After 23 years of operation, multi-level marketing company Modere has abruptly shut down, leaving thousands of distributors without notice and customers with unfulfilled orders. The company, which sold premium-priced collagen supplements and wellness products, posted a simple “Thank You for the Journey” message on their website on April 12, 2025 – but the story behind this closure reveals a pattern of questionable business practices, regulatory troubles, and internal conflicts.
The Final Days of a Troubled MLM, Modere
Modere’s collapse didn’t happen overnight. Though the company was still hiring executives and making claims of “accelerated growth” as recently as February 2025, insiders report that the business had been in decline since mid-2023. The turning point appears to have been the termination of top distributor Justin Prince, which triggered a chain of events including lawsuits, distributor exodus, and ultimately, the company’s demise.
Nate Frazier, who had been appointed President, COO and Executive Chairman in December 2023 following Asma Ishaq’s departure, made no public announcement to distributors before the closure. Many Modere “Social Marketers” learned about the company’s end when they couldn’t access the website to place orders or check their commissions.
“I had customers waiting for products and over $2,000 in commissions I was supposed to receive next week,” said former Modere distributor Kaitlyn Chen. “No email, no call, nothing – just a goodbye message when I tried to log in. Five years of building my business, gone overnight.”
A History of Regulatory Issues
Modere’s business practices had drawn scrutiny from regulators years before its collapse. In April 2020, the Federal Trade Commission (FTC) issued a warning letter to the company regarding unsubstantiated health claims related to COVID-19 and misleading income representations made by distributors.
The FTC letter specifically cited examples of Modere business participants claiming products could prevent or treat coronavirus and making exaggerated income claims during the pandemic unemployment crisis. The regulator warned that such practices violated Section 5 of the FTC Act and demanded immediate action.
While Modere officially addressed the FTC’s concerns in their response, complaints about similar practices continued to appear on consumer forums and with the Better Business Bureau (BBB). Despite these issues, Modere maintained an A+ rating with the BBB – a point the company frequently highlighted in distributor training.
Other regulatory red flags included:
- Unsubstantiated claims about collagen supplements preventing knee surgery and resolving joint pain
- Marketing tactics that encouraged distributors to take excessive numbers of supplements daily
- Premium pricing for products with little scientific evidence of effectiveness
- Difficulties with subscription cancellation and unexpected charges that prompted multiple BBB complaints
Was Modere a Scam? Examining the Business Model
The question of whether Modere was a “scam” depends largely on how one defines the term. Legally, Modere operated as a legitimate multi-level marketing company that sold actual products. However, many critics argue that its business practices and compensation structure displayed hallmarks of Scam MLM models.
Key Issues with Modere’s Business Practices:
- Subscription Traps: Numerous customers reported difficulty canceling subscriptions and receiving unexpected charges months or even years after attempting to cancel.
- Product Claims vs. Reality: Many expensive supplements were marketed with impressive health claims that lacked scientific backing. Former distributor Rachel Thompson acknowledged, “We were taught to use phrases like ‘many customers report’ or ‘may help with’ to suggest benefits without making direct claims.”
- Focus on Recruitment: While Modere claimed to prioritize retail sales, former distributors report that the primary emphasis was on recruiting new “Social Marketers” rather than selling to end-users.
- Financial Reality for Distributors: Though Modere showcased success stories of top earners making “7-figure incomes,” the reality for most distributors was far different. Industry analysts estimate that over 95% of Modere distributors either lost money or made less than minimum wage when accounting for expenses.
- Relationship Impact: As documented in numerous social media posts, many distributors found their personal relationships strained as friends and family grew tired of constant sales pitches and recruitment attempts.
Former distributor Jason Miller shares: “I was encouraged to see everyone in my life as a potential customer or recruit. My aunt stopped talking to me after I tried to sell her collagen at her husband’s funeral. That’s when I realized what this business was doing to me.”
The Human Cost: Testimonials from Former Distributors
Behind the corporate collapse are thousands of individuals who invested time, money, and relationships into building Modere businesses. Many report feeling betrayed by the company’s sudden shutdown and lack of communication.
