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DoTerra
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doTerra (styled dōTERRA or doTERRA) is a multi-level marketing[1][2] company based in Pleasant Grove, Utah, that sells essential oils and other related products. doTerra was founded in 2008.[5]

Key Information

The company's products are sold through independent distributors called Wellness Advocates. Distributors are eligible to receive commissions based on their own sales and the sales of others in their organization.[5] This business model is suspected to consist in a pyramidal fraud, and several similar companies have already been convicted.[6]

The company has also received warnings from the Food and Drug Administration and the Federal Trade Commission for misleading claims by its distributors that doTerra products could help prevent or cure diseases such as cancer, autism, Ebola and COVID-19.[7][5][8][9]

History

[edit]
doTerra kit

The company was established in April 2008 by David Stirling, Emily Wright, David Hill, Corey B. Lindley, Gregory P. Cook, Robert J. Young, and Mark A. Wolfert. Its name was inspired by the Latin phrase for "gift of the Earth". The company initially launched with 25 single oils and ten oil blends.[10] Five years after its founding, doTerra reported having about 450 corporate employees, 350 at the Utah headquarters, and 100 at offices in Taiwan, Japan, Europe, and Australia.

In August 2013, Young Living filed suit against doTerra for theft of trade secrets.[11][12][13] Stirling, Wright, and Hill were former executives of Young Living.[5] The Fourth District Court dismissed the claims and the companies settled lawsuits against each other.[1] A later ruling ordered Young Living to pay doTerra's legal fees as it had acted in bad faith and misled the court.[14]

In 2014, the company was selling over 150 products such as supplements, personal care items, and essential oils.[15] The company completed construction on its Pleasant Grove, Utah headquarters in July 2014.[16] The number of Wellness Advocates joining the company grew by more than 120 percent the next year.[17] By the end of 2015, the company claimed that it had generated more than $1 billion in sales.[5]

doTerra Citrus Bliss hand lotion

In March 2016, personal information stored in a system was subject to a third-party data breach. doTerra sent letters to distributors the next month informing them of the breach and offered 24 months of credit monitoring through AllClear, a credit monitoring company.[18][19] doTerra reported having approximately 1,650 corporate employees and over 3 million Wellness Advocates across 100 countries the next year.[20][21] It recalled 1.3 million bottles of its oils due to a lack of child resistant packaging.[22]

In April 2022, doTerra entered into a $5 million agreement with the University of Mississippi to research essential oils.[23] doTerra was recognized by Hope for Haiti with the Hope Award in January 2023.[24] The company's distillery in Bulgaria was awarded "Partner of the Municipality" by the Annual Awards Association of the Bulgarian Municipalities for its work in the country.[25]

In April 2025, doTerra expanded its business into Kazakhstan, holding an event at the Palace of the Republic.[26] It received a Good Housekeeping 2025 Bath Award.[27]

Controversies

[edit]

doTERRA has faced criticism and several controversies related to its multilevel marketing model, health claims made by distributors, and labor practices in its supply chain.

Multi-level marketing and Ponzi scheme

[edit]
Example of a pyramid scheme where each member must recruit six people to recoup their initial investment: due to geometric progression, the second level must have 36 people, the third 216 people, and so on until the thirteenth level exceeds the total number of people on Earth.

The company’s business model has been described by critics as resembling a pyramid or Ponzi scheme, with a small percentage of top distributors earning significant income while the majority of participants make little or no profit.[28][6] According to a 2019 Marie Claire investigation into the MLM industry, 99 % of people involved in multilevel marketing companies lose money, and the essential oils market has become a major focus of such schemes.[6] Former sellers and consumer advocates have accused doTERRA of exploiting vulnerable individuals, particularly women in wellness and yoga communities, through aggressive recruitment tactics and misleading representations of financial independence and community support.[29][6] doTERRA has denied operating a fraudulent business and maintains that its model empowers independent entrepreneurs.[28]

Built on the same business model, Young Living (where most of doTERRA's founders come from) is currently the subject of a class action lawsuit in the United States for pyramid fraud.[28] Many others (Herbalife, LuLaRoe, Advocare, etc.) have already been convicted after leading thousands of “consultants” and other “representatives” into bankruptcy.[6]

