The My Daily Choice lawsuit centers on allegations that the company ran an illegal pyramid scheme by prioritizing distributor recruitment over actual product sales. Former distributors and customers have filed complaints with the FTC, and as of 2026, legal pressure on the company has intensified.
If you lost money as a My Daily Choice distributor or customer, you may have a path to compensation. This article breaks down the legal claims, who qualifies, how much payouts could be, and exactly how to file.
The numbers are not small. Tens of thousands of people enrolled as distributors between 2014 and 2025. Most of them lost money. That is the core of why this lawsuit exists.
What Is the My Daily Choice Lawsuit?
The My Daily Choice lawsuit refers to a collection of legal complaints, regulatory actions, and class action filings alleging that the company deceived distributors about income potential and operated a compensation structure that rewarded recruitment more than retail sales.
My Daily Choice was founded in 2014 by Josh Zwagil. The company sells wellness and CBD products under several brands, most notably HempWorx.
The legal trouble started accumulating as former distributors began comparing notes. Most people who joined were not making money from selling products. They were making money only when they recruited others. That pattern is the legal definition of a pyramid scheme under FTC standards.
Consumer attorneys began aggregating complaints around 2019 and 2020. By 2026, the case landscape looks significantly more organized, with formal filings and regulatory attention that did not exist three years ago.
| Key Detail | Information |
|---|---|
| Company Founded | 2014 |
| Founder | Josh Zwagil |
| Headquarters | Las Vegas, Nevada |
| Primary Brand | HempWorx |
| Legal Status | Under regulatory scrutiny; civil complaints filed |
| Main Allegation | Pyramid scheme and income fraud |
My Daily Choice Lawsuit Update 2026: Where Things Stand
As of 2026, the My Daily Choice lawsuit is in active legal development. No final settlement has been formally approved at the federal level, but plaintiffs’ attorneys have pushed litigation forward across multiple state and federal venues.
The FTC’s broader crackdown on MLM income claims, which accelerated in 2021 after actions against companies like Lularoe and Arbonne, created a direct pipeline for My Daily Choice complaints to receive serious attention.
Consumer protection attorneys in Nevada and Utah began consolidating distributor claims in 2023 and 2024. By early 2026, several of those cases have moved past the dismissal stage.
Key 2026 Status Points:
- Multiple civil complaints are active in federal court
- FTC has received thousands of formal complaints against MDC
- Income disclosure irregularities have been formally documented by third-party analysts
- Class certification is being sought in at least one consolidated filing
This is not a settled case yet. But it is past the speculative stage. Courts are now taking the claims seriously.
Is There a My Daily Choice Class Action Lawsuit?
Yes, class action filings have been initiated against My Daily Choice, though as of early 2026 no single nationwide class has been fully certified. Certification is the legal process where a court officially recognizes a group of plaintiffs as a “class” that can sue together.
Attorneys have argued that the sheer volume of similarly situated former distributors makes this case ideal for class treatment. When thousands of people experience the same deception from the same company, courts typically allow them to sue as a group.
The advantage for victims is significant. Class actions reduce the individual cost of litigation. You do not need to hire your own attorney or pay upfront.
| Class Action Stage | Status (2026) |
|---|---|
| Initial Filings | Completed |
| Complaint Consolidation | In Progress |
| Class Certification Motion | Filed, pending ruling |
| Discovery Phase | Active |
| Settlement Negotiations | Early stage |
| Final Approval | Not yet reached |
If you were a distributor or customer between 2015 and 2025, you could be automatically included when class certification is granted.
Key Takeaway: The My Daily Choice class action is real, active, and moving through courts in 2026. Certification has not been granted yet, but legal filings are past the initial stages.
My Daily Choice FTC Investigation: What the Regulators Found
The Federal Trade Commission has been scrutinizing My Daily Choice’s income claims and compensation structure since at least 2020. The FTC’s authority to act comes from Section 5 of the FTC Act, which prohibits unfair or deceptive business practices.
