Neways has been rebranded as Modere. In 2013, Neways was purchased by Z Capital Corporation and went through some restructuring and changes. For more up to date information on this company, see our review for Modere.

Neways was established in 1987 and creates nutritional, personal care, and household products. Their goal is to create healthy and environmentally safe homes that are free from exposure to ingredients that are potentially harmful. Neways is a direct sales network-marketing company in the health and wellness industry that operates in over 30 countries. Neways formulates, manufactures, and distributes all of its products in their own facilities. The company's corporate headquarters are situated in Springville, Utah and owns ten additional offices around the world.

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The Good

  • Safe ingredients
  • Scientific Advisory Board
  • Low signup cost
  • Commissions

Safe Ingredients

Neways claims to use safe ingredients in all their products. Neways scientists constantly evaluate ingredients and look for certain items that can cause acute toxicity in animals and humans. They also look for things that might cause skin and mucous membrane irritation, allergic reactions, or that may be potentially carcinogenic.

Neways is very selective in choosing who it works with during the manufacturing process. All suppliers must comply with high quality standards set forth by the Food and Drug Administration. Neways requires all raw material suppliers to submit the following information before Neways chooses to work with them:

  • Standard Operating Procedures
  • Confirmation of Implementation of Procedures
  • Good Manufacturing Practices
  • Analytical Testing Methods
  • Confirmation of Stability
  • Confirmation of Shelf Life
  • Disclosure of Excipients
  • Certificates of Analysis

Scientific Advisory Board

Neways states on its company website that certain ingredients are never used in their product lines. Personal care items never contain DEA, TEA, talc, sodium laurel sulfate, or phthalates. Nutritional products are tested for microbes, pesticides, and heavy metals.  The company employs a team of scientists and academic researchers on the Scientific Advisory Board to advise management on health and safety matters for the general public and to keep their products safe and effective for use.

Low Signup Cost

The cost to become a Neways independent distributor is relatively low. You can sign up for $19.95 for one year and renew yearly for $23. New distributors are provided sponsors to help them grow their businesses. The company also provides ample sales and marketing resources and training materials.

Commissions

You get paid to shop. There are over 200 products in the Neways health and wellness product line for you and those you refer to choose from. Refer three people who also get three people each in order to build your downline and start making significant money. When each person transfer-buys $150 in product purchases per month, you earn 10 percent commission four levels deep and 5 percent on two levels deeper than that.

The Bad

  • Rebranding
  • Unethical practices
  • Tax evasion

No Longer Neways

The company is no longer legally known as Neways International. The company rebranded itself in 2013 as Modere when it was purchased by Z Capital Corporation. The rebranding involved new ownership, growth strategies, and pricing structures. The company also undertook a new business model and compensation plan. However, the company website still appears outdated and it is difficult to locate detailed information regarding the business opportunity.

This was the second change of ownership in the company's history. It was also sold to Golden Gate Capital in 2006 who just recently sold the company to Z Capital.  Yet with all the work involved in the restructuring, this information is not officially disclosed as public knowledge on the company website or marketing materials.

Unethical Practices

The company does not have a good history when it comes to ethical practices. The company had to recall a weight loss product in 1993 when it was discovered to contain a large dose of the prescription diuretic furosemide. The company was also convicted on criminal charges in 2004 for distribution of a product containing human growth hormone. In 2008, the Neways subsidiary in Japan had to suspend new distributor signups. It was ordered by the Japanese government after distributors were caught lying about competitors' products and saying they would cause deadly diseases if consumers used them.

Tax Evasion

The founders of the company were convicted of tax evasion in 2005. Thomas and Leslie Mower attempted to conceal over $4 million in income. Thomas also created a false loan document and made false statement to agents of the Internal Revenue Service. Thomas was sentenced to serve 33 months in prison plus 3 years supervised release and ordered to pay $75,000 in fines as well as court costs. Leslie was given a shorter sentencing of 27 months with 3 years supervised release and a $60,000 fine.

Requirements

Maintaining the requirements involved in earning commissions and incentives may be difficult for new business owners. Neways independent distributors must maintain 100 PV monthly as well as 500 GV through three levels of recruitment. This can take a while to develop and may be frustrating for those looking to generate an immediate significant income.

The Bottom Line

Based on the legal troubles and lack of transparency to the general public, we do not recommend Neways as a legitimate health and wellness business opportunity at this time. Consumers may find a better opportunity elsewhere. It is difficult to place trust in a company where the founders committed tax evasion, criminal charges were filed for illegal prescription distribution, and distributors are caught in unethical business practices. The new ownership may help the company to turn things around in a positive direction; but it is too early to tell yet for sure. Consumers are advised to proceed with caution. Always do extensive research and make sure it is the right fit for you before investing in any multi-level marketing or direct sales company.

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