FTC labels Vemma Nutrition Company a pyramid scheme

Posted 20 December 2016

Arizona-based Vemma Nutrition Company, a multilevel marketer that sells nutritional drinks, will be prohibited under a federal court order from paying distributors unless their sales are to real customers rather than other distributors.
[Vemma agrees to ban on pyramid scheme practices to settle FTC charges: Health drinks marketer touted unlimited income potential, but most people lost money. FTC news release Dec 15, 2016]

The order also bars Vemma from making deceptive income claims and unsubstantiated health claims. Last year, the FTC brought a federal court action against the company, CEO Benson K. Boreyko, and top affiliate Tom Alkazin. The complaint charged that the defendants (a) encouraged participants to buy products to qualify for bonuses and to recruit others to do the same and (b) the result was a pyramid scheme because it compensated participants mainly for recruiting others rather than for retail sales based … Read the rest