Tag Archive for FTC

Vemma Ruling In – Judge Makes Profound Decision

 
After the Vemma hearing that was held this Tuesday, the judge took his 3 days to make a decision. Essentially, the injunction was granted in part and denied in part.

Tom Alkazin argues that the FTC has not met its burden to show he is liable under the FTC Act for Vemma’s operation of a pyramid scheme, and the Court agrees. Accordingly, the Court denies the FTC’s request for a preliminary injunction against Mr. Alkazin with regard to the operation of an illegal pyramid scheme.
An asset freeze was not warranted by the court due to the fact that the FTC did not provide adequate documentation that Vemma would be deceptive and this would be required. 
A receivor has no longer been granted

The Court is mindful that allowing the Corporate Defendants to resume operation of their business and unfreezing associated

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Doug Wead: “FTC Declares War On Direct Sales Businesses”

 
Doug Wead is a presidential historian who served as a senior adviser to the Ron Paul presidential campaign. He is a New York Times best-selling author, philanthropist, and adviser to two presidents, including President George H.W. Bush, with whom he co-authored the book “Man of Integrity.”
On 11 september he published the next article:
“The Arizona direct sales company Vemma was recently hit by the FTC and virtually shut down without a judge, jury, or trial. The income of thousands, including single mothers, housewives, young businessmen, retirees, and disabled veterans has been instantly blocked by the government agency.
Nobody will be paid, no matter what they have sold or what work of a lifetime they have done.
Ominously, among the reasons the FTC gave for its action, are methods that are employed by almost all other

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FTC Answer On Pyramid Definition: “I Have Nothing For You”

 
New York Times reporter Joe Nocera published the next story under the title “The Pyramid Scheme Problem”:
“I have nothing for you,” said Frank Dorman, a spokesman for the Federal Trade Commission. “Lots of reporters have asked that question. Our final response is, We’re not going to answer it.”
What had I asked that was so sensitive that the F.T.C. wouldn’t respond? I had requested that the agency explain what distinguished an illegal “pyramid scheme” from a legal multilevel marketing company.
What had prompted my question were two recent events. In late August, the F.T.C. had gotten an injunction issued against a multilevel marketing company called Vemma Nutrition, claiming it was in fact a pyramid scheme.
And last week, Fortune magazine published a lengthy story by Roger Parloff about William Ackman’s nearly three-year battle to force

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Judgement Day For Vemma – Exclusive Reporting

 
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

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Vemma Top Earners Might Face Clawbacks

 
According to an article in the New York Post, Vemma top distributors might face threads of claw backs if the FTC wins the case.
The New York Post:
“A former top distributor for Vemma may have to fork over millions of dollars in earnings after regulators accused the energy drink maker of running a pyramid scheme that preyed on college students, legal experts told The Post.
Anthony Powell, a top distributor who left Vemma two months ago, was singled out in a report filed last week detailing the alleged scheme. He was a major player in the multilevel marketing company, which the Federal Trade Commission temporarily halted late last month pending the outcome of a Sept. 15 court hearing.
The report, from the temporary receiver appointed to oversee the company, found that 42 percent of the

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Tips From BBB To Identify Pyramid Schemes

 
Cookware, makeup, lotions and potions, supplements, candles, essential oils, jewelry and the list goes on. All are products sold by companies whose business models include sales via word of mouth and home-based parties.
If you attend the party, you’ll be invited to join the company and to join the thousands — maybe even millions! — of others who found financial freedom as a company consultant.
But you may be wondering how multi-level marketing companies, which are legal, are different from pyramid schemes, which are not. Here’s the answer: If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s not. Instead, it’s a pyramid

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Is Your Company FTC Bullet Proof?

 
They come in without a warning. Monday your company is in business and by Tuesday morning the FTC (Federal Trade Commission, an US based organization) seizes the company assets and closes down the business while sending an email out to your wordwide customer database with one push of a button;
“After the Federal Trade Commission filed a complaint against the company, the U.S. District Court issued a Temporary Restaining Order, a temporary receiver (a court appointed lawyer) will takes over control.”
– It’s a head-shot wound — maybe fatal, maybe the accused will survive, crippled at least..
Why? Because your company is in the Direct Selling Industry and therefore gets special attention by many regulators worldwide. One of the challenges in the Network Marketing / Multi Level Marketing industry is the Retail Sales versus Distributor Sales, internal consumption, what

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FTC – Receiver Email To The Vemma Database – An Abuse Of Government Power?

 
Whatever happened in the USA with “innocent till proven guilty?”
When the Vemma receiver (the court appointed lawyer) sends out a copy of the FTC lawsuit to hundred thousands of active customers and affiliates around the world, 12 years of the company networking efforts gets blown up with ONE push of the send button. All this before Vemma gets to stand in front of a judge.
Below email was send out in the name of Vemma Corporate, which confused many people, thinking BK Boreyko and the corporate team has done so.
Unbelievable an USA government agency can come into your office, and send a massive email out on your behalf, around the world, without telling customers, not Vemma is doing so, but the FTC – receiver. I call this abuse of government power. I am

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Vemma Customer Victims – Where Are They?

 
According to the Federal Trade Commission (FTC) in the USA:
“Defendants (Vemma) are running a global pyramid scheme that has likely victimized hundreds of thousands or millions of consumers”.
We at Business for Home are pretty familar with Vemma since year 2006. We have searched intensive for “hundrerd thousands of Vemma Consumer Victims” however can NOT find them at all.
Not under our 4 -5 million annual visitors, not under our 45,000 Facebook Business page fans….
Massive customer complaints about the products? Sure there would be some, however “Victimized hundreds of thousands or millions of customers?” 
That is a FTC statement which that agency can NOT prove, and is mispresenting the case “Pur Sang”.
What we have noticed are many satisfied customers who are running low on the product and are looking for a way

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The Direct Selling Association – No Backbone When You Are Under Sieg

 
According to the Direct Selling Organisation (DSA) website: “DSA’s services to members are designed to meet the needs of one person critical to the industry’s growth and future success — you — the direct selling executive.
In addition, DSA’s portfolio of services includes offerings to meet the needs of your company, your staff specialists and your people in the field.”
Earlier Avon cancelled their DSA membership and more companies are reviewing their membership.
If there is one case in which the DSA could have been of added value then it is in the Vemma – FTC Case. Earlier DSA President Joe Mariano said:
“Receiving a DSA ETHOS Award is a testament to the commitment a company (Vemma) has made to being a model for the highest standards in business practices and ethics,”
However last week the

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