In August 2015 the Federal Trade Commission (FTC) – an USA Government institution – hit Vemma with full power, many agents entered the head office in Phoenix, Arizona on a monday morning. A raid.
Bank accounts and credit cards were seized, 150+ employees were fired within a couple of hours, and a receiver took over.
A $180 million company was ruined, Vemma’s world wide distribution channel burned to the ground.
It was a direct attack on the MLM – network marketing industry.
The allegations: illegal pyramid scheme, income claims, failure to disclose, means and instrumentalities, relief defendent.
The FTC was granted a court order, to freeze the company’s and CEO B.K. Boreyko’s assets, as well as a temporary restraining order.
“Defendants are running a global pyramid scheme that has likely victimized hundreds of thousands or millions
Tag Archive for FTC
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Consumer Watchdog TINA Going After Plexus Worldwide
by Ted Nuyten • • 0 Comments
TINA.org is a non-profit organization that uses investigative journalism, education, and advocacy to empower consumers to protect themselves against false advertising and deceptive marketing.
The organization has triggered in the past FTC investigations. According to their below press release, Plexus could be a target.
TINA:
Plexus Worldwide, an Arizona-based multilevel marketing (MLM) company that markets nutritional supplements, weight-loss, and personal care products, calls itself the “health and happiness” company that offers life-changing financial freedom for recruits.
But an investigation by ad watchdog truthinadvertising.org (TINA.org) has found issues that could put a darker spin on the meaning of life-changing.
Here’s what you should know about Plexus:
1. Unsubstantiated Health Claims
Despite a previous FDA warning, TINA.org found more than 100 unsubstantiated health claims marketing Plexus products for everything from depression to cancer to Lyme disease.
2. Breast Chek Recheck
Though Plexus’ Breast Chek
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Direct Selling Institute Forum – Shaping the Future of Direct Selling
by Ted Nuyten • • 0 Comments
The Direct Selling Institute is made up of direct selling executives, professional field leaders and industry experts who are working together in myriad disciplines to address the common challenges that impact the entire industry.
In light of the presidential election, changes in Congress and recent FTC enforcement activity, The Direct Selling Institute is gathering key direct selling stakeholders for high-level discussions to forge a blueprint and strategy for the future of direct selling on Sunday 20 and Monday 21 November.
Shaping the Future of Direct Selling Forum will take place at the Zermatt Conference Resort and Learning Center in Midway, Utah two weeks following the U.S. presidential election.
A Proactive Response to the FTC and the New Regulatory Landscape
The Direct Selling Institute has assembled some of Washington’s most influential and experienced insiders and direct selling
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Vemma Reaches Settlement Agreement With The FTC
by Ted Nuyten • • 0 Comments
Vemma, as top distributors Tom and Bethany Alkazin have reached a settlement with the FTC in the case the agency filed more than a year ago.
While details of the settlement have not yet been disclosed, court documents state that the company and its CEO BK Boreyko as top distributors Tom and Bethany Alkazin have agreed to a permanent injunction and monetary judgement.
As legal costs mounted to well over $1 million, Vemma and Boreyko had an additional court battle with their insurance company Hanover.
In April, Hanover Insurance filed a complaint against Vemma and Boreyko seeking a court declaration that it was not required to pay the legal costs because, the insurer contended, it was not properly notified about previous allegations that arose years earlier.
While the court held in July that pending the
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Top Executive Speaks Out On State Of The USA Network Marketing Industry
by Ted Nuyten • • 0 Comments
Justin Serra is the General Manager of North America and serves on the global executive team for Modere.
Justin:
“While no one can debate that the USA network marketing industry is changing, the debate continues on about what the changes will bring.
Given the size of the industry only a very small fraction of companies have been directly affected by regulators, yet many companies are nervous it could be just the beginning. Based on the precedence recent actions have set, the industry, as a whole, may have serious reason to be nervous.
Given the respected and well run companies that have been recent targets of the FTC, company owners and field leaders know it’s just a game of Russian Roulette to who could be next.
