339:
523:
been active and profitable marketers of AdvoCare products for more than a dozen years before their distributorship was canceled by the company in 2006 "based upon vague and trumped-up charges." The jury found that AdvoCare engaged in false, misleading, or deceptive practices that damaged the
Badgetts and that the termination provisions of the distributor contract with AdvoCare were unconscionable, according to court documents. AdvoCare disputed the ruling and on April 30, 2010, filed to appeal the decision on the basis that the plaintiffs were not customers and therefore did not fit the statutory definition necessary to be covered under the Texas Deceptive Trade Practices Act. The appeal was dismissed on March 13, 2012, and the company was ordered to reimburse the Badgett's for court costs related to their defense in the appeal case.
281:
pursuing the business opportunity. The majority of distributors either made no money or lost money. AdvoCare and its former chief executive agreed to pay $ 150 million to compensate some distributors and buy back unsold inventory from distributors who chose to leave. They also agreed to a ban from all multi-level marketing. Two of AdvoCare’s top promoters also settled with the FTC for $ 4 million, most of which was suspended, based upon their inability to pay, and were also banned from multi-level marketing. In a statement, former CEO Patrick Wright denied the company had operated as a pyramid scheme. Prior to the settlement, Advocare voluntarily moved from a multi-level marketing model to a single-level distribution or direct sales model.
514:. Hardy said she had never heard of the substance, attributing the positive result to either a tainted supplement or sabotage. At the time, Hardy had been taking the supplement Arginine Extreme, which she had received for free from AdvoCare in exchange for making product testimonials, and she claimed in a subsequent lawsuit that the company's product was tainted. AdvoCare sued Hardy for making false claims. An arbitration hearing reduced Hardy's suspension after a scientific expert testified that the AdvoCare product was tainted. AdvoCare disputed the panel's findings, citing the fact that two independent laboratories had not found any evidence of Clenbuterol in the supplements. Hardy was cleared to compete again in 2010.
301:. The article argued that the company and a small number of distributors made most of their money from the signing-up of new distributors rather than sales of the product. It also argued that these individuals exaggerated the likelihood of financial success of distributors, and created an atmosphere of not questioning the company's claims. The article noted that some people in the company focused on religious affiliation as part of its business model, with more devout members of the organization using it to gain and hold power in the organization and over its members.
38:
535:
522:
In 2009, a Dallas County jury awarded $ 1.9 million in damages against AdvoCare after finding that the company had engaged in deceptive trade practices and unfairly canceled agreements with two of its distributors. According to the lawsuit, litigants Bruce and Teresa
Badgett of Arlington, Texas, had
253:
Charles Ragus founded AdvoCare in 1993 as a multi-level marketing (MLM) company to distribute dietary supplement products. The name AdvoCare is short for "Advocates Who Care". Before founding AdvoCare, Ragus worked as a regional vice president for
Fidelity Union Insurance, and as a MLM distributor
413:
described celebrity endorsers as central to "the
Bulletproof Shield," a sales and recruitment technique used by the company to deflect questions about the product. In this technique, distributors place themselves at the center of a chart illustrating the company's endorsements and members of its
280:
In
October 2019, the FTC ruled that Advocare had operated as an illegal pyramid scheme. AdvoCare did not admit to or deny allegations but did agree to change how they did business. According to the FTC, AdvoCare rewarded distributors for recruiting other distributors to spend large sums of money
425:. AdvoCare was also the subject of criticism for its marketing at youth athletic events. In 2005, the company paid $ 5,000 to sponsor a high school wrestling tournament in Sacramento but after negative publicity, AdvoCare officials said they would not sponsor any more school events.
308:
company. The FTC defines multilevel marketing as a “form of direct sales in which a distributor sells products or services through a network of independent salespeople.” However, after July 2019, Citing closed-door discussions with the
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scientific and medical advisory board, and deflects questions about the company by replying, "Well, I don't know about (X), but what I do know is" that particular athletes or doctors have endorsed AdvoCare.
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AdvoCare sells dietary supplements and related products, such as an energy drink. AdvoCare also sells products under the brand names Trim, Active, Well, Performance Elite, Fit, and 24 Day
Challenge.
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of professional sporting events, conferences, podcasts, and more to pitch what it called a life-changing business opportunity, but that the FTC alleged was a pyramid scheme.
