A hearing was held in Phoenix, Arizona today as the FTC had its showdown with Vemma, a Tempe based nutrition company. The accusations against Vemma by the FTC were that it is an illegal pyramid scheme that rewards affiliates for recruiting participants rather than for selling products, that the defendants provide affiliates little guidance for selling products but instead teach them to give away products as samples when recruiting new participants.
In addition to allegedly running an illegal pyramid scheme, the defendants are charged with making false earnings claims, failing to disclose that Vemma’s structure ensures that most people who join will not earn substantial income, and furnishing affiliates with false and misleading materials to recruit others.
The hearing opened with Dr. Stacie Bosley: Dr. Stacie Bosley, who holds a BBA in Finance from the University