On April 24, 2020, the U.S. Federal Trade Commission issued a warning to DoTerra, ordering it to cease and desist from "misrepresent[ing] that consumers who become doTERRA business opportunity participants are likely to earn substantial income" :

Representations about a business opportunity, including earnings claims, violate Section 5 of the FTC Act, 15 U.S.C. § 41 et seq., if they are false, misleading, or unsubstantiated and material to consumers. Express and implied earnings claims must be truthful and non-misleading to avoid being deceptive, which means that claims about the potential to achieve a wealthy lifestyle, career-level income, or significant income are false or misleading if business opportunity participants generally do not achieve such results. Even truthful testimonials from participants who do earn significant income or more will likely be misleading unless the advertising also makes clear the amount earned or lost by most participants.

— Federal Trade Commission to DoTerra, April 24, 2020.[30]

Supply chain

[edit]

The company has also faced allegations regarding the treatment of workers in its supply chain.

More than a dozen women working for doTerra’s frankincense supplier, a Somaliland company called Asli Maydi, reported poor pay, sexual abuse and unhealthy work conditions. According to the Fuller Project, the abuse continued for years after victims contacted doTerra.[31] The company suspended its operations in Somaliland and launched an independent investigation into the allegations.[32]

But some of the women who say they worked for Asli Maydi and its owner, Barkhad Hassan, say doTERRA’s actions have not only failed to deliver justice for them, but have placed them in further danger from their former employer. (23 July 2024)[33]

Distributor claims

[edit]

On September 22, 2014, the U.S. Food and Drug Administration (FDA) issued an FDA Warning Letter to doTerra for its distributors marketing products as possible treatments or cures for Ebola, cancer, autism, and other conditions in violation of the Food, Drug and Cosmetic Act.[7][34][35][36] Federal agents conducted an investigation of doTerra's files.[5]

Some distributors have promoted the company's products for air purification and protection against the health effects of smoke from the California wildfires.[37] It was alleged in 2018 that some distributors had offered personal stories to customers claiming that their child had benefited from essential oils.[8][5]

In 2020, some doTerra distributors attempted to benefit from public concern regarding COVID-19 by claiming that the company's products have immune-boosting properties, despite no scientific evidence to support such claims.[38][39] The Federal Trade Commission (FTC) warned the company it must stop making such unfounded health claims and exaggerated earnings by its distributors.[9]

In 2023, the U.S. Department of Justice, on behalf of the FTC, won lawsuits against three doTerra distributors for making claims that the company’s essential oils and dietary supplements could treat, prevent, or cure COVID-19, in violation of the FTC Act and the COVID-19 Consumer Protection Act. According to the court order, the defendants were prohibited from making further claims that doTerra products can prevent, cure, or treat without FDA approval; ordered to provide reliable human clinical testing to support claims about other diseases; prohibited from mispresenting that the product’s benefits are scientifically or clinically proven; and were required to pay a $15,000 civil penalty.[40]

Projects

[edit]

doTerra Healing Hands Foundation

[edit]

The doTerra Healing Hands Foundation is a 501(c)(3) non-profit organization established by doTerra in 2012.[41] In 2016, the foundation partnered with the non-profit organization Choice Humanitarian to send staff and distributors to Nepal and Guatemala to install vented brick stoves for families.[42]

In 2017, the doTerra Healing Hands organization began collecting donations from its distributors in the wake of Hurricane Harvey to cover the costs of providing relief packs containing samples of the company's products to evacuees in Dallas. In October 2017, Pacific Standard reported that after collecting donations, doTerra did not deliver the shipments, allegedly due to weather conditions, and described the incident as "a modern example of malfeasance masquerading as altruism—a type of scam often found in multi-level marketing organizations." In an update to their report in March 2018, Pacific Standard noted that doTerra did eventually send shipments of doTerra hygiene packs to residents in Houston.[43]

Kealakekua Mountain Reserve

[edit]

