Tag Archive for MLM Lawsuits

Rodan And Fields Sues Proctor and Gamble

According to Legal Newsline, an Internet-based newswire dedicated to 24/7 coverage of state supreme courts and state attorneys general:
Rodan and Fields alleges the maker of Olay is attempting to “stifle” its truthful advertising regarding a product.
Rodan & Fields LLC filed a complaint on March 20 in the U.S. District Court for the Northern District of California against The Procter & Gamble Co. citing the Lanham Act.
According to the complaint, the plaintiff alleges that in October 2017 after introducing its anti-aging skin care products, the defendant allegedly commenced a campaign to prevent the plaintiff from making “truthful claims” about the plaintiff’s Intensive Renewing Serum product.
The plaintiff alleges the defendant sent it a cease in desist letter in December 2017 over allegations the plaintiff’s website, YouTube videos, and R&F consultant social media posts “contain false and misleading claims regarding the efficacy of the product and the ingredient retinal.”
The suit states the defendant filed a challenge against the plaintiff with the National Advertising Division of the Council of Better Business Bureaus in February over allegations of false advertising.
“Unless and until Rodan & Fields’ advertising is declared permissible under United States law, Rodan & Fields’ ability to inform consumers about the truthful properties of its Intensive

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Kannaway Products Banned In Belgium

According to an article in Belgium online newspaper HLN,
Kannaway Products are banned in Belgium as Cannabis Oil is illegal.
“Whoever sells the products on the basis of cannabis oil, risks a hefty fine or even cell punishment”.
From the article:
Both the FAMHP (the agency that oversees the sale of medicines) and the FASFC (the food safety agency) confirm that it is forbidden to sell cannabis oil.
However, the representatives of Kannaway use the confusion surrounding the term ‘cannabis oil’ to promote their business.
You can get oil from the cannabis plant in two ways. You can either focus on the active ingredient cannabidiol (CBD) or on tetrahydrocannabinol (THC).
The last one is what makes cannabis a drug. “CBD is, however, an innocent substance”, it says on the Belgian website of Kannaway.
It is true that CBD does not have the same effect as THC, but that does not make it less illegal according to Belgian law.
“In addition, Kannaway makes therapeutic claims on its website,” says Ann Eeckhout of the FAMHP.
“A producer who does that must register his product as a medicine.” Even as a food supplement, it violates the rules. ”
The products based on CBD oil that Kannaway offers are so-called ‘novel foods’”, explains Katrien Stragier

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FTC Hits Digital Altitude – Aspire With A Temporary Restraining Order

According to their website:
“Digital Altitude teach digital entrepreneurs how to start and grow a profitable online business with our unique coaching products and world class live events.”
“You want to start an online business… But you don’t know where to start. Want to learn to turn your Passion into Profits? Or maybe you have already started one and don’t know what to do next.
 
In Aspire, you will gain access to resources that will set you on the right track.”
The FTC:
At the Federal Trade Commission’s request, a federal court has temporarily halted an operation that took more than $14 million from consumers seeking to start their own online business.
The operation misrepresented that its purported business coaching program would enable consumers to earn substantial income, such as “six figures in 90 days or less.”
According to the FTC, the defendants induced consumers to pay for a series of tiered memberships with increasing fees, falsely claiming that consumers would learn how to make substantial income with an online business.
They promised consumers they would receive individualized coaching from successful marketers that would provide what they needed to build a successful business, but, in reality, these were merely salespeople selling higher membership levels in the defendants’

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OneCoin Official Statement Regarding Publications About Exposed Criminal Group Related To OneCoin cryptocurrency

