Visalus, once famous for its health drinks and nutritional products, has filed for bankruptcy.
The company’s rise and fall show how quickly things can change when businesses face tough legal and regulatory challenges.
What caused Visalus to collapse, and what can other companies learn from this? Let’s take a closer look.
Visalus Files Bankruptcy
Visalus started in 1997 and became well-known for its multi-level marketing system. At its peak, it had over 114,000 distributors and made hundreds of millions of dollars.
But everything fell apart in April 2019 when a jury ruled that Visalus had to pay $925 million for violating the Telephone Consumer Protection Act (TCPA).
The case was about marketing calls that were legal when made but later became illegal due to changes in the law.
This massive fine left the company struggling.
Even though Visalus tried to appeal and received some help from the Federal Communications Commission (FCC), the financial damage was too great.
By the time the Ninth Circuit Court asked for a review to check if the case followed constitutional rules, the company couldn’t handle the costs of continuing the fight.
Eventually, Visalus decided to liquidate its assets.
In its bankruptcy filing, Visalus said it would sell off its assets and wrap up its operations. A meeting with creditors is planned for January 8, 2025, marking the official end of the company.
This situation shows how important it is for businesses to follow changing legal rules closely because failing to do so can lead to disaster.
Our Opinion
Visalus’ story is a tough lesson about how serious it is to follow the law in business.
The TCPA was meant to protect people from annoying telemarketing calls, but it ended up being the reason for Visalus’ downfall.
What makes this story even sadder is that Visalus’ calls weren’t random spam—they were made with consent that was legal at the time.
This case shows how quickly the rules can change and how businesses must keep up to avoid costly mistakes.
Visalus’ failure to adapt to new legal standards was a key reason for its bankruptcy.
It’s a warning to other companies: if you don’t stay up-to-date with the law, it can destroy your business, no matter how successful you are.
Even though Visalus is shutting down, its products are continuing under new branding with LaCore Enterprises and Shoply’s “Vi” label.
This raises questions about how the company’s legacy will continue in the market.
The TCPA has caused problems for many businesses, and Visalus won’t be the last. Companies need to work with legal experts and plan ahead to avoid these kinds of situations.
For businesses facing similar lawsuits, learning from Visalus’ mistakes is critical.
Visalus’ fall reminds us that no business is too successful to fail. Staying ahead of legal changes isn’t just a good idea—it’s essential for survival.
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