Table of Contents
Introduction:
My Daily Choice is a network marketing firm that sells a variety of health and wellness items, such as CBD oil, essential oils, and nutritional supplements. These products may be obtained via the company’s website. My Daily Choice, another firm that focuses on offering holistic health solutions, has spun out another company called Arieyl.
My Daily Choice has only just initiated legal action against Arieyl, along with two former executives named Jason and Eileen Butlers, accusing them of cross-recruitment and the alleged theft of trade secrets. This article will cover the specifics of the case, as well as the possible repercussions that it might have for both of the firms involved, as well as the network marketing industry as a whole.
Background:
In 2014, Josh and Jenna Zwagil established the company that would later become known as My Daily Choice. The business also functions as a multi-level marketing organization and provides a variety of items related to health and well-being. In 2019, it was claimed that My Daily Choice brought in a revenue of $170 million, demonstrating the company’s continued success in the network marketing business.
In the year 2020, Jason and Eileen Butler, once both executives at My Daily Choice, parted ways with the firm to establish their own network marketing business, which they named Arieyl. Arieyl also provides a selection of items geared toward promoting health and well-being, such as CBD oil and essential oils.
My Option for the Day’s Litigation:
My Daily Choice initiated legal action against Arieyl and the Butlers in January 2021, saying that the defendants had stolen trade secrets from My Daily Choice and participated in cross-recruitment with My Daily Choice employees. The complaint was submitted to a federal court in the state of Nevada, and it demands monetary damages for breach of contract, improper use of trade secrets, and other allegations.
The Butlers are accused by My Daily Choice of using private information and trade secrets to launch Arieyl and of recruiting My Daily Choice affiliates to join Arieyl. This is one of the allegations made by My Daily Choice. According to the allegations made in the complaint, the Butlers violated both state and federal trade secret statutes as well as the employment agreements they had with My Daily Choice.
Arieyl’s business plan is a “knockoff”
Moreover, My Daily Choice asserts that Arieyl’s business plan is a “knockoff” of its company model and that Arieyl has duplicated several of My Daily Choice’s goods as well as its marketing methods. This allegation is supported by the use of the term “knockoff.” According to My Daily Choice’s assertions, the employment of these techniques and goods by Arieyl has resulted in confusion among My Daily Choice’s consumers and affiliates and has harmed the reputation of My Daily Choice.
The lawsuit seeks damages for lost profits
This lawsuit seeks damages for lost profits and other harm caused by the Butlers and Arieyl, as well as an injunction to prevent them from using My Daily Choice’s trade secrets and confidential information. Additionally, the lawsuit seeks an injunction to prevent them from using My Daily Choice’s trade secrets and confidential information.
The following is the response given by Arieyl and the Butlers:
Arieyl and the Butlers have both responded to the allegations made in the lawsuit by stating that they are false and requesting that the case be thrown out. They contend that the assertions made by My Daily Choice are baseless and that the corporation is only attempting to limit competition in the field of network marketing.
Ariel, together with the Butlers, makes the additional claim that the non-compete and non-solicitation agreements that they signed with My Daily Choice are invalid because they are too wide and cover too much ground. They assert that the agreements in question are constructed to prevent them from engaging in competitive activity within the sector and that such agreements are in violation of both federal and state laws.
Arieyl and the Butlers have also contended that the goods and marketing practices used by My Daily Choice are not original and that many other businesses operating in the network marketing sector utilize methods that are very similar to those used by My Daily Choice. They argue that the accusations of theft and copyright made by My Daily Choice are false and that the action is an effort to damage Arieyl’s brand and development potential.
Implications for Businesses Within the Network Marketing Sector:
The network marketing business as a whole may be affected in some way by the litigation that is now being fought between My Daily Choice and Arieyl. This highlights the potential for conflict that can arise when former executives start their own companies in the same industry as their previous employers and attempt to recruit former coworkers and customers.
Additionally, the lawsuit raises concerns regarding the legality of non-solicitation and non-compete agreements in the field of network marketing. However, despite the prevalence of these agreements within the sector, disagreements frequently arise.