In 2018, the company purchased $7.3 million of land in the Kealakekua Mountain Reserve to source its sandalwood on Hawaii's Big Island. doTerra announced a 10-year plan to use dead sandalwood for its essential oil production while keeping 75 percent of the land forested. It built a nursery on the reserve to grow saplings and protect them from tree-killing species. doTerra has planted 300,000 native trees and intends to plant more than 1 million by 2030.[4]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

DoTerra

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from Grokipedia

doTERRA International, LLC is a Utah-based company founded in 2008 by a group of healthcare and business professionals, including former executives from , specializing in the sale of essential oils and wellness products marketed under its Certified Pure Tested Grade (CPTG) standard for purity. The company operates through a direct-selling model, recruiting independent distributors called Wellness Advocates who earn commissions from personal sales and building downline networks, achieving rapid growth to over 3 million advocates and more than 10 million customers worldwide, with annual revenue surpassing $2 billion by 2024. doTERRA's product lineup, initially launched with 25 single oils and blends, emphasizes sourcing from global partners and rigorous testing, positioning the brand as a leader in the essential oils industry amid a broader wellness market valued in trillions. The firm's expansion has included philanthropy via its Healing Hands Foundation, focusing on global health initiatives, though its MLM structure—featuring 15 achievement ranks from Wellness Advocate to Double Presidential Diamond—has fueled debates over income sustainability for participants. Despite commercial success, doTERRA has encountered significant regulatory scrutiny, including lawsuits in 2023 against high-level distributors for unsubstantiated claims that essential oils could prevent or treat without scientific backing, resulting in permanent injunctions and civil penalties. The National Advertising Division in 2020 determined that the company's evidence failed to substantiate broad efficacy claims for its oils, highlighting a reliance on anecdotal rather than robust clinical data. Additionally, investigations have raised concerns about practices, such as reported abuses among frankincense harvesters in sourcing regions, prompting questions about ethical oversight despite third-party audits.

Founding and Early Development

Origins and Founders (2008)

doTERRA was founded in April 2008 in , by a team comprising healthcare professionals and seasoned business executives, including Gregory P. Cook, Dr. David K. Hill, Emily Wright, , Corey Lindley, Rob J. Young, and Mark Wolfert. Several key figures, such as Stirling, Wright, and Hill, had prior executive roles at Essential Oils, where experiences with quality prompted their departure to establish a new venture focused on elevated purity benchmarks. The founders' motivations stemmed from perceived shortcomings in the existing essential oils market, particularly concerns over adulteration and inconsistent testing protocols among available products. Cook, with extensive experience across continents, and Hill, a medical doctor emphasizing therapeutic applications, sought to prioritize unadulterated oils derived directly from source materials. This dissatisfaction drove the development of the CPTG (Certified Pure Tested Grade) standard, an internal certification process involving rigorous chemical analysis, microbial testing, and verification of purity for each batch, distinguishing doTERRA from competitors reliant on less stringent industry norms. From inception, the company's core mission centered on delivering what it termed "therapeutic-grade" essential oils through direct farmer partnerships and in-house quality controls, aiming to harness plant-derived compounds for wellness without synthetic fillers or dilutions. This approach reflected first-hand industry insights into vulnerabilities, positioning doTERRA to source and test oils globally while establishing purity as its foundational differentiator.