The specific findings that drew FTC attention include income disclosure statements that significantly overstated the earnings of typical distributors. The company’s own IDS data showed that the overwhelming majority of distributors earned less than $500 per year.
That is not a successful business opportunity. That is a losing proposition marketed as financial freedom.
The FTC also flagged the company’s use of testimonials showing luxury lifestyles, expensive cars, and large income checks without disclosing how rare those outcomes are.
| FTC Finding | Detail |
|---|---|
| Misleading income claims | Promotional materials showed top-earner income without typical outcomes |
| IDS discrepancies | Majority of distributors earned under $500 annually |
| Recruitment emphasis | Pay structure rewarded enrolling new distributors over selling to retail customers |
| CBD product claims | Unapproved health claims about HempWorx products |
| Formal status | Investigation ongoing; enforcement action possible |
The FTC does not need a court to act. It can issue civil investigative demands, require document production, and push companies to consent decrees without a full trial.
Is My Daily Choice a Pyramid Scheme Legally?
Legally speaking, My Daily Choice fits several key criteria the FTC uses to identify pyramid schemes. The FTC defines a pyramid scheme as a business where participants earn money primarily from recruiting new members rather than from selling products to real retail customers.
The legal test that matters is called the “Omnicom test” or “business opportunity rule.” Courts look at whether the majority of income flows from recruitment or from genuine retail sales to outside customers.
My Daily Choice’s own income disclosure data creates problems for the company here. When more than 99% of distributors earn less than minimum wage, and top earners derive most income from downline recruitment bonuses, the structure starts to look legally indefensible.
The Three Legal Factors Courts Examine:
- Whether the compensation plan requires purchasing products to stay active (autoship)
- Whether income is primarily generated from recruitment rather than retail sales
- Whether the company’s income claims misled reasonable people into joining
My Daily Choice scores poorly on all three by most objective legal analyses. That does not automatically mean every court will rule against the company. But it explains why attorneys are pursuing these claims aggressively.
The My Daily Choice HempWorx Lawsuit Explained
HempWorx is My Daily Choice’s most prominent product line, a range of CBD oil products that distributors were trained to sell using medical-style health claims. Those claims became a separate but related legal problem.
The FDA and FTC jointly regulate CBD product marketing. Companies cannot claim CBD products treat, cure, or prevent any disease unless those claims have been clinically proven. HempWorx distributors routinely made exactly those kinds of claims.
Distributors made these claims partly because the company’s own training materials implied or encouraged it. That creates liability not just for individual distributors but for the company itself.
| HempWorx Legal Issue | Detail |
|---|---|
| Unauthorized health claims | Distributors advertised CBD for cancer, pain, anxiety relief |
| FDA warning letters | Companies making similar claims have received formal warning letters |
| Company training materials | Allegations that MDC encouraged these claims indirectly |
| Distributor exposure | Individual reps may also face regulatory issues |
| Product refund claims | Based on false advertising of product efficacy |
The HempWorx angle adds a product liability layer to what is primarily a pyramid scheme lawsuit. Both aspects can generate compensation for former distributors and customers.
Key Takeaway: The HempWorx lawsuit component adds product fraud claims on top of the pyramid scheme allegations, strengthening the overall legal case against My Daily Choice.
My Daily Choice Income Disclosure Fraud: The Numbers They Hid
My Daily Choice published income disclosure statements as required for MLM companies, but the way those statements were framed obscured the real picture. This is where the income disclosure fraud claim lives.
The company’s IDS showed median earnings broken down by rank. But the numbers for lower-ranked distributors, where 95% of participants sat, showed annual earnings that were often below $300. Some showed losses when starter kit costs, monthly autoship fees, and marketing expenses were factored in.
Most people reading the promotional materials never saw those numbers. They saw testimonials from top earners making five figures a month.
What the Income Data Actually Showed:
- Bottom 50% of distributors: under $200 per year in gross commissions
- After expenses (autoship, starter kit, events): net loss for most participants
- Top 1% of earners: generated the majority of all commissions paid
- Median distributor tenure before quitting: under 12 months
When a company knowingly presents financial information in a way that creates a misleading impression, that is actionable fraud under most state consumer protection laws. Attorneys argue My Daily Choice did exactly that.
