The wellness industry is a big one these days, and that’s the global scale we’re talking about here. Though a lot of companies in this very niche opt for a different kind of business model, and that’s where this Amare Global lawsuit becomes an iconic and very recent example. So much so that people are even asking about it all today as well. So, if you don’t know what’s the real issue behind it all, then just keep on reading, that’s the least you can do for now to figure things out on your own.
What Is Amare Global?
True, Amare Global is actually a fairly new wellness company that just began just in 2017, no two ways about that. And, ever since it began, no doubt, they’re focusing more and more on the mental wellness side of things, like they’re interested in developing such products and the range includes mood-enhancing, stress-reducing, and gut-health supplements. And as per the claims of this company, these products are distributed through a multi-level marketing (MLM) model. That means, people who sell their products actually earn commissions.
And it’s also true that the companies that work on such a business model get somewhat extra attention, and just to give you a good example of that, see, throughout the years, Amare experienced a massive leap in its revenue figure from $60 million in 2018 to $165 million in 2023. Generally, rapid growth attracts a lot of attention, and that is exactly or precisely where some of the concerns arose.
Why Is Kyäni Mentioned So Often?
A majority of the misunderstanding about this is where most confusion arise. In 2022, Amare Global bought out a wellness company called Kyäni. Nevertheless, Kyäni was no stranger to regulatory problems long before Amare had the idea to purchase it.
Several years back, consumer protection groups had aired their grievances about Kyäni’s therapeutic and earnings propaganda. Though these issues were a matter of the past at the time of the acquisition, Amare was still seen as sharing some of the spotlight of that controversy after the merger of the two companies. For that reason, a lot of people inaccurately associate Kyäni’s former troubles with Amare.
Were Government Agencies Involved?
It was the case, though once again Kyäni was the principal company involved, but yeah, not Amare’s original business ops.
In 2016, complaints were made to the Federal Trade Commission (FTC) by consumer groups against Kyäni regarding health and income claims. The FTC decided to pursue the matter and in 2017, Kyäni got letters of warning for certain marketing practices. No substantial fines were imposed but the effect was the adding of the company to the list of regulated firms – a history that later got attached to Amare due to the acquisition.
What About the FTC and the CortiSlim Case?
This is the part that is often misinterpreted. The FTC lawsuit against CortiSlim was in 2005, a considerable time before Amare Global was even around. The case was about false advertising of a weight-loss supplement and concluded with the company paying fines.
People often bring this case up because it’s a demonstration of the strictness of the FTC when it comes to claims about supplements. Nevertheless, it is not a legal action Amare is facing. The link is very loose and the case is mostly cited to illustrate how the industry is regulated.
Is Amare Global a Pyramid Scheme?
This question is asked quite often. Amare is a multi-level marketing company so the question whether it is a pyramid scheme or not is often raised. It is true that Amare Global is a multi-level marketing firm, therefore, it’s often questioned whether it’s a pyramid scheme. To date, no court or government authority has declared it so officially.
Amare claims that the bulk of their income is derived from product sales, rather than recruitment. There are various viewpoints on this matter but in a legal context Amare hasn’t been found guilty of being a pyramid scheme.
