Skincare product company Rodan + Fields faces a federal class action lawsuit accusing it of violating state consumer protection laws and engaging in fraudulent and unfair marketing of its Lash Boost eye serum.
Rodan + Fields says its $150 Lash Boost gives users “the appearance of lush, longer-looking lashes.” But the suit claims the multilevel marketing company failed to disclose the side effects of a key ingredient in Lash Boost.
The ingredient in question is a chemical called isopropyl cloprostenate, which is a type of medication called a prostaglandin analog. This one is used to treat eye conditions such as glaucoma.
Rodan + Fields omitted information to Lash Boost buyers about the side effects of prostaglandin analogs that are well-known to eye doctors, according to the April 13 court filing in a U.S. District Court in Oakland, California.
“Consumers of Lash Boost … have experienced serious side effects, including change(s) in iris color, eyelid drooping, itchy eyes, eye/lid discoloration, thinning and loss of eyelashes/loss of eyelash hair, eye sensitivity, eye infections, and vision impairment,” the filing says.
Moreover, the suit notes that Allergan’s Latisse, the only Food and Drug Administration-approved medication for “lash enhancement” also contains a prostaglandin analog, but Allergan fully discloses the potential side
Tag Archive for MLM Lawsuits
Hot Business News Today
5Linx Founder Craig Jerabeck Admits To Fraud
by Ted Nuyten • • 0 Comments
Craig Jerabeck, one of the founders of the 5Linx, pleaded guilty Tuesday to the wire fraud conspiracy and also to the filing of a false tax return.
Jerabeck and two other of the company founders — Jason Guck and Jeb Tyler — were arrested early last year and accused of looting the company and its investors of millions through shell companies and unearned bonuses. The three were scheduled for trial in federal court in mid-September; that trial date is still set for Guck and Tyler.
On Tuesday, however, Jerabeck admitted to crimes different than those contained in the indictment against him last year. He pleaded guilty to the fraud conspiracy, maintaining that he, Guck, and Tyler — or companies they created — pocketed about $2.3 million from a Florida vendor selling 5Linx products, including identity theft protection.
“We understand that Mr. Jerabeck didn’t get all this money himself,” Assistant U.S. Attorney Richard Resnick said in court. “It would be all three defendants.”
That money, transferred by “interstate wire transmission,” should have gone to 5Linx, its investors, and stockholders, Jerabeck admitted.
5Linx, a multi-level marketing company, was once one of Rochester’s fastest growing companies. In 2014, New York Comptroller Thomas DiNapoli reported that a state pension fund investment in the company
Hot Business News Today
Rodan + Fields Product Is Facing A Serious Lawsuit
by Ted Nuyten • • 0 Comments
According to The Beauty Authority:
Just a few days ago, Rodan + Fields, the supercharged social media–fueled skin care empire founded by dermatologists Drs. Katie Rodan and Kathy Fields, was awarded the title of the number-one beauty brand in both the United States and North America by Euromonitor, a market research company.
With sales revenue reaching into the billions and women from coast to coast singing their praises about the skin-transforming effects of the multiprong kits (Facebook and Instagram before-and-afters further drive home the point that they really work), it was only a matter of time before the beloved brand received some slack from users. But this goes beyond normal Internet trolling that typically involves slamming the efficacy of the brand, as a potential class-action lawsuit is being brought to light.
In 2016, Rodan + Fields (or R+F as its fans and multitier marketing sales reps refer to it as) launched one of its biggest hits to date, Lash Boost ($150). Containing keratin, biotin, panthenol, petides and a slew of other ingredients, the no-prescription-required lash product purportedly generated over $200 million in sales in just one year.
While some users, like the four plaintiffs who brought forward the suit claiming they experienced reactions after using the product including “bumps on the eyes, flaky patches, burning, swelling, crusting and pain, among other things” and also
Hot Business News Today
Rodan And Fields Sues Proctor and Gamble
by Ted Nuyten • • 0 Comments
According to Legal Newsline, an Internet-based newswire dedicated to 24/7 coverage of state supreme courts and state attorneys general:
Rodan and Fields alleges the maker of Olay is attempting to “stifle” its truthful advertising regarding a product.