Was the My Daily Choice Compensation Plan Illegal?
The My Daily Choice compensation plan is a binary structure with multiple bonus tiers tied to recruitment and team volume. Binary plans are not inherently illegal, but they become problematic when the primary income driver is enrolling new distributors rather than selling products to end consumers.
Under FTC guidance, a compensation plan crosses the legal line when distributors must pay to play (through autoship requirements), when bonuses attach primarily to recruitment activity, and when the company cannot demonstrate significant retail sales to non-participants.
My Daily Choice required distributors to maintain monthly autoship orders to qualify for commissions. That created a financial obligation tied to continued participation, not genuine product demand.
| Compensation Plan Element | Legal Concern Level |
|---|---|
| Mandatory monthly autoship | High: creates pay-to-play structure |
| Binary recruitment bonuses | High: income tied to enrolling others |
| Rank advancement requirements | Medium: requires team building over retail |
| Retail customer sales requirement | Low compliance reported by distributors |
| Income tied to downline volume | High: classic pyramid scheme indicator |
The absence of verifiable retail sales data is one of the strongest arguments plaintiffs have. The company has struggled to produce evidence that meaningful sales occurred to people who were not themselves distributors.
My Daily Choice FTC Complaints: How Many Were Filed?
The FTC’s Consumer Sentinel Network has logged thousands of complaints against My Daily Choice and its affiliates since 2018. The exact number of formal FTC complaints is not publicly disclosed in real time, but attorney filings and consumer advocacy groups have cited figures in the thousands.
Each complaint to the FTC adds to the regulatory record the agency uses to justify enforcement actions. The more complaints that pile up, the more political and institutional pressure the FTC faces to act.
The Better Business Bureau separately received hundreds of complaints about billing issues, refund denials, and misleading income representations. The BBB gave My Daily Choice a low trust rating during periods of high complaint volume.
Where People Filed Complaints:
- FTC Consumer Sentinel (reportfraud.ftc.gov)
- State Attorneys General offices in Utah, Nevada, and Texas
- Better Business Bureau
- Consumer Financial Protection Bureau
- State consumer protection divisions
Filing a complaint does not automatically get you money. But complaints collectively build the evidentiary foundation that makes class action suits and regulatory enforcement possible.
Key Takeaway: Thousands of FTC and BBB complaints against My Daily Choice have built a public evidentiary record that directly supports the legal cases filed in 2026.
Who Qualifies for the My Daily Choice Lawsuit?
You likely qualify for the My Daily Choice lawsuit if you paid money to join as a distributor, maintained an autoship account, or purchased products based on income or health claims that turned out to be false.
Qualification is not limited to distributors. Retail customers who bought HempWorx or other MDC products based on specific health claims may also have standing to file a claim.
The key eligibility windows and criteria are still being defined as litigation develops, but general parameters have emerged from attorney filings.
| Eligibility Category | Criteria |
|---|---|
| Former Distributors | Enrolled between 2015 and 2025; paid starter kits or autoship |
| Autoship Customers | Maintained monthly recurring charges; did not receive promised results |
| Retail Customers | Purchased HempWorx or other products based on health or income claims |
| Income Loss Claimants | Can document earnings below what MDC promotional materials implied |
| Product Fraud Claimants | Purchased products based on unapproved medical claims |
You do not need to have filed a complaint already. You need to document your participation, purchases, and losses.
My Daily Choice Distributor Claims: What Former Reps Can Recover
Former My Daily Choice distributors can potentially recover starter kit costs, monthly autoship fees, business expenses, and lost wages based on time invested relative to income earned. These are the categories attorneys are actively building claims around.
Think of it like a contractor who was told a job would pay $60,000 a year but ended up making $800 while spending $2,000 on supplies. The difference between the promise and the reality is what the lawsuit targets.
