Network Marketing company Vemma has been targeted by the FTC. Currently, there are very few facts available for this story. I reached out to Vemma CEO, B.K. Boreyko but have not heard back from him at this point.

Today’s post will be broken down into three parts. What I know, What I Hear and some commentary.

Here is what I know:

  • Access to brand partner back office and ordering of products has been cut off.
  • There has been no official announcement from B.K. Boreyko, Vemma or the FTC.

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So where does that leave us, information wise?

The rumor mill.

So, where is what I have heard:

  • The Federal Trade Commision shut down Vemma.
  • Vemma will be back open at 8am today (8/25/15) – that did not happen which is why you can’t trust rumors.
  • Vemma’s autoship program is at the center of the controversy.

Here is my commentary:

Take everything you hear with a grain of salt.  I would not make life decisions based on what is being said on Facebook or based on what your “upline” is telling you right now.  Be cool and let the facts come out.

If the FTC has indeed come in and shut down Vemma, it’s not good news and it won’t be business as usual for a while.  That said, I am a fan of Vemma.  I like the products and I like B.K. Boreyko.

If you are a leader/upline in Vemma, realize that people are not stupid. I saw a Facebook post from someone in Vemma that said that following:

“Vemma ain’t going no where lol. If anything it’ll grow because of this problem haha. Billions with or without anybody.”

While I appreciate the enthusiasm, I know for a fact that there is no Kool-Aid in Vemma’s products, so stop drinking it!

I believe that B.K. Boreyko is a competent leader and my hope is that Vemma comes through this unscathed. But I don’t believe that getting shut down by the FTC is a growth strategy.

Lastly, I’m not sure that I believe that Vemma’s Autoship program is the complete reason for the shut down, at least not the way it is being described.  Plenty of companies have autoship programs.

My best guess is that the FTC received an excessive number of complaints about Vemma.  My next guess is that most of those complaints came from the parents of college students who signed up as brand partners.

These student age brand partners got excited about becoming an energy drink millionaire so that sign up for Vemma with a product package and check a box to be on autoship.

Two