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 Settlement
Hot Business News Today
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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Avon Seeks $62 Million Settlement In China Bribery Case
by Tina Williams • • 0 Comments
Avon Products Inc is seeking approval of a $62 million settlement of a U.S. lawsuit accusing the cosmetics company of defrauding shareholders by concealing its failure to stop workers from bribing officials in China to win business.
The proposed settlement was filed on Tuesday with the U.S. District Court in Manhattan and requires a judge’s approval.
It resolves claims that Avon, former Chief Executive Andrea Jung and former Chief Financial Strategy Officer Charles Cramb, intended to mislead shareholders from 2006 to 2011 about the company’s ability to comply with the federal Foreign Corrupt Practices Act, which prohibits bribing foreign officials.
Shareholders led by two German investment funds said Avon embraced a corporate culture that was “actively hostile” to effective oversight and concealed its dependence on corrupt activity such as “dinner and karaoke” events to boost
Hot Business News Today
TriVita To Refund $3.5 Million In Product Claims Settlement
by Tina Williams • • 0 Comments
In its ongoing campaign to combat exaggerated health claims, the Federal Trade Commission (FTC) has reached a settlement with cactus juice marketer TriVita. The Arizona-based company agreed to refund consumers $3.5 million, settling FTC allegations that TriVita deceived consumers with unsupported claims about the health benefits of its Nopalea wellness drink.
Advertisements for Nopalea, which sold for up to $39.99 plus shipping and handling, billed the product as “Inflammation Relief without a Prescription.” The company’s frequently aired infomercials claimed the “prickly pear” fruit drink would treat a wide variety of other health conditions as well.
According to the FTC release, one featured TriVita’s Chief Science Officer, Brazos Minshew, linking inflammation to allergies, Alzheimer’s disease, heart disease and diabetes.
In an ad featuring celebrity endorser and former supermodel Cheryl Tiegs, the former Sports Illustrated model claims, “If you’ve suffered from inflammation or chronic pain for years, there’s something that can help,” the FTC release quotes.
The agency also charged TriVita with failing to disclose its connections to the individuals featured in a separate infomercial. The ad featured testimonials by satisfied customers who were in fact paid employees of the company.
“These kinds of unfounded claims are unacceptable, particularly when they impact consumers’ health,” Jessica Rich, Director of the FTC’s Bureau