Initial Growth and Challenges

doTERRA achieved rapid initial expansion following its April 2008 launch, reaching $1 million in cumulative sales by December of that year through recruitment of independent distributors known as Wellness Advocates and the introduction of its inaugural product line, which included 25 single essential oils such as lavender and alongside 10 proprietary blends. This structure incentivized Advocates to promote and retail products while building downline networks, driving sales from zero to multi-million-dollar levels within the first two years. By November 2009, the company recorded its first $1 million sales month, reflecting strong early demand for its claimed pure therapeutic-grade oils amid a growing consumer interest in natural wellness alternatives. A primary challenge emerged from disputes with competitor Essential Oils, whose former executives had co-founded doTERRA; Young Living accused them of breaching non-compete agreements, misappropriating trade secrets, and soliciting employees and distributors. These allegations, rooted in the departure of key personnel including CEO , escalated into multi-year litigation filed in federal court by 2013, though tensions and preliminary actions dated to doTERRA's inception. The conflicts disrupted early operations and recruitment efforts, as both companies vied for dominance in the essential oils market, but were ultimately resolved in doTERRA's favor through a 2018 jury verdict and judicial finding of bad faith against Young Living, awarding doTERRA approximately $1.8 million in attorney fees. To differentiate on product quality and address skepticism over purity, doTERRA established initial global sourcing partnerships in native growing regions across multiple countries and invested in for its Certified Pure Tested Grade (CPTG) protocol, implemented from 2008 to rigorously test oils for contaminants and adulterants post-distillation. This included collaborations with distillers and labs to verify , laying groundwork for claims of superior standards amid industry-wide concerns over synthetic fillers, though independent verification of early testing volumes remains limited to company disclosures. These adaptations supported sustained growth into 2012, with monthly sales consistently surpassing $1 million by then.

Business Operations

Multi-Level Marketing Model

doTERRA employs a unilevel structure in which independent distributors, designated as Wellness Advocates, generate income through retail markups on product sales and commissions derived from downline team purchases. Advocates acquire products at wholesale pricing and resell to retail customers at a suggested markup yielding a 25% profit, while also qualifying for bonuses by enrolling in the monthly Rewards Program (LRP) with a minimum of 100 personal volume (PV) points, roughly equivalent to $100 in wholesale value. This LRP commitment is prerequisite for accessing recruitment-linked incentives, such as the Fast Start Bonus, which allocates 10% of a new enrollee's PV in their first 60 days to the direct sponsor and 5% to the sponsor's upline. The Power of Three Bonus further incentivizes balanced recruitment by disbursing tiered monthly payments—ranging from $25 to $1,500—upon achieving escalating group volume thresholds across three qualified downline legs. Team-building dynamics are reinforced through unilevel commissions, distributing 2% to 7% on compressed downline volume across up to seven generations, alongside pools that allocate shares of company-wide bonuses to higher ranks like Silver through . Rank progression, from entry-level Wellness Advocate to elite tiers, demands sustained personal PV (50–100 monthly), aggregate group volume (starting at 500), and a specified number of active downline legs (two to six), tying advancement to both individual persistence and efficacy. These foster network expansion, with incentives compressing deeper-level volumes to reward broader depth over immediate personal volume alone. doTERRA's 2023 Opportunity and Earnings Disclosure reveals that 54% of U.S. Wellness Advocates received no commissions, while among commission-earners, first-year participants' top 50% grossed over $155 monthly and top 1% over $1,319; for established advocates, top 50% exceeded $286 and top 1% $9,326, all prior to deductions. The disclosure omits net figures but cautions that expenses—including mandatory LRP purchases, operational costs, and taxes—substantially erode gross earnings, with success hinging on individual effort sans guarantees. This pattern mirrors analyses of MLMs, where over 99% of participants incur net losses after outlays, often from self-purchasing to meet qualification thresholds. While advocates at apex ranks occasionally attain financial independence via expansive teams, the model's recruitment emphasis—evident in bonus structures prioritizing enrollee influx—draws scrutiny for resembling pyramid schemes, where viability depends on perpetual expansion amid finite markets, prompting lawsuits alleging misleading income portrayals and inventory loading. doTERRA differentiates its operations by mandating product sales over pure recruitment, citing unilevel design's focus on sustainable volume generation and low barriers like $35 enrollment kits, though ongoing PV mandates temper accessibility claims. Empirical outcomes underscore that, absent exceptional recruitment acumen, most participants face minimal returns or deficits, underscoring the plan's top-heavy income distribution.

Revenue and Market Position

doTERRA announced that its annual revenue surpassed $2 billion in 2024, reflecting sales to more than 10 million customers worldwide via over 3 million independent distributors. The company operates in more than 155 countries, with recent market expansions including , the , and in 2023. In the direct-selling sector, doTERRA ranks among the leading firms, included in the Direct Selling News Global 100 list, which recognizes companies achieving over $100 million in annual revenue. This standing underscores its scale relative to peers, with sustained growth fueled by expanded product lines and digital tools that enhance distributor recruitment and sales efficiency. Compared to competitors such as , doTERRA emphasizes certified pure tested grade standards through multiple rounds of chemical analysis for product purity, positioning it as a premium player in the essential oils market segment of direct sales. This differentiation supports its revenue leadership, as the global essential oils market—valued at approximately $25.86 billion in 2024—continues to expand amid rising demand for wellness products.

