie/quixtar/prweb867764.htm |access-date=2008-12-12 |url-status=dead |archive-url=https://web.archive.org/web/20081023070344/http://www.emediawire.com/releases/monavie/quixtar/prweb867764.htm |archive-date=October 23, 2008 }}</ref> Later in 2008, MonaVie et al. filed a lawsuit in the Colorado District Court against Quixtar.<ref name=coloradocourt>{{cite web| title = Mona Vie, Inc. et al. v. Quixtar Inc. (Case# 1:2008cv02464)- | publisher = ] for the District of Colorado | date = November 12, 2008| url = http://dockets.justia.com/docket/court-codce/case_no-1:2008cv02464/case_id-110216| access-date = 2008-12-12}}</ref> Amway and MonaVie settled in 2010 before trial.<ref name=harvey1>{{cite news|last=Harvey|first=Tom|title=MonaVie, Amway settle nasty legal disputes|url=http://www.sltrib.com/sltrib/home/50590558-76/amway-distributors-monavie-companies.html.csp|access-date=24 October 2013|newspaper=Salt Lake Tribune|date=2 November 2010}}</ref>

In 2009, Orrin Woodward and his wife Laurie were found liable in an arbitration case for soliciting other distributors to resign from Quixtar and join its competitor MonaVie, The Woodwards were ordered to pay a settlement of $12,736,659. Co-defendants Chris and Terri Brandy were ordered to pay $9,578,756 and Tim and Amy Marks, $3,533,230.<ref name=ArbitrationAward>{{cite web|title=Amway Global (Petitioner) v. Orrin Woodward, Laurie Woodward, Chris Brady, Terri Brady, Tim Marks, And Amy Marks (Case No. 09-12946)|url=http://www.gpo.gov/fdsys/pkg/USCOURTS-mied-2_09-cv-12946/pdf/USCOURTS-mied-2_09-cv-12946-1.pdf|publisher=United States District Court Eastern District of Michigan Southern Division|access-date=November 4, 2014|date=September 30, 2010}}</ref>

===Lawsuits with former distributors===

In 2012 the company sought legal action against Joseph Licciardi and several other distributors for breach of contract by allegedly attempting to recruit MonaVie distributors to competing multilevel marketing companies.<ref name=harvey2>{{cite news|last=Harvey|first=Tom|title=Judge won't stop ex-MonaVie distributor's postings|url=http://www.sltrib.com/sltrib/money/54610121-79/monavie-company-distributors-licciardi.html.csp|access-date=24 October 2013|newspaper=Salt Lake Tribune|date=1 August 2012}}</ref><ref name=nuyten2>{{cite news|last=Nuyten|first=Ted|title=MonaVie Suffers Setback In Lawsuit Against Ex-distributor Joe Licciardi|url=http://www.businessforhome.org/2012/08/monavie-suffers-setback-in-lawsuit-against-ex-distributor-joe-licciardi/|access-date=25 October 2013|newspaper=Business for Home|date=7 August 2012}}</ref> In April 2015, an arbitrator awarded Licciardi $1.2 million, ruling that MonaVie breached its contract by revoking Liccardi's distributorship.<ref>{{cite news|last1=Harvey|first1=Tom|title=Former MonaVie distributor will get $1.2M|url=http://www.sltrib.com/news/2430036-155/arbitrator-awards-12-million-to-former|access-date=May 22, 2015|publisher=]|date=April 22, 2015}}</ref>

===Loan default and foreclosure===
In May 2014 it was announced that MonaVie had defaulted on a $182 million note securing assets of the company. The note was issued in 2010 by TSG-MV Financing LLC, part of TSG Consumer Partners of San Francisco and then purchased in March 2015 by multi-level marketing company Jeunesse Global of Altamonte Springs, Florida.<ref name=forcelose>{{cite news|last1=Harvey|first1=Tom|title=Utah-based MonaVie faces foreclosure after spectacular rise and fall|url=http://www.sltrib.com/news/2491834-155/utah-based-monavie-faces-foreclosure-after-spectacular|access-date=May 22, 2015|publisher=]|date=May 8, 2015}}</ref> On May 11, a Federal court judge issued a temporary restraining order to halt the takeover of MonaVie by Jeunesse Global. The petition had been filed by Bankers Trust, the trustee overseeing MonaVie's employee stock ownership program (ESOP) which had become a major holder of MonaVie stock, noting that the foreclosure would render the ESOP worthless.<ref name=haltorder>{{cite news|last1=Harvey|first1=Tom|title=Judge wants answers, halts takeover of MonaVie – for now|url=http://www.sltrib.com/news/2500617-155/judge-wants-answers-halts-takeover-of|access-date=May 22, 2015|publisher=]|date=May 11, 2015}}</ref>


