Efusjon Class Action Lawsuit
Posted on 23. Nov, 2009 by Ty Tribble in Efusjon, Network Marketing News
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This is just breaking. Thoughts and comments about the Efusjon Lawsuit coming soon.
Updated Comments:
This is another thorn in the side of Efusjon. Add this in with a Facebook application that my 9 year old would be board with in about 5 minutes, 3 major compensation plan changes, Derek Broes (arguably the driving force behind the major growth) leaving and you have a big headache.
It's really not business as usual to be sued as an illegal pyramid scheme. We will see how this plays out. I will say that the Facebook hype machine that was once Efusjon has certainly died down.
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16 Responses to “Efusjon Class Action Lawsuit”
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Steve
23. Nov, 2009
Although I have to admit that eFusjon has certainly gotten off to a bad start and most likely will fail at some point, it’s certainly not a pyramid scheme. Based on the wording of the lawsuit, they try to convince us that because the product is not sold retail that the company is a pyramid scheme. If that were the case than all legitimate networks would be in trouble. Pyramid schemes are illegal because there is NO PRODUCT or service being exchanged for the money. In network marketing, this is certainly not the case. All we are doing is building a NETWORK of people using the product. That’s why networks have to be careful of paying huge upfront bonuses to enroll new distributors, but payout more on the back end residuals because the residuals are the key to a steady income anyway.
Unfortunately, this is just another example of someone who fails at network marketing and wants to blame everyone else and call the company pyramid scheme. She was probalbly told she could make a ton a money, that it was easy and someone probaly showed her their eFusjon paystub knowing that she could never make that kind of money because if the 3 comp plan changes.
Either way, another black eye for our industry. Thanks eFusjon!!
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Rick
24. Nov, 2009
Steve, where did you find that definition of a pyramid scheme? Even the FTC has said that simply selling a product does not make a business legal. If your view was correct, then we could all join an MLM that sells $100 apples. What difference does it make if the products are being consumed by the network, right? I agree, this is another black eye in the industry. I think efusjon is in trouble.
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Muirelle
24. Nov, 2009
Monavie has had class action lawsuits … I still think efusjon has a great product and although they had challenges its just another angry distributor who is trying to knock the company and ruin it for everyone else.
My question is why are so many people against Efusjon? Is it because there is a real chance for ALL Distributors to make money and not just a few like the many other MLM companies out there? Almost everyone on my team was making checks until so many went negative.
Perhaps all the negatives and the people that post them are trying to recruit you into businesses. Did you ever consider that?
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Ty Tribble
24. Nov, 2009
I love how efusjon’s problems become “the negative” people. So are we to ignore the 3 major compensation plan changes in the last few months, the master distributor leaving and the complete disaster of a Facebook application? As if those things didn’t contribute to the problem.
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Rocky Vertone
26. Nov, 2009
Hey… I you can’t take the heat… get the H@ll out!
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Becky
26. Nov, 2009
Where there’s smoke there’s fire. This Is more than just someone being “negative.” efusjon has serious issues.
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Scott Mellor
26. Nov, 2009
Muirelle has a great point. Why does everyone want to Hate on Efusjon. I beleive it is because there is real substance in the company. Efusjon, their compensation plan and the product easily stand out and above so many other companys. People inherently can tell Efusjon is different, their claws come out, and they start ripping because most people want to see the Good Guy fail. I have lived with this all my Life. If you are a little bit different, a little bit happier in your life, or your talents stand out a little bit brighter, people come running to take a swipe at you because of their own insecurities. They try to seduce you into beleiving the negative picture they want you to buy into… Ty~ DONT Ignore anything. Look at it for what it is.
Three comp plan changes. Who cares..others havent switched up there plans? Efusjon is just ironing out their growing pains in the first year and we wont have to go through these changes at year 3 and 5 and 8, which would be worse for distributors and the reputation of the company. Lawsuits? 1 in 6 people will be sued this year. This lawsuit isnt about Efusjon, this is about society in decay. Derek Broes was never the company or the opportunity. Follow him if you want.
Efusjon has and always will be, like others, best told and sold ~one on one, Face to Face, NOT via Facebook.
Efusjon will live a long and productive Life easily into the decades. Meet the Leaders and Founder. This company was made to sit on bedrock and to outlast other companies by being structured different than those companies. A new way to do business~ Actually pay out the money to its people with ease. Not a company that figures out every “you only get paid on your short leg” way there is to not pay out profits to the people. Video game? Same story~ 1st version~ gotta start somewhere. Wait and see.
Happy Thanksgiving Everyone. Enjoy you time with Family.
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Micah
28. Nov, 2009
First of all, I don’t have a side on this one.
I looked at Efusjon, didn’t like what I saw and passed. Beyond that, I have no ax to grind.
What I’m hoping for out of this is a clear definition by the courts as to what, in their opinion, constitutes a pyramid scheme. Specifically I’d like to see some clarification on internal use vs retail sales issue.
This is a very gray area where the law is concerned and has allowed some companies to construct a pyramid scheme and “legal it up” with an internal use product in order to show sales to the FTC.
Is Efusjon a pyramid scheme?
In my opinion, yes it is, and if the court determines that they are an illegal operation and shuts them down it won’t be long before 2plus7, iJango, TVI, Juugo and a host others will go down the drain with them.
Good luck and God Bless
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MLMexpert
30. Nov, 2009
Wow…it’s just amazing how either ignorant or obvlious people are to history, facts, and trends.
