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
Tag Archive for Vemma
Hot Business News Today
Judgement Day For Vemma – Exclusive Reporting
by Tina Williams • • 0 Comments
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
by Ted Nuyten • • 0 Comments
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
Hot Business News Today
Is Your Company FTC Bullet Proof?
by Ted Nuyten • • 0 Comments
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
Hot Business News Today
FTC – Receiver Email To The Vemma Database – An Abuse Of Government Power?
by Ted Nuyten • • 0 Comments
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
Hot Business News Today
Vemma Customer Victims – Where Are They?
by Ted Nuyten • • 0 Comments
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
by Ted Nuyten • • 0 Comments
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
Hot Business News Today
Vemma – FTC Hearing Set For September 15
by Ted Nuyten • • 0 Comments
According to a statement BK Boreyko – CEO Vemma made today on his facebook the Vemma – FTC Case will start on September 15. The Vemma website is back on-line, the affiliate back office is not open.
BK Boreyko says:
“I wanted to give you a short update. The legal team is in place and you’ll be proud of this team as they begin to defend your right to market the finest wellness products on the planet.
A lot has happened in the past week, all without this team and myself being able to stand in front of a judge. Only yesterday were we able to access the home office computers in order for us to produce the data to prepare our defense and prove our innocence.
Because of that, and along with the importance
Hot Business News Today
Alex Morton’s Family Statement In The Vemma – FTC Case
by Ted Nuyten • • 0 Comments
In a Facebook statement under the article Where The FTC Went Right — And Where It Went Wrong
Alex Morton’s father Marc Morton weights in on behalf of the family -with below statement- which we publish as Facebook comments some times tend to disappear.
Marc Morton:
“First I need to state that I am the father of Alex Morton so yes I have a biased view of this situation.
Alex and myself visited the home office of Vemma with our sponsor in February of 2011. Alex was a 21 year old Full-Time Junior at Arizona State in the Hugh Downs School of Communication, and a part time Arizona Real Estate Agent leasing homes and condos.
Alex asked me to come check out Vemma after spending several night in the “VerveLounge” at the Phoenix Suns games. His first
Hot Business News Today
Vemma Has Requested 1 week Additional Time For the Hearing And 10 Legal Bullet Points
by Ted Nuyten • • 0 Comments
1. Vemma’s legal team has been assembled. In order to present a strong case the legal team has requested additional time to prepare. I understand the additional time requested is one week.
2. Jeffrey A. Babener, of Portland, Oregon, is the principal attorney in the law firm of Babener & Associates. For more than 30 years, he has advised leading U.S. and foreign companies in the direct selling industry, including many members of the Direct Selling Association.
He has send us his analysis of the case:
Vemma vs. FTC: 10 Quick Bullet Points Jeffrey Babener (2015)
On August 17, 2015, the FTC filed a complaint in U.S. District Court in Arizona, seeking a permanent injunction against Tempe-based Vemma International Holdings, Inc., a long-time direct selling marketer of health-related products. The FTC was successful in obtaining