Founded in , Organo Gold has generated a fair amount of controversy in its brief existence. Federal Trade Commission records show that the agency has received at least 55 complaints about Organo Gold, according to a Freedom of Information Act request. The complaints allege that the company makes inflated claims about the potential income people can earn as independent distributors of the British Columbia-based company's wares and that it misrepresents the effectiveness of its products.
Organo Gold is a so-called multi-level marketer, in which independent representatives can earn income both by selling the company's products, which they must purchase, and recruiting others to work as distributors. Although that business model has long been used by other network marketing firms, some critics have described Organo as a "pyramid scheme," a charge the company denies.
Unlike legitimate multi-level players, operators of pyramid schemes make most of their profits by recruiting other sellers. Other complaints allege that consumers were charged for products they didn't purchase or experienced difficulties in getting refunds from Organo Gold.
Frank Dorman, a spokesman with the FTC, said in an interview that it is against agency policy to comment on potential investigations. The company's products are infused with Ganoderma lucidum, which is derived from the reishi mushroom, grown in Asia and known as the " supernatural mushroom ," according to Organo's website. In addition to selling coffee, tea and hot chocolate, the company also sells an assortment of personal care items, such as soap, along with "nutraceuticals" derived from Ganoderma.
According to NYU's Langone Medical Center in New York City, some herbalists classify reishi as an "adaptogen," a substance believed to help the body resist different kinds of stress.
But "there is no meaningful evidence" that proves these benefits are real, according to the medical center. Organo Gold appears to choose its words carefully in describing Ganoderma's purported health benefits, noting on its website that it has been "consumed for millennia in Asia because of its perceived value. Ganoderma and Reishi mushrooms are understudied, but some preliminary findings suggest it thins blood — particularly when consumed in powdered form for over one month at a time, as one would do with Organo Gold.
Evidence suggests it may be tied to bleeding disorders and it is recommended that people refrain from using Reishi mushroom or Ganoderma within two weeks of surgery. Many do so after seeing that the product sells in so many countries around the world. In fact, just As far as the Organo Gold products go, people seem to like them. However, anecdotal evidence seems to suggest consuming the whole Reishi mushroom in its natural state may be safer for long-term consumption than the processed and powdered form used in Organo Gold beverages is.
With plenty of MLM opportunities available today, it may be wise to avoid any that have potentially adverse health effects. Some writing projects have included ghost-writing for CEOs and doing strategy white papers. She frequently writes for corporate clients representing Fortune brands on subjects that include marketing, business, and social media trends.
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