MLM Judgment Day...who's next?

Ethan Vanderbuilt I cannot thank you enough for your tireless efforts to expose scams like Vemma.  

From the desk of Ethan Vanderbuilt....

Judgement day has arrived for Vemma. It is the end of Vemma as it once was.  Vemma was a Multi-level Marketing company.  It is no longer.

After the review of the case by the judge John J. Tuchi, here are some of the key orders and findings about Vemma:

The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a moneymaking venture.

The evidence before the Court leaves little doubt that the FTC will ultimately succeed on the merits in demonstrating that Vemma is operating a pyramid scheme.  (read the rest of the story here)

The truth is, any MLM company I have been associated with, such as Plexus Worldwide, a person does not get to the top of the food chain or "Diamond" Ambassador by selling product.  You MUST grow your team by recruiting AND you don't get paid on those people you bring in unless they and you are "active" aka:  autoship turned on, minimum order of $100.  Take a look at their summary chart shown below (can also be accessed here).

Also, it states "For complete details, please refer to the "Full Plexus Compensation Plan". HOWEVER, what they DON'T tell you is there is much more than just the compensation plan, there is the good ole "policies and proceedures", but that's an episode for another day.

I was astounded by their severe lack of professionalism when I questioned rank removal of one of my team members, and received the most ignorant, unprofessional responses ever! And they call themselves a company????  They don't even know their own compensation plan!  "Uh, we dunt know whut happened".  Sounds to me like they don't know their nose from the hole in the ground!!

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If you're interested you can read the rest of the nightmare here.

I say all that to say that most of the MLM's out there lack ethics and integrity, and clearly represent a classic pyramid scheme according to the Vemma Judgement.

FTC, are you watching???   There are many victims of such greedy, unethical MLM Companies waiting for you to bring the hammer down on new regulations regarding this scandalous industry.  I believe the crumbling of the MLM empire has begun....  it's about time.

Vemma's Day In Court

From the desk of Ethan Vanderbuilt....

"On September 15th 2015, Vemma had their chance to defend themselves in court against the claims of the FTC. The Arizona Sandra Day O’Connor Federal Courthouse court room was full of Vemma employees and contractors. B.K. Boreyko and the Vemma defendants had with them 9 lawyers.

Here are the primary complaints against Vemma:

• Vemma’s business model depends upon recruiting individuals to participate in Vemma as Affiliates and encouraging them to purchase Vemma Products in connection with such participation, rather than selling products to ultimate-user consumers.
• Through their sales and marketing activities, Vemma misrepresents the nature and income potential of Vemma.  They repeatedly tout that Vemma can provide anyone an easy path to financial freedom and independence.

The day started with the FTC expert witness Dr. Stacie Bosley, an economics professor at Hamline University in Minnesota who studies pyramid schemes worldwide." (read more)