Home Companies Vemma FTC Says Vemma Is A Pyramid Scheme

FTC Says Vemma Is A Pyramid Scheme


The Federal Trade Commision has halted operations at Vemma due to concerns that the Arizona company is operating an illegal pyramid scheme.

“Rather than focusing on selling products, Vemma uses false promises of high income potential to convince consumers to pay money to join their organization…We are also alleging that Vemma is an illegal pyramid scheme.”

Jessica Rich, Director of the FTC’s Bureau of Consumer Protection

– Jessica Rich, Director of the FTC’s Bureau of Consumer Protection

One very concerning detail most people are not talking about is that the FTC named a top distributor, Tom Alkazin and his wife, Bethany in the complaint.

Having a distributor named in this type of complaint should be scary for any leader in any Network Marketing company.

Yesterday, many were saying that this complaint has to do with autoship practices, while I suggested the complaint had more to do with Vemma recruiting college age students.

According to the FTC.gov press realease:

According to the FTC’s complaint, the defendants’ websites, social media, and marketing materials show seemingly prosperous young people with luxury cars, jets, and yachts, and falsely claim that Vemma affiliates can earn substantial incomes – as much as $50,000 per week. The defendants allegedly claim that affiliates’ earning potential is limited only by their own efforts and that Vemma provides young adults an opportunity to bypass college and student loan debt.

Another player in this drama is a website called TruthInAdvertising.org.  This site has been targeting Vemma for some time. In fact, I wrote a post about TruthInAdvertising.org over 2 years ago. TruthInAdvertising.org called Vemma a pyramid scheme even 2 years ago and many of the details laid out in the FTC complaint mirror the allegations from TruthInAdvertising.org.

In my opinion, there is a connection.

nowwhatNow, perhaps most importantly, where do you (the Vemma Rep) go from here?

I do not claim to know the ins and outs of the Vemma compensation plan and business strategy, but I have tried the products and I have met B.K. Boreyko.

I believe that the Vemma products are high quality and I believe B.K. Boreyko is a competent leader who has an excellent chance at bringing Vemma back from this immense challenge.

Things will not be easy and even if Vemma is cleared, you will still battle the “FTC/Vemma” connection.

But, I am a big fan of Vemma and I hope and pray that the company comes out of this quickly.

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"Ty Tribble is an Internet entrepreneur, author and Work At Home Dad who lives in Seattle, Washington with his wife, Richelle and two children, Emma and Tyler. Ty has been featured in Entrepreneur and Success From Home magazine and is considered by many as the # 1 blogger in the world on the subject of Network Marketing. Author of the book, ‘Double Your Income with Network Marketing’, Ty teaches lead generation strategies through social media and blogging to tens of thousands of Network Marketers around the world."


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