FTC Seeks Shutdown of Success By Health

The FTC is taking action against another MLM for putting a greater focus on recruiting new distributors instead of growing the customer base. 

In a complaint filed in Federal Court, the FTC alleges that Success By Health and its executives James “Jay” Dwight Noland, Jr., Lina Noland, Scott A. Harris, and Thomas G. Sacca an illegal pyramid scheme.  The FTC claims that less than 2 percent of participating consumers received more money from the defendants than they paid to them, and that most of these people made less than $250 per month.

Not only was the company putting the focus on recruiting, they were actively competing against their distributors by selling products direct to consumers for the wholesale price which effectively prevented distributors from being able to create a retail market. 

The days of recruiting distributors who recruit more distributors with zero focus on customers must stop.  As we’ve said before – companies MUST have a thriving customer acquisition program. 

If companies aren’t being aggressive about helping their distributors attract more customers, they’re opening themselves up to a fight with the FTC.  And most of the time, they’re going to win.  Even if there’s not a lot of evidence to support their allegations.

Very few companies have the resources of an organization like Amway or Herbalife to fight the FDA, FTC or SEC in court.  Litigation is too costly.  Even when a company like Advocare is attacked who has the financial resources to fight, they choose not to because they know the odds of winning are not in their favor.

If you’re involved in a company that isn’t focused on recruiting customers – let this be a warning.  If you don’t change the culture of your company, you can count on a regulator stepping in and doing it for you. 

9 months ago

2 Comments

  1. FTC CASE NO. CV-20-0047-PHX-DWL currently being heard in the UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA. Look it up. All public information.

    Success by Health is currently shut down by the FTC and not likely to be opened again. The first hearing is scheduled for 2/12/2020 in AZ.

    This guy (Jay Noland) is the biggest fraud and a complete loser.

    This “Millionaire Mentor” submitted financial documents to the FTC in relation to the lawsuit indicating “Jay and Lina Noland reported a negative net worth of approximately $28,000”. In the documents provided to the court by the FTC, the FTC indicated “Jay Noland claims to have a net worth of negative $27,735.68 and cannot recall any time his net worth was positive”. Yet this guy claims to be a Multi-Millionaire and even Billionaire at times. I would love to hear from a single “millionaire” who attributes all his or her success to Jay Noland (AKA J.D. Noland, AKA James D. Noland).

    His latest fraud scam is VOZ travel. According to FTC investigation “between October 6, 2019 and December 30, 2019, Success By Media sold 625 VOZ “packs” for a total of $971,625.” Where did all that money go? Obviously, Not to Jay’s net worth. And the VOZ … Sad thing is that the travel company who Jay was partnering with for VOZ (Advantage Services a Division of Holiday Systems International) notified Jay of their intent to cancel the agreement due to Fraud, misrepresentations and other deceptive business practices, among other things. Jay would not be able to conduct VOZ business without Advantage Services. Will the people get their 971k back? Not likely… it’s all been spent.

  2. Courts Granted Preliminary Injunction in Favor of the FTC. FTC appointed receiver is in control now and I’m sure Jay will be off to his next scam in no time.

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