USANA Looks Worse Now
USANA is not only being scrutinized by the FDI. "USANA looks worse now" is Kim Klaver's conclusion after reviewing FDI's interview of some USANA recruits, her blog is at New School of Network Marketing by Kim Klaver.
Many of the commentators do not share Ms. Klaver's conclusion, viz. that it is wrong to emphasize to a prospect that they need to recruit.
Here is a sample of some of the comments.
"I have to laugh when I see these types of interviews. Especially the quote "Jane lost $5,000" Pity Barry Minkow didn't think it was important to qualify that statement! I guess when one is trying to make a compelling interview, one should never let the facts interfear with a good story.
May I suggest that Jane paid $5,000 and in return received $5,000 worth of a quality nutrutional supplements."
Obviously this commentator takes a broad view of fraud. To invest in a business opportunity and then be told you must have got value because you have some supplements in your closet.
"Yes, the opportunity is misrepresented. What is Jane's responsibility in this? What about due diligence?
There are two sides to the story. People fall victim to this because they are looking for a get rich quick scheme."
Here is another odd response. The commentator appears not to understand that the modern legal view is that if an income earning opportunity is mispresented to the public and that mispresentation is the cause of the loss, then reliance is not an element that needs to be proved. This makes sense, we don't require individuals to perform due diligence on the level of detecting fraud.
I believe that Ms. Klaver agrees in part with my analysis as she says:
"How would Jane know? How does anyone who has no business experience know to even DO due diligence? And remember the neighbor is doing it, too - so there's the added peer pressure.
That's why I wrote that they look like predators. Hitting on prey that are no match. Of course people SHOULD do due diligence. But many don't even know they should, until it's too late. They have no previous business experience."
This example is why the Direct Sellers Association ought get behind the FTC's Business Opportunity Rule so that they can point out, objectively, that the purchaser had the necessary information to perform due diligence.
