Man accuses Usana of operating as pyramid scheme

by louabbott on April 24, 2009

Las Vegas Sun – April 24, 2009

A Clark County man has sued Usana Health Sciences Inc., alleging the big direct marketer of nutritional and cosmetic products operates as a pyramid scheme in which independent distributors must focus on signing up more distributors as opposed to selling products.

Joseph Chirco, in his lawsuit filed last week in Clark County District Court, seeks to have the suit certified as a class-action representing all Nevada Usana distributors. His Las Vegas attorney is John Nowakowski.

Chirco claims to have lost money by purchasing a Usana distributorship.

He alleges violations of Nevada’s deceptive trade practices act and accuses Usana of consumer fraud, of failing to disclose all required facts about its marketing program, of unjustly enriching itself at the expense of distributors and of civil conspiracy.

“Those already in the pyramid are greedily incentivized to recruit more and more distributors to grow the base for the benefit of those higher up on the pyramid,” Chirco’s suit charges. “It isn’t until one is locked into a distributorship that it becomes clear that merely selling products to consumers without a pyramid position is not a realistically sustainable option. The only way for an associate to economically stay afloat is to recruit lower ranks for the Usana pyramid.”

Read the entire article at The Las Vegas Sun

Review our Free Video Presentation on Pyramid Schemes

Also, read our company overview: Usana Facts, News and Review

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