Critics Are Praising the Apparent Fall of Rodan and Fields as an MLM Scam — Here's What Happened

Let's face it. The first few months of 2024 have been a roller coaster. Without naming any particular major shifts in film/TV production, worsening social media landscapes, or large-scale deterioration of democracy in major world superpowers, it's the kind of year where many of us are just begging for the downfall of the evils in the world to take hold. While bad news continues to dominate the conversation, folks can at least find some solace in changes taking place at Rodan and Fields.

In case you haven't heard, Rodan and Fields is a skincare company. Founded by Katie Rodan and Kathy Fields, the R+F brand uses a multi-level marketing business model in which "independent consultants" sell their products.

"Multi-level marketing" should already be a red flag for anyone reading, as this almost always refers to a pyramid scheme in which those at the top essentially earn from free labor. Thankfully, however, they seem to have shifted in strategy. What happened to Rodan and Fields?

Rodan and Fields as a company has long been criticized as a pyramid scheme. Ever since the company rebranded with multilevel marketing back in 2007, their wide and expanding range of skincare products were sold using a non-salaried workforce with the promise of compensation being relegated to sales commissions made by both the seller and anyone else they've recruited to also sell these products. In which case, the most payment always gets back-funneled back to whoever is at the top of the pyramid.

R+F has operated under this model for years, with many across the internet lambasting the company for using its blatantly exploitative business strategy. However, they made a major announcement with regard to their business model.

On July 15, 2024, R+F issued a press statement stating that "the company will move away from the multi-level direct selling model to streaming the customer and consultant experience."

The new model, which will be implemented on Sept. 1, aims to use "traditional channels and social media" to advertise and sell their products. In other words, the company looks to sell products the way any other brand would. Reportedly, current "consultants" will be rolled into a new Affiliate program in which they will receive increased commissions based on individual sales performance.

Many have praised this new move as the downfall of a pyramid scheme. One X user tweeted, "The MLMs really seem to be crumbling and I am soooo here for it."

This new business strategy comes two years after R+F reached settlements in several class action lawsuits. In November 2022, the company agreed to pay over $38 million in damages after one of its eyelash products was found to cause severe side effects such as eye irritation and even ocular inflammation.

In any case, high school reunions are about to become a lot less awkward with less people "being their own boss" through R+F.