Multi-Level Marketing

Published on October 23rd, 2013

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Special Investigation: Vemma

The Vemma Nutrition Company, an Arizona-based dietary supplement company, was having a good year in 2013. The company was marketing several drinks, including the energy product line Verve. Through its “Young People Revolution” and social network marketing, sales reached more than $20 million per month according to the company, and a “jaw dropping” number of new distributors were joining each month. But a TINA.org investigation found a jaw-dropping number of issues relating to the company, including complaints to the FTC that it was a pyramid scheme targeting young adults who end up losing money and health claims that violated a previous FTC consent order. In August of 2015, the FTC came knocking at Vemma’s door alleging that the company was a pyramid scheme. In December 2016, Vemma reached a $238 million settlement with the agency that bans its recruitment-focused business practices.

Things to Know About Vemma
Vemma Reaches $238 Million Settlement with FTC
Timeline
Vemma Reaches Settlement Agreement in FTC Pyramid Case
Settling Up: Vemma
Here’s How the Vemma Case Ends
Vemma Frenzy Ends: Judge Limits Vemma’s Operations
What You Should Know about the FTC’s Action Against Vemma
Takedown: Feds Move Against Vemma
Vemma 2014: It Ain’t Pretty
Vemma Distributors: Focus on Facts not Hype
Vemma Facing Judicial Inquiries in Europe
Health Claims Could Cost Vemma and its CEO Millions
Vemma Health Claims Database
TINA.org to Vemma: Take Down Health Claims
New Class Action Alleges Vemma’s Clinical Studies ‘Worthless”
Vemma Involved in Silencing One of its Harshest Critics
Leading Nowhere: The Industry Within the MLM Industry
Misleading Health Claims about Vemma Still Flood Web
Vemma Affiliates’ Health Claims Violate FTC Order
Vemma Deemed Pyramid Scheme in Italy
Seven Signs Vemma Distributors Fared Worse in 2013
Vemma Facing Class-Action Lawsuit in California
Pyramid Scheme Expert Issues Warning about Vemma
Eight ‘Facts’ That Won’t Answer This: Is Vemma Pyramid Scheme?
NBA Says it Never Cleared Vemma’s Biz Structure
Vemma Complaints by the Numbers
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Vemma Nutrition Company is a privately held multi-level marketing company that sells energy drinks, nutritional beverages and weight management products. Vemma, which calls itself an affiliate marketing company, is based in Tempe, Arizona. It was founded in 2004 by Benson K. Boreyko and his sisters. Vemma is an acronym for vitamins, essential minerals, mangosteen and aloe.

An inherently deceptive form of multi-level marketing where participants are told they’ll get paid for recruiting other participants, and not necessarily for selling products or services. Typically, participants must pay some sort of initial investment in order to join, and will then earn a commission for each participant they recruit. Unfortunately for the unsuspecting consumers, pyramid schemes are doomed to collapse because the number of potential participants is limited.

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