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it all started with a message on instagram this was the beginning of my recruitment into juice plus a supplement sold through multi-level marketing also known as mlms or direct sales or those shakes your friends sell on facebook juice plus told me more more about their miraculous health claims and sizable income potential i want to share my story with you to shine a light on the mlm wellness industry is there science behind these supplements can selling these products really make you a wealthy independent entrepreneur and are these mlms actually pyramid schemes let's science it hey welcome to nourish fall i'm dr lara i had never heard of juice plus before this distributor messaged me on instagram let's call him jp jp first messaged me in july of 2019 and shared a promotional video about their products i say whole food because it is food concentrated to deliver a powerful nutritional punch in a few small capsules i have to admit it got my spidey science sense going in the wrong kind of way at first i didn't respond but jp was persistent over the next year jp messaged me eight more times despite no responses [Music] then i posted this today i'm going to share a story that happened to me yesterday that caused me to spend the entire afternoon in the emergency room i have a very severe anaphylactic allergy to peanut jp told me that his wife used to have a peanut allergy which went away after starting juice plus just to be clear there are no supplements that prevent treat or cure food allergies i am a scientist i am driven by evidence nothing gets me more a rate than false health claims here's the thing juice plus is not unique there are hundreds of mlm companies selling wellness products out there shakes supplements or essential oils with distributors sharing some seriously shady health claims not only that these mlms are selling the american dream the opportunity to be your own boss and earn financial independence jp sent me a summary of the published research about juice plus at a quick glance seeing all these studies in academic journals looks really impressive after reading all the studies wearing my science hat i wasn't convinced these studies were looking at biomarkers like dna damage or oxidative stress but not actual health outcomes like cancer or cardiovascular disease many human studies didn't include a placebo group and had small sample sizes who paid for the research may have biased the results too studies were funded by juice plus and their parent company nsa there's this veneer of research without actual substance what i really wanted to dig into was this notion that juice plus is promoted to replace or supplement a diet lacking in fruits and vegetables the pills may increase vitamin antioxidant levels but a quick glance at the nutrition label already shows us a huge missing piece fiber when you eat a plant like this apple you get a plethora of nutrients all wrapped up in a fiber package fiber plays many important roles like reducing glucose spikes improving blood cholesterol maintaining bowel regularity and keeping you feeling full juice plus is not a substitute for fruits and veggies these pills are not whole food i asked jp how he got started with juice plus it's been over 18 years now my wife and i first heard about juice plus from a friend of ours who was beginning to struggle with symptoms from ms 19 years later she's virtually symptom-free wow is that common in the ms community well you know i'm not going to ever say that there are any guarantees but you know when you when you flood your body with more whole foods only positive changes can happen this notion of juice plus curing serious health conditions goes right back to their origin story naturopathic doctor humber smokey santello created the juice plus blend to cure his father's cancer when no other treatments worked he called it a miracle dr lara science law number one anecdote is not evidence but anecdotes are the major motivation in the juice plus sales pitch these have been picked up by the non-profit watchdog truth in advertising or tina in a 2017 audit tina found 19 illegal health claims promoted by juice plus distributors like treating autism curing cancer and reversing depression are there any specific populations who shouldn't be using juice plus no it's just fruit it's just fruits and vegetables anybody can benefit from this well the science begs to differ case studies in cancer patients taking juice plus showed serious side effects causing hospitals to recommend avoiding juice plus huge supplement doses are problematic at a larger scale too it's been known for a long time that people with higher blood levels of antioxidant nutrients like beta-carotene have lower cancer risk in the 1990s two huge studies were testing whether supplementing with beta-carotene megadoses would reduce cancer in smokers the studies had to be cut short because beta-carotene supplements were increasing the rate of cancer development dr lara science law number six more isn't always better what would be a typical day and how you use the juice plus products i actually take a double amount of juice plus every day it gives me extra energy i definitely notice that when i take extra you know more and better and my wife takes i think even more than i do because it keeps her asthma at bay i did some back of the napkin calculations and taking a triple dose per day would yield nearly three times the daily value for beta-carotene the reality is that there are risks when it comes to supplements their nutrient concentrations are much higher than whole food making it easy to get toxic doses from popping some extra pills the supplement industry is notorious for lacking regulation a product can go from concept to manufacturing to store shelves without any studies on safety or efficacy plus supplements are expensive when we break it down the juice plus trio runs us roughly two dollars and fifty cents a day the average cost of nine servings of fruits and vegetables is only two dollars and 18 cents per day whole fruits and vegetables are healthier less expensive and won't run the risk of toxic nutrient doses but here's the thing there's no health background required to become a distributor of juice plus or any other mlm wellness product for that matter but the distributors become the primary educators about their product for their clients they're selling stories stories to their friends and family to people who trust you stories about the health claims and stories about feeling empowered and achieving their dreams but is this financial empowerment actually possible let's take a look at how mlms like juice plus are structured to find out the anatomy of an mlm let's say i decided to take on this opportunity to sell juice plus i would start right here i would pay my 52 sign up fee for the privilege to become a juice plus partner i would sell the juice plus trio directly to my friends and family i'd start off making 10 off those sales now i am very motivated and driven to get to the next level of my business to become a partner plus for the first promotion you do need to be taking it personally look at that i'd be one of my own first customers but hey you get 10 off your own orders moving up through the ranks depends on your sales how many people you recruit into your downline and your downline sales you earn the difference in commissions really work at uh building as much with as possible because that's what gives you leverage in this plan that's what pays you the most over time you can have as many people sponsored directly to you as you choose it's unlimited it is infinity frontline wouldn't the world's population run out eventually this compensation plan is really confusing even though you don't understand it to begin with you don't need to as i