Summary
- Multi-level marketing practices and product safety under investigation
- Lawsuit centers around misleading income claims and contamination
Amare Global, known for selling wellness products, currently faces two legal hurdles.
First, it operates using a multi-level marketing (MLM) and distribution model. When businesses structure their MLM business model incorrectly, they can slide into the territory covered by illegal pyramid schemes.
Second, “wellness” products, like nutritional shakes and juice packs, fall into a regulatory gray area. While the FDA closely regulates dangerous drugs, it only monitors dietary supplements for misbranding or adulteration. Otherwise, it allows manufacturers to regulate themselves.
As a result, they can face lawsuits when their products contain dangerous ingredients or ingredients not disclosed on the labels.
Amare Global has faced lawsuits raising both of these issues. Distributors complained that the company misled them about sales projections and burdened them with finding more distributors so they could make money.
Even more concerning is a recent settlement of an Amare Global lawsuit over heavy metals like lead, cadmium, and mercury in its products. These claims could spark a chemical exposure lawsuit.
Amare Global Lawsuit Status
Before getting into the lawsuits, you must understand Amare Global. This company makes wellness products such as nutritional supplements. It claims the products improve the gut health of users. The company asserts the user’s mental health will also improve when their gut health improves.
Rather than using a traditional retail model, Amare Global uses a direct marketing model. In this model, distributors buy products from the company and resell them directly to customers. They earn a commission from these sales.
Distributors are also encouraged to sign up additional distributors by receiving a commission from the sales of the distributors under them.
A distributor filed a lawsuit in 2023 claiming that Amare Global’s actions put distributors in financial distress or debt. The actions identified in the lawsuit include:
- Making misleading claims about distributor income
- Making misleading claims about the health benefits of the products
- Failing to disclose the risk of losing money
When a distributor signs up, they must buy a welcome package. The lawsuit claims the commissions from sales are so small they can only recover their initial investment by recruiting additional distributors. This structure is common in legal MLM businesses. It is also an element of an illegal pyramid scheme.
This lawsuit is so new that it has not gone anywhere. Consumers should keep in mind that this lawsuit only affects distributors. It does not affect consumers allegedly misled by the company’s marketing or injured by its products.
Settled Lawsuit Against Amare Global
However, Amare Global has faced legal action that could be a warning for a rough future. In a case filed in 2022, a consumer watchdog group sued Amare Global, claiming that the company violated California law.
The complaint stated that the company failed to test its products for the heavy metals lead, cadmium, and mercury. It also asserted the company did not label its products accurately because it did not state that they contained a safe level of heavy metals.
Amare Global settled the claim in 2023 by agreeing to test for heavy metals and label its products accurately.
No one claimed that Amare Global’s products contained these toxic chemicals. They only claimed that the company’s testing failures meant there was no way to tell if the products contained these toxins. But if they did, consumers could suffer brain injuries or even death from heavy metal poisoning.
Projected Amare Global Lawsuit Settlement Amounts
The pending lawsuit could result in a damage award or settlement worth thousands of dollars to distributors misled by the company’s marketing and recruiting materials. However, a settlement or damage award in this suit is a long way off since the filings are so recent.
There is no lawsuit asserting personal injuries caused by the products. A settlement for these claims will depend on the severity of the injuries that resulted from the use of the products.
Learn More About Your Legal Rights From ConsumerShield
The pending lawsuit against Amare Global accuses the company of making misleading business and health claims. It could compensate unprofitable distributors who relied on misrepresentations when they joined the company.
However, in evaluating the lawsuit, remember that only a small number of distributors have made these accusations, and the company vigorously denies them.
Of greater concern are the issues raised by the consumer protection lawsuit in California.
If the company’s failure to test its products for heavy metals resulted in contamination, customers, including children, might have suffered serious injuries, including neurological disorders, that can cause lifelong disabilities or deaths. However, no one has claimed the products caused these injuries or filed any product liability lawsuits.
ConsumerShield was formed to educate people about their legal rights. Whether you are a distributor or consumer, we provide resources to help you understand your legal rights. We also offer referrals to experienced lawyers to advise and represent you in any claims. Contact us by filling out our contact form to request your free case review.
