Neways
Encyclopedia
Neways International is a privately held American
multi-level marketing
organization
that manufactures and distributes personal care products, nutritional supplements, and household cleaning products and has a presence in more than 23 countries. Neways is headquartered in Springville, Utah
. The company claims that its products are chemically safer than other brands.
. Neways corporate headquarters was moved to Springville, Utah in 2003, with the main manufacturing facility remaining in Salem. Neways was acquired November 8, 2006, by Golden Gate Capital
, a private equity firm headquartered in San Francisco, CA. Golden Gate Capital also owned Herbalife
before taking it public.
Neways claims that it not only refuses to put potentially harmful ingredients into its products, but it strives to add "wholesome, gentle, health-enhancing" ingredients to every product it creates.
Neways offers more than 200 products in three main categories: Personal Care, Household, and Health & Wellness. Product lines include skin care, hair care, dental care, cosmetics, cleaning products, and laundry products. Health & Wellness nutritional supplements include the liquid mineral beverage Maximol Solutions, which has now sold more than 25 million bottles worldwide.
In particular, Neways donates funds and products to Globus Relief,a nonprofit humanitarian organization. From mid-2007 through February 2009, Globus distributed more than 78,000 bottles of Neways’ Maximol Solutions around the world.
Neways’ commission-based system pays out an average of 50 percent of the company’s commissionable volumes to distributors. Its compensation plan is a hybrid combination that includes elements of unilevel and stair-step breakaway multilevel plans.
furosemide
.
In 2004 Neways was convicted on criminal charges relating to the distribution of a pharmaceutical product containing human growth hormone, which is illegal to distribute without a prescription .
In 2005, the founders Thomas and Leslie Mower were convicted of tax fraud concealing over $4 million US dollars of revenue. They also presented false loan documents and lied to an IRS
special agent. In 2006, Thomas was sentenced to 33 months in prison to be followed by 3 years supervised release and ordered to pay a $75,000 fine in addition to paying prosecution costs. Leslie was sentenced to 27 months in prison to be followed by 3 years supervised release and ordered to pay a $60,000 fine.
In 2008, Neways Japan Ltd. was forced to suspend signup of new distributors by the Japanese government during a three month period (February 21 to May 20) for deceptive conduct occurring in 2006, after distributors lied about competitors products, claiming they would cause cancer.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
multi-level marketing
Multi-level marketing
Multi-level marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation...
organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
that manufactures and distributes personal care products, nutritional supplements, and household cleaning products and has a presence in more than 23 countries. Neways is headquartered in Springville, Utah
Springville, Utah
Springville is a city in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 20,424 at the 2000 census, while the 2008 estimates placed it at 28,520. Just minutes south of Provo, Springville is a bedroom community for...
. The company claims that its products are chemically safer than other brands.
Company History
Neways, originally named Images and Attitudes, was founded on June 9, 1987 by founders Thomas and Leslie D. Mower. The company was renamed to Neways in 1992 with its original manufacturing facilities in Salem, UtahSalem, Utah
Salem is a city in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 4,372 at the 2000 census...
. Neways corporate headquarters was moved to Springville, Utah in 2003, with the main manufacturing facility remaining in Salem. Neways was acquired November 8, 2006, by Golden Gate Capital
Golden Gate Capital Partners
Golden Gate Capital Partners is a private equity firm based in San Francisco, California. The firm makes investments primarily in mature technology companies, as well as other select industries, through leveraged buyout transactions as well as significant minority purchases and growth capital...
, a private equity firm headquartered in San Francisco, CA. Golden Gate Capital also owned Herbalife
Herbalife
Herbalife International is a global nutrition, weight-loss and skin-care company. The company was founded in 1980 and it employs around 4,000 people worldwide. Herbalife reported net sales of USD 2.7 billion in 2010...
before taking it public.
Products
Neways' stated goal is to help people maximize their health and beauty while minimizing their exposure to potentially harmful ingredients. With the input and oversight of the company’s independent Scientific Advisory Board, Neways has compiled a list of over 3,000 controversial ingredients that it believes should be avoided in product formulations. "By replacing mainstream products with Neways products in our three main product categories," according to the company, "people can transform their homes into Neways Healthy Homes."Neways claims that it not only refuses to put potentially harmful ingredients into its products, but it strives to add "wholesome, gentle, health-enhancing" ingredients to every product it creates.
Neways offers more than 200 products in three main categories: Personal Care, Household, and Health & Wellness. Product lines include skin care, hair care, dental care, cosmetics, cleaning products, and laundry products. Health & Wellness nutritional supplements include the liquid mineral beverage Maximol Solutions, which has now sold more than 25 million bottles worldwide.
Charity
Neways supports a number of charitable causes, both in its local community and globally. Past and present global efforts include the Hearts Full of Hope Foundation and the Empower Program. To date, Neways has donated more than $4.5 million in funds and products.In particular, Neways donates funds and products to Globus Relief,a nonprofit humanitarian organization. From mid-2007 through February 2009, Globus distributed more than 78,000 bottles of Neways’ Maximol Solutions around the world.
Business Opportunity
Neways offers people a way to start a home-based business with a low startup cost. Individuals distributing Neways’ products can benefit from the tax advantages of a home business and participate in a flexible business model that enables them to work as many or as few hours as they choose.Neways’ commission-based system pays out an average of 50 percent of the company’s commissionable volumes to distributors. Its compensation plan is a hybrid combination that includes elements of unilevel and stair-step breakaway multilevel plans.
Controversies
In 1993 Neways was forced to recall a weight loss product as it was found to contain a dose at medical levels of the prescription diureticDiuretic
A diuretic provides a means of forced diuresis which elevates the rate of urination. There are several categories of diuretics. All diuretics increase the excretion of water from bodies, although each class does so in a distinct way.- Medical uses :...
furosemide
Furosemide
Furosemide or frusemide is a loop diuretic used in the treatment of congestive heart failure and edema. It is most commonly marketed by Sanofi-Aventis under the brand name Lasix...
.
In 2004 Neways was convicted on criminal charges relating to the distribution of a pharmaceutical product containing human growth hormone, which is illegal to distribute without a prescription .
In 2005, the founders Thomas and Leslie Mower were convicted of tax fraud concealing over $4 million US dollars of revenue. They also presented false loan documents and lied to an IRS
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
special agent. In 2006, Thomas was sentenced to 33 months in prison to be followed by 3 years supervised release and ordered to pay a $75,000 fine in addition to paying prosecution costs. Leslie was sentenced to 27 months in prison to be followed by 3 years supervised release and ordered to pay a $60,000 fine.
In 2008, Neways Japan Ltd. was forced to suspend signup of new distributors by the Japanese government during a three month period (February 21 to May 20) for deceptive conduct occurring in 2006, after distributors lied about competitors products, claiming they would cause cancer.