Essential oils, shakes claiming to treat or prevent coronavirus are preying on people's fears. Why these scams have doctors, FTC concerned
As COVID-19 cases and unemployment continue to increase across the U.S., there is no shortage of wellness solutions and “get rich quick” pandemic opportunities from multi-level marketing sellers looking to calm people’s fears about the coronavirus.
In both April and June, the Federal Trade Commission sent a total of 16 letters to various MLMs, as they’re known colloquially, asking to remove or clarify social media product claims tied to COVID-19 or opportunities that misrepresent the likelihood of earning a “substantial income” by selling products during the pandemic. These claims were by MLM “business opportunity participants or representatives,” says the FTC.
MLMs allow independent “consultants” to sell beauty, clothing or wellness products from home. However, according to the FTC, some of these companies are pyramid schemes, a business model through which top management recruits its own team of salespeople from whom it takes a commission.
“If the MLM is not a pyramid scheme, it will pay you based on your sales to retail customers, without having to recruit new distributors,” says the FTC. These setups can seem legitimate, however, “it can cost you and your recruits — often your family and friends — substantial time and money.” Recruiters often use grandiose terms about financial freedom and make lavish claims about sales rewards that include vacations or cars. “In the end, most people run out of money, have to quit and lose everything they invested,” says the agency.
In the era of COVID-19, many are selling products that promise to boost immunity, stop inflammation and improve gut health, or encourage others to join their MLM networks to make extra money. “During this health and economic crisis, we are on the lookout for false income claims for work-at-home opportunities, in addition to spurious health claims that products can treat or prevent COVID-19,” Andrew Smith, director of the FTC’s Bureau of Consumer Protection, said in an April press release announcing the first 10 letters.
For example, Isagenix, which sells essential oils and weight-loss products, received an FTC letter regarding a social media post that read, “In the fight against COVID-19 – Keep moving every day and eating healthy! Isagenix shakes boost your immunity 500%!” Another post boasted, “The last 1 1/2 months of this COVID-19 pandemic has made me even more GRATEFUL. ... We have been able to put [our daughter] through 4 years of college @ MSU and give her a head start in her next chapter of life with no college debt…”
An Isagenix spokesperson told Yahoo Life, “We continue to adamantly remind our independent distributors they are strictly prohibited from referencing the COVID-19 pandemic in any way, directly or indirectly, in connection with our products or business opportunity” adding that disciplinary action can include termination.
Skincare brand Rodan + Fields was reprimanded for posts claiming that “participants are likely to earn substantial income.”
“I have spots available on my team!!! If you want to make an extra $200, $500, or $1,000 a month, message me!” one post read. “RODAN and FIELDS is always open for business even during quarantine!” another one said. A spokesperson for Rodan + Fields told Yahoo Life that the company “does not tolerate noncompliant or misleading income claims” by any of its 300,000 independent consultants.
Meanwhile, doTERRA’s peppermint and lemon essential oil bottles were promoted with the hashtags “#covid” and “#prevention.” And a company called Plexus Worldwide that sells “hunger control” beverages and other items, was responsible for this post: “#VIRUS_CORONA Worried? I’ve been boosting my immune system for several years with high-quality Plexus supplements. You can too!...Be sensible – not fearful. Scientifically formulated & doctor-approved!”
A doTERRA spokesperson told Yahoo Life, “We do not claim that our products treat, cure or prevent any diseases, and demand that our Wellness Advocates be vigilant in avoiding such claims in their sharing and marketing efforts.”
While Plexus told Yahoo Life that the company “does not condone deceptive, unethical, or illegal posts, claims or practices – especially given the seriousness of the Coronavirus emergency. We removed all non-compliant claims highlighted by the FTC and other questionable claims and took steps to further strengthen our compliance practices.”
During the pandemic, media outlets Business Insider, CNBC and Salon have all raised questions about MLM products that purport to prevent COVID-19, often by boosting immunity. Twitter cracked down on “content that increases the chance that someone contracts or transmits the virus, including that which encouraged people to “use fake or ineffective treatments, preventions, and diagnostic techniques.” Amazon redirected searches for coronavirus-related products to the Centers for Disease Control and Prevention.
There are currently no products approved by the Food and Drug Administration to prevent or treat COVID-19. Still, certain sales tactics capitalize on widespread fear. “Any time people are scared for their health, there will be predatory practices in regard to treatment, testing or cures,” said Yahoo Life Medical Contributor Dr. Dara Kass. “It’s infuriating to watch people require immediate and certain answers on a topic doctors have consistently said requires a long-haul approach.”
“We are fighting both the coronavirus and scams that distract from the truth with quick schemes, such as essential oils as a mainstream treatment,” Kass said. “There might be a way for medicinal oils to be part of a holistic process, but they don’t replace appropriate diagnostics and tried-and-true science.”
Why exactly do so-called wellness hacks and sensational business deals appeal? They stoke the brain’s amygdala, which alerts us to threats and activates defenses — sometimes at a cost. “This is the irrational part of the brain,” Los Angeles psychoanalyst Bethany Marshall told Yahoo Life. “When that happens, we gravitate towards solutions that seem reliable, even if they are not proven.”
She adds, “The unknown conjures worst-case scenarios and far-fetched cures suggest there might be an insurance policy, that we are in charge of our fate.”
According to the Centers for Disease Control and Prevention, COVID-19 symptoms can appear anywhere from two to 14 days after exposure, and include fever, cough, headache, sore throat and body aches, among others.
Anyone with medical questions, especially during the pandemic, should first consult their doctor, Kass said. “Standard treatment for the coronavirus includes lots of fluids, taking Motrin or Tylenol for fever or pain and getting plenty of rest.”
For the latest coronavirus news and updates, follow along at https://news.yahoo.com/coronavirus. According to experts, people over 60 and those who are immunocompromised continue to be the most at risk. If you have questions, please reference the CDC’s and WHO’s resource guides.
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