On Aug. 20, a jury awarded $1,894,000 to a couple who accused a company of violating the Deceptive Trade Practices Act. Bruce and Teresa Badgett worked as independent distributors for AdvoCare International, a multilevel marketing organization for nutritional products, for 10 years until their agreement was terminated in 2006. Shortly before the termination, the Badgetts started a competing business. They claimed their agreement with AdvoCare didn’t contain a covenant not to compete and that the company had led them to believe that they owned the distributorship and could set up a competing business if they wanted to, but then it ended their contract when they did. The Badgetts alleged AdvoCare violated the DTPA through misleading statements and unconscionable conduct. AdvoCare argued it ended the agreement because the Badgetts’ new products used AdvoCare’s formulas and they had targeted AdvoCare’s distributors.
Badgett, et al. v. AdvoCare International LP, No. DC-07-02297