Rodan & Fields LLC filed a complaint on March 20 in the U.S. District Court for the Northern District of California against The Procter & Gamble Co. citing the Lanham Act.
According to the complaint, the plaintiff alleges that in October 2017 after introducing its anti-aging skin care products, the defendant allegedly commenced a campaign to prevent the plaintiff from making “truthful claims” about the plaintiff’s Intensive Renewing Serum product.
The plaintiff alleges the defendant sent it a cease in desist letter in December 2017 over allegations the plaintiff’s website, YouTube videos, and R&F consultant social media posts “contain false and misleading claims regarding the efficacy of the product and the ingredient retinal.”
The suit states the defendant filed a challenge against the plaintiff with the National Advertising Division of the Council of Better Business Bureaus in February over allegations of false advertising.
“Unless and until Rodan & Fields’ advertising is declared permissible under United States law, Rodan & Fields’ ability to inform consumers about the truthful properties of its Intensive
Hot Business News Today
Kannaway Products Banned In Belgium
by Ted Nuyten • • 0 Comments
According to an article in Belgium online newspaper HLN,
Kannaway Products are banned in Belgium as Cannabis Oil is illegal.
“Whoever sells the products on the basis of cannabis oil, risks a hefty fine or even cell punishment”.
From the article:
Both the FAMHP (the agency that oversees the sale of medicines) and the FASFC (the food safety agency) confirm that it is forbidden to sell cannabis oil.
However, the representatives of Kannaway use the confusion surrounding the term ‘cannabis oil’ to promote their business.
You can get oil from the cannabis plant in two ways. You can either focus on the active ingredient cannabidiol (CBD) or on tetrahydrocannabinol (THC).
The last one is what makes cannabis a drug. “CBD is, however, an innocent substance”, it says on the Belgian website of Kannaway.
It is true that CBD does not have the same effect as THC, but that does not make it less illegal according to Belgian law.
“In addition, Kannaway makes therapeutic claims on its website,” says Ann Eeckhout of the FAMHP.
“A producer who does that must register his product as a medicine.” Even as a food supplement, it violates the rules. ”
The products based on CBD oil that Kannaway offers are so-called ‘novel foods’”, explains Katrien Stragier
Hot Business News Today
FTC Hits Digital Altitude – Aspire With A Temporary Restraining Order
by Ted Nuyten • • 0 Comments
According to their website:
“Digital Altitude teach digital entrepreneurs how to start and grow a profitable online business with our unique coaching products and world class live events.”
“You want to start an online business… But you don’t know where to start. Want to learn to turn your Passion into Profits? Or maybe you have already started one and don’t know what to do next.
In Aspire, you will gain access to resources that will set you on the right track.”
The FTC:
At the Federal Trade Commission’s request, a federal court has temporarily halted an operation that took more than $14 million from consumers seeking to start their own online business.
The operation misrepresented that its purported business coaching program would enable consumers to earn substantial income, such as “six figures in 90 days or less.”
According to the FTC, the defendants induced consumers to pay for a series of tiered memberships with increasing fees, falsely claiming that consumers would learn how to make substantial income with an online business.
They promised consumers they would receive individualized coaching from successful marketers that would provide what they needed to build a successful business, but, in reality, these were merely salespeople selling higher membership levels in the defendants’
Hot Business News Today
OneCoin Official Statement Regarding Publications About Exposed Criminal Group Related To OneCoin cryptocurrency
by Ted Nuyten • • 0 Comments
January 22, 2018
The OneCoin company would like to officially state that the multiple recent media announcements about an exposed criminal group, engaged in money laundering using the OneCoin cryptocurrency, are untrue and are misleading the public.
The OneCoin company believes that all the above media allegations are the result of a well organized, purposeful campaign, aiming to damage our corporate reputation and destroy our business.
Let it be clear to the public that the company has never been involved in criminal or illegal activities in any country or territory of operations, including in the Republic of Bulgaria. The company and its partners have always openly declared their willingness to cooperate with regulators, governmental organizations and media, and provide any information that would be useful in clarifying any confusion or suspicion, related to their business activities.
Therefore, we have been extremely surprised that we were never approached and asked for clarification, including by any media outlet worldwide, as expected by media striving for journalistic professionalism, fairness and objectivity. A point that we could all agree on is that media is essential to and should be the pillar of a healthy democracy.
