There was a recent Press Release about the treatment of Jay Noland, his wife, corporate executives and entire field and customer base.
For Immediate Release:
Contact: Kara Kennedy
Inspired Southerner Public Relations
FTC complaint against Success By Health is overreaching and makes false accusations; riddled with racial overtones.
Phoenix, Arizona — (Feb.19, 2020) The recent filing by the Federal Trade Commission (FTC) against Success By Health, its parent companies, Success By Media, LLC and Success By Media Holdings claiming the company’s operations is a multi-level marketing pyramid scheme are baseless and blatantly false and affiliates are setting the record straight. Due to the false accusations outlined by the FTC the organization has intentionally sought to damage the reputations of the company, its principals and the over 6000 affiliates. These are affiliates who believe in the products and use them for their personal health and wellness as well as to make money through retail sales of the products.
According to the response filed in court by Company attorneys, “The FTC is holding SBH and its CEO, Jay Noland, to a higher standard by jumping to false conclusions without examining the evidence or the company’s business operations. If examined, the brief goes on to say, the FTC would have certainly come to a different conclusion than the one presented in court. In addition, the FTC has acted disingenuously by aggregating data to the point of absurdity to draw false conclusions and they have cherry-picked evidence that does not have any basis in fact,” the brief goes on to say.
Also in the filing by Company attorneys, they state at no time did Jay Noland, Lina Noland or the other principals of Success By Health receive warning that the FTC would erroneously use a Temporary Restraining Order (TRO) to halt all SBH company operations. It is suggested that the agency has openly tried the case in the media by leaking details as an attempt to slander Noland and the other executives named in the complaint to sway public opinion. The extremity of the TRO demonstrates that the FTC intentionally planned to disrupt the lives of those involved in the company and those who have relied on sales of the products for income and for improving their health. Because of the TRO, affiliates have not received their paychecks for over a month; many of them now face financial hardships. The court has already concluded that the TRO was unusual and not normal procedure, even for the FTC.
In addition, Company attorneys have concluded that the FTC has denied Noland his Constitutional rights by not allowing him to operate his business and has failed to accept an offer to look at how SBH and Success By Media actually operate. “They have constructed an investigation to fit the conclusion they wanted to reach,” according to their filing.
Attorneys for Success By Health showed proof of affiliate retail sales, success and the value the products bring to those who use them at a hearing in United States District Court in Arizona last week. The facts as presented stated that out of the over 6000 affiliates associated with SBH, 5003 earned commissions on the products they sold. Affiliates making a commission earned an average of $523.01.
The FTC complaint claims that affiliates were promised income if they signed up and encouraged to borrow money or take out loans to get involved in the company. At no time was any Success By Health affiliate promised any income or a financial windfall. Nor were they pressured into signing up, take out a loan or max out credit cards. Affiliates also were not required to attend any training sessions or make a minimum purchase of products, as the complaint falsely states. Affiliates also understood that they could build their business by selling SBH products wholesale or retail; being told that retail was always key to success in the business.
Furthermore, Company attorneys stated that no affiliate was told nor trained to give misleading or false claims on the amount of income that could be made through the sale of SBH products. Success By Health has followed the law and operates similarly to other direct sales companies.
The complaint also goes on to say that affiliates didn’t receive products they paid for; again, this is a false and misleading accusation. Products that were in the development phase were available for pre-order or pre-sale, and at no time was there a requirement for affiliates to purchase those products. Company records show that all affiliates who pre-ordered products did receive them. “We have documented proof that products ordered were shipped and delivered to affiliates on average within 3.9 days,” the attorneys outlined.
During the hearing, the FTC’s leading witness Stacie Bosley, an assistant professor with Hamline University’s School of Business, stated that she believes that direct sales companies have recruiting practices like those of the Ku Klux Klan, an organization she finds that many people are intrigued by (the KKK). This leads affiliates to question if the FTC filed the case against Noland ONLY because he is a very successful African American CEO.
If the FTC is allowed to move forward in the extreme manner in which it has against Success By Health, then the fallout for the industry will be felt for years to come and the very existence of the direct sales industry will be in jeopardy.