What Price for the King of Oils?

EXPLOITATION AND ABUSE IN DOTERRA’S FRANKINCENSE SUPPLY CHAIN

In 2020, Horn of Africa Charity Organisation (HOACO) began an inquiry into wage theft in the frankincense industry in Somaliland and harm to rare frankincense forests, and engaged Corporate Accountability Lab (CAL) in 2021. The trail led to a U.S.-based essential oil company and allegations indicative of a far-reaching and diverse criminal enterprise, including theft, egregious labor violations, bribery, sex trafficking, and rape or assault of hundreds of women and girls.

This report describes those allegations and CAL’s and HOACO’s recommendations for how doTERRA, the U.S.-based essential oil company that purchased scandal-tainted frankincense from Somaliland for an extended period of time, should proceed.

Around 2015, a Somali-UK national, Barkhad Hassan, returned from the UK to Somaliland and formed a frankincense sourcing company, Asli Maydi. At that same time, doTERRA, a Utah-based essential oils company, was seeking new markets from which to buy frankincense resin. These two companies formed a partnership that provided Hassan the financial means to grow Asli Maydi quickly. While seeking to push out other suppliers through threats and intimidation, Hassan made harvesters grand promises that a large U.S. company would buy – and pay above-market prices for – as much resin as harvesters could produce.

Years after many of these allegations were reported internally, doTERRA retained the international law firm Sidley Austin LLP (Sidley Austin) to conduct an investigation. It quickly became evident that information shared in the investigation was not secure and had even been accessed by Hassan, a lead perpetrator, leading to some survivors facing violent threats and leaving many others who agreed to interviews fearful for their security.

On November 1, 2024, US Customs and Border Protection issued a Withhold Release Order against frankincense and frankincense-based products imported into the United States from Somalia by Asli Maydi Exports & Imports Company. This WRO comes after CBP found five indicators of forced labor within this supply chain: deception, withholding of wages, abusive working conditions, threats and intimidation, and physical violence.