USANA Health Sciences. A multi-level marketing scheme that sells health and dietary supplements and skin care products in over a dozen countries. USANA's most popular product is a four week supply of multivitamin and mineral supplement tablets that (in the United States, according to Forbes) costs about ten times that of comparable retail tablets. In addition, laboratory tests showed that some of their products contain high lead levels (broken link) – enough reason for a Danger rating in itself – and well under the claimed amounts of various vitamins and minerals. Excluding those items which were over 90% of the claimed amount, Essentials Mega Antioxidant fell short in several areas:

• 14% of the claimed coenzyme Q10.
• 78% of the claimed folic acid.
• 64% of the claimed vitamin B12.

HealthPak 100 tested shortfalls (<90%):

• 22% of claimed vitamin K.
• 68% of claimed mixed natural tocopherals.
• 0% of claimed N-acetyl L-cystein – not detectable.
• 89% of the claimed coenzyme Q10.
• 30% of the claimed grape seed extract.
• 0.3% of the claimed rosemary extract (rosemarinic acid).

Universal Animal Pak tested shortfalls (<90%):

• 88% of claimed vitamin C.
• 69% of claimed folic acid.
• 34% of claimed biotin.
• 70% of claimed iodine.
• 60% of claimed zinc.
• 16% of claimed copper.

Quite apart from their products being overpriced and under vitamined/mineraled, USANA has had an interesting legal time. In the United States in March 2007 "fraudster turned fraud fighter" (and Christian pastor) Barry Minkow sent the Securities and Exchange Commission (SEC) a 500 page report claiming:

• 86% of profits are derived from sales to associates.
• Only 37% of sales associates had ever earned a commission.
• Of the 37% who earned a commission, 87% did not earn enough to cover the original $116 cost of becoming an associate.

One of the immediate results of the report was that one of USANA's board of directors resigned when it was found that he didn't have a Masters degree and his PhD was apparently from a degree mill. This helped USANA's stock price to drop by 15% the day after the report was published. Barry Minkow had predicted that would happen, and so made over US$60,000 from that – as well as triggering the SEC to start an investigation. USANA understandably sued Barry Minkow for defamation. The drop in share price also led to several shareholders suing USANA for not disclosing necessary information, and there has also been talk of a class-action lawsuit brought by various distributors. In August 2007 Forbes reported the FBI was also investigating USANA, and that the share price had fallen over 40%. Forbes quotes Usana spokesman Joseph Poulos saying "We believe everything he says to be false" – which is a pity, since that guy resigning from the board of directors did rather confirm at least some of what Barry Minkow said. The SEC decided in January 2008 to take no further action (although I note in passing they also thought Enron's accounting was OK) and USANA's lawsuit against Barry Minkow was thrown out in May 2008, with USANA having to reimburse the guy over US$140,000 for attorney fees. All very complicated.

	Danger: The group/person or belief/practice is considered dangerous due to mind control or particularly bad doctrine. These groups (or people) have a strong tendency to damage their members/followers.
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Printed on 20 January 2021 at www.cults.co.nz.
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