I want to start this post off with a quote from "The Truth About Quixtar":

Only thing I can imagine is that this company, endorsed by Dr Phil, was
promoting some products, which apparently were crap
, and they got sued.
As a settlement to make everyone happy, the cash pays for all the
lawyers, and the Nutrilite must go to all the customers to replace the
crap products?

The pieces to the puzzle that I am about to lay out are huge on a number of levels, first some background.

There was a news report not long ago about Dr. Phil’s Shape Up! diet products and a class action lawsuit. The settlement for this class action included $6.0 million of Nutrilite® Daily Multivitamin/Multimineral, 6-month supply, and $4.5 million in cash.

Odd that Nutrilite would be part of a settlement for another "crap product", right?

Detroit’s Metro Times:

The answer to that
guttural query can be found not in news accounts (at least not any that
we saw) but rather the settlement agreement posted on the Web site
shapeupsettlement.com. There, it’s revealed that neither Dr. Phil nor
CSA were the ones ordered to shell out, but rather Amway parent company
Alticor.

According
to that document, Alticor will provide $4.5 million in cash and $6
million in Nutrilite products to disgruntled users of Shape Up! The
product was taken off the market in 2004.

Why is Alticor (parent company to Nutrilite, Quixtar and Amway paying a settlement for Dr. Phil’s Shape Up! diet program?

Apparently, the Shape Up! products were made by Nutrilite.

Mike Mohr, Alticor’s General Counsel, about Amway’s involvement, (in an e-mail sent in October of 2003) wrote:

"I
think that if any reporter digs we all need to be right up front and
proud (without waiving [sic] the Amway flag). The Amway flag is a two
edged sword for both of us. We have reputation problems that are common
in the direct selling industry. We absolutely do not want that to
attach to you in any way. Moreover, the same psychotics (in our
business and on the web) that create our reputation problems will use
powerful communication tools and undue influence to damage our
businesses …
"

Cutting Out The Quixtar IBOAI aka the "psychotics"

I like the part about labeling the people in the business along with the people on the web as psychotics. One would assume that he is talking about the IBOAI Board, who in my opinion should have a serious problem with Alticor going behind their back to produce (and apparently bankroll) a product line that is not being sold through the network of IBO’s.

The Quality of Nutrilite Products

It seems apparent that Nutrilite manufactured these "crap products" for Dr. Phil’s Shape Up! program. Now there is a class action settlement paid for by Alticor on products that were sold as, "scientifically researched levels of ingredients that can help you change your behavior to take control of your weight.".

What does that say about Nutrilite’s Science and Reputation?

Dr. Phil at Quixtar Live in 2003

While this Alticor/Dr. Phil behind the scenes go around the Quixtar IBO business deal is going down, Dr. Phil was speaking at Quixtar Live, telling Quixtar IBO’s what a great business opportunity they have.

Tune in tomorrow for information on the Dick DeVos connection, the FTC and more.