Essential Oils Seller Required to Litigate Pyramid Scheme Claims

April 29, 2020, 11:30 AM

Young Living Essential Oils can’t compel arbitration in a proposed class action alleging that the company’s sales of essential oils amount to an illegal pyramid scheme, the Fifth Circuit said Tuesday.

Young Living’s member agreement and its policies and procedures documents contained conflicting information about when arbitration would apply to disputes and what forum they would be heard in, the court concluded.

Julie O’Shaughnessy, a member of Young Living’s rewards program, sued on behalf of a would-be class, claiming the company relies primarily on member recruitment, as opposed to product sales, to generate profit.

Young Living sought to compel arbitration, ...

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