==References== ==References==
{{Reflist|2}} {{Reflist|2}}


{{Multi-level marketing}}
==External links==
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*{{Skeptoid | id=4086 | number=86 | title=MonaVie and Other "Superfruit" Juices}}


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Latest revision as of 23:59, 7 November 2024

Multi-level marketing company

MonaVie
Company typePrivate
Industry
Founded(January 2005; 19 years ago (2005-01)) in South Jordan, Utah, United States
FateForeclosed in 2015
HeadquartersSalt Lake City, Utah, United States
Area servedWorldwide
Key people
Products
  • MonaVie Active
  • MonaVie Essential
  • MonaVie Pulse
Number of employees450 (from 2009)
SubsidiariesThe MORE Project
Websitewww.monavie.com
Footnotes / references

MonaVie is a defunct, American multi-level marketing company that manufactured and distributed products made from blended fruit juice concentrates, powders, and purées. The company was the subject of several controversies. Health claims for its products had not been scientifically confirmed or approved by regulatory authorities, and its chairman had been previously involved in false health claims concerning another beverage company. According to Forbes, MonaVie's business plan resembled a pyramid scheme. In 2015, the company defaulted on a US$182 million loan and went into foreclosure. Florida-based Jeunesse Global took over MonaVie’s assets when it purchased the note for $15 million.

Company overview

Dallin Larsen, who held senior executive positions with the multi-level marketing companies Dynamic Essentials and USANA, founded Monarch Health Sciences in 2003 as a distributor of diet and weight loss supplements. Monarch Health Sciences launched MonaVie juice in January 2005, and the same year founded MonaVie LLC/MonaVie Inc., a privately held multi-level marketing company based in South Jordan, Utah. The newly formed company took over the bottling, distribution, and marketing of MonaVie juice products. MonaVie also owned and operated a charity organization, The MORE Project.

MonaVie products were sold by non-employee distributors who were eligible to receive commissions based on product sales. Individual distributors were encouraged to build their own sales networks by recruiting new distributors to sell the products (referred to in multi-level marketing parlance as a "downline"); the recruiter could have, in theory, received additional commissions based on sales by their downlines.

Products

MonaVie produced a variety of blended bottled fruit juices, carbonated energy drinks, dietary supplements and dieting products. MonaVie Kosher, one of the company's juice products, was certified as kosher according to Jewish dietary laws by the Orthodox Union of North America and the Chief Rabbinate of Israel.

Product research and physiological context

An analysis conducted by contract laboratory ChromaDex indicated that MonaVie contained low levels of antioxidant vitamin C and of phytochemicals such as anthocyanins and phenolics associated with antioxidant activity in test tubes.

MonaVie promoted that the juice had key polyphenol antioxidants from açai and other fruits in the blend; however, there is no physiological evidence that any fruit polyphenols have such actions in humans or that oxygen radical absorbance capacity (ORAC) has any relevance in the human body. Research shows that although polyphenols are good antioxidants in vitro, antioxidant effects in vivo are probably negligible or absent. As interpreted by the United States Food and Drug Administration, Linus Pauling Institute and European Food Safety Authority, dietary polyphenols have little or no direct antioxidant food value after digestion. Unlike controlled test tube conditions, most polyphenols are not absorbed following digestion, and what is absorbed is metabolized and excreted.

Interactions and adverse effects

A clinical case report showed an association between MonaVie ingestion throughout pregnancy and prenatal closure of the ductus arteriosus resulting in cardiac hypertrophy and dysfunction (pulmonary hypertension) at birth. Another case report noted that MonaVie Active may cause fluctuations in blood clotting (prothrombin time) in patients treated with warfarin or other coumadin blood thinners, and it was recommended that this combination should be avoided.

