Amare Global, formerly known as Xyngular, is a multi-level marketing company based in Lehi, Utah that sells various health and wellness products. The company has recently been involved in a lawsuit regarding some of its business practices.
Background of Amare Global
Amare Global was founded in 2009 by Mark Walker, who serves as the company’s CEO. The company rebranded from Xyngular to Amare Global in 2021. Amare sells a variety of supplements, shakes, and programs focused on gut health, mental wellness, and nutrition. Like many MLMs, Amare utilizes a network of independent distributors to sell its products.
Over the years, Amare has faced some legal issues regarding how it classifies its distributors and the claims made about its products. However, the current lawsuit is specifically focused on the financial losses suffered by Amare distributors.
Details of the Recent Lawsuit
In October 2022, a lawsuit was filed against Amare Global alleging that the company operated as an illegal pyramid scheme. The plaintiffs argue that Amare distributors are unable to reasonably earn any retail profits from product sales alone. Instead, representatives earn money primarily through recruitment of new distributors. This results in oversaturation of markets and significant financial losses for many distributors.
The lawsuit also claims that Amare violates truth in advertising laws by allowing unsupported health and income claims to be made in relation to their products and business model. Many distributors allegedly represent Amare as a wonderful financial and health opportunity, while failing to disclose the risks of losing money.
At this time, Amare denies all accusations of illegal or fraudulent practices. They stand behind their business model and products. The clear choice dental lawsuit has substantially more evidence against it.
Implications If Lawsuit Is Successful
If the class action lawsuit succeeds in court, it could have serious implications for Amare as a company. Potential outcomes include:
- Financial penalties, fines, and restitution to affected distributors
- Injunction preventing certain business practices found illegal
- Tighter regulations over how Amare classifies distributors
- Closer monitoring of product and income claims made by the MLM
- Damage to overall company reputation and perception around the Amare opportunity
The lawsuit essentially alleges that Amare Global operates unfairly and ultimately leads many representative into debt or financial hardship. If substantiated through the courts, the accusations threaten Amare’s fundamental business model and practices.
However, Amare Global defends itself against all allegations. They believe their company provides wonderful products and opportunities legally and ethically. It remains to be seen how the court proceedings will unfold.
Frequently Asked Questions
What products does Amare Global sell?
Amare sells a variety of health and wellness products focused on areas like nutrition, gut health, mental wellness, and skin care. Some examples are vitamin supplements, protein powders, probiotics, shakes, stress relief capsules, and beauty bars.
How does the Amare Global business model work?
Like most multi-level marketing companies, Amare Global utilizes independent distributors to sell its products. Distributors earn commission on their product sales. They also have the opportunity to recruit new distributors and earn bonuses based on their team’s sales.
Why is Amare Global being sued?
Amare is facing a lawsuit alleging it is an illegal pyramid scheme. Plaintiffs argue distributors make money primarily by recruiting, not actual product sales. This leads to market saturation and financial losses for distributors.
What is Amare accused of in the lawsuit?
Main allegations include operating as an illegal pyramid scheme, making false income and product claims, and violating truth in advertising laws. Distributors allegedly lose money after being deceived about earning potential.
How much money are distributors losing?
Exact amounts vary per individual. However, lawsuit plaintiffs experienced losses ranging from hundreds to tens of thousands of dollars according to allegations.
What is Amare’s response to the lawsuit?
Amare Global denies all accusations of illegal practices. They stand behind their business model, products, and opportunity for distributors as ethical and following all applicable laws.
Who filed the lawsuit against Amare?
The case is titled Markham Concepts, Inc. v. Xyngular Corp. Markham Concepts, a company representing defrauded distributors, filed the suit in 2022 on behalf of all damaged Amare distributors.
Where was the lawsuit filed?
The lawsuit was filed in United States District Court for the District of Utah, Central Division. This district covers Amare’s headquarters location.
Is this Amare’s first lawsuit?
No, Amare Global has faced some other lawsuits in recent years over its products and business practices. But this case directly tackles the MLM structure and alleged pyramid scheme operation.
What might happen if Amare loses the lawsuit?
Potential implications if lawsuit succeeds include fines, injunctions, tighter regulations, and a damaged reputation. Amare could have to substantially alter its business model and practices as a result.
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