said they're going to pay you anyway i have a different take i think that if you don't understand the compensation plan then you're having the wool pulled over your eyes thinking you can make substantial income when in fact it's highly unlikely but i wanted a deeper economics analysis i'm stacey bosley and i'm an associate professor at hamline university i um really came at this from a perspective of thinking about the choices that people make under risk and uncertainty the aarp foundation did a survey and i've been involved in helping to study that data and that data suggests that the overwhelming majority do seek mlm activity for income and that the vast majority fail to actually realize positive profit in 2013 the ftc charged the mlm company fortune high tech marketing with several accounts deceiving distributors with fraudulent income claims targeting recruitment to immigrant communities and requiring members to pay large startup costs and monthly fees to maintain their position the ftc found that over 98 of people lost money ultimately the company was found to be a pyramid scheme investigations into other mlms like equinox trek alliance and burn lounge show that the vast majority of participants don't recoup their investment deceptive income claims are not uncommon among mlms and pyramid schemes tina audited juice plus and found 25 misleading income claims posted publicly on facebook youtube and even the juice plus website the kovit 19 pandemic has driven an economic recession and many people have lost their source of income there does seem to be a counter-cyclical relationship between the state of the economy and the number of people who join mlms so it does seem as though when the economy contracts you do see larger increases in the number of mlm joins but i i hesitate to sort of state that as a firm fact because i think we need more evidence there is a a strong tendency to represent uh even truthful high earners uh and talk about high earners um in a way that taps into our cognitive biases and helps and and uh elevates people's expectations of sort of winning um in this environment you can make six figures a month doing this business right uh it's just it's really crazy what the potential is so for example if there's a one in 100 chance that something like that would occur you know in order to sort of maintain the proper expectations i might just need to see an image of the person who did achieve that outcome and then pair that with the 99 people who didn't and give those people equal air time right so that i really my brain can continue to process that it's only a 1 in 100 chance of occurring but instead i only see the people who did achieve it right and so my brain then overweights the probability that that will happen to me if i were to join juice plus then i would definitely recruit my mom my auntie kim and my friends jessica jen and jackie how would i know whether i was recruiting them into a legitimate business or an illegal pyramid scheme so there's sort of two prongs of what makes for um from the federal commission's perspective illegal mlm and that is your compensation structure is set up to reward retail above all else and you're properly representing the opportunity to other people a pyramid scheme in the way in which people in it are compensated it's going to be compensation that's primarily earned through the recruitment of additional people into the organization so my compensation is dominated by my ability to recruit other sellers right whereas a retail-based mlm and the federal trade commission has been saying this over and over again needs to be focused primarily on the sales of products and services to true retail customers people who just want the product who do not want the business opportunity um and you know the reason that's so important is because if i'm buying and but i'm also trying to pursue the business opportunity i may be purchasing that product because it helps me advance in the business opportunity i can't then be deemed to be a retail customer who's only buying for the for the genuine demand of the product or service people have this expectation that because a firm is operating and maybe they've been operating some for some time that but they are de facto legal let's look at your compensation plan let's look at the way it's written if you are asked what a typical person earns after expenses in this environment what what would you say a typical person does earn right and pushing back when when it doesn't feel like the answer you're getting is about the typical person [Music] finally i received this juice plus annual earnings from 2017. let's focus on these rows here because they account for about 50 of the distributors we know there's a 52 annual fee then paying for your product the biggest expense is two conferences per year a conference ticket is 150 so it's just whatever you would spend in travel and for hotel when you add it all up it becomes evident pretty quickly that most people will lose money and it could be a lot especially if you're your own customer purchasing lots of product for your family how much time does this tend to take right so that you're factoring in some sense of realistic opportunity cost right because people should be thinking about well what else could i be doing with my time economists like to think a lot about opportunity cost uh you know individual consumers often neglect to think about that so i tried to imagine how i would approach this i'd be reaching out to friends and family on social media chatting in person sharing my personal experience with the product on all these platforms plus responding to comments following up with friends attending virtual trainings if i just use jp as an example he's dedicated 16 months to my recruitment i recognize that opportunity cost is a personal thing but i envision a true effort would permeate all of my time and all of my relationships it's december 2020 and we're nearly a year into a global pandemic and economic downturn certainly the desire for a healthy strong functioning immune system is paramount on everybody's mind today and also that security of a plan b in june of 2020 juice plus received a warning letter from the ftc for claims made by participants regarding the ability of juice plus to help treat or prevent coronavirus infection the warning letter also addressed misleading earnings claims made by some of their members the ftc is cracking down in stacy bosley's research she has described how mlm opportunities spread through communities like a sneeze i want to help you become immune to that sneeze so you can inoculate yourself from misleading health and income claims develop your own spidey science sense ask the right questions and sift through the marketing speak sometimes i think about mlms is sort of again thinking that they have their own rules of economics when in fact the same laws apply but you know there's so there's a bit of a magical reality there i think that can interrupt people's judgment on this and i'm sure the same magical reality can apply on the on the physical side as well it sure does remember these three things when looking at supplements more isn't always better anecdote is not evidence if it sounds too good to be true it probably is after 16 months of recruitment messaging several zoom calls and lots of questions i ultimately turned down this business opportunity but this isn't just a story about juice plus these tactics are replicated throughout the mlm wellness industry it doesn't matter if it's mlm selling shakes essential oils or supplements in the end they just don't deliver on their health or income claims that's what science tastes like thanks for tuning in to nourishable check out all my references in the video description and be sure to subscribe to stay up to date on all things nutrition