Distributor earnings

Around 14% of distributors made a profit, according to MonaVie Executive VP Henry Marsh quoted from a 2009 Deseret News article. A Newsweek article, reporting on MonaVie's 2007 Income disclosure statement, stated "fewer than 1% qualified for commissions and of those, only 10% made more than $100 a week." More than 90% were counted as wholesale customers, whose earnings were mostly discounts on sales to themselves. According to a top recruiter, the dropout rate in 2008 was around 70%. An article published in the Hartford Courant reported that about 45% of the company's distributors earned an annualized average check of less than $1,600, and 37% took home about $2,000; roughly 2% earned an annualized average check of more than $29,000, and just 7 out of 80,000 distributors (<0.01%) took home more than $3 million, according to MonaVie's 2008 Income Disclosure statement. According to a 2011 article in The Salt Lake Tribune, 85% of MonaVie's distributors earned commission checks in 2009 averaging $35 a week or less, while the company's top seven distributors earned an average of $3.4 million a year.

Criticism

Nutritional value

Physician Andrew Weil and nutritionist Jonny Bowden claimed that the nutritional and health benefits of MonaVie juice were unproven and that the product was overpriced relative to more cost-effective conventional polyphenol-rich foods. Weil and Bowden also criticized the product for being sold through multi-level marketing. A Men’s Journal nutritional analysis showed that MonaVie Active juice "tested extremely low in anthocyanins and phenolics" and that "even apple juice (which also tested poorly) has more phenolics". The report also noted that "MonaVie’s vitamin C level was 5 times lower than that of Welch’s Grape Juice", a product priced at a fraction of the cost of MonaVie for the same serving volume. Ralph Carson, the original developer of MonaVie and the company’s chief science officer cautioned that the juice was "expensive flavored water" and that “any claims made are purely hypothetical, unsubstantiated and, quite frankly, bogus." Carson added that he did not know how much açai was in the product.

Misleading advertising and health claims

Bowden, Newsweek correspondent Tony Dokoupil, Palm Beach Post reporter Carolyn Susman, and Salt Lake City Tribune correspondent Tom Harvey commented on the use of misleading promotional testimonials by MonaVie distributors in which the product was said to prevent and treat a variety of medical conditions. Harvey also stated that MonaVie's rise, based on odds "stacked against low-level distributors who poured in the billions of dollars that fueled the company's spectacular growth," raised questions about the foundations of other companies in Utah's nutritional supplement industry. In 2007, the US Food and Drug Administration (FDA) issued an FDA Warning Letter to MonaVie distributor Kevin Vokes, for violations of the Federal Food, Drug and Cosmetic Act relating to online promotional material claiming that MonaVie was an effective treatment for inflammation, high cholesterol, and muscle and joint pain. The FDA considered the issue resolved after therapeutic claims on the offending website were scaled down. In a 2008 Forbes magazine article, reporters Emily Lambert and Klaus Kneale described MonaVie as a pyramid scheme, referencing a video testimonial by distributor Louis "Lou" B. Niles that implied the product could cure cancer.

Company executives had repeatedly acknowledged ongoing problems with MonaVie distributors making unlawful claims that the juice can treat and prevent diseases. In a 2008 Newsweek article, CEO Dallin Larsen stated that "his sales team can get him in hot water with the Feds", and that it was "next to impossible" for the company to investigate distributors suspected of making false claims. Later in 2008, the company issued a statement acknowledging that many of its distributors, "perhaps unwittingly", violated its advertising policies. In a 2009 Bloomberg News article, MonaVie executive vice-president and cofounder Randy Larsen stated that "the company is struggling with independent distributors who promote the juice as a miracle drug."

Dallin Larsen and Dynamic Essentials/Royal Tongan Limu

MonaVie CEO and founder Dallin Larsen was a senior executive with an multi-level marketing company that sold a similar juice product prior to being shut down by the FDA for illegal business practices. In 2001, Larsen became vice president of sales for Dynamic Essentials, a Florida-based company selling a fruit juice called Royal Tongan Limu, where Larsen claimed to have increased revenue 300%. In 2002, during Larsen’s tenure, the FDA warned Dynamic Essentials that claims on the company’s website that the juice could "treat various diseases such as cancer, arthritis, and attention deficit disorder" were illegal. Dynamic Essentials ceased operating soon after. In 2003, the FDA saw the voluntary destruction of 90,000 bottles of Royal Tongan Limu.

