Thrive Life is a company that sells freeze-dried food storage and emergency supplies. The company’s products are sold through a multi-level marketing (MLM) model, which means that the company’s distributors are incentivized to recruit other people to sell the company’s products.
Lawsuits
Several lawsuits have been filed against Thrive Life alleging that the company’s MLM model is a pyramid scheme. The plaintiffs in the lawsuits allege that Thrive Life’s distributors are not making money from selling products to customers, but rather from recruiting other people to join the company.
Allegations
The plaintiffs in the lawsuits allege that the following are characteristics of a pyramid scheme:
- Emphasis on recruiting over product sales: Thrive Life’s distributors are incentivized to recruit other people to join the company, rather than selling products to customers.
- High upfront costs: Thrive Life’s distributors are required to purchase a starter kit, which can cost hundreds of dollars.
- Unrealistic income claims: Thrive Life makes unrealistic claims about the income potential of its distributors.
- Emphasis on downline sales: Thrive Life’s distributors are incentivized to sell products to the people they recruit, rather than to customers outside of the company.
Status of the Lawsuits
The lawsuits are still ongoing. Thrive Life has denied the allegations and has stated that its MLM model is legal and compliant with the law.
Potential Impact of the Lawsuits
The lawsuits could have a significant impact on Thrive Life, including:
- Financial penalties
- Damage payments to plaintiffs
- Changes to the company’s MLM model
- A decline in sales
Recommendations for Consumers
Consumers should be aware of the potential risks of joining an MLM company, such as Thrive Life. Consumers should research the company’s MLM model before joining, and they should be cautious of any claims about the income potential of becoming a distributor.
Disclaimer
This information is not intended to be legal advice. You should always consult with an attorney to discuss your specific case.
