At the recent U.S. DSA Global Summit, Monica Vaca of the Federal Trade Commission Marketing Practices Division talked about the current regulatory conversation of direct selling companies’ need to meet a demand in the market versus the selling of a product or service purely for reward or some form of compensation. Many distributors in the industry started off consuming the products they sell, and there is nothing wrong with that practice. Yet, that personal consumption of the product cannot be an “excuse” for lack of pure retail sales.
From a public relations functional perspective, the directive is clear—create a greater demand for company product or services. Robust retail programs benefit the company and distributor—PR can create demand and thus create a larger market for distributors to sell products and services and grow their
Tag Archive for FTC
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Vemma Compensation Plan Signed Off By The FTC
by Ted Nuyten • • 0 Comments
According to an email to Vemma’s distributor base a revised compensation plan is in place.
We have reached out the BK Boreyko, CEO Vemma, and he stated the FTC (Federal Trade Commission) signed off the rules.
Basically, 51% of sales has to come from customers, if not, a distributor will not get any bonus. We expect other USA based network marketing companies with similar compensation plans as Vemma had in the past, will implement the 51% rule.
Vemma:
“We appreciate your patience as we have restarted operations and want to give you a quick update on our Compensation Plan.
We have attached a link to the new Compensation Plan as well as the revised Terms and Conditions. These documents are also available at Vemma.com. We expect December 2, 2015 to be the first day
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5 Laws Every Blogger Needs to Know
by Holly - The Work at Home Woman • • 0 Comments
By Sarah Landrum Whether you do it for business reasons or purely pleasure, blogging can be an activity that is extremely empowering, fun and informative. However, it also carries a great deal of responsibility, which is especially true if you are a blogger who has built up a large amount of recognition in your industry […]
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Kevin Thompson – Lessons Learned From The FTC vs Vemma Law Suit
by Ted Nuyten • • 0 Comments
Kevin Thompson, the MLM attrorney, is part of the Vemma’s Legal team, in this write up he shares his knowlege. Stuff to read for corporate executives as for Network Marketing professionals in the USA and those entering the USA market.
This was very interesting to read:
In fact, our guess is that most companies will stand pat and continue to take one of two ignorant approaches. The first is the “that won’t happen to us” approach. The proverbial logic behind this approach goes something like this: the FTC doesn’t pursue many companies; with each passing day, more and more companies invade the industry’s space; therefore, our company won’t be THE COMPANY that serves as the government’s sacrificial lamb.
Kevin Thompson:
“This is Part Two of our series on the Vemma ruling. In Part One of
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Direct Selling Defense Fund Announced
by Ted Nuyten • • 0 Comments
The Direct Selling Defense Fund is trust account by Coppersmith Brockelman and will be used for the legal defense of Vemma vs the FTC.
Cost for legal defense is estimated around $2 million….
Most large law firms in the United States bill between $200 and $1,000 per hour for their lawyers’ time.
The danger for other Network marketing companies is the nature of the attack on Vemma. Vemma have been hit hard on “auto-ship” and “auto-ship commission qualification” a policy that has products automatically shipped to a distributor unless he or she opts out in advance.
Secondly the FTC attacks the binary compensation plan in a recent hearing, there fore the Direct Selling Industry is under attack.
Bob Proctor recently released this video:
If you want to support the industry defense this are the wire
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How To Get Back In Business After A FTC Ambush
by Ted Nuyten • • 0 Comments
A lot is written about the FTC ambush on Vemma. To get back in business after such an attack is a very big challenge.
Vemma’s payment processor bailed out (no balls) and to get back in business in an internet driven industry is not easy. Many payment solution processors see network marketing as a high risk industry. Vemma’s solution is very creative, acccepting orders and payments through an Amazon account.
Personal development coach Bob Proctor has released a video with his support for the Network Marketing industry and Vemma.
Bk Boreyko stated:
“To those of you calling into Home Office and experiencing high volume wait times , I sincerely apologize. We are doing our very best to get these products into your hands given the limitations of our system’s current abilities. If you’re upset, I
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Vemma Europe In Liquidation – Will Be Rebuilt
by Ted Nuyten • • 0 Comments
Vemma Europe, a joint venture based in Ierland and operated through Poland is in liquidation.
BK Boreyko, one of the owners voted against the liquidation however was outnumbered by his european partners.
According to an email to the european customers and distributors it will be rebuilt.
Bk Boreyko, CEO Vemma:
“I’m sorry I haven’t been in more communication with you during these past several weeks. With the recent challenges here in the US, the team has been focused on getting these operations restored and relaunching the US market. That work is almost complete.
Now our focus is on the European market. The decision was made to place the company into liquidation. I apologize for not being able to step in and take over operations, but the pressing challenges the US market required me to focus all
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Vemma Back In Business In The USA
by Ted Nuyten • • 0 Comments
According to an email from CEO and founder BK Boreyko Vemma is back in business in the USA.
Operations in the rest of the world most likely will take longer to start up.
BK Boreyko:
“We apoloize for the delays you’ve experienced and we feel terrible that you’ve had to go without your favorite Vemma brands for this long. As of today, we’re able to process your orders manually over the phone and by fax.
It’s like 1995 over here, but the energy and excitement is at an all-time high! I apologize in advance for the hold times; we’ve got all of the team answering the phones. The first two days of sales have been incredible, it’s really a blessing to be able to serve you all again.
You can now go to Vemma.com to
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Education Conference For Direct Selling Company Owners And Executives
by Ramya Chandrasekaran • • 0 Comments
The 12th Direct Selling Edge Conference hosted by Kevin Thompson of ThompsonBurton PLLC and Jay Leisner of Sylvina Consulting will be held in Fort Worth, TX on October 5 and 6, 2015.
Direct sales industry attorney Kevin Thompson and sales compensation consultant Jay Leisner are hosting this two-day school for direct selling company executives at the Radisson Hotel Fort Worth Fossil Creek in Fort Worth.
Direct sales company owners and executives from around the world will be in attendance.
Individual tickets are $250 each, but a company can bring up to 4 people for a total cost of only $300. Additional team members are only $75 each. Tickets can be purchased online at www.dsedge.com.
The Direct Selling Edge faculty includes 10 speakers who are foremost experts in their respective fields. In all, there are 14 educational sessions
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What All MLM’s Need To Take Away From The Vemma VS FTC Case
by Tina Williams • • 0 Comments
The results came in from Judge Tuchi regarding the Vemma hearing this week and it was met, not surprisingly, with an array of comments — mostly people misreading the information. While the ruling was far from victorious in this case, it can certainly be victorious for the network marketing industry if taken seriously. The largest component in MLM in the past has been the recruiting tactics involve in building a team, mostly met with animosity from the outside world. This was prevalent in the hearing on Tuesday when incentives, the 70/30 rule, autoship, and income claims were mentioned time and time again.
Will companies take this seriously and overhaul their approach? If so, who will be first? Some changes the FTC would most like to see, based on their testimony is the following;
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