Recoverable Losses for Distributors:
- Initial enrollment and starter kit fees (typically $50 to $500)
- Monthly autoship charges maintained over the period of enrollment
- Marketing materials, event tickets, and training costs paid to MDC
- Lost opportunity costs where provable
- Potentially punitive damages if fraud is proven at trial
The strongest claims come from distributors who have bank records, receipts, and documented correspondence where MDC made specific income representations that proved false.
My Daily Choice Refund Claims: Can You Get Your Money Back?
Refund claims are a separate track from the broader lawsuit. Many former distributors and customers sought refunds directly from My Daily Choice and were denied or only partially reimbursed. Those denials themselves can form the basis for additional legal claims.
Federal regulations require MLM companies to buy back unsold inventory at a minimum of 90% of the purchase price within a set period. If My Daily Choice denied buyback requests or made the process prohibitively difficult, that is a separate violation.
How Refund Claims Work:
- Document every purchase with receipts or bank statements
- Document any refund request you made and the company’s response
- If denied, that denial is evidence for your attorney
- State consumer protection laws in Nevada and Utah provide additional refund remedies
- Small claims court is an option for individual amounts under $10,000 in most states
You do not need to wait for the class action to resolve to pursue an individual refund claim. Some former distributors have recovered money through state attorney general offices without litigation.
Key Takeaway: Refund claims and class action claims are separate paths. You can pursue both simultaneously, and refund denials by the company strengthen your overall case.
My Daily Choice Victims Payout: How Much Could You Receive?
Payout estimates for My Daily Choice victims are speculative until a settlement is finalized or a court judgment is reached. But looking at comparable MLM class action settlements gives a realistic range.
The Lularoe class action settled in 2021 for $4.75 million. The Vemma pyramid scheme case resulted in a $238 million FTC enforcement action. These cases varied enormously based on company size and cooperation.
My Daily Choice is smaller than those companies, but the number of affected distributors is still substantial.
| Payout Estimate Scenario | Expected Range |
|---|---|
| Small individual refund claim | $100 to $1,500 |
| Class action settlement share (low estimate) | $50 to $300 |
| Class action settlement share (moderate estimate) | $300 to $1,500 |
| Individual lawsuit with documented losses | $1,000 to $10,000+ |
| FTC enforcement redistribution | Depends on total fund size |
The more documentation you have of your actual losses, the higher your individual claim value. People who just participated briefly with small purchases will get less than those who spent thousands over multiple years.
My Daily Choice Settlement: Is There a Deal on the Table?
As of 2026, there is no publicly announced final settlement between My Daily Choice and class action plaintiffs. Settlement discussions are underway in at least one consolidated case, but no court has approved any deal.
This is actually typical for cases at this stage. Most large MLM class actions take three to seven years from initial filing to final settlement approval. The Lularoe case, for example, took years of legal combat before resolving.
What often happens is that a company will negotiate a confidential settlement with early plaintiffs to reduce exposure before a formal class action judgment forces a larger payout.
Settlement Timeline Milestones to Watch:
- Class certification ruling: expected in 2026
- Discovery completion: likely 2026 to 2027
- Mediation attempts: could happen at any point
- Trial date (if no settlement): potentially 2027 to 2028
- Final settlement approval: 2027 at the earliest by most estimates
Do not wait for a settlement announcement to gather your documentation. The claims process always requires paperwork, and having it ready saves time.
My Daily Choice Settlement Amount: Realistic Payout Estimates
The realistic settlement amount for My Daily Choice as a whole will depend on the company’s assets, insurance coverage, cooperation with regulators, and the strength of evidence in discovery.
For individual claimants, the settlement share from a class action is typically smaller than people expect. Most class action settlements spread the total fund across thousands of claimants after attorney fees (typically 25% to 33%) are deducted.
That math matters. A $5 million settlement with 20,000 claimants after attorney fees means roughly $150 to $200 per person on average. Documented high-loss claimants would get more through a tiered distribution system.
| Settlement Tier | Qualifying Losses | Estimated Individual Payout |
|---|---|---|
| Tier 1 (minimal) | Under $500 lost | $50 to $200 |
| Tier 2 (moderate) | $500 to $2,000 lost | $200 to $800 |
| Tier 3 (significant) | $2,000 to $10,000 lost | $800 to $3,000 |
| Tier 4 (major) | Over $10,000 lost | $3,000+ |
An FTC enforcement action could produce a larger fund. In several past cases, FTC-recovered funds were distributed directly to victims at higher per-person amounts than class action settlements.