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In May 2007, Richard H. Wright became president and CEO of AdvoCare. He had previously served as Chief of Staff for US Representative
930:"STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY JUDGMENT AGAINST DEFENDANTS ADVOCARE INTERNATIONAL, L.P. AND BRIAN CONNOLLY"
882:"STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY JUDGMENT AGAINST DEFENDANTS ADVOCARE INTERNATIONAL, L.P. AND BRIAN CONNOLLY"
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421:, targeted to youth age 4–11, after pediatricians had expressed concerns about the product containing 60 mg of
1904:"Advocare International, L.P. (Appellant) V. Bruce Badgett and Teresa Badgett (Appellees): Case No.05-10-00917-CV"
640:"Federal Trade Commission v. AdvoCare International, L.P. et al, No. 4:2019cv00715 - Document 52 (E.D. Tex. 2020)"
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in
Shreveport, Louisiana. The 2013 game was known as the AdvoCare V100 Bowl. In 2012, AdvoCare partnered with the
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451:. The facility was named the AdvoCare Sports Performance Center and hosted the 2014 training camp for the
331:
According to the U.S. Federal Trade
Commission, Advocare used endorsements from professional athletes,
317:
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In 2014, AdvoCare purchased the naming rights of a professional sports practice facility located at
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and became its jersey sponsor. In 2020, the company switched to become the team’s sleeve sponsor.
1881:
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1077:"The Pyramid Scheme Industry: Examining Some Legal and Economic Aspects of Multi-Level Marketing"
1101:"Is the FTC changing how it defines a pyramid scheme? This North Texas skin care firm thinks so"
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664:"AdvoCare International, LLC | 2800 Telecom Parkway Richardson , TX 75082. (972) 665-5800"
8:
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1231:"Feds Returning $ 45 Million to Idaho and Washington Victims of AdvoCare Pyramid Scheme"
905:"North Texans Turn to Multi-Level Marketing Schemes and Scams to Get by in the Pandemic"
452:
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1534:"University of Houston expected to open 2016 college football season against Oklahoma"
723:"Richard Wright and his wife don't just run AdvoCare International, they're customers"
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FOR THE EASTERN DISTRICT OF TEXAS, UNITED STATES DISTRICT COURT (October 10, 2019).
1385:"MLS 2022 commercial guide: Every franchise, every sponsor, all the major TV deals"
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1410:"AdvoCare secures naming rights for New Orleans pro football training facility"
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1000:"Executive Q&A with Christina Helwig, AdvoCare CEO - Direct Selling News"
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1363:"FC Dallas Signs Multiyear Deal With AdvoCare To Serve As Jersey Sponsor"
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AdvoCare's contracted celebrity endorsers have included soccer player
1025:"The Murky Nutrition Behind The Cult-Like Supplement Brand, Advocare"
437:
255:
1936:"AdvoCare International, L.P., v. Badgett, Bruce and Teresa Badgett"
1644:"Bayne signs multi-year contract extension with Roush Fenway Racing"
422:
366:
37:
1909:. Court of Appeals for the Fifth District of Texas. Archived from
829:"AdvoCare Founder Charles Ragus, 58, passed away on Friday June 1"
927:
1206:"Automation firm expands to North Texas with Plano property buy"
947:"AdvoCare fined $ 150 million as FTC calls it a pyramid scheme"
471:
346:
1050:"Multi-level Marketing Or Pyramid Scheme? That's The Question"
975:"The FTC Says AdvoCare Is Actually An Illegal Pyramid Scheme"
856:"AdvoCare CEO shares his secrets to health, business success"
284:
In May 2024, Christina Helwig was appointed CEO of AdvoCare.
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From 2009 until 2013, AdvoCare was the title sponsor of the
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1823:"Supplement maker AdvoCare disputes Hardy panel findings"
1508:"Texas Bowl gets a new sponsor in AdvoCare International"
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In March 2016, Advocare was the subject of an article in
1617:"AdvoCare To Sponsor Leavine Family Racing's No.95 Ford"
1696:"Hardy presses forward with tainted-supplement defense"
1611:
1609:
1575:
1337:"Advocare No Longer Title Sponsor For Annual Bowl Game"
880:
DISTRICT OF TEXAS, FOR THE EASTERN (October 19, 2019).
1561:"Alabama, USC To Open 2016 Season At AT&T Stadium"
233:
company. They are a direct sales company and a former
1988:
Nutritional supplement companies of the United States
1311:"Longtime bowl expected to lose Advocare sponsorship"
1259:"A Sports Drink for Children Is Jangling Some Nerves"
455:. AdvoCare also became the title sponsor of the 2014
316:
As of
October 2019, AdvoCare is a member of the U.S.
1848:"Jessica Hardy Cleared to Compete After WADA Appeal"
1606:
691:"Three CEOs Reinvent Themselves With Second Careers"
530:
304:
Prior to July 2019, AdvoCare was determined to be a
1777:"Swimmer Hardy blames company for failed drug test"
510:tested positive for the banned breathing enhancer,
1360:
1459:"Saints receive big welcome in Greenbrier County"
879:
611:"FTC: AdvoCare business model was pyramid scheme"
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323:In 2019, it sold its Plano office to Opex Corp.
270:in the 1960s. He died in 2001 at the age of 58.
1671:"Olympic swimmer Jessica Hardy: 'I'm innocent'"
1456:
1433:"New Orleans Saints open camp in West Virginia"
1750:"Trials and Tribulations of the Angry Swimmer"
760:"Drew Brees Has A Dream He'd Like To Sell You"
517:
470:From 2011 to 2016, AdvoCare sponsored several
1558:
1479:
791:"K.C. Has Bob McAdams And Send 3 Rookies Off"
740:
566:
262:in 1989. Ragus was in training camp with the
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258:. He had initially founded the MLM company
1802:"U.S. swimmer, supplement firm countersue"
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245:, was founded in 1993 by Charles Ragus.
