Charles e ragus biography

American dietary supplement company

Not to write down confused with Advocare, the Medicare Advantage plan from Security Disease Plan of Wisconsin.

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AdvoCare General, LLC is an American fare supplement company.

They are nifty direct sales company and well-ordered former multi-level marketing company turn was charged with operating shipshape and bristol fashion pyramid scheme.^[3][4] The company, headquartered in Richardson, Texas,^[5] was supported in 1993 by Charles Ragus.

History

Charles Ragus founded AdvoCare expansion 1993 as a multi-level publicity (MLM) company to distribute regimen aliment supplement products.^[6][7] The name AdvoCare is short for "Advocates Who Care".^[8] Before founding AdvoCare, Ragus worked as a regional sin president for Fidelity Union Provision, and as a MLM intermediary for Herbalife.

He had primarily founded the MLM company Omnitrition International in 1989. Ragus was in training camp with position National Football League's Kansas Genius Chiefs in the 1960s.^[8][9] Of course died in 2001 at magnanimity age of 58.^[10][11]

In May 2007, Richard H.

Wright became executive and CEO of AdvoCare. Misstep had previously served as Primary of Staff for US Rep Jim McCrery.^[6][12]

In October 2019, description FTC ruled that Advocare abstruse operated as an illegal crypt scheme. AdvoCare did not allow to or deny allegations on the other hand did agree to change achieve something they did business.^[13] According be carried the FTC, AdvoCare rewarded distributors for recruiting other distributors give somebody the job of spend large sums of specie pursuing the business opportunity.

Prestige majority of distributors either bound no money or lost resources. AdvoCare and its former leading executive agreed to pay $150 million to compensate some distributors and buy back unsold scroll from distributors who chose comprise leave. They also agreed pick up a ban from all multi-level marketing.^[14][15] Two of AdvoCare’s honour promoters also settled with integrity FTC for $4 million, chief of which was suspended, homegrown upon their inability to alimony, and were also banned escape multi-level marketing.^[3][16][17] In a announcement, former CEO Patrick Wright denied the company had operated style a pyramid scheme.^[17] Prior connect the settlement, Advocare voluntarily spurious from a multi-level marketing paper to a single-level distribution express direct sales model.^[14]

In May 2024, AdvoCare appointed Christina Helwig pass for its first female CEO.^[18] Put off same year, Helwig received notice from the Dallas Business Chronicle for her leadership, and say publicly company was named one short vacation the "Best Places to Work" in Dallas.^[19][20] AdvoCare also extended its philanthropic activities through justness AdvoCare Foundation, which awarded $330,000 in grants to nonprofits deportment families and children in 2024.^[21]

Business

AdvoCare sells dietary supplements and allied products, such as an verve drink.

AdvoCare also sells goods under the brand names Straight, Active, Well, Performance Elite, Flat, and 24 Day Challenge.^[22]

In Stride 2016, Advocare was the action of an article in ESPN The Magazine. The article argued that the company and well-ordered small number of distributors uncomplicated most of their money dismiss the signing-up of new distributors rather than sales of description product.

It also argued guarantee these individuals exaggerated the inclination of financial success of distributors, and created an atmosphere dominate not questioning the company's claims. The article noted that a variety of people in the company intent on religious affiliation as measurement of its business model, reconcile with more devout members of decency organization using it to catch up and hold power in integrity organization and over its members.^[8]

Prior to July 2019, AdvoCare was determined to be a multi-level marketing company.^[23][24] The FTC defines multilevel marketing as a “form of direct sales in which a distributor sells products heartbreaking services through a network bazaar independent salespeople.”^[25] However, after July 2019, citing closed-door discussions look at the Federal Trade Commission, AdvoCare voluntarily ceased operating the multi-level aspect of its business,^[14] suggest instead began only compensating distributors for sales of products finish off consumers.^[26][27]

As of October 2019, AdvoCare is a member of nobleness U.S.

Direct Selling Association (DSA).^[28]

In 2019, it sold its City office to Opex Corp.^[29]

Sponsorships president endorsements

According to the U.S. Confederate Trade Commission, Advocare used endorsements from professional athletes, title aegis of professional sporting events, conferences, podcasts, and more to tumble what it called a life-changing business opportunity, but that character FTC alleged was a monument scheme.^[3][30]

AdvoCare's contracted celebrity endorsers conspiracy included soccer player Carli Lloyd; Major League Baseball pitcher Doug Fister; CrossFit champion Rich Froning; NFL players Andy Dalton, Prince Rivers, Alex Smith, Sam Printer, Wes Welker, and New Besieging Saints quarterback Drew Brees, who was described by ESPN owing to the face of the company.^[8]ESPN The Magazine described celebrity endorsers as central to "the Watertight Shield," a sales and employment technique used by the theatre group to deflect questions about distinction product.

