Arbonne International

{{Short description|International multi-level marketing company}}

{{about|the cosmetics company|the French village|Arbonne}}

{{Use mdy dates|date=June 2020}}

{{Infobox company

| name = Arbonne International

| logo = ArbonneInternationalLogo.svg

| logo_size = 215px

| logo_caption =

| logo_alt =

| type = Multi-level marketing

| industry = Cosmetics and nutritional supplements

| predecessor =

| founded = 1980, Orem, Utah

| founder =Petter Mørck

| hq_location_city = Irvine, California

| hq_location_country = United States

| area_served = North America, Commonwealth nations, Poland, Switzerland

| key_people =

| products =

| owner =

| num_employees =

| num_employees_year =

| parent = Groupe Rocher

| website = {{URL|arbonne.com}}

}}

Arbonne International, LLC, known as Arbonne, is an international multi-level marketing company founded in 1980 in the United States by Norwegian entrepreneur Petter Mørck.{{Cite web|url=https://bi.gale.com/essentials/article/GALE%7CI2501323154/6853da38abfa37bb1f53e6aca222199b?u=epfl|title=Arbonne International, LLC|date=2019|website=Business Insights: Essentials|access-date=January 3, 2020}} Its product lines include vegan skincare, cosmetics, and nutrition. Arbonne's CEO is Jennifer Orlando, who succeeded Tyler Whitehead in July 2023.{{Cite web |title=Arbonne Leadership on Website|url=https://www.arbonne.com/us/en/our-story/leadership |access-date=2023-09-20 |website=Arbonne}} Arbonne is headquartered in Irvine, California, US, with US offices in Chatsworth, California, Greenwood, Indiana, Addison, Texas, and international offices in Australia, Canada, New Zealand, Poland, and the United Kingdom.{{Cite web|url=https://www.ocbj.com/news/2016/jun/07/arbonne-stretches-new-zealand/|title=Arbonne Stretches to New Zealand {{!}} Orange County Business Journal|website=www.ocbj.com|date=June 7, 2016 |access-date=2019-09-08}}{{Cite web|title=Arbonne - Offices across the globe|url=https://jobs.arbonne.com/|url-status=live|access-date=November 5, 2021|archive-url=https://web.archive.org/web/20200923124121/https://jobs.arbonne.com/ |archive-date=September 23, 2020 }}

History

Founded in Orem, Utah, United States by Mørck in 1980, Arbonne is named after the Swiss village of Arbon. Mørck had worked in the Norwegian skincare industry since 1965. In 1975, feeling the ingredients used were harmful to the skin, he moved to Arbon and started working on his skincare line with Pierre Bottiglieri, an employee of Laboratoires Cosmetiques Arval.

The first headquarters were located in Orem, Utah, moving to Irvine in 1984. Mørck was active in the company until his death in 2008. His son, Stian Mørck, is currently Brand Ambassador. Rita Davenport became the company's first President from 1991 to 2011. Arbonne became a subsidiary of Levlad, Inc., which became the main manufacturer of Arbonne products around 2004. In 2005, both companies were acquired by Harvest Partners, which dubbed the new acquisition Natural Products Group, LLC.{{Cite journal|date=February 1, 2005|title=Harvest partners forms Natural Products Group, LLC|url=https://go.gale.com/ps/retrieve.do?tabID=T003&resultListType=RESULT_LIST&searchResultsType=SingleTab&searchType=BasicSearchForm¤tPosition=1&docId=GALE%7CA128868046&docType=Brief+article&sort=Relevance&contentSegment=ZBCI&prodId=ITBC&contentSet=GALE%7CA128868046&searchId=R2&userGroupName=baltctycpl&inPS=true|journal=Global Cosmetic Industry|volume=173|pages=7|access-date=January 14, 2020|via=Gale OneFile: Business}} In February 2018, Groupe Rocher, Paris, agreed to acquire Arbonne International and Nature's Gate from Natural Products Group.{{Cite news|url=https://link.gale.com/apps/doc/A526538483/STND?u=baltctycpl&sid=STND&xid=d094a847|title=Groupe Rocher Enters Into A Definitive Agreement To Acquire Arbonne International|date=February 6, 2018|work=Canadian Government News|access-date=January 5, 2020|via=Gale OneFile: News}}

