Young Living

Young Living

Company type	Private
Industry	Multi-level marketing, Essential oils
Founded	1993 (1993)
Founder	Donald Gary Young
Headquarters	Lehi, Utah , United States
Key people	Mary Young (CEO)
Products	Essential oils and associated household products
Website	youngliving.com

Young Living is a multi-level marketing enterprise based in Lehi, Utah. Established in 1993 by Donald Gary Young, the company focuses on essential oils and associated household products.

1993–2014: Early Development of Young Living

Following a back injury in the early 1970s, Donald "Gary" Young developed an interest in alternative healing methods. His fascination with essential oils grew after encountering a French lavender distiller and studying distillation techniques in France. In the early 1990s, Young and his wife acquired a farm located in St. Maries, Idaho, and subsequently launched Young Living in 1993 with headquarters in Riverton, Utah, appointing Gary as CEO. A second farm was purchased in Mona, Utah in 1996.

By 1996, the company anticipated revenues between $8 million and $10 million, expanding to report annual sales exceeding $1 billion from 2015 through 2017. Beginning in 2000, Gary managed the Young Life Research clinic situated in Springville, Utah until it closed following litigation in 2005. He then established another clinic alongside the firm's inaugural international farm in Ecuador by 2006.

Young Living reached significant industry achievements such as becoming the first major commercial distillery to produce frankincense essential oils in 2010 and unveiling an automated, high-capacity steam distillation plant in 2014.

In 2008, David Stirling, who was serving as COO at the time, departed Young Living and founded competitor company doTerra. In 2013, Young Living initiated legal action against doTerra accusing them of misappropriating trade secrets related to manufacturing procedures. The case was lost in 2017, resulting in Young Living being ordered to cover $1.8 million in legal fees for doTerra by 2018. Both firms later resolved lawsuits concerning false advertising and trade secret disputes by withdrawing disparaging claims about each other's product purity.

2015 to present: Leadership After Donald Gary Young

Donald Gary Young stepped down from his role as CEO in 2015, with his third wife, Mary Young, assuming leadership. The company moved its corporate offices to Lehi, Utah in 2014 to capitalize on tax benefits supporting growth initiatives and began construction of a new headquarters facility in 2017. Gary Young passed away in 2018. Under Mary Young’s guidance, the company has maintained its business expansion and market stability.

Business model

Young Living utilizes a multi-level marketing (MLM) structure that involves thousands of independent sellers who market products directly to consumers while earning commissions from sales generated by their recruited "downline" distributors. Although direct sales can yield profits for distributors, the main revenue stream typically comes from commissions on network sales. Distributor levels range from entry-level "Distributors" up to prestigious "Royal Crown Diamonds."

A report from 2017 disclosed that distributors are required to purchase at least $100 worth of products monthly to qualify for commission payouts. Publicly available income figures from 2016 indicated that roughly 94% of active participants earned less than one dollar per year, while fewer than 0.1%—around one thousand top-level Royal Crown Diamonds—earned over one million dollars annually.

An evaluation of the company's 2018 income disclosure by Business Insider showed that approximately 89% of members earned an average annual income of $4, predominantly those at the lowest rank. The top three distributor tiers, comprising about 98.7% of active participants, had average earnings ranging from $4 up to $1,551 yearly, excluding required monthly purchases necessary to remain active within the organization.

Products

Young Living offers a range of essential oils and associated items, highlighting their natural origins and high purity standards. The company distributes its products through both e-commerce platforms and a network of independent distributors.

From 2013 to 2014, the FDA documented at least 11 reports concerning serious adverse effects linked to Young Living products. While one incident was potentially due to product malfunction, the remaining cases were primarily related to improper use or allergic reactions.

Prohibited marketing claims

In September 2014, the FDA issued a warning to Young Living after its distributors promoted products as remedies or cures for illnesses such as Ebola. Additionally, the agency identified statements on the company’s website that could categorize its offerings as drugs under federal regulations. Young Living committed to rectifying these compliance issues.

In 2020, the National Advertising Division of the Better Business Bureau advised Young Living to discontinue using the phrase therapeutic grade because of insufficient scientific validation. Although the company contested this recommendation and filed an appeal, it agreed to halt certain health-related assertions.

The FDA issued another warning letter in 2022 concerning the unlawful promotion of multiple products—including "Essential Oil," "Vitality," "Ningxia," and "Nature's Ultra CBD"—as unapproved new drugs lacking adequate clinical evidence of safety or effectiveness. The agency specifically noted that products containing CBD, such as "Nature's Ultra CBD," cannot be legally marketed without authorized drug approvals.

Litigation

Following a distillation apparatus explosion at its Mona facility that resulted in a worker’s death, the Utah Occupational Safety and Health Division (UOSHD) imposed fines totaling $10,280 on Young Living Farms in 2000 for seven safety infractions.

In 2014, an internal review by Young Living uncovered violations involving the Lacey Act and Endangered Species Act related to the importation of rosewood and spikenard oils. The company voluntarily disclosed these breaches, pleaded guilty in 2017, received a $760,000 fine, and was placed on probation for five years. These offenses involved employees and contractors illegally harvesting and importing oils from Peru via Ecuador, adversely affecting lawful competitors and global forest ecosystems.

A class-action lawsuit filed in April 2019 accused Young Living of operating an illicit pyramid scheme under the RICO statute. However, the case was dismissed in 2021 due to a lack of sufficient evidence supporting the claims.