Products and Quality Assurance

Essential Oils Portfolio


doTERRA's essential oils portfolio centers on single oils and proprietary blends, available in 5 mL, 15 mL, and larger formats for aromatic, topical, and internal uses as directed by the company. Flagship single oils include lavender, intended to soothe skin and promote relaxation; , to invigorate the senses; , to uplift mood and purify surfaces; , to support skin health; tea tree, for cleansing skin and nails; wild orange, to energize; and others like and . Key blends feature On Guard, a protective mix of wild orange, , , , and ; Breathe, for respiratory support; and Deep Blue, targeting muscle and joint comfort with wintergreen, , , blue , blue , , and . These blends are formulated for specific applications, such as diffusing or topical dilution. All products adhere to the company's Certified Pure Tested Grade (CPTG) protocol, involving (GC) and (MS) analysis on every batch to confirm chemical composition, potency, and absence of contaminants, synthetics, or adulterants. Additional tests include evaluation, microbial screening, and physical property assessments to ensure purity. Since the late , the portfolio has diversified beyond oils to include wellness kits like the Lifelong Vitality Pack launched in 2009, featuring supplements with essential oils; the Family Physician Kit in 2010, bundling oils and carriers; and later personal care items such as lotions and shampoos incorporating CPTG oils, alongside diffusers for aromatic dispersion. Enrollment kits, such as the Aroma Essentials and Foundational Wellness Builder, combine oils with supplements and tools for introductory use.

Sourcing Practices and Certifications

doTERRA's sourcing practices emphasize direct procurement through its Co-Impact Sourcing model, which involves partnering with small-scale farmers and harvesters in over 40 countries to secure essential oils at their origin. This approach seeks to ensure traceability and quality by bypassing traditional middlemen, allowing the company to oversee cultivation, harvesting, and initial distillation processes. Under this model, doTERRA reports paying premium prices to growers to incentivize sustainable yields and long-term supplier relationships, as exemplified by its resin procurement from harvesters in Somalia's region. The company's quality assurance extends to its Certified Pure Tested Grade (CPTG) protocol, which mandates comprehensive testing of every batch for , contaminants, and origin verification using methods such as and . This process supports integrity by confirming that oils match declared and sourcing locations, with results purportedly available through batch-specific transparency reports on doTERRA's platform. Regarding certifications, many doTERRA essential oils carry USDA organic or designations where applicable, particularly for cultivated varieties amenable to standard farming audits. However, not all products receive third-party due to challenges with wild-harvested or regionally regulated botanicals, though the company claims adherence to sustainable harvesting guidelines to preserve and . These practices are self-reported by doTERRA, with limited independent audits publicly detailed beyond CPTG internal standards.

Health Claims and Efficacy

Distributor and Company Assertions

doTERRA markets its essential oils under the Certified Pure Tested Grade (CPTG) standard, asserting that this ensures purity suitable for therapeutic applications through aromatic diffusion, topical application, and internal ingestion, positioning them as natural alternatives for wellness support rather than pharmaceutical interventions. The company claims aromatic use elicits responses via the for calming or uplifting effects, topical application promotes and soothing, and internal use allows direct bloodstream absorption for broader bodily transport. These methods are promoted in product materials with disclaimers stating claims are not FDA-evaluated for diagnosing, treating, curing, or preventing diseases. Specific assertions include diffused to ease tension or anxious feelings, clary sage diffused to reduce anxiousness or stress, and taken internally for occasional anxious feelings. For inflammation-related support, and are highlighted in blends targeting healthy inflammatory responses, with ingested to soothe anxious feelings as well. Immune and infection-related claims feature for immune-boosting properties, cassia taken internally to promote immune function, and On Guard blend ingested to support healthy immune function and antioxidant defenses. Distributors often share testimonials emphasizing personal empowerment through oils for general wellness, including pre-2023 assertions of prevention via frequent use of immune-supporting oils like On Guard or claims that and oils block viral binding to cells based on purported studies. These narratives frame oils as proactive tools for health autonomy, amplifying company materials in and .

