1/31/2024 0 Comments Advocare spark![]() Prior to July 2019, AdvoCare was determined to be a multi-level marketing company. The article noted that some people in the company focused on religious affiliation as part of its business model, with more devout members of the organization using it to gain and hold power in the organization and over its members. It also argued that these individuals exaggerated the likelihood of financial success of distributors, and created an atmosphere of not questioning the company's claims. The article argued that the company and a small number of distributors made most of their money from the signing-up of new distributors rather than sales of the product. In March 2016, Advocare was the subject of an article in ESPN The Magazine. AdvoCare also sells products under the brand names Trim, Active, Well, Performance Elite, Fit, and 24 Day Challenge. Business ĪdvoCare sells dietary supplements and related products, such as an energy drink. Prior to the settlement, Advocare voluntarily moved from a multi-level marketing model to a single-level distribution or direct sales model. In a statement, CEO Patrick Wright denied the company had operated as a pyramid scheme. Two of AdvoCare’s top promoters also settled with the FTC for $4 million, most of which was suspended, based upon their inability to pay, and were also banned from multi-level marketing. They also agreed to a ban from all multi-level marketing. AdvoCare and its former chief executive agreed to pay $150 million to compensate some distributors and buy back unsold inventory from distributors who chose to leave. The majority of distributors either made no money or lost money. According to the FTC, AdvoCare rewarded distributors for recruiting other distributors to spend large sums of money pursuing the business opportunity. AdvoCare did not admit to or deny allegations but did agree to change how they did business. In October 2019, the FTC ruled that Advocare had operated as an illegal pyramid scheme. He had previously served as Chief of Staff for US Representative Jim McCrery. Wright became president and CEO of AdvoCare. Ragus was in training camp with the National Football League's Kansas City Chiefs in the 1960s. He had initially founded the MLM company Omnitrition International in 1989. Before founding AdvoCare, Ragus worked as a regional vice president for Fidelity Union Insurance, and as a MLM distributor for Herbalife. The name AdvoCare is short for "Advocates Who Care". The company, headquartered in Richardson, TX, was founded in 1993 by Charles Ragus.Ĭharles Ragus founded AdvoCare in 1993 as a multi-level marketing (MLM) company to distribute dietary supplement products. They are a direct sales company and a former multi-level marketing company that was charged with operating a pyramid scheme. AdvoCare International, LLC is an American dietary supplement company.
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