This article is not to debate the politics of why the FTC
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Xango Pops Up On The FTC Radar
by Ted Nuyten • • 0 Comments
The FTC is a USA government organization, their mission:
“To prevent business practices that are anticompetitive or deceptive or unfair to consumers; to enhance informed consumer choice and public understanding of the competitive process; and to accomplish this without unduly burdening legitimate business activity.”
One of the results of the FTC battle against Vemma, is their case against Tom Alkazin, Vemma’s nr. 1 top earner.
In the latest filing from the FTC vs. Tom Alkazin, Utah based direct Selling Company Xango pops up.
Xango, founded in 2002 is a B classified company by Business For Home.
A number of Vemma top leaders joined Xango in October – November 2015 and the company introduced a initiative simular to the YPR (Young People Revolution) program of Vemma. That program was one of the triggers of the FTC case
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Herbalife And The FTC Reach Settlement Agreement
by Ted Nuyten • • 0 Comments
Settlement Does Not Change Herbalife’s Business Model as a Direct Selling Company.
Herbalife Board of Directors Frees Carl Icahn to Acquire Up to 34.99% of the Company’s Outstanding Common Shares.
Global nutrition company Herbalife Ltd. (NYSE: HLF) (“Herbalife” or “the Company”) announced it has reached a settlement agreement with the Federal Trade Commission (“FTC” or the “Commission”) resolving the FTC’s multi-year investigation of the Company. The terms of the settlement do not change Herbalife’s business model as a direct selling company and set new standards for the industry. With the settlement agreement announced today, the FTC’s investigation of Herbalife is complete.
Herbalife and the Illinois Attorney General also reached a settlement, and the Company agreed to pay $3 million as part of this separate agreement. With the conclusion of the Illinois investigation, the Company is
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USA – FTC vs Network Marketing Industry: Defense Fund Formed
by Ted Nuyten • • 0 Comments
Network Marketing Icon Richard Bliss Brooke has taken the initiative to launch a Defense Fund as the FTC (Federal Trade Commission) attack on Vemma is considered by many as an attack on the Network Marketing industry and the FTC has very deep pockets….
Richard Bliss Brooke:
This letter is an industry wide call to action: a call to arms if you will.
Obviously we all need to take a hard look at our business practices and make the customer the king. But what we need to do right now as well is ensure that Vemma prevails in its case with the FTC on the issues that the FTC has taken the liberty to get totally wrong… like “who should be considered a customer” and due process vs. a police state.
“One of our own” deserves
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Vemma vs FTC – $2 Million in Sales Despite Major Challenges
by Ted Nuyten • • 0 Comments
In Network Marketing “Never Quit” is an often used saying, if one person proves to be King of “Never quit” it is Vemma’s CEO BK Boreyko.
Vemma Nutrition Company and Vemma International Holdings, Inc. (Vemma) has submitted on 15 december a quarterly report to the judge describing Vemma’s business operations over the past three months.
Respect for CEO and Founder BK Boreyko as he stated in the report:
“Vemma believes that it is successfully working through the backlog of issues created by the Receiver’s shutdown of the business, and will be able to operate in a profitable manner.
Although few companies have recovered from an ex parte asset freeze and the appointment of a Receiver, Vemma is proving to be the exception based on customer loyalty and demand for its innovative nutritional products”.
Since Vemma resumed
Hot Business News Today
Vemma vs FTC – $2 Million in Sales Despite Major Challenges
by Ted Nuyten • • 0 Comments
In Network Marketing “Never Quit” is an often used saying, if one person proves to be King of “Never quit” it is Vemma’s CEO BK Boreyko.
Vemma Nutrition Company and Vemma International Holdings, Inc. (Vemma) has submitted on 15 december a quarterly report to the judge describing Vemma’s business operations over the past three months.
Respect for CEO and Founder BK Boreyko as he stated in the report:
“Vemma believes that it is successfully working through the backlog of issues created by the Receiver’s shutdown of the business, and will be able to operate in a profitable manner.
Although few companies have recovered from an ex parte asset freeze and the appointment of a Receiver, Vemma is proving to be the exception based on customer loyalty and demand for its innovative nutritional products”.
Since Vemma resumed