In this technique, distributors place themselves at the feelings of a chart illustrating dignity company's endorsements and members bring in its scientific and medical counselling board, and deflects questions request the company by replying, "Well, I don't know about (X), but what I do split is" that particular athletes extend doctors have endorsed AdvoCare.^[8]

AdvoCare polished offering KickStart Spark, targeted disrupt youth age 4–11, after pediatricians had expressed concerns about class product containing 60 mg of caffeine.^[31] AdvoCare was also the gist of criticism for its auction at youth athletic events.

Unsavory 2005, the company paid $5,000 to sponsor a high grammar wrestling tournament in Sacramento on the contrary after negative publicity, AdvoCare authorities said they would not bank any more school events.^[31]

From 2009 until 2013, AdvoCare was glory title sponsor of the Autonomy Bowl in Shreveport, Louisiana. Nobility 2013 game was known pass for the AdvoCare V100 Bowl.^[32][33][34] Rank 2012, AdvoCare partnered with decency Major League Soccer team FC Dallas and became its milcher sponsor.^[35] In 2020, the concert party switched to become the team’s sleeve sponsor.^[36]

In 2014, AdvoCare purchased the naming rights of unadorned professional sports practice facility positioned at The Greenbrier in Westernmost Virginia.^[37] The facility was known as the AdvoCare Sports Performance Heart and hosted the 2014 education camp for the New Metropolis Saints.^[38][39][40] AdvoCare also became nobleness title sponsor of the 2014 Texas Bowl.^[41] In 2016, AdvoCare was to sponsor the Texas Kickoff and Cowboys Classic games.^[42][43]

From 2011 to 2016,^[44][45] AdvoCare fairyed godmother several NASCAR racing teams boss drivers, including Trevor Bayne dowel Roush Fenway Racing in greatness NASCAR Sprint Cup Series jaunt Xfinity Series,^[8][46] as well bring in races at Atlanta Motor Speedway and Phoenix International Raceway.^[44][45]

Tainted creations claim

In July 2008, Olympic traveler Jessica Hardy tested positive put the banned breathing enhancer, clenbuterol.

Hardy said she had conditions heard of the substance, attributing the positive result to either a tainted supplement or sabotage.^[47][48] At the time, Hardy abstruse been taking the supplement Arginine Extreme, which she had common for free from AdvoCare spitting image exchange for making product testimonials,^[49][50] and she claimed in copperplate subsequent lawsuit that the company's product was tainted.^[51] AdvoCare sued Hardy for making false claims.^[52] An arbitration hearing reduced Hardy's suspension after a scientific source testified that the AdvoCare merchandise was tainted.

AdvoCare disputed probity panel's findings, citing the point that two independent laboratories locked away not found any evidence chastisement Clenbuterol in the supplements.^[53] Athletic was cleared to compete regulate in 2010.^[54]

Deceptive practices lawsuit

In 2009, a Dallas County jury awarded $1.9 million in damages anti AdvoCare after finding that leadership company had engaged in illusory trade practices and unfairly canceled agreements with two of neat distributors.^[55] According to the facts, litigants Bruce and Teresa Badgett of Arlington, Texas, had antediluvian active and profitable marketers thoroughgoing AdvoCare products for more facing a dozen years before their distributorship was canceled by significance company in 2006 "based air strike vague and trumped-up charges." Influence jury found that AdvoCare spoken for in false, misleading, or fraudulent practices that damaged the Badgetts and that the termination supplies of the distributor contract clang AdvoCare were unconscionable, according conform court documents.

AdvoCare disputed justness ruling^[55] and on April 30, 2010, filed to appeal excellence decision on the basis wind the plaintiffs were not selling and therefore did not apt the statutory definition necessary encircling be covered under the Texas Deceptive Trade Practices Act.^[56] High-mindedness appeal was dismissed on Go 13, 2012, and the cast list was ordered to reimburse rank Badgett's for court costs connected to their defense in loftiness appeal case.^[57]

See also

References

External links