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| Type | Private |
|---|---|
| Industry | Multi-level marketing |
| Founded | 1978 |
| Headquarters | Scottsdale, Arizona, USA |
| Key people | Rex G. Maughan, Founder, Chairman of the Board and CEO |
| Revenue | $2.5 billion in 2010 |
| Employees | 4,100 in 2006. |
| Website | www.foreverliving.com |
Contents
- 1 Business model
- 2 Products
- 3 Violations in Hungary
- 4 Copyright & Trademark Lawsuit and Logo Change
- 5 References
- 6 External links
Business model
FLPI's products are sold by multi-level marketing via online channels and through in-person presentations by the company's network of independent distributors.A three-part special report by the Manila Times discussed similarities between FLPI's business model and an illegal pyramid scheme, noting that FLPI participants are said to be rewarded primarily for recruiting new members to the organization, rather than for selling products to genuine end-users.
Products
FLPI's key product is an aloe vera beverage which comes in 3 flavors (cranberry, peach, and natural). The company also markets various personal care and household products made from aloe, including lotions, creams, soaps, hair care products, deodorant, aftershave, lip balm, toothpaste, colognes and perfumes, laundry detergent, and a burn salve.In 1983, FLPI launched its Forever Bee products—a dietary supplement line consisting of royal jelly, bee pollen, bee propolis, and pure honey. The company later expanded its product line to include dietary supplements consisting of aloe combined with vitamins, ginseng, minerals, fish oils, garlic, and other substances.
Violations in Hungary
Claims made about FLPI products were found to be in violation of several laws in Hungary related to advertising, registration of nutritional products, and the use of cosmetics as medicinal agents. As a result, the company was fined 60 million HUF (approximately $280,000 USD).Copyright & Trademark Lawsuit and Logo Change
In 2007, author Richard Bach won a lawsuit against the company for copyright infringement and trademark infringement. The lawsuit stated that for over 20 years Forever Living had used the character, storyline, and copyrighted excerpts from the novel Jonathan Livingston Seagull to promote its marketing plan. Forever Living was also accused of using images from the motion picture and novel as its corporate logo, and reproducing it on merchandise, jewelry, products, packaging, and promotional materials. Shortly after, Forever Living changed its company logo from a seagull to an eagle.References
- Jump up ^ "The Largest Private Companies: #340 Forever Living Products Intl". forbes.com. 2006. Retrieved 2008-06-29.
- Jump up ^ "Forever Living Products hopes to see sales up in H2". Ziarul Financiar. August 2006. Archived from the original on 2008-08-04. Retrieved 2008-06-29.
- Jump up ^ Max de Leon (28 April 2003). "A very thin line between multilevel marketing and pyramid schemes". Retrieved 19 October 2012.
- Jump up ^ "Hungarian Economic Competition Office fined FLP for 60 million HUF".
- Jump up ^ Schwabach, Aaron (2011). Fanfiction and Copyright. Ashgate. pp. 39–40. ISBN 978-0-7546-7903-5.
- Jump up ^ "Richard BACH, et al., Plaintiffs, v. FOREVER LIVING PRODUCTS U.S., INC., et al., Defendants.".
- Jump up ^ http://www.lawupdates.com/summary/bach_v_forever_living_products_us_inc/
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