Empirical Evidence and Scientific Scrutiny

Peer-reviewed studies have demonstrated antimicrobial properties for certain essential oils and their components, such as (Melaleuca alternifolia) exhibiting activity against bacteria like through membrane disruption mechanisms. Similarly, systematic reviews indicate anti-inflammatory effects from oils derived from herbs like lavender and , primarily via modulation of cytokines such as TNF-α and IL-6 in preclinical models. Components like , found in oils, contribute to these effects by inhibiting microbial growth and reducing inflammation , though trials often show dose-dependent variability. However, randomized controlled trials (RCTs) reveal limited superiority of essential oils over placebos for treating serious health conditions, with most evidence confined to mild symptoms like postoperative nausea or anxiety reduction via inhalation. For instance, aromatherapy with lavender or ginger oils alleviated nausea in some RCTs, but effects were comparable to placebo in others, attributed to olfactory stimulation rather than pharmacological action. Independent assessments, including those from Scientific American, conclude there is no robust evidence supporting essential oils as cures for illnesses, emphasizing the gap between in vitro antimicrobial data and clinical outcomes for systemic diseases. Company-sponsored research, such as doTerra's studies on frankincense (Boswellia spp.) essential oil, reports epigenetic gene expression changes potentially linked to inflammation modulation in small clinical trials, but these lack independent replication and overstate implications beyond preclinical observations. In contrast, broader reviews highlight methodological limitations in aromatherapy RCTs, including small sample sizes and high risk of bias, undermining claims of broad therapeutic efficacy. From a mechanistic standpoint, the volatility of essential oils facilitates topical applications and inhalation-mediated relaxation through direct olfactory pathways to the , promoting parasympathetic responses without requiring systemic absorption. Oral , however, faces bioavailability constraints, as volatile rapidly partition into and exhibit quick , limiting sustained internal effects and raising concerns absent from rigorous dose-response . This underscores how promotional narratives often overlook pharmacokinetic realities, prioritizing anecdotal benefits over causal from controlled studies.

Philanthropy and Sustainability Initiatives

Healing Hands Foundation

The dōTERRA Healing Hands Foundation, established in June 2012 as a 501(c)(3) , serves as the philanthropic arm of dōTERRA, focusing on in areas such as disaster relief, , and . The foundation's mission emphasizes empowering communities through partnerships with local nonprofits, with all donated funds directed entirely to aid programs while dōTERRA covers administrative overhead. This structure aligns with the company's ethos of promoting healing and self-reliance, channeling resources to support vulnerable populations in regions tied to dōTERRA's sourcing networks for combined economic and humanitarian outcomes. Key activities include the distribution of 72-hour emergency relief hygiene kits during crises, with over 283,250 kits provided cumulatively by early 2024 and 55,731 kits delivered in alone. The foundation also funds efforts, such as 326 scholarships for underprivileged children in in 2024, and health projects like clean water access in developing areas through collaborations such as with the nonprofit Healing Waters International. Initial disaster response efforts began with to the following in November 2013. A core component is the Match Program, which doubles distributor-raised funds for approved projects, resulting in over 720 matched initiatives by 2024. By June 2025, marking 15 years of operations, the foundation reported cumulative donations exceeding $55 million to global humanitarian causes, building on $14.5 million donated by the end of 2021. These efforts integrate with dōTERRA's community sourcing practices by prioritizing aid in supplier regions, fostering long-term stability alongside economic partnerships without overlapping into sustainability-focused programs.

