The FTC Said What? Here’s How Vemma Got Shut Down This Week

Yesterday the Federal Trace Commission effectively shut down operations for Verve energy drink seller, Vemma.  The alleged violation?  Running a so-called pyramid scheme, which is illegal in the United States as well as many other countries.

But it turns out the definition of “pyramid scheme” might be harder to prove than most people thought.  Take a look at the allegations brought against Vemma, and you’ll see for yourself how thin the pyramid scheme accusation might look from some perspectives.

Here’s the case brought by the FTC

Ten days ago, plaintiff Federal Trace Commission brought before the United States District Court for the District of Arizona a 5-count complaint against Vemma (Vemma is based in Arizona).

The document stated a complaint for “permanent injunction and other equitable relief” against the following defendants:

  • Vemma Nutrition Company
  • Vemma International Holdings Inc
  • Benson K. Boreyko a.k.a. B.K. Boreyko both as an individual and as an officer of Vemma Nutrition Company and Vemma International Holdings INc
  • Tom Alkazin
  • Bethany Alkazin, relief defendant

The FTC is asking for big bucks: refund of monies paid, disgorgement of ill-gotten monies, and other relief for their violations.  Here are the 5 charges:

  1. Count 1.  “Illegal Pyramid”.  This is based on the fact that Vemma’s compensation plan  allegedly emphasizes recruiting over product sales.
  2. Count 2.  “Income Claims”.  It’s claimed that Vemma both directly and indirectly implied that their affiliates are likely to earn huge incomes.  The FTC has deemed this not to be true, sating that “consumers who became Vemma affiliates are not likely to earn substantial income.”
  3. Count 3.  “Failure to Disclose”.  The FTC claims that Vemma failed to disclose that their compensation plan is deliberately set up so that most affiliates don’t earn substantial income.
  4. Count 4.  “Means and Instrumentalities”.  This simply means that Vemma is guilty (allegedly) of distributing promotional materials, making it possible for their affiliates to be deceptive in their recruiting activities.  In other words, they provided the means.
  5. Count 5.  “Relief Defendant”.  This names Bethany Alkazin, wife of Tom, as the person who received assets and funds from customers.  And since the funds were received as a result of (alleged) deceptive practices, she should “disgorge” those funds.

There’s some pretty subjective language in this case!

As you might be able to tell from reading the summary of the FTC vs Vemma case, some of it is highly debatable.

“It’s crazy. Two of my cousins are in it, and that’s how they feed their families, Melissa Stark, a manager at Tucson Exterminating, said.

“Kinda messed up.”

For instance, look at Count #1:  the compensation plan emphasizes recruiting over product sales.  Who’s to say?  Are network marketing companies not allowed to help their affiliates grow their teams?  After all, direct selling companies with small advertising budgets rely on their associates/affiliates to spread the word about their products.  In many cases customers become recruits.  There’s a very fine line there and if you scrutinize the legal document it’s not exactly spelled out how they came to the conclusion that Vemma cares more about recruitment than product sales.

I mean, there’s a fine line. Communities, such as My Advertising Pays Facebook Pages, have teamed up to make sure people are being compliant and not inviting the FTC to scrutinize.

And that’s only the beginning.  Each of the counts against Vemma are equally vague and subjective.  

But I’ll let Count #1 stand on its own as the prime reason this lawsuit seems like bunk to me.

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A Deep Look At The Bold Benefits Of DubLi MLM Marketing

The marketing industry has grown and bloomed to billions of dollars being spent money to only become more efficient during the last 10 years due to the Internet. Now days millions of people and companies get involve with marketing to either promote their products or services or search for potential clients.

The Internet has created multiple new and innovative models to market. To understand marketing as a skill is key to go back to the basics and take a look at the concept of marketing. Then you take business opportunities that draw in the masses with an online shopping model (Dubli Network) that creates even more of a craze and demand for showing people how it is done.


What Is Dubli Network Marketing?

Marketing refers to all activities within a business entity that involve the following:-

• Product research and development
• Advertising
• Product sales and service

Product Research And Development

Product research is vital because it allows a business to achieve a number of goals. First and foremost a business gets to find out exactly what it is customers wants, the factors influencing decision making and the benefits a customer expects from a particular product or service. This is where the new Kalatu blog platform can come in handy as it will allow you to market and advertise across multiple channels and mediums throughout the internet.

Product research also helps a business to better understand the market place by identifying its competitors and possible complementary enterprises. The business is made aware of changes in legislation and any new laws affecting the industrial sector its in. Product research and development involves customer surveys, follow up services and product testing and trials.

DubLi Shopping Advertising

Advertising refers to any activity aimed at increasing the awareness of products and services offered by a business entity.

These also include all activities that are meant to strengthen the association of established products and services with the brand.

DubLi Network’s advertising can be done in multiple channels such as tv and radio commercials, online advertising and more. This really improves the image and overall representation of the MLM marketing company.

For entrepreneurs, online marketing has quickly become one of the fastest growing and easiest ways to begin to advertise a business. If you are an entrepreneur wanting to advertise online there are multiple programs such as Dubli Network with the information to train you on multiple methods to advertise a business online, programs like Dubli also give you an opportunity to create an income from selling their products.

Dubli Network Product Sales and Service

The last aspect of marketing involves the actual sale of products and services. It is by the sale of products and services that a business gets to generate revenue.

The generation of revenue is the main goal to marketing. You can ask experts like Tracey Walker in her Ultimate Team Building Formula what she thinks about the fastest way to reap the benefits of marketing truthfully online.

Marketing does have a final benefit that is realized in addition to the mentioned benefits. When done correctly marketing ensures customer retention and loyalty. For this to happen a customer-business relationship has to develop. This is achieved through the use of direct mail, email, customer follow-up calling and interaction via social media. In today’s world, this last benefit is probably the most critical goal of marketing. After all the customer is king and the pillar of the business.

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