Mannatech involved in Texas Court Battle
July 8, 2007 | By Monika Mundell |
Mannatech has been sued by the Texas attorney general due to illegal advertising practices. According to him, independent Mannatech distributors are using false claims in their selling and marketing practices. The distributors are making statements that their product is curing, preventing and mitigating illnesses. According to the U.S. Food and Drug Administration it is illegal to state such claims without their prior approval.
The attorney general Greg Abbott claims that corporate Mannatech was perfectly aware of the shoddy sales and advertising practices of their independent distributors and have done nothing to prevent this. For each day the company keeps abusing Texas’s state laws they will have to pay a hefty fine of $25,000.
The lawsuit was filed in the district court of Travis County. Apparently complaints have been made for years that nonsalaried sellers are illegally selling Mannatech products over the Internet in an effort to get paid through bonuses in a MLM plan. Just makes one wonder, why it took so long to go to court?
Mannatech officials state that they never received copies of the complaints. They also stated that they advise their customers that none of their products is claiming to cure or treat any illness.
Despite those corporate claims they allowed their distributors to distribute illegal pamphlets claiming such statements on a recent convention called MannaFest. On stage existing customers claimed to have felt rapid improvements of their health after taking certain Mannatech products. According to the lawsuit this is illegal as it advertises false hopes to unsuspecting sufferers.
The company markets their products through so called studies, which have been fabricated by the distributors and company employees, instead of real scientists. Mannatech has been advised to stop these unlawful practices at once unless the studies were being done by an approved professional such as a scientist.
Mannatech has been part of a few allegations in past months and was featured in papers like the Wall Street Journal. But despite the heat of the spotlight they seem to do very well with their bottom line profit. Last year they netted over $32 Mio.
Mannatech Latest News
Mannatech Home Page
Related Posts:
Comments »
Recent Posts
Recent Comments
- leo young on The Pros And Cons Of MLM Trade Shows
- niyoon@gmail.com on Quantum Physics With Fusion Excel MLM
- Shikha Bhittoria on EmergNet MLM Business Opportunity
- Naveen Yadav on EmergNet MLM Business Opportunity
- SURAJ WADHWANI on EmergNet MLM Business Opportunity
No comments yet.