According to an article in Forbes, Herbalife Paid a $200 Million Fine and then the FTC screwed it up:
Three weeks ago, on Jan. 10, the Federal Trade Commission announced what sounded like great news for people who had lost money with Herbalife, the multi-level marketer of weight-loss shakes and nutritional supplements: Their checks were in the mail.
It was the final outcome in the FTC’s lengthy battle with Herbalife (hlf, +0.32%), which in July agreed to pay $200 million in a controversial settlement.
And it was supposed to be a great victory for the hedge fund manager Bill Ackman, who had poured $1 billion into a bet against Herbalife stock and long argued that Herbalife was scamming immigrants into loading up on weight-loss shakes they’d never be able to sell at a profit.
But
Tag Archive for MLM Lawsuits
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Thermomix Australia – A Vorwerk company – Is Being Sued By A Former Distributor
by Ted Nuyten • • 0 Comments
According to News.com.au an Australian based magazine, Thermomix a Vorwerk company is sued by a former distributor.
News.com.au:
THE $2089 Thermomix calls itself “the most advanced appliance on the market” and has thousands of zealous fans, but the cult kitchen brand is at the centre of a bitter, emotional legal battle with a “traumatised” former contractor.
The high tech food processor is supposed to make life easier, yet in the past two years the company has been accused of causing third degree burns, encouraging a toxic bullying culture and failing to be honest with its customers.
Now former contractor Elisabeth Higgins, 56, from Perth, is suing Thermomix Australia in the District Court of WA. She claims Thermomix took away her business and failed to compensate her, and wants them to pay her lost earnings of
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Legal Shield CEO Jeff Bell Open Letter To The FTC On Pyramid Schemes
by Ted Nuyten • • 0 Comments
Jeff Bell is CEO of LegalShield, an USA based leading provider of affordable legal plans and identity theft solutions for individuals, families and small businesses, serving more than 4.2 million people across North America.
He has send the next open letter to the FTC:
When Federal Trade Commission Chairwoman Edith Ramirez steps down in a few days, we will remember her speech at the Direct Selling Association’s Business and Policy Conference in Washington last October, where she clearly laid out what it means to be operating a pyramid scheme.
Her remarks were important, and they were necessary. Because the Direct Selling Association (DSA) can’t seem to enforce the ethical codes and standards it created, the FTC had to step in to clean house. While some companies, such as LegalShield, embrace network marketing as a powerful
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Zeek Rewards – Dawn Wright Olivares and Daniel Olivares In USA Jail
by Ted Nuyten • • 0 Comments
If you are found guilty for organizing a Ponzi Scheme in the USA this is what happens:
The Patrick Pretty website reports: 7.5 year in jail for former COO Dawn Wright Olivares and 2 years for CTO Daniel Olivares:
Patrick Pretty:
“The landing spots for two key Zeek Rewards figures now are known. Former Zeek COO Dawn Wright-Olivares is listed as inmate 29336-058 at FMC Carswell in Fort Worth, Texas.
The facility is a Federal Medical Center for female offenders and has an adjacent minimum security satellite camp, according to the Federal Bureau of Prisons website.
Daniel C. Olivares, the stepson of Wright-Olivares and the former senior technology officer at Zeek, is listed as inmate 29335-058 at CI Taft, a contracted correctional institution operated by a private corporation in Taft, Calif., according to the BOP website.
Wright-Olivares and
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FTC Speaks Out About Vemma, Herbalife And The Network Marketing Industry
by Ted Nuyten • • 0 Comments
Lesley Fair, senior attorney at Federal Trade Commission has published the next article.
“industry members can learn a lot by reviewing the conduct the FTC says violated the law and understanding the principles underlying those orders”
As part of the FTC’s historic $200 million settlement with Herbalife, about 350,000 Herbalife distributors should be watching their mail for a partial refund check.
The FTC has more information about the refunds and advice for people thinking about investing in a multilevel marketing opportunity. But it’s also a good time for some straight talk with members of the MLM industry.
The FTC has a more than 40-year history challenging unfair and deceptive MLM practices, including recent law enforcement actions against Herbalife and Vemma. The specific terms of those orders – which require the companies to restructure their operations
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If The FTC Raid Your USA Based Company
by Ted Nuyten • • 0 Comments
If the Federal Trade Commission (FTC) in the USA raid your network marketing company, the results are devastating for distributors, employees as the owner(s).
Distributors are losing their commissions and credibility under their friends and family (I told you it was a pyramid..), employees are fired and the owners personal assets are seized.
After Vemma settled with the FTC, the rules are clear for companies based in the USA, if you like it or not:
– 51 % volume has to come from customers sales.
– Mandatory auto-ships to qualify for commissions are not permitted and/or a distributor person order can not count towards qualifying for bonuses.
We at Business For Home are surprised that so many USA network marketing companies are not changing compensation plans immediately, and therefore putting their distributors under great danger. Many of
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City Of London Police – Threats For Reporting About OneCoin?
by Ted Nuyten • • 0 Comments
The Business For Home support desk received this email from Kieron Vaughon from the City Of London Police through our support desk:
Dear Sir/Madam,
The City of London Police is currently investigating the company OneCoin and linked entities including OneLife. I am concerned that people in the UK who have paid money to OneCoin may be victims of fraud.
I have read several articles and pages from your website and am concerned that they may influence people to invest in OneCoin. In particular, I would highlight the ‘Top Earners Ranks’ page which lists a number of OneCoin members with high value estimated earnings. I appreciate that these articles are several months old however, they can be found easily through a basic Google search.
Having read the Ted Nuyten article dated 26th February 2016, I note that
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FTC Press Release: Vemma Agrees To Ban On Pyramid Scheme Practices To Settle FTC Charges
by Ted Nuyten • • 0 Comments
Under a settlement with the Federal Trade Commission, Arizona-based Vemma Nutrition Company will end the business practices that the FTC alleged created a pyramid scheme.
The multi-level marketing (MLM) company, which sells health and wellness drinks through a network of distributors called “affiliates,” will be prohibited under a federal court order from paying an affiliate unless a majority of that affiliate’s revenue comes from sales to real customers rather than other distributors. The order also bars Vemma from making deceptive income claims and unsubstantiated health claims.
“Unfortunately, extravagant income claims and compensation plans that reward recruiting over sales continue to plague the MLM industry,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.
“MLM companies must ensure that their promotional materials aren’t misleading, and that their compensation programs focus on selling goods
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Breaking News: Vemma Vs. FTC – Pyramid Case Settled
by Ted Nuyten • • 0 Comments
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
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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