United Sciences of America
| Company type | Private |
|---|---|
| Industry | Dietary supplements, Multi-level marketing |
| Founded | 1980s |
| Defunct | 1987 |
| Fate | Filed for Chapter 7 bankruptcy liquidation |
| Headquarters | Carrollton, Texas , United States |
Key people | Robert "Bobby" Adler (Chairman), Jerris Leonard (President) |
| Products | Master Formula, Calorie Control Formula |
Number of employees | Over 140,000 distributors (1986) (1986) |
United Sciences of America, Inc. (USA) was a U.S.-based firm specializing in dietary supplements such as "Master Formula" and "Calorie Control Formula," which it distributed through a multi-level marketing system. Experiencing swift expansion during the 1980s, the company capitalized on celebrity endorsements and a vast network exceeding 140,000 distributors. Nevertheless, an investigative report by NBC uncovered deceptive practices, prompting legal actions from attorneys general in three different states. After key advisors stepped down, USA filed for bankruptcy in 1987.
Background
Operating out of Carrollton, Texas, USA was chaired by Robert "Bobby" Adler with Jerris Leonard, a former U.S. assistant attorney general under Richard Nixon, serving as president. The company's marketing emphasized product claims asserting prevention of major illnesses including cancer and cardiovascular disease.
Prominent figures such as William Shatner, Chris Evert, and Gary Carter endorsed the products, contributing to rapid expansion by early 1986. The distributor base surpassed 140,000 members with monthly recruitment exceeding 10,000 individuals. That year, USA reported revenues of $8 million and anticipated sales above $100 million, targeting $1 billion by 1989. Promotional campaigns featured Shatner alongside athletes promoting both the supplements and the financial benefits available to distributors.
The executive advisory board consisted of 16 members, including distinguished scientists like Michael DeBakey and Dr. Alexander Leaf, who received consulting fees and research funding from the company.
Fraud
In October 1986, NBC aired an exposé revealing USA’s reliance on misleading scientific assertions and deceptive marketing strategies. By the end of 1986, the company encountered financial difficulties marked by unpaid distributor commissions and returned checks.
The FDA launched an investigation into USA's business model for operating a pyramid scheme, disseminating false advertising, and making unauthorized claims about disease treatment. In January 1987, attorneys general from California, New York, and Texas initiated lawsuits demanding reforms in the company’s promotional methods. Amidst the scandal involving misuse of their names in sales literature, several advisory board members resigned.
Although USA pledged compliance with FDA regulations early in 1987, it ultimately filed for Chapter 7 bankruptcy liquidation by April and ceased all operations. During this time frame, business and medical journals extensively analyzed the company’s deceptive marketing approach.
See also
- John A. Wise, scientist affiliated with USA