 
January 22, 2018
The OneCoin company would like to officially state that the multiple recent media announcements about an exposed criminal group, engaged in money laundering using the OneCoin cryptocurrency, are untrue and are misleading the public.
The OneCoin company believes that all the above media allegations are the result of a well organized, purposeful campaign, aiming to damage our corporate reputation and destroy our business.
Let it be clear to the public that the company has never been involved in criminal or illegal activities in any country or territory of operations, including in the Republic of Bulgaria. The company and its partners have always openly declared their willingness to cooperate with regulators, governmental organizations and media, and provide any information that would be useful in clarifying any confusion or suspicion, related to their business activities.
Therefore, we have been extremely surprised that we were never approached and asked for clarification, including by any media outlet worldwide, as expected by media striving for journalistic professionalism, fairness and objectivity. A point that we could all agree on is that media is essential to and should be the pillar of a healthy democracy.
The fact that during the past couple of days we are witnessing completely the

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Lyoness and Lyconet A Pyramid Scheme In Norway

The Lottery Authority in Norway is a government agency responsible for illegal marketing, illegal gaming and pyramids.
The next letter is send to Lyoness, and underlaying divisions: Lyconet and CashBack World (Google translation):
Notification of decision sent to Lyoness.
On 11 January 2018, the Lottery Authority has sent notice of a decision to terminate Lyoness’s operations in Norway.
Notification of decision sent to Lyoness Notification of decision is addressed to Lyoness Europe AG and Lyoness Norway AS, but will also include 150,000 Norwegian participants and 1,000 loyalty companies included in the Lyoness sales system in Norway.
Illegal pyramid-like sales system
Based on the number of received tips in 2016 and 2017 and the content of these foundations, the Lottery Authority has assessed whether Lyoness is an illegal pyramid-like sales system pursuant to section 16, second paragraph, of the Lottery Act.
In the assessment, we have assumed that revenues from Lyoness’s business in Norway are mainly from the acquisition of participants, and not from sales or consumption of goods, services or other benefits.
Lottery Authority’s conclusion
In the notice of decision, the Lottery Authority concludes that Lyoness’s business in Norway is an illegal pyramid-like sales system pursuant to section 16, second paragraph, of the Lottery Act.
We have paid particular attention

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Bulgarian Prosecutors Join In Anti-Money Laundering Operation Against OneCoin

According to an article in the Sofia Globe, a Bulgarian newspaper:
Bulgaria’s Special Prosecutor’s Office said on January 19 that it was involved in an international operation to neutralise a large-scale pyramid structure involving commercial fraud, multi-level marketing and money laundering through the creation and distribution of OneCoin.
OneCoin, which has an office in Sofia, describes itself as a virtual currency. In September 2016, it was the subject of a warning by the UK Financial Conduct Authority.
A statement by the Prosecutor’s Office said that prosecutors and investigators from the Special Prosecutor’s investigation unit, as well as officers from Bulgaria’s directorate against organised crime and the State Agency for National Security, were involved in the international investigation.
This was on the basis of an international legal assistance order from the Prosecutor’s Office in the German city of Bielefeld (North Rhine-Westphalia) which had arrived in October 2017.

Representatives of Eurojust and Europol are actively involved in the execution of the court order, the Prosecutor’s Office said.

Bielefeld prosecutors had asked the Bulgarian authorities to carry out specific procedural and investigative actions on the territory of Bulgaria vis-à-vis the Bulgarian company “One Network Services” EOOD and its affiliates, including two Bulgarian women with German citizenship.
Investigators had identified the

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USI-Tech Hit By Emergency Cease And Desist Order In The USA

USI-Tech Limited (USI) claims to be an online Forex and Bitcoin trading platform provider, located in Dubai, United Arab Emirates.
Co-founders of USI -Tech are Mike Kiefer, Ralf Gold and Horst Jicha.
Texas Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order Dec. 20 against USI-Tech Limited, an overseas firm that is promising low-risk, triple-digit returns from investments tied to Bitcoin mining.
The enforcement staff of the State Securities Board presented evidence to the Securities Commissioner that USI-Tech, based in Dubai, and two U.S.-based sales agents are soliciting investors in dozens of Texas cities through targeted craigslist advertisements, YouTube videos, and standalone websites.
Neither USI-Tech nor the sales agents, Clifford Thomas of Suitland, Md., and Michael Rivera of Los Angeles, are registered to sell securities in Texas. The investment also is not registered in Texas.
The company and agents are offering for sale an investment contract in the mining of bitcoin. Mining uses significant amounts of computing power — and electricity consumption — to generate bitcoins for the decentralized online ledger that records and verifies bitcoin transactions.
The agents’ websites claim the mining investment “derives its value from [USI-Tech’s] non-exclusive interest in a series of Bitcoin mining contracts.” They promise a daily return of 1%.
The USI-Tech

