The following is from a press release issued by MonaVie about the "Open Door Campaign", a campaign that was started shortly after MonaVie was sued by Amway over Orrin Woodward’s Team leaving Amway for MonaVie:
"Non-compete agreements were designed for high-level corporate employees, not for independent contractors," says Dallin Larsen, MonaVie founder and president. "Some network marketing companies use overly burdensome language in their agreements as a punitive tool to tie their independent contractors to them for life, often interfering with the individual entrepreneur’s ability to earn a living. It’s my belief that direct selling companies need to earn the trust of their most valued asset, their distributors, on a daily basis. If a distributor, for whatever reason, no longer trusts his or her company, that distributor should be free to go in another direction without undue restriction."
MonaVie even launched a web site OpenDoorCampaign.com. Here is a snip from that site:
“As a company, we pledge to respect our distributors and the value they bring to our organization. We know our success as a company is based on the success of our people. We will not bind any distributor to our company through unfair or illegal practices, including overly restrictive non-compete clauses. Instead, we promise an open door policy and are committed to creating an environment where distributors thrive.”
Now fast forward a few months and lets read from the recent lawsuit filed by MonaVie against new MLM Xowii, which by the way has nearly the same compensation plan as MonaVie (in other words the average associate is going out of the frying pan and into the fire should they choose to join Xowii):
From the Salt Lake Tribune:
MonaVie LLC is suing former distributors and an fledgling California competitor alleging they are trying to steal its independent sales force by spreading lies about the Utah company’s financial prospects.
The South Jordan-based MonaVie is suing the startup XOWii LLC of Newport, Calif., in 3rd District Court in Salt Lake City.
The two companies are among a legion of multilevel marketers among whom competition can be fierce to attract and hold networks of independent distributors of their nutritional and personal-care products.
In the lawsuit filed this month, MonaVie names former distributors Rodney Robards of Oklahoma and Shaylon Hart and Chris Byram of Texas, who now work with XOWii, as well as officers of the California company.
The three obtained lists and contact information of MonaVie’s distributors, potential distributors and customers and used them to spread false information about it in order to lure them to XOWii, the lawsuit alleges.
They and possibly others "have contacted existing and prospective distributors and customers of MonaVie, both personally and through the utilization of an automated messaging system, and made disparaging statements that reflected poorly upon MonaVie," according to the complaint.
The lawsuit also names XOWii officers Richard Kelly, James Christiansen, Brandon Rath and William Sickert, who it alleges knew of and endorsed the publication of the false statements.
MonaVie said the statements are defamatory and harmed it and is asking the court for unspecified monetary damages.
Commentary:
A few months ago Dallin Larsen was the "freedom fighter" fighting against the evil Amway empire for holding Orrin Woodward’s "Team" hostage with "overburdensome" non-compete langauge and today his company is suing Xowii distributors over the very same issue. Pot meet kettle.
YOu telling me you are going to use statements From the Salt Lake Tribune LOL. Lets see what the truth states about the reasons why the suit was brought against the defendants. Rather than use a newspaper article as your source of knowledge. I believe you will be impressed with what Mr Larson has on these guys, the statements from the newspaper are but only the surface. Liable, disparaging and false statements are key words you should keep in mind.
Open Door Campaign means exactly that….. an Open Door.
Open Door Campaign does not mean as your leaving or in the process of leaving make statements that untrue or liable.
It’s interresting how things change when you’re on the other end of the “Open Door Campaign”. I also think it’s safe to say that some disparaging and false statements where made when the “TEAM” left Amway.
How is this the same issue? This lawsuit is about truth, lies and misrepresentation for the purposes of obtaining distributors. One company or it’s distributors should not lie or make false statements about another company or its products or it’s future income potential (refer to the suit brought by Oprah and Dr. Oz against people who lie about them endorsing particular acai products). Open Door Campaign is all about allowing distributors to leave an MLM company of their own choice rather than being shackled by restrictive non-compete clauses. These are TOTALLY different issues. Are you even paying attention to what these issues are all about or do you have trouble being confused by facts?
Even though I like your post Ty, I’m starting to notice you have a thing for Monavie. Monavie’s success is a blessing to our industry. I’m asumming you aren’t with them. Anyways, I’m not with Monavie or Xowii. I have had calls from Xowii reps making claims that all of Monavie leaders are in Xowii now and other claims that I have verified not to be true. Who knows.
I have been involved with MonaVie for 17 months, The company, comp plan, product is awsome. I have been approached by former MonaVie Distrubutors that jumped to Xowii, even though they knew I’m in MonaVie. I think thats wrong. If I wanted to leave Monavie and build a diffrent business. Monavie would let me, and give me there blessing. but if I were to to start slandering the Company and trying to recruit people in Monavie to come with me, by telling them it’s better company better comp plan and or better product. I think they need to get sued. But after checking out Xowii, I see why they need to do that..
I’ve been around the industry long enough to know that when “defamatory” or “disparaging” statements are the foundation of the lawsuit, it is NEVER the core issue.
The core issue is exactly as Ty posted: MonaVie has likes it when people come over, but they change their tune when leaders leave. Not picking on MV. MonaVie is just one example. There are many examples of companies acting just like this when their leaders exodus.
It begs the question: if a distributor is making money and enjoying the product, why would they leave to another company?
Dave,
There are plenty of reasons someone would leave and go to another company. Perhaps a big bonus? Or maybe there is an ego issue. Let’s say that a big distributor wants to be the #1 team at his/her company but isn’t. What are the options? Try to pass the #1 team…..OR take a big bonus and move to a newer or struggling MLM and be the #1 team!! I have a feeling we’ll be hearing more about this very thing soon enough!
Will the real Dallin Larson please stand up, You cut my check for something that you would not even all ow me toporve was incorrect infromation, I hope every compnay in MLM sues the pants off you ,you’re a liar and a fraud!!
MonaVie is currently suing at least a dozen distributors right now as well. They have been buying distributors with financial bridge money – and when most of those distributors did not meet benchmarks – they are turning on those distributors and suing them. MonaVie is run by very malicious, evil people.