Maria Gonzalez, who had been with Modere for seven years, described her experience: “I put my retirement savings into building this business. I truly believed in the products and the opportunity. Now I’m 58 with nothing to show for it, and friends I recruited are in even worse positions.”
Another former distributor, who asked to remain anonymous, shared: “We were told as recently as our March team call that the company was stronger than ever and preparing for international expansion. I took out a loan to purchase extra inventory based on that information. Now I’m stuck with $4,000 of product I can’t sell and no way to recoup my investment.”
Even more concerning are reports of distributors who delayed medical treatments in favor of Modere supplements. Sarah Johnson, a former healthcare worker turned Modere distributor, admits: “I’m ashamed to say I convinced people to use our collagen instead of seeing doctors for joint pain. I really believed what I was told about the products.”
Lessons for Modere Consumers: Recognizing MLM Warning Signs
The Modere collapse serves as a case study in identifying potentially problematic MLM operations before investing time and money. Consumer advocates point to several warning signs that were present throughout Modere’s history:
Red Flags for Identifying Questionable MLMs:
- Emphasis on recruitment over product sales: If discussions center more on “building a team” than on the merits of products, be cautious.
- Unrealistic income claims: Any business opportunity promising significant income with “part-time work” or “from your phone” deserves skepticism.
- Pressure to purchase inventory: Legitimate businesses don’t require representatives to buy products they can’t sell.
- Subscription-based models with difficult cancellation: Companies confident in their product quality don’t need to trap customers in hard-to-cancel recurring charges.
- Health claims without scientific backing: Be particularly wary of supplements claiming to cure or prevent specific medical conditions.
- Cult-like atmosphere: If the company fosters an us-versus-them mentality where critics are labeled as “negative” or “not supportive,” this indicates potential manipulation.
Consumer protection attorney Rebecca Wilson advises: “Before joining any MLM, ask to see the company’s income disclosure statement. Calculate potential earnings after expenses, and speak with former distributors who’ve left the business, not just current enthusiasts.”
The Future Landscape: What Modere’s Collapse Means for MLMs
Industry analysts suggest Modere’s failure may signal broader challenges for the MLM industry, particularly those focusing on high-priced supplements with questionable efficacy.
“The pandemic created a temporary boost for many health-focused MLMs, but as consumers become more educated and skeptical, companies built on exaggerated claims and recruitment-focused compensation plans are struggling,” explains Dr. William Taylor, professor of marketing at UC Berkeley.
Several factors are reshaping the MLM landscape:
- Increased regulatory scrutiny: The FTC has signaled stronger enforcement regarding income claims and product efficacy.
- Social media awareness: Anti-MLM content has gained significant traction online, educating potential recruits about the financial reality of these businesses.
- Market saturation: The proliferation of MLMs selling similar products has diluted the market.
- Direct competition: Traditional retailers and e-commerce platforms now offer comparable products without the multi-level compensation structure, often at lower prices.
Even the company launched by former Modere top earner Justin Prince, Make Wellness, is reportedly struggling, with website traffic declining by nearly 50% as of February 2025.
Conclusion: Beyond the Modere Mirage
As former Modere distributors seek to rebuild their financial lives and broken relationships, the company’s collapse offers important lessons about the risks of MLM participation and the importance of critical evaluation before joining such organizations.
While not all MLMs operate identically to Modere, the company’s pattern of regulatory issues, customer complaints, and ultimate collapse without warning to distributors highlights the vulnerability of business models built on recruitment chains and subscription traps rather than sustainable product value.
For consumers, the most important takeaway may be the reminder that extraordinary claims—whether about income potential or product benefits—require extraordinary evidence. In Modere’s case, the evidence never materialized, and thousands are now dealing with the consequences.
As one former distributor poignantly summarized: “The hardest part isn’t losing the income. It’s realizing how many people I pulled into this because I genuinely believed in it. That’s a debt I don’t know how to repay.”
