MLM Scheme, Mannatech, Pays Millions to Victims for Making False Claims of Cures and Health Benefits

News from Pyramid Scheme Alert:

Mannatech, a long time MLM company, member of the Direct Selling Association and publicly traded on the New York Stock Exchange, has agreed to pay millions of dollars to consumers who were deceived by its false health claims about its products. The state of Texas, where the scheme is based, charged that Mannatech falsely claimed that its food supplements cured Down syndrome, cystic fibrosis, cancer and other serious diseases.

Read moreMLM Scheme, Mannatech, Pays Millions to Victims for Making False Claims of Cures and Health Benefits

Mannatech Fires Auditors Grant Thornton

Mannatech Inc. fired its auditors, Grant Thornton, after refusing to comply with GT’s demand that Sam Caster be removed from all duties. Caster is the founder of Mannatech and the current chairman of the board. He resigned as CEO two months ago after Texas started legal proceedings against the company for making illegal health claims … Read more Mannatech Fires Auditors Grant Thornton

Mannatech CEO Quits to Devote More Time to Mannatech

Okay, I admit it. That headline comes straight from Zac Bissonette at Bloggingstocks. I couldn’t help it though. It’s just so…. so…. right.

In July, the Texas Attorney General filed suit against Mannatech to stop the company from using illegal sales and marketing practices. The suit says that company associates have claimed the products cured, mitigated, treated, and prevented diseases such as cancer and autism. Such claims violate of state and federal laws.

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Texas Attorney General Finally Goes After Mannatech

According to an article in the Wall Street Journal, the Texas Attorney General is finally going after Mannatech Inc. Named in the suit are Mannatech Inc., Manna Relief Ministries, The Fisher Institute Samuel L Caster (Chairman and CEO of Mannatech), and Reginald McDaniel (Medical Director).

The allegations include:

Read moreTexas Attorney General Finally Goes After Mannatech

Legal Inaction Against Mannatech?

The Texas Attorney General doesn’t want to talk about why his office hasn’t taken legal action against multi-level marketing company Mannatech. His office was informed on October 5 by the Department of State Health Services that Mannatech is a threat to public health and safety.

Mannatech was recently featured on ABC’s news program 20/20. The program highlighted the bogus health claims made by representatives pushing Mannatech’s “Ambrotose” product, which is nothing more than a sugar pill.

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Defending Mannatech’s Sugar Pills

Last night, a poor, lost soul posted a comment on my post about the 20/20 expose on multi-level marketing company Mannatech. She’s posted her own lengthy analysis of the company at http://glycofamily.blogspot.com/2007/06/long-entry-about-mannatech-and-response.html. Sadly, she buys into all the hype and false logic that MLMs are so fond of repeating.

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Mannatech Bogus Health Claims?

20/20 did a hidden camera investigation for 3 months, going to Mannatech sales pitches around the country. The meetings start with disclaimers that the products don’t cure anything. Yet the meetings are full of testimonials from people who claim they were cured by Mannatech products. Claims are also made that the product is a bigger breakthrough than even penicillin.

Mannatech products are only sold through a multi-level marketing (MLM) plan.

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Mannatach Under Scrutiny for Health-Related Claims

The Wall Street Journal ran a story this morning about another product-based pyramid scheme, Mannatech. The company is a typical multi-level marketing company (MLM). They have a product (generally overpriced and of marginal quality), but the “real” business is in recruiting new distributors.

Mannatech is currently facing scrutiny for health claims made by distributors. According to the article:

Read moreMannatach Under Scrutiny for Health-Related Claims