The company made $200 million in sales in 2004. In 2005 there were 434,000 independent consultants, increasing to 612,000 in 2006. In 2006, Arbonne established distribution center in Greenwood, Indiana.{{Cite news|url=https://go.gale.com/ps/retrieve.do?tabID=T004&resultListType=RESULT_LIST&searchResultsType=SingleTab&searchType=BasicSearchForm¤tPosition=2&docId=GALE%7CA148162156&docType=Article&sort=Relevance&contentSegment=ZNEW-FullText&prodId=STND&contentSet=GALE%7CA148162156&searchId=R9&userGroupName=baltctycpl&inPS=true|title=The Indianapolis Star John Ketzenberger column|last=Ketzenberger|first=John|work=July 13, 2006|access-date=January 5, 2020|via=Gale OneFile: News}} Between 2007 and 2009, the number of the company's consultants fell from 1.3 million to under 800,000. In January 2010, Natural Products Group LLC filed for bankruptcy protection in order to reduce company debts.{{Cite news|title=Legal Notices|date=February 5, 2010|work=The Wall Street Journal|id={{ProQuest|1941562059}}}} Harvest Partners were no longer involved, with Arbonne's new ownership being a combination of banks and private equity firms.{{Cite journal|last=Brown|first=Rachel|date=March 19, 2010|title=Arbonne beyond bankruptcy|url=https://link.gale.com/apps/doc/A222571066/ITOF?u=baltctycpl&sid=ITOF&xid=0ef66e22|journal=Women's Wear Daily|volume=199|pages=6|via=Gale General OneFile}}

In 2006, Arbonne opened for business in Canada, then Australia in 2007, and the United Kingdom in 2008. In 2014, the company launched Arbonne Poland, and then New Zealand in 2016.{{Cite journal|date=November 1, 2016|title=Arbonne International Expands into Asia with Opening of Arbonne Taiwan|url=https://go.gale.com/ps/retrieve.do?tabID=T004&resultListType=RESULT_LIST&searchResultsType=SingleTab&searchType=AdvancedSearchForm¤tPosition=5&docId=GALE%7CA468642468&docType=Article&sort=Pub+Date+Reverse+Chron&contentSegment=ZNEW-FullText&prodId=STND&contentSet=GALE%7CA468642468&searchId=R5&userGroupName=baltctycpl&inPS=true|journal=India Retail News|via=Gale OneFile: News}}

In March 2018, Arbonne was acquired by Groupe Rocher.{{Cite web |title=Groupe Rocher To Acquire Arbonne International |url=https://www.beautypackaging.com/contents/view_breaking-news/2018-02-02/groupe-rocher-to-acquire-arbonne-international/ |access-date=2022-11-09 |website=Beauty Packaging}}

Products

Products are formulated at the Arbonne Institute of Research and Development (AIRD) in Switzerland and produced in the United States.

Business model

File:Multi-level_marketing_tree_diagram.png

Arbonne is structured on a multi-level marketing model. The products are sold via home-based businesses owned and operated by independent consultants.{{Cite news|url=https://www.timesunion.com/womenatwork/article/Capital-Region-women-find-fulfillment-in-gig-13500286.php|title=Capital Region women find fulfillment in gig economy|last=Hornbeck|first=Leigh|date=January 23, 2019|work=Times-Union|access-date=January 15, 2020}} Arbonne is a member of the Direct Selling Association.

In 2012, The Arbonne Charitable Foundation was registered as a charity to support programs to help teenagers build and increase their self-confidence.{{Cite journal|date=1 June 2012|title=Arbonne International, LLC has created an official charitable...|journal=Household & Personal Products Industry|volume=49|issue=6|pages=42|issn=0090-8878|via=Factiva}}{{Cite journal|date=May 2, 2012|title=Arbonne Forms Official Charitable Foundation|url=https://link.gale.com/apps/doc/A288325289/ITBC?u=baltctycpl&sid=ITBC&xid=b542a02e|journal=Health & Beauty Close-up|via=Gale OneFile Business}} The Foundation has charitable status within the U.S., Canada, Australia and the UK.{{Cite web|url=https://www.open990.org/org/455136989/arbonne-charitable-foundation/|title=Arbonne Charitable Foundation|date=December 13, 2019|website=Open990|access-date=January 13, 2020|archive-date=January 13, 2020|archive-url=https://web.archive.org/web/20200113200940/https://www.open990.org/org/455136989/arbonne-charitable-foundation/|url-status=dead}}

Legal action and FTC warning

Arbonne was sued by the Equal Employment Opportunity Commission for refusing to employ a deaf woman, a violation of the Americans with Disabilities Act. The company paid a $30,000 fine to settle the suit.{{Cite web|date=9 November 2009|title=Arbonne International to Pay $30,000 To Settle EEOC Disability Discrimination Suit|url=https://www1.eeoc.gov//eeoc/newsroom/release/11-9-09.cfm?renderforprint=1|access-date=2018-05-25|website=www1.eeoc.gov|language=en}} In April 2020, 10 multi-level marketing companies, including Arbonne, received a warning from the Federal Trade Commission that ordered them to "remove and address the claims that they or their participants are making about their products’ ability to treat or prevent coronavirus disease or about the earnings people who have recently lost income can make, or both."{{Cite web |date=2020-04-24 |title=FTC Sends Warning Letters to Multi-Level Marketers Regarding Health and Earnings Claims They or Their Participants are Making Related to Coronavirus |url=https://www.ftc.gov/news-events/news/press-releases/2020/04/ftc-sends-warning-letters-multi-level-marketers-regarding-health-earnings-claims-they-or-their |access-date=2025-02-05 |website=Federal Trade Commission |language=en}}

