doTerra
 | |
| Private | |
| Industry | Multi-level marketing[1][2] |
| Founded | 2008 |
| Headquarters | Pleasant Grove, Utah, United States |
Area served | International |
Key people | David Stirling, Greg Cook, David Hill, Emily Wright, Rob Young, Corey Lindley, Mark Wolfert [3] |
| Products | Essential oils, home products |
Number of employees | 354 |
| Website |
www |
doTerra (styled dōTERRA) is a multi-level marketing[1][2] company based in Pleasant Grove, Utah that sells essential oils and other related products.
Company info
doTerra (terra is the Latin word for Earth) was founded in 2008 by David Stirling and former executives, employees, and distributors of Young Living, a company which also sells essential oils. Stirling is its president and CEO.[1]
As of 2013, doTerra reported about 450 corporate employees; 350 at the Utah headquarters, and 100 at offices in Taiwan, Japan, Europe and in Australia.[4] As of 2016, doTERRA also listed over 3 million independent distributors and salespeople, which the company refers to as "Wellness Advocates." As a multi-level marketing organizations salespeople are expected to recruit other salespeople in order to increase their own profits.
As of 2014, the company sells over 150 products such as supplements, personal care items, and essential oils.[5] Its products are marketed for usage in cooking, cleaning, and health. As of 2013, approximately 75% of the company's business was in the United States.[4]
In August 2013, Young Living filed suit against doTerra for theft of trade secrets, alleging that the company had recreated their production process illegally.[6][7] Chemist Robert Pappas has said the oils, which were tested by the Centre national de la recherche scientifique, did not match any oils sold by doTerra.[8] One unintended consequence of the lawsuit between the two companies has been a court deposition by Pappas stating that Young Living and doTerra utilizes synthetic chemicals in their organic products.[9] In October 2014 the Fourth District Court dismissed the claims made against doTERRA.[1]
In September 2014, the U.S. Food and Drug Administration issued an FDA Warning Letter to doTerra for marketing its products as possible treatments or cures for Ebola, cancer, autism, and other conditions in violation of the Food, Drug and Cosmetic Act.[10][11][12] DoTerra marketing executive McKay Brown released a statement that attempted to distance the company from claims that its “products cure or treat disease including the Ebola virus or any other disease”, and he claimed that they were working to correct marketing materials to ensure compliance with FDA regulations.[13]
In April 2016, doTerra sent letters to distributors advising them that a breach in a system where personal information was stored had occurred in March 2016. Personal information acquired in the breach included: name, dates of birth, social security number, address, telephone number, email address, debit and credit card numbers, username, and passwords. The company explained that a "third-party vendor" was at fault, but refused to name the vendor. To compensate, the company offered 24-months of credit monitoring through AllClear a credit monitoring company. Many distributors have raised concern at the amount of information that was acquired and the long-term effects.
References
- 1 2 3 4 Harvey, Tom (October 23, 2014). "Judge dismisses much of lawsuit between rival Utah 'oils' companies". The Salt Lake tribune. Retrieved 16 March 2015.
- 1 2 Miers, Claire (April 8, 2015). "Essential oils a booming business". Star-Telegram. Retrieved July 22, 2015.
- ↑ "The Founding Executives". doterra.com. Retrieved 26 October 2014.
- 1 2 Allred, Cathy. "doTERRA to bring 330 new jobs to Utah County (press release)". Daily Herald (February 17, 2013). Provo, Utah. Retrieved 16 March 2015.
- ↑ "dōTERRA Fact Sheet" (PDF). dōTERRA. Retrieved 21 September 2014.
- ↑ Harvey, Tom (1 August 2013). "Essential oils rivalry spills into Utah courts". Salt Lake Tribune. Retrieved 19 June 2014.
- ↑ "Young Living Essential Oils, LC (Plaintiff) v. doTERRA, Inc., et al. (Defendants)" (PDF). United States District Court for the District of Utah Central Division. July 18, 2013. Retrieved 2014-08-20.
- ↑ Markosian, Richard (21 August 2014). "Report Used in Young Living Farms Case Against DoTERRA Suspect". Utah Stories. Retrieved 6 September 2014.
- ↑ Keeson, Arvid (15 August 2014). "Damning Evidence That Young Living and DoTERRA's Essential Oils are Adulterated". Utah Stories. Retrieved 6 September 2014.
- ↑ Ohlheiser, Abby (24 September 2014). "FDA warns three companies against marketing their products as Ebola treatments or cures". Washington Post. Retrieved 26 September 2014.
- ↑ Vowell, Nicole (September 25, 2014). "2 Utah companies respond to FDA warning over health claims". Deseret News. Retrieved 26 October 2014.
- ↑ Mitchell, LaTonya M (22 September 2014). "Warning letter to dōTERRA International, LLC". US Food and Drug Administration, Public Health Service. Retrieved 8 November 2014.
- ↑ Hanson, Kurt (September 25, 2014). "FDA sends warning to doTERRA and Young Living about oils". Daily Herald. Provo, Utah. Retrieved 16 March 2015.