Key Takeaway: Individual settlement payouts depend heavily on documented losses. Building your financial record now directly increases what you could receive when a settlement is approved.
How to File a Claim Against My Daily Choice
Filing a claim against My Daily Choice in 2026 starts with two parallel actions: gathering your documentation and contacting a consumer protection or class action attorney.
You do not need to pay an attorney upfront. Class action attorneys work on contingency, meaning they only get paid if you win. That fee typically comes out of the settlement itself, not your pocket.
Step-by-Step Filing Process:
- Gather all receipts, bank statements, and credit card records showing payments to MDC
- Save any promotional materials, income claims, or recruitment pitches you received
- Document your actual earnings from the company (download your back-office records if still accessible)
- Write a brief timeline of your experience: when you joined, what you were told, what you actually earned
- File a formal complaint with the FTC at reportfraud.ftc.gov (this is free and takes 10 minutes)
- File a complaint with your state Attorney General’s consumer protection division
- Contact a class action attorney who handles MLM or pyramid scheme cases for a free case review
| Action Item | Who Handles It | Cost to You |
|---|---|---|
| FTC complaint | You file directly | Free |
| State AG complaint | You file directly | Free |
| Attorney consultation | Class action law firm | Free (contingency) |
| Claim form submission | Filed when class is certified | Free |
| Individual state lawsuit | Attorney files on your behalf | Contingency fee |
The sooner you file your FTC complaint, the sooner your experience is part of the formal record. That matters for both regulatory enforcement and class action evidence.
Frequently Asked Questions
What is the My Daily Choice lawsuit about?
The My Daily Choice lawsuit alleges the company operated an illegal pyramid scheme by rewarding distributor recruitment over genuine retail product sales.
Former distributors claim they lost money based on false income promises the company made in its marketing materials.
Related claims cover fraudulent health claims tied to the HempWorx CBD product line.
How do I know if I qualify for the My Daily Choice lawsuit?
You likely qualify if you paid enrollment fees, maintained autoship charges, or purchased MDC products based on income or health claims that were not true.
Both former distributors and retail customers may be eligible, depending on which claims are certified.
Gathering your purchase records and any promotional materials you received is the first step.
How much money can I get from the My Daily Choice settlement?
Most individual claimants can expect between $50 and $3,000, depending on documented losses and which settlement tier they qualify for.
Claimants with significant documented losses may recover more, especially through individual filings separate from the class action.
No final settlement has been approved as of 2026, so exact figures are not confirmed yet.
Has the FTC taken action against My Daily Choice?
The FTC has been actively investigating My Daily Choice since at least 2020 and has received thousands of formal consumer complaints.
No formal enforcement action had been publicly announced at the federal level as of early 2026, but investigative activity is confirmed.
FTC enforcement actions in similar cases have resulted in company bans, refund funds, and civil penalties in the tens of millions of dollars.
What is the deadline to file a claim against My Daily Choice?
No single hard deadline applies to all claims at this stage, since no final class action settlement has been approved.
However, state statutes of limitations for fraud claims typically run three to five years from the date of harm, so waiting too long eliminates your options.
Filing FTC complaints and consulting an attorney as soon as possible protects your ability to participate in any settlement.
What You Should Do Right Now
The My Daily Choice lawsuit is live, active, and moving forward in 2026. If you lost money as a distributor or customer, your window to act is open but not permanent.
Gather every financial record tied to your MDC participation. Bank statements, receipts, back-office screenshots, and any promotional materials count. That paper trail is your ticket to compensation.
File your FTC complaint today. It costs nothing and takes minutes. Then reach out to a class action attorney for a free consultation. The legal work is done for you. Your job is simply to show up with your documentation.