1877:"Jury returns verdict against AdvoCare"
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459:. In 2016, AdvoCare was to sponsor the
1998:American companies established in 1993
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1135:(Press release). AdvoCare. 17 May 2019
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16:Not to be confused with Advocare, the
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571:. Direct Selling News. Archived from
2008:Companies based in Richardson, Texas
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1741:
1587:"Bayne to team with AdvoCare in '14"
1482:"Greenbrier unveils Saints facility"
1248:
474:racing teams and drivers, including
345:'s AdvoCare-branded Ford Mustang in
1729:"Athletes, Stop Taking Supplements"
1412:. Plano Star Courier. 4 August 2014
1361:Botta, Christopher (27 June 2012).
1334:
1126:"AdvoCare to Revise Business Model"
820:
797:. Associated Press. August 28, 1965
27:American dietary supplement company
13:
1506:Barron, David (11 February 2014).
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2019:
1957:
1642:Spencer, Lee (November 3, 2016).
1431:McFarling, Aaron (25 July 2014).
22:Security Health Plan of Wisconsin
1585:Spencer, Lee (August 21, 2013).
1536:. My Fox Houston. Archived from
1457:Johnson, Shauna (23 July 2014).
854:Candace Carlisle (19 Oct 2012).
721:Candace Carlisle (19 Oct 2012).
569:"AdvoCare a two decade marathon"
533:
241:. The company, headquartered in
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1181:"The DSA Waffles Over AdvoCare"
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1563:. Dallas Cowboys official site
1559:Helman, David (16 July 2014).
1480:Vingle, Mitch (21 July 2014).
1285:"AdvoCare Recommits to I-Bowl"
783:
656:
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506:In July 2008, Olympic swimmer
1:
1532:Berman, Mark (28 July 2014).
1335:Dee, Chris (21 August 2013).
1052:. Valley News. Archived from
758:Kimes, Mina (15 March 2016).
699:. August 2010. Archived from
554:
496:Phoenix International Raceway
327:Sponsorships and endorsements
2003:1993 establishments in Texas
1702:. 2008-08-04. Archived from
1155:"AdvoCare business changing"
617:. 2019-10-02. Archived from
567:Barbara Seale (1 Sep 2013).
409:as the face of the company.
7:
1875:Tsai, Joyce (31 Aug 2009).
526:
518:Deceptive practices lawsuit
287:
227:AdvoCare International, LLC
70:; 31 years ago
10:
2024:
827:Gary Abbot (4 June 2001).
318:Direct Selling Association
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1004:www.directsellingnews.com
831:. the Mat. Archived from
417:AdvoCare ceased offering
260:Omnitrition International
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1283:Roy Lang (28 Jan 2010).
816:Obituary Central Archive
615:FTC Consumer Information
311:Federal Trade Commission
264:National Football League
1882:Dallas Business Journal
1755:The Wall Street Journal
1365:. Sports Business Daily
860:Dallas Business Journal
727:Dallas Business Journal
668:m.richardsonchamber.com
405:, who was described by
1983:Direct sales companies
1486:The Charleston Gazette
1161:. NexStar. 20 May 2019
795:Lawrence Journal-World
549:List of food companies
502:Tainted products claim
492:Atlanta Motor Speedway
490:, as well as races at
350:
212:33.01053°N 96.676928°W
41:
31:AdvoCare International
1993:Weight loss companies
903:Pritchard, Caroline.
359:Major League Baseball
341:
306:multi-level marketing
235:multi-level marketing
40:
1748:Futterman, Matthew.
1725:Aschwanden, Christie
1185:Truth In Advertising
217:33.01053; -96.676928
1706:on October 12, 2008
1540:on 14 February 2015
1075:Brooks, Douglas M.
575:on 13 November 2013
480:Roush Fenway Racing
434:Major League Soccer
208: /
165:Number of employees
156:400 million (est.)
140:Dietary supplements
59:Dietary supplements
32:
1133:facts.advocare.com
1056:on 6 November 2014
835:on 19 October 2013
594:/ AdvoCare Profile
453:New Orleans Saints
399:New Orleans Saints
351:
268:Kansas City Chiefs
231:dietary supplement
42:
30:
18:Medicare Advantage
1804:. UPI. 2009-02-16
1727:(July 26, 2012).
1623:. August 23, 2011
1621:SpeedwayMedia.com
1512:Houston Chronicle
1437:The Roanoke Times
769:Outside the Lines
765:ESPN The Magazine
484:Sprint Cup Series
430:Independence Bowl
411:ESPN The Magazine
333:title sponsorship
298:ESPN The Magazine
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128:Christina Helwig
100:Richardson, Texas
81:Carrollton, Texas
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