MLM LAWSUITS Max and Melaleuca – Part 1

Why is it that we are so naive to believe that a network marketing company would never take their own distributors to court? Every time I turn around I have an email from MLM Watchdog, Rod Cook of  mlmwatchdog  warning of another lawsuit that has been  filed, this time Max and Melaleuca.  Either a network marketing company is suing another network marketing company or a company is suing their own distributors.

How to Provide a Successful Network Marketing Atmosphere for Distributors?  Stop taking your distributors to court and …

But hey the distributors would know that this could happen at the company’s sole discretion if they had read their policies and procedures.  The distributor would have realized that the company can do anything they want; terminate you, file lawsuits against you for things like using the company name in promotions or telling the world on Facebook that you are an employee of [xyz] company when indeed you are not.  What you are is an independent distributor or contractor in violation of your contract.

Just last week, February 21/ 2011 I received email notification from Rod Cook that Max International had to pay out to Melaleuca $1.2 Million. Read here

Max International is a Utah based MLM company which has now agreed to pay $1.2 million to  Melaleuca, of Idaho which was to settle a lawsuit filed in 2009.  What was the lawsuit all about or the allegations?  Max International distributors recruited Melaleuca reps and compelled them to breach their contracts.

This is one thing that most would know…lawsuits are very ugly and unwelcomed. However there are some very valuable lessons that can be learned from them. 

Lesson 1:

Why on earth would anyone want to be associated with a company that is so focused on  “irritating, crushing” and “stomping out”  the competition,  than being in a company that is intent on “standing up” and “championing” their own distributors. 

It is never in anyone’s best interest to  join a company that delights in legal bickering and back biting. 

Investigate  the company’s track record to see for YOURSELF how often they have been involved in lawsuits, especially those involving their own  distributors. 

It’s one thing to engage other companies looking to protect the establishment of the company and reps – a whole different ballgame to be at odds and constantly in litigation with  the most important people of the organization and the survival of the company, YOU the distributors. 

Just think if there were less legal battles there would be more in the compensation plan for you.  Yup every legal battle takes away from money the company could be sharing with you.  Someone has to pay the $1.2 million that Max International owes Melaleuca.

Lesson 2: to follow in Part 2

Go ahead read the  laundry list of lawsuits here: who knows you may  just turn up something you didn’t know.

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Dave and Darlene Mills

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2 thoughts on “MLM LAWSUITS Max and Melaleuca – Part 1

  1. To publish online something you obviously know nothing about doesn’t make you “shine” to say the least. I’ve been with Melaleuca for nine years, and I’m SOOOO thankful we have Frank Vandersloot taking necessary steps to STOP people who try to cross recruit and lie to get our members them to jump to some MLM! What a shame more network marketing companies don’t protect the businesses of those aligned with them!! Yes, every company has cross recruiting rules. FEW stand by them! My husband and I have worked very hard to build the lifestyle we have now. Rules THANKFULLY protect that…. not that you will care I’m sure….

    Linda / RN
    Executive Director Melaleuca

  2. Hi Linda, thank you for stopping by and leaving your comments. I am happy to hear that you are having the success that you and your husband are having.

    I posted court documents that were supplied by Rod Cook, if you took the time to read them. This is not something that I made up.

    I thank you for your opinion and I am entitled to mine, even if you feel I know nothing about it.

    I care a great deal about the Rules and that is why I stress that people take the time to read and understand every word of their MLM contract.

    There needs to be more people like Frank Vadersloot who do stand up against those who try to cross recruit. And I agree it is a shame that more companies don’t protect their distributors, but most are focused on their own bottom line. The PnP’s are written to protect the company and not the distributor…again in most cases.

    Dave and Darlene

    PS: was not trying to “shine”…just providing facts.

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