A federal judge has denied Vemma Nutrition Co.’s motion to approve its revised compensation plan, under the terms of a premiminary injunction issued against the Arizona-based company last month.
In his preliminary injunction issued on Sept. 18, U.S. District Court Judge John J. Tuchi ordered that Vemma could resume business operations within a set of restrictions, including a prohibition on paying any compensation related to the purchase or sale of goods or services unless the majority of such compensation is derived from sales to or purchases by persons who are not members of the marketing program.
He also required Vemma to obtain FTC approval before it issues new marketing or sales materials. Since that ruling, court records show, the company and the FTC have been in frequent contact as Vemma has worked to