The fact that during the past couple of days we are witnessing completely the
Hot Business News Today
Lyoness and Lyconet A Pyramid Scheme In Norway
by Ted Nuyten • • 0 Comments
The Lottery Authority in Norway is a government agency responsible for illegal marketing, illegal gaming and pyramids.
The next letter is send to Lyoness, and underlaying divisions: Lyconet and CashBack World (Google translation):
Notification of decision sent to Lyoness.
On 11 January 2018, the Lottery Authority has sent notice of a decision to terminate Lyoness’s operations in Norway.
Notification of decision sent to Lyoness Notification of decision is addressed to Lyoness Europe AG and Lyoness Norway AS, but will also include 150,000 Norwegian participants and 1,000 loyalty companies included in the Lyoness sales system in Norway.
Illegal pyramid-like sales system
Based on the number of received tips in 2016 and 2017 and the content of these foundations, the Lottery Authority has assessed whether Lyoness is an illegal pyramid-like sales system pursuant to section 16, second paragraph, of the Lottery Act.
In the assessment, we have assumed that revenues from Lyoness’s business in Norway are mainly from the acquisition of participants, and not from sales or consumption of goods, services or other benefits.
Lottery Authority’s conclusion
In the notice of decision, the Lottery Authority concludes that Lyoness’s business in Norway is an illegal pyramid-like sales system pursuant to section 16, second paragraph, of the Lottery Act.
We have paid particular attention
Hot Business News Today
Bulgarian Prosecutors Join In Anti-Money Laundering Operation Against OneCoin
by Ted Nuyten • • 0 Comments
According to an article in the Sofia Globe, a Bulgarian newspaper:
Bulgaria’s Special Prosecutor’s Office said on January 19 that it was involved in an international operation to neutralise a large-scale pyramid structure involving commercial fraud, multi-level marketing and money laundering through the creation and distribution of OneCoin.
OneCoin, which has an office in Sofia, describes itself as a virtual currency. In September 2016, it was the subject of a warning by the UK Financial Conduct Authority.
A statement by the Prosecutor’s Office said that prosecutors and investigators from the Special Prosecutor’s investigation unit, as well as officers from Bulgaria’s directorate against organised crime and the State Agency for National Security, were involved in the international investigation.
This was on the basis of an international legal assistance order from the Prosecutor’s Office in the German city of Bielefeld (North Rhine-Westphalia) which had arrived in October 2017.
Representatives of Eurojust and Europol are actively involved in the execution of the court order, the Prosecutor’s Office said.
Bielefeld prosecutors had asked the Bulgarian authorities to carry out specific procedural and investigative actions on the territory of Bulgaria vis-à-vis the Bulgarian company “One Network Services” EOOD and its affiliates, including two Bulgarian women with German citizenship.
Investigators had identified the
Hot Business News Today
USI-Tech Hit By Emergency Cease And Desist Order In The USA
by Ted Nuyten • • 0 Comments
USI-Tech Limited (USI) claims to be an online Forex and Bitcoin trading platform provider, located in Dubai, United Arab Emirates.
Co-founders of USI -Tech are Mike Kiefer, Ralf Gold and Horst Jicha.
Texas Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order Dec. 20 against USI-Tech Limited, an overseas firm that is promising low-risk, triple-digit returns from investments tied to Bitcoin mining.
The enforcement staff of the State Securities Board presented evidence to the Securities Commissioner that USI-Tech, based in Dubai, and two U.S.-based sales agents are soliciting investors in dozens of Texas cities through targeted craigslist advertisements, YouTube videos, and standalone websites.
Neither USI-Tech nor the sales agents, Clifford Thomas of Suitland, Md., and Michael Rivera of Los Angeles, are registered to sell securities in Texas. The investment also is not registered in Texas.
The company and agents are offering for sale an investment contract in the mining of bitcoin. Mining uses significant amounts of computing power — and electricity consumption — to generate bitcoins for the decentralized online ledger that records and verifies bitcoin transactions.
The agents’ websites claim the mining investment “derives its value from [USI-Tech’s] non-exclusive interest in a series of Bitcoin mining contracts.” They promise a daily return of 1%.
The USI-Tech