Forever Living Products
| Company type | Private |
|---|---|
| Industry | Multi-level marketing, Personal care, Cosmetics |
| Founded | January 1, 1978 in Tempe, Arizona, United States |
| Founder | Rex Maughan |
| Headquarters | Tempe , United States |
Area served | Worldwide (over 165 countries as of 2018) |
Key people | Aidan O'Hare (President, 2023), Gregg Maughan (CEO) |
| Products | Aloe-based personal care products, cosmetics |
Number of employees | 4,100 (2006) |
| Website | foreverliving |
Forever Living Products is a privately held multi-level marketing enterprise established in 1978 in Tempe, Arizona by Rex Maughan. By 2021, the organization reported a distributor network of 9.3 million and generated $4 billion in revenue. As of 2006, the company employed approximately 4,100 individuals.
History
Founded in 1978 by Rex Maughan in Tempe, Arizona, Forever Living expanded its operations notably by acquiring Aloe Vera of America during the 1990s, which became a key supplier of products for distribution. Its business model, based on multi-level marketing, has attracted scrutiny and has often been likened to pyramid schemes.
In 1983, Forever Living achieved the No. 6 position on Inc. Magazine’s Inc. 500 list, recognizing the fastest-growing private companies in the United States. By 1993, Arthur Andersen ranked it as Arizona’s second-largest private firm in its Top 100 list. Forbes reported in 1995 that the company’s product range included aloe-based deodorants, toothpaste, laundry detergents, among other items.
Concerns regarding the company’s compensation plan surfaced in a 2003 report, which emphasized recruitment incentives over direct product sales. In 2005, Forever Living declared unaudited revenues exceeding $1.15 billion with approximately 150,000 distributors and a workforce of 55. The following year, it was listed at No. 340 on the Forbes 400 ranking of the largest private U.S. companies, operating across more than 100 nations with a staff count of 4,100.
By 2010, unaudited revenues had increased to $1.7 billion alongside a distributor base numbering 9.3 million. A 2013 investigation conducted in Uganda revealed that most distributors failed to turn a profit, with only a small minority reaching managerial ranks. As of 2018, Forever Living maintained operations in over 165 countries and had bolstered its management team in Nigeria as early as 2015.
In January 2023, Aidan O'Hare was appointed President while Gregg Maughan, son of founder Rex Maughan, continued serving as CEO.
Legal
Between 1991 and 1995, Rex and Ruth Maughan along with associated entities including Aloe Vera of America (AVA) and Forever Living Products' Japanese division underwent joint audits by the IRS and Japan's National Tax Agency (NTA). In 1997, Forever Living Japan was penalized with a fine of 3.5 billion yen for failing to disclose income amounting to 7.7 billion yen. Subsequently, AVA and the Maughans initiated legal action against the IRS over unauthorized tax information disclosures. The IRS later requested the NTA to retract the imposed penalty, which occurred in 2002. A U.S. court ruled in 2015 that the IRS had provided inaccurate information to Japanese authorities breaching the U.S.-Japan tax treaty and awarded nominal damages to plaintiffs.
In 2004, Hungarian regulators imposed fines totaling approximately US$280,000 on Forever Living due to breaches associated with product advertising and registration requirements.
In a separate case from 2007, author Richard Bach filed suit against Forever Living alleging infringement of copyright and trademarks concerning his novel Jonathan Livingston Seagull, which had been used in marketing materials. The matter was resolved through arbitration resulting in the company replacing its seagull logo with an eagle design.
The UK Advertising Standards Authority issued warnings in 2015 against Forever Living for making unsubstantiated health claims suggesting their products could treat illnesses such as diabetes and Crohn's disease. The company was also advised to refrain from employing healthcare professionals in promotional efforts. This prompted an investigation by the UK Medicines and Healthcare Products Regulatory Agency after NHS personnel were found involved in part-time sales activities.
From 2012 through 2016, lawsuits were brought forward by the Environmental Research Center alleging that Forever Living’s products contained hazardous levels of lead under California Proposition 65 standards; however, these claims were ultimately dismissed by the California Supreme Court in 2016.
This legal background underscores ongoing regulatory challenges encountered by Forever Living across international jurisdictions that have influenced its compliance strategies and public image management.