Co-Impact Sourcing and Reserves

doTERRA's Co-Impact Sourcing model incorporates reserves and sustainability projects to conserve land and support regenerative practices amid production. The company established the Kealakekua Mountain Reserve, a 9,627-acre property on Hawaii's Big Island, in partnership with the state government starting in 2018, transforming former ranchland into a for native plant restoration. This initiative emphasizes , with over 500,000 trees planted by August 2024, including endangered Hawaiian (Santalum paniculatum), marking the largest such effort in Hawaii's history. Through Co-Impact Sourcing partnerships, doTERRA funds projects that enhance supply chain resilience and farmer empowerment, including techniques to mitigate overharvesting risks. The 2024 Impact Report highlights over 40 such initiatives across 14 sourcing countries, often in collaboration with the Healing Hands Foundation, focusing on improved harvesting methods and community uplift for crops like ginger. For instance, doTERRA's ginger sourcing in employs sustainable farming to preserve and ensure long-term viability. These efforts earned doTERRA the 2025 SEAL Sustainability Innovation Award for ginger sourcing innovation, recognizing ethical supplier partnerships that prioritize and for small-scale farmers. The model builds supplier capacity via and fair pricing, leading to reported income increases through higher yields and efficiencies, though independent verification of specific uplift metrics remains limited to company disclosures.

Controversies and Criticisms

In 2023, the (FTC) initiated lawsuits against three high-level doTERRA distributors—referred to as "Wellness Advocates"—for making unsubstantiated claims that doTERRA essential oils could prevent, treat, or cure , including assertions of medical expertise in promoting the products. The complaints, filed in January 2023 and resolved via settlements in March, alleged violations of the FTC Act and the Consumer Protection Act, resulting in permanent injunctions prohibiting future health claims without scientific substantiation, monetary judgments totaling civil penalties (e.g., $15,000 against one after offsets), and requirements for redress to consumers. These actions targeted individual distributors rather than doTERRA International directly, though the company was referenced in the filings for its structure facilitating such promotions. Earlier, in April 2020, the FTC issued warning letters to doTERRA and other companies, cautioning against unsubstantiated health and earnings claims made by affiliates during the , urging the company to monitor and address violations to avoid liability under Section 5 of the FTC Act. Separately, the (FDA) sent a warning letter to doTERRA in September 2014 regarding distributor claims that essential oils treated or cured diseases such as Ebola, cancer, and , classifying such statements as promoting unapproved new drugs under the Federal Food, Drug, and Cosmetic Act. doTERRA responded by affirming it did not endorse disease-cure claims and emphasized personal responsibility for individual representations, with no subsequent FDA enforcement actions against the company identified in public records. Legal challenges have included lawsuits alleging deceptive practices in doTERRA's distributor model. In October 2023, plaintiff Dustin Bingham filed suit in federal against doTERRA entities, claiming violations of laws through misleading income representations and pyramid-like recruitment emphasis, with the case involving proceedings as of 2025. Attorneys pursuing related Wellness Advocate claims assert potential breaches of deceptive practices statutes, focusing on false earnings promises, though outcomes remain pending without final of company liability. Earlier disputes with competitor Essential Oils, spanning 2012–2018, resulted in all charges against doTERRA dismissed in 2017, followed by a awarding doTERRA nearly $2 million in legal fees due to Young Living's bad-faith litigation tactics.