In May 2017, Cynthia and Michael Dagnall filed a lawsuit against Arbonne in the Orange County Superior Court. They alleged that the company was an illegal pyramid scheme.{{Cite web|url=https://legalnewsline.com/stories/511164773-arbonne-consultants-allege-company-operates-an-illegal-pyramid-scheme|title=Arbonne consultants allege company operates an illegal pyramid scheme|last=Reformado|first=Wadi|date=August 2, 2017|website=Legal Newsline|access-date=January 12, 2020}}{{Cite web|url=https://www.courthousenews.com/wp-content/uploads/2017/06/Arbonne.pdf|title=Superior Court of California County of Orange|date=May 25, 2017|website=Courthousenews.com|access-date=January 12, 2020}} The suit was dismissed on March 20, 2018.{{Cite web |date=June 2, 2017 |title=Arbonne Class Action Says Pyramid Scheme Scams Thousands of Victims |url=https://topclassactions.com/lawsuit-settlements/lawsuit-news/707132-arbonne-class-action-says-pyramid-scheme-scams-thousands-victims/ |access-date=January 12, 2020 |website=Top Class Actions}}

Recalls

In January 2009, Arbonne voluntarily recalled some production lots of branded peanut butter cups. This was due to the risk of possible Salmonella serotype Typhimurium contamination of peanut-based products consigned from a Georgia processing plant.{{Cite news|url=https://link.gale.com/apps/doc/A193838683/STND?u=baltctycpl&sid=STND&xid=04ddde7a|title=Peanut product recall list still growing|date=February 17, 2009|work=UPI NewsTracker|access-date=January 15, 2020}}

In September 2009, Arbonne voluntarily recalled a production lot of branded foaming sea salt scrub, due to the risk of contamination with Pseudomonas aeruginosa bacteria.{{Cite news|url=https://link.gale.com/apps/doc/A207784326/STND?u=baltctycpl&sid=STND&xid=acc40dde|title=Seasource-brand sea salt scrub is recalled|date=September 14, 2009|work=UPI NewsTrack|access-date=January 15, 2020}}

In January 2013, Health Canada advised of Arbonne's voluntary recall of one batch of branded facial moisturizer for men. Arbonne's testing found that the batch contained the bacterium Aerococcus viridans.{{Cite web|url=https://www.pharmaceuticalprocessingworld.com/arbonne-mens-facial-moisturizer-recalled-due-to-contamination/|title=Arbonne Men's Facial Moisturizer Recalled Due to Contamination|date=January 30, 2013|website=Pharmaceutical Processing World|access-date=January 15, 2020}}

In January 2014, the Australian Competition & Consumer Commission (ACCC) recalled sample tubes of branded day cream due to the presence of the bacterium Enterobacter gergoviae.{{Cite news|url=https://www.productsafety.gov.au/recall/arbonne-europe-sarl-re9-advanced-restorative-day-creme-spf-15-3ml-sample-tube|title=Arbonne Europe Sarl—RE9 Advanced Restorative Day Creme SPF 15 3mL Sample Tube|date=14 January 2014|work=Product Safety Australia|access-date=2018-05-25|language=en}}

In June 2016, Arbonne voluntarily recalled multiple lots of branded liquid eye liner. The products contained unacceptable levels of the bacteria Staphylococcus saprophyticus, Staphylococcus xylosus, and Staphylococcus lentus.{{Cite news|url=https://www.productsafety.gov.au/recall/arbonne-uk-ltd-arbonne-its-a-fine-line-liquid-eyeliner|title=Arbonne UK Ltd—Arbonne It's A Fine Line Liquid Eyeliner|date=28 July 2016|work=Product Safety Australia|access-date=2018-05-25|language=en}}

In October 2017, the ACCC recalled one lot of branded body wash due to unacceptable levels of Staphylococcus cohnii.{{Cite news|url=https://www.productsafety.gov.au/recall/arbonne-uk-limited-rescue-renew-detox-body-wash|title=Arbonne UK Limited — Rescue & Renew Detox Body Wash|date=10 October 2017|work=Product Safety Australia|access-date=2018-05-25|language=en}}

References