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Market America Terminates Distributors For Selling On Amazon

According the Haley Thompson, journalist for online magazine Chronicle of Week,  Market America stated as follows:
“For the corporate leadership team, it’s of high importance to keep the Market America UnFranchise system intact. By doing so, they can ensure that the rest of us still have a valuable and indispensable way to make money.
The Market America UnFranchise system, unlike other franchise systems, is product-oriented. So you’re not solely going to be recruiting others to make some substantial money. You’re going to be moving product. Other systems fail to account for the actual product, but Market America gives you the tools and the platform for product selling.
Part of the integrity of the system lies in how exclusive the Market America products are. That’s to say, Market America’s goal it to sell its exclusive products only on approved websites and through approved avenues. At the moment, there are rules in place that require Market America UnFranchise owners to sell products only through the approved methods. That means that UnFranchise owners can’t sell these exclusive products outside of shop.com and the system.
As UnFranchise owners will know, following the Market America system is the key to making money. So when you don’t follow the rules, you

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LuLaRoe Hit By A Class Action Law Suit Accused To Be A Pyramid Scheme

According to an article in Business Insider:
Direct sales clothing brand LuLaRoe is no stranger to controversy. From torn leggings to salespeople who claim they were encouraged to incur massive debt, the company has struggled to maintain its emphasis on community and self-empowerment during a period of massive growth.
LuLaRoe is now facing a class-action lawsuit that alleges it misled its salespeople in what the plaintiffs are calling a “pyramid scheme.”
The suit, which has four plaintiffs from across the US, alleges that the company deceived salespeople — who are called “consultants” — by telling them they could return unsold inventory for a full refund if they decided to leave the company.
A sudden change to the policy in September lowered the promised refund from 100% to 90% of purchased inventory, with additional restrictions. According to Yahoo, many consultants said that they felt comfortable joining the company because of the buyback guarantee, thinking that they wouldn’t face financial stress if they weren’t able to sell as much clothing as they had hoped.
The plaintiffs allege that in changing the rule, the company misled consultants who thought they would still be able to sell clothing with the 100% buyback guarantee.
The suit was filed on October 13 in the US

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Herbalife Is corrupt, Circle Of Success Events Are Useless, Lawsuit Claims

As published in Legal NewsLine:
Calling Herbalife a “corrupt organization of individuals,” several plaintiffs have filed a class action lawsuit over allegations that the multi-level marketing company’s Circle of Success events are “valueless.”
Jeff Rodgers, Patricia Rodgers, Michael Lavigne, Jennifer Lavigne, et al., individually and on behalf of all others similarly situated, filed a complaint on Sept. 18 in the U.S. District Court for the Southern District of Florida against Herbalife LTD.;
Herbalife International Inc.; Herbalife International of America Inc., et al. alleging that the defendants violated the Florida Deceptive and Unfair Trade Practices Act, unjust enrichment and other counts.
According to the complaint, the plaintiffs allege that defendants’ Circle of Success events are held each month in dozens of locations across the country and range in size from 200 to 20,000 attendees.
Plaintiffs claim that they have spent thousands of dollars attending these events but received no benefit from doing so despite defendants’ continued guarantee of significant income, a better lifestyle and even happiness by attending.
They allege the defendants use “misrepresentation and deceit” to sell the “emotionally manipulative” events, the suit states.
The suit states
“the events are pitched as a guaranteed pathway to attaining life-changing financial success” and that participants are told to attend every

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