First, as someone who is considered a top industry leader and expert on comp plans, let me see if I can educate a few people that have left messages here:
First, the comment that they have a great plan is so a laughable that I’m glad I’m sitting down! Evidently you’ve never been told that matrix plans have historically never worked, except in the case of one company, Melaleuca, and that company was launched 25 years ago when there was far less competition…
In the past 3 decades thousands upon thousands of companies with a matrix plan have launched and only 1 has had any substantial, long term success-one! One hardly constitutes a successful model! Any time that something only works once it is called a fluke!
Second, even for those that survive, you end up making far less in a matrix plan that what you earn on the same volume in proven pay plans due to breakage that is an inherent problem in a matrix plan, one reason why Efusjon has made numerous “band aid” solutions to their pay plan in the form of changes which they like to call “enhancements.”
Prior to the first change, it was the greatest pay plan ever, remember? If it was, there would be no reason to make any changes. Then once the first change was made, it was now the best comp plan ever. Lo and behold, another pay plan change…If it was the best pay plan ever change number should have sufficed! Now there have been 4 pay plan changes in a short period of time. HELLO! Wake up call! Earth calling distributor! LOL…
Furthermore, claims of massive spillover are ludicrous! Anyone with a basic understanding of math knows that each level you go down in a matrix the LESS the spillover, not more, and it is also affected by when you join.
Finally, regulators considers matrix plans “gimmicky.”
So, either they don’t survive long term or you end up making less money-either way you lose!
Strike #2: a new start up! 98% of new, start ups won’t make it 3 years. HELLO!
People, especially newbies to the industry, should make decisions that will put the odds of success in their favor, not put them in a position to try and beat the odds in order to succeed!
You don’t put the odds of success in your favor jumping on a new start up, let alone a new start up with a matrix plan. What, are you trying to double the likelihood you’re going to fail? LOL..
So, reasons 1 and 2 would be enough to keep most knowledgeable people away! In fact, a true industry leader with knowledge and experience wouldn’t touch a new start up with a matrix plan unless 1) they got a special deal or 2) they’d lost their mind because a leader always looks to put the odds of success in their favor and maximize their income earning potential, not try to beat the odds just to make less!
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CLASS v EFUSJON » Blog Archive » Commentary from networkers efusjon lawsuit
04. Dec, 2009
[...] Efusjon Class Action Lawsuit – Ty Tribble [...]
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Efusjon
08. Dec, 2009
This case has not yet been served to Efusjon so at this point it is just a speculative case. What it comes down to is that the plaintiff had was disgruntled and had some personal issues with a corporate staff member and decided to make a campaign against the company with the intention of damaging their reputation. This is nothing more than a frivilous attempt to discredit Efusjon. It is meant to make a bunch of noise and that is it.
If you actually read the accusations contained in the document (which again has not been served), you will find some statements that clearly apply to all mlm companies. This is the reason this “threat of a lawsuit” is angering many people in other MLM companies, not directly associated with Efusjon. If this case were to go to court and won (which won’t happen) then that would cause a domino effect of class suits against all MLM companies. Read the document for yourself and see what I mean. All it did for me was provide a little comedic relief…what’s even more funny is that this is being taken seriously by people.
If this case were to actually be served to Efusjon and go to court, Kevin will be up against a GIANT of a legal team…the same team that represents companies like Facebook and Toyota (the just won a massive case for Toyota). Believe me, you do not want to mess with these guys.
Nope…this is just smoke and mirrors and people will see through it if they don’t already. Efusjon is opening in Canada on Jan. 30th and moving forward full steam. Don’t believe everything you hear!
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Mick Lite
08. Dec, 2009
lol, this stuff is just funny. Not sure how they have ‘died down’ as so many new people are signing up…. our team had 70 signups in November.
I love what efusjon has done for me and my family.
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Cary Yant
15. Dec, 2009
Well now, here we go again. some so called expert trying to screw things up for the small guy.eFusjon in my opinion happens to be an excellent chance for the average person to receive 1- an excellent product 2- make some excellent money [ if they work at it ]. but the naysayers want to do their thing and try to kill all that so the true scams with their binary plans can rip off the public…go eFusjon
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OregonJoe
29. Dec, 2009
Has this lawsuit been filed? My friend who works at corporate said that it has not. They also told me that they are not worried at all about because the lawsuit has no merit and their big shot attorney is going to destroy the case. I did find it a little odd that these issues are discussed with employees at all levels of the company. It seems like they have to do a lot of damage control within their own walls. I’ve also been told despite any problems that came with the disappointment of the facebook issue that the company is still going strong and they are continuing to grow. What’s funny is that I looked at the pyramid scheme laws for the state of Oregon which I was directed to by someone at the Oregon attorney generals office and the law appears to lack detail but from what I read it would seem to me that this kind of company is a pyramid scheme and illegal in the state of Oregon which is where they have two offices. I was told by a representative of the AG office they have recieved several complaints about Efujon and are current;ly looking into the matter along with a referral to Oreogn’s pyramid scheme law and a Department of Justice web page discussing MLM companies. If anyone has read the Oregon law concerning pyramid schemes and can explain to me how Efusjon does not fall into that category let me know.
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OregonJoe
29. Dec, 2009
“If this case were to actually be served to Efusjon and go to court, Kevin will be up against a GIANT of a legal team…the same team that represents companies like Facebook and Toyota (the just won a massive case for Toyota). Believe me, you do not want to mess with these guys. ”
I’m surprised Toyota uses outside representation. I would of thought a company like that would have its own legal team that was focused specifically on Toyota. Which law firm and case are you specifically referencing to?
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Cherryl Oake
29. Dec, 2009
One thing I have noticed is . . . the more hype and noise surrounding an opportunity . . . the less exciting it really is! Efusjon certainly fits into this category.
Solid, reputable companies don’t need the hype . . .
I am waiting for the fall-out and will be happy to help Efusjon distributors get on the road to legitimate success!
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