MLM Structure Debates

doTERRA operates a (MLM) model in which independent distributors, known as Wellness Advocates, earn commissions primarily through personal sales and recruitment of downline networks. The company defends this structure as product-driven and voluntary, emphasizing that participants join for wholesale discounts on essential oils while having the opportunity to build residual income through retail sales and team volume. Proponents, including doTERRA leadership, argue that top performers—comprising less than 1% of active Advocates—can achieve substantial wealth by leveraging network effects in a free-market system, with average annual earnings for higher ranks like reaching over $200,000 based on 2023 compensation data. This perspective aligns with views stressing individual agency and entrepreneurial risk, where success rewards those who effectively market genuine products without coercion. Critics contend that doTERRA's incentives heavily favor recruitment over retail sales, resembling pyramid schemes where sustainability depends on endless expansion rather than product demand. analysis of MLM income disclosure statements, including those from companies like doTERRA, reveals that median monthly gross earnings for participants often fall below $84, with net losses common after for required purchases, fees, and loading. doTERRA's own 2023 earnings summary indicates that 73% of Wellness Advocates earned no commissions beyond wholesale discounts, while only 4% reached ranks qualifying for significant bonuses tied to downline . Economic evaluations of similar models highlight that recruitment-focused compensation plans lead to high attrition rates—over 90% in many MLMs—rendering the structure unsustainable for the majority, as upstream participants extract value from downstream losses. Debates often pit narratives of personal empowerment against data-driven assessments of systemic losses, with some analyses attributing participant persistence to sunk-cost fallacies rather than viable opportunity. While doTERRA counters pyramid accusations by noting its emphasis on verifiable product volumes exceeding $1 billion annually, FTC guidelines stress that legitimate MLMs must derive at least 70% of from external retail to avoid traits—a threshold rarely met in practice per empirical reviews. Causal factors include aggressive enrollment bonuses that incentivize stockpiling over , resulting in widespread financial despite voluntary entry. Independent economic scrutiny prioritizes these verifiable outcomes over ideological framings, underscoring that participant agency does not negate the model's inherent skew toward top-tier gains at broad expense.

Supply Chain and Ethical Concerns

doTERRA promotes its supply chain as ethically managed through initiatives like co-impact sourcing, which involves paying premiums to suppliers in developing regions to foster sustainable practices and community benefits. However, investigations have revealed significant discrepancies, particularly in sourcing from , where the company relied on local supplier Asli Maydi from 2014 onward. Reports documented cases of unpaid harvesters and sorters, with women workers facing exploitation, including wage theft, , and threats to alter testimonies during doTERRA-commissioned audits. A July 2024 Guardian investigation, building on prior 2023 reporting, highlighted how frankincense sorters were coerced to provide false accounts to third-party investigators hired by doTERRA, fearing reprisals such as job loss or violence if they disclosed non-payment or abuses. These findings prompted doTERRA to terminate its relationship with Asli Maydi, following an independent probe by Sidley Austin that confirmed irregular payments and substandard labor conditions, though the company emphasized it bore no legal duty to compensate affected workers directly. In November 2024, U.S. Customs and Border Protection issued a Withhold Release Order against Asli Maydi, barring frankincense imports due to evidence of forced labor, underscoring enforcement gaps despite doTERRA's audit protocols. Broader critiques point to opacity in (MLM) structures, where doTERRA's distributor-driven model complicates oversight of overseas labor in volatile areas like , prone to instability and weak governance. While premiums—reportedly up to 15 times market rates—are intended to incentivize better practices without heavy regulatory intervention, persistent abuses suggest limitations in voluntary enforcement, as suppliers may prioritize short-term gains over sustained compliance. doTERRA maintains ongoing commitments to the region via alternative sourcing, but advocates argue that without binding remediation for past harms, such pledges risk perpetuating cycles of exploitation in high-risk supply chains.

References

  1. https://www.forbes.com/sites/simonmainwaring/2023/12/19/how-dterra-heals-the-world-one-drop-of-essential-oil-at-a-time/
  2. https://www.doterra.com/US/en/our-story
  3. https://www.businessforhome.org/2025/04/doterra-2024-revenue-surpassed-2-billion/
  4. https://www.directsellingnews.com/2025/04/14/doterra-reports-2024-revenue-results/
  5. https://www.doterra.com/US/en/blog/building-ranks-in-doterra
  6. https://promlmsoftware.com/blog/doterra-comp-plan/
  7. https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-takes-action-against-doterra-distributors-false-covid-19-health-claims
  8. https://www.justice.gov/archives/opa/pr/united-states-obtains-permanent-injunctions-and-civil-penalties-actions-against-california
  9. https://www.manatt.com/insights/newsletters/advertising-law/nad-issues-decision-regarding-claims-for-doterra-e
  10. https://www.theguardian.com/business/article/2024/jul/23/doterra-frankincense-abuse-investigation
  11. https://www.doterra.com/US/en/founding-executives-and-doterra-leadership
  12. https://www.utahbusiness.com/entrepreneurship/2022/03/17/doterra-founders-share-their-story/
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