Q:

Is Xocai a scam?

A:

Quick Answer

Xocai is a product line claimed by Business Opportunity Watch to be a two-part scam. First, the parent company MXI employs a pyramid-like multi-level marketing scheme through which distributors find it almost impossible to make a profit. Second, products touted as weight-loss anti-oxidants are loaded with sugar and fat.

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Full Answer

Would-be distributors must pay an initial membership fee, then climb a 13-step company ladder, and create two comparable work teams before receiving any commissions. A monthly purchase of one case of chocolate is mandatory.

The company’s health-enhancing claims for its products include a chocolate more nutritious similar products from its rivals, which also has high fiber, cholesterol-balancing properties, appetite suppressors and cell rejuvenation capacity, among others.

The five Xocai chocolate products, one in liquid form, contain no organic ingredients and use Splenda, a suspect sweetener, in place of sugar. Analysis of the Xocai Omega Squares shows a composition of 33 percent fat and 24 percent sweetener, similar to that of Power Squares.

These products are not cheap. In 2015, Xocai.com sells 24 cans of Xe Energy Drink for about $90. A 90-piece box of Chocolate Nuggets retails at $150 on Amazon.com. Such high prices are linked to the commission system. Distributors must receive their commissions and be paid the Executive Generation Bonus, sometimes topping out at 50 percent.

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