Pyramid scheme allegations

In 2008, Larsen formed a business partnership with former Amway distributor (Quixtar in the US) Orrin Woodward, founder of an Amway distributor sales network company known as TEAM. Woodward subsequently became a distributor and speaker for MonaVie, mixing his TEAM organization structure and distributor sales tools (e.g. sales brochures, audio/video recordings, etc.) concept with MonaVie's compensation plan. Woodward received a $3 million loan from MonaVie which he did not have to repay if he met certain recruiting distributor goals, according to a lawsuit Amway filed against MonaVie in 2008. A Forbes magazine article in 2008 described MonaVie as a pyramid scheme, and TEAM as "a pyramid atop a pyramid", in which MonaVie vendors were sold motivational lectures, using a multi-level model, which were purported to help them increase their sales of MonaVie's products. The article proposes that this system takes advantage of ambiguities in the Federal Trade Commission's regulation of pyramid schemes, and that only 1% of members make any money from their involvement with the company.

Litigation

The company, its executives, and various senior distributors have been part of significant lawsuits since the company's founding. MonaVie was the defendant in a false-advertising/trademark infringement suit against Imagenetix, Inc (2008), a multi-issue legal battle with Quixtar/Amway (2008), a false advertising suit by Oprah Winfrey and Mehmet Oz (2009), two class action lawsuits (2010, 2013), and a copyright infringement suit against Zrii (2010). Also, MonaVie filed several suits against former sales representatives for breach of contract.

Trademark infringement and false advertising cases

In 2008, Imagenetix, Inc. sued the MonaVie company, its board of directors, and several of its senior distributors for $2.75 billion over trademark infringement alleging that MonaVie Active juice contained the ingredient Celadrin. The case was settled out of court and the lawsuit was dropped. Soon after, Imagenetix announced that it had entered into a new business relationship with MonaVie, the terms of which were not disclosed.

In 2010, MonaVie sued Zrii, a competing multilevel marketing drink company, claiming that Zrii copied its distributor compensation plan. MonaVie sought an injunction to prevent Zrii from continuing to use the plan, force the destruction of all the existing copies of the plan, and claim damages.

In 2009, television celebrities Oprah Winfrey and Dr. Mehmet Oz filed lawsuits against 40 companies who sold açaí or related products. The parties alleged that the companies had fabricated quotes "falsely purporting to speak in Dr. Oz's and/or Ms. Winfrey's voice about specific brands and products that neither of them has endorsed." MonaVie was one of the defendants. Winfrey’s website stated that “consumers should be aware that neither Oprah Winfrey nor Dr. Oz are associated with nor do they endorse any açaí berry product, company or online solicitation of such products, including MonaVie juice products."

In 2010, a class action lawsuit was filed against MonaVie in the Circuit Court of Miller County, Arkansas, alleging that MonaVie and its distributors, through the use of false and misleading advertising had engaged in civil conspiracy and other criminal activities.

In 2013, a class action lawsuit was filed against MonaVie in the US District Court of New Jersey alleging that the company had used unfair and deceptive business practices, and false advertising, in violation of the New Jersey Consumer Fraud Act. According to the lawsuit, MonaVie and its distributors used false and misleading claims of curative benefits to promote the company’s juice products, which were sold at an unjustly inflated price. In 2014, a similar class action lawsuit was filed against MonaVie in the US District Court of Southern Florida. The suit alleged that the company had deceptively advertising its juices, such as MonaVie Active, MonaVie Essential, MonaVie Pulse. According to the complaint, the company had promised that its juices would provide a variety of health benefits, including increased energy and improved joint health, without scientific proof to support such claims. In addition, the plaintiffs claimed that the company failed to warn consumers that the juices contain ingredients – such as arsenic and lead – that could cause health problems.

