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Vemma Temporarily Shut Down by FTC as Pyramid Scheme

August 27, 2015
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Vemma, the dietary supplement MLM, was shut down by the Federal Trade Commission this week. The FTC alleges that the company was operating as a pyramid scheme. More information about the Vemma shutdown and investigation at Truth In Advertising and across the web.

“Rather than focusing on selling products, Vemma uses false promises of high income potential to convince consumers to pay money to join their organization,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “We are also alleging that Vemma is an illegal pyramid scheme.”

I suspect high-level Vemma affiliates are scrambling to find other “opportunities” to latch onto as the Vemma ship goes down. I wonder what YPR Pariah, a critic of Vemma whose website was mysteriously shut down last year, thinks about the news.

Kudos are in order to the FTC and everyone who assisted in making the case that Vemma might be operating an illegal pyramid scheme. There are so many more companies out there operating in this fashion; it’s a shame that the government can’t stop them all. If you suspect a company is an illegal pyramid scheme, file a complaint with the FTC and your state’s attorney general.

6 Comments leave one →
  1. Melanie Morgan permalink
    August 29, 2015 9:47 am

    Sweet Justice.🙂

  2. Joecool permalink
    August 31, 2015 4:15 pm

    Hopefully Herbalife is next

  3. bstester permalink
    September 9, 2015 1:41 pm

    you all are retards!

  4. September 27, 2015 5:22 am

    I at one time held out the hope that Barrack Obama’s presidency might do something big about the corrupt MLM industry. This Vemma ruling isn’t exactly what I hoped for. The FTC wastes time and merely blunders along to give the impression that it is doing its job, while it allows the mafia like industry as a whole to continue operating relatively unscathed. You can’t shut down the mafia by merely taking out one crime boss. They must all be rooted out collectively.

  5. exTEAMster permalink
    October 1, 2015 8:50 pm

    When LIFE was launched Orrin boasted that the compensation plan was so innovative, in part because he had former lawyers from the FTC examine it to make sure it was on the up-and-up. But two aspects of the FTC’s case vs. Vemma should be of concern to the LIFE crowd. One is how Vemma pushed the recruitment of more affiliates more than product sales to customers. The other is how recruitment was promoted largely on the income potential. I remember the first time I went to a Tuesday night open for what was then Team and having absolutely no idea what Team did because the whole meeting was only about its financial potential. If the FTC verdict means LIFErs have to be more forthcoming about the astronomical odds against ever making profitable income, it would probably put a big dent in recruiting new members.

  6. December 26, 2015 3:39 pm

    It’s unfortunate that once Vemma is permanently shut down, people involved in it will just start a new MLM. But still, one more down, many more to go😉

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