Medifast, Part Two: Weight-Loss Miracle or Pyramid Scheme?
(Note: See my previous post evaluating Medifast’s claims of a “clinically proven” weight-loss method.) Chief executive officer Michael McDevitt claims the sales growth at Medifast is due to the successful execution of the company’s diverse multi-channel distribution strategy, through which Medifast brand’s value proposition “continues to be successfully communicated and accepted by its customers.” Detractors allege, however, the company’s growth is attributable to nothing more than a twist of the notorious Ponzi postage stamp con of 1921 — a modern day, multilevel pyramid scheme. Is the company getting a bum rap? Competitors in the commercial weight loss sector are blaming lower consumer spending and a falloff in new customer traffic on a dearth of discretionary income, a result of the…
0 Comments