In 2014, K2A LLC, a company formed by Alex Schauss and Kenneth Murdock, filed a lawsuit claiming that MonaVie owed tens of millions of dollars for infringing on a patent held by K2A for the freeze-dried açai berry used in MonaVie's products. K2A claimed that they had terminated their 2004 licensing agreement on Oct. 18, 2013 and that MonaVie continued to sell products that infringed on the patents. The lawsuit alleged that MonaVie had not made any royalty payments since June 2009 and failed to deliver shares in the company that were promised to K2A. The court was petitioned to declare that the licensing agreement has been terminated and to award K2A at least 10 percent of MonaVie’s gross sales, plus triple damages. In January 2015, MonaVie announced that it had settled the case for an undisclosed sum.

Dispute with Amway

In 2008 Quixtar, a sister company of Amway, filed a multi-count federal court complaint against the MonaVie company and 16 of its top-level distributors who had previously worked with Amway. The complaint alleged that MonaVie competed unfairly by making false claims about its products, and that the former distributors had violated their contracts with Amway. Shortly after, MonaVie filed a lawsuit with the Utah district court asking for a ruling as to whether Quixtar had been over-reaching the boundaries of its non-compete agreements and to address whether or not such agreements are enforceable for independent distributors. MonaVie filed to dismiss the Amway/Quixtar lawsuit. Later in 2008, MonaVie et al. filed a lawsuit in the Colorado District Court against Quixtar. Amway and MonaVie settled in 2010 before trial.

In 2009, Orrin Woodward and his wife Laurie were found liable in an arbitration case for soliciting other distributors to resign from Quixtar and join its competitor MonaVie, The Woodwards were ordered to pay a settlement of $12,736,659. Co-defendants Chris and Terri Brandy were ordered to pay $9,578,756 and Tim and Amy Marks, $3,533,230.

Lawsuits with former distributors

In 2012 the company sought legal action against Joseph Licciardi and several other distributors for breach of contract by allegedly attempting to recruit MonaVie distributors to competing multilevel marketing companies. In April 2015, an arbitrator awarded Licciardi $1.2 million, ruling that MonaVie breached its contract by revoking Liccardi's distributorship.

Loan default and foreclosure

In May 2014 it was announced that MonaVie had defaulted on a $182 million note securing assets of the company. The note was issued in 2010 by TSG-MV Financing LLC, part of TSG Consumer Partners of San Francisco and then purchased in March 2015 by multi-level marketing company Jeunesse Global of Altamonte Springs, Florida. On May 11, a Federal court judge issued a temporary restraining order to halt the takeover of MonaVie by Jeunesse Global. The petition had been filed by Bankers Trust, the trustee overseeing MonaVie's employee stock ownership program (ESOP) which had become a major holder of MonaVie stock, noting that the foreclosure would render the ESOP worthless.

References

  1. "MonaVie Executive Team". Archived from the original on February 3, 2009. Retrieved 2008-12-19.
  2. "Exclusive Interview With New MonaVie CEO Mauricio Bellora". Obtainer Online. 21 May 2013. Retrieved 21 March 2014.
  3. Inc. Magazine profile
  4. ^ "MORE Project". Retrieved 23 Oct 2013.
  5. ^ Weil A (2008-02-08). "Thumbs Down on MonaVie?". drweil.com. Retrieved 2012-04-21.
  6. ^ Bowden J (2008-06-11). "New Rules: No More Claiming Mona Vie Cures Cancer!". The Huffington Post. Retrieved 2012-04-21.
  7. ^ Jamie Beckman (December 4, 2008). "Superjuices on Trial". Men’s Journal. Archived from the original on March 24, 2014. Retrieved 2008-12-12.
  8. ^ Carolyn Susman (July 16, 2008). "On Health: FDA checks product claims on the Web". Palm Beach Post. Archived from the original on June 17, 2011.
  9. ^ Jennifer A. Thomas (July 6, 2007). "FDA warning letter to MonaVie distributor Kevin A. Vokes" (PDF). FDA Center for Food Safety and Applied Nutrition Division of Enforcement. Retrieved 2008-08-24.
  10. Dunning, Brian (February 5, 2008). "Skeptoid #86: MonaVie and Other "Superfruit" Juices". Skeptoid. Retrieved October 25, 2020. ...products like MonaVie that have no proven health value rarely find their way into medical or nutritional literature.
  11. ^ Harvey, Tom (December 10, 2011). "Utah juice companies offer few prospects". Salt Lake Tribune. Retrieved January 10, 2012.
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