wserra wrote: Which of these rip-offs are shut down almost seems random. They're all like this.
Not quite random perhaps but this has a lot of MLM companies nervous because they are all like Vemma.
Don Ryan has some of the current documents on his files site
For years the focus of MLM has been recruiting new affiliates, having them buy a product package, go on autoship and then find more people to do exactly the same. It's the "affiliates are customers" business model and almost
everyone is doing it. Which is why, if the FTC prevails it will send shock waves through the industry. Quite simply, if Vemma is shut down permanently almost
all the other could be as well unless they change their business model in a big darn hurry.
September the 3rd Vemma has their day in court regarding the TRO, if it isn't overturned or significantly altered Vemma USA is out of business. The reps in the field can't sit on their hands not makings money through a protracted legal battle. It's already open season on Vemma's downlines with vultures from other companies trying to poach as many affiliates as they can.
The FTC's actions here are impressively forceful, the ex parte TRO and appointing a receiver all before Vemma has a chance to respond. I am in no way a fan of MLM but a government agency is basically ending a company with the barest minimum of due process and i find that a little disquieting. If they have their ducks in a row and all the facts to prove their arguments they are of course doing the right thing but they are taking a lot on themselves. I'm starting to see the first signs of a circular firing squad inside the industry, Vemma is (was?) a member in good standing of the DSA and at least one industry commentator is questioning if the DSA was somehow partly to blame
for not enforcing their code of ethics on a member company prior to the FTC stepping in. But if the industry is smart they'll stop finger pointing and circle the wagons, the FTC is not just going after one company, they're going after a business practice that almost
all of them are using. They need to throw as much money and support as they can behind Vemma, if the FTC can be beat they'll lose a lot of credibility for what will be painted as "wrongly" destroying a company.
If the TRO is not overturned the name Vemma is going to join the names Kascot, Omnitrition and Burnlounge.
A late edit to add that it looks like Vemma's legal team will be asking for an additional week to prepair for the TRO hearing. Not a bad idea given the stakes involved.
And what realistically does Vemma's team need to do to over turn the TRO? Don't they pretty much need to prove the FTC's charges of them being a pyramid scheme are drastically flawed? It's not like they can post a surety against what ever assets that are being impounded and ask to restart the business while they prove they aren't operating illegally, they pretty much need to do that before they would be allowed to open their doors again.
By the sound of it the FTC believe themselves to be sitting on a mountain of evidence, I'm having a hard time imagining the type of Hail Mary, pull a rabbit out of the hat, Perry Mason courtroom surprise that will overturn the TRO.