Is Simplexity Health (formerly Cell Tech International) really a scam? Continue reading to learn the truth…
The purpose of this treatise is to address the legitimacy of the Cell Tech business opportunity – specifically to answer the question around its possible characterization as a scam. In the interest of clarity, the word scam will assume the more helpful definition of fraud, as follows:
An intentional deception made for personal gain or to damage another individual.
Since it is unlikely that someone would use the Cell Tech business opportunity to damage another individual (surely other methods would be more expedient and create greater hardship), we’ll use an intentional deception as our working definition. One additional item of housekeeping is to note that Cell Tech has been re-branded as Simplexity Health as of December 2006 and is now operating under that name.
Simplexity Health (formerly Cell Tech International) produces and markets a line of health and wellness products (nutritional supplements, body care products, and nutrition bars) derived from an algae known as Aphanizomenon flos-aquae. This algae is harvested from the upper portion of Klamath Lake in Oregon, evidently one of the few known locations on earth where the algae grows in sufficient quantities for commercial viability. Marketed as Super Blue Green Algae, the Simplexity line includes digestive aids, weight loss supplements, antioxidants, and powdered drink mixes.
The company’s operating model, however, focuses only on the sourcing, acquisition, manufacture and packaging of the Super Blue Green Algae product line. It has elected to outsource the distribution of the products through a network marketing or multi-level marketing (MLM) model, very similar to the original MLM, Amway.
Simplexity has created a compensation plan that pays Independent Business Associates (IBAs) for personal use, personal sales and sales through recruitment. In other words, payments to IBAs are contingent upon the movement of product, not merely some other suitable or favorable behavior. That value-for-value transaction, i.e., payment in exchange for goods, differentiates Simplexity from a pyramid or Ponzi scheme, where money collected from new participants is used to pay existing ones.
To the extent that products are sold and IBAs are paid from those sales, Simplexity is not a scam and is not defrauding its IBAs. Further anecdotal evidence is the firm’s tenure – it was Cell Tech for 24 years before becoming Simplexity four years ago. It is unlikely that a Ponzi scheme with that much visibility over time would have escaped the Federal agencies attention, especially now in the internet age.
On another note, however, there is some disagreement as to the health benefits of Super Blue Green Algae. And since the FDA, at this time, does not regulate the market for supplements, “caveat emptor” applies in the case of Simplexity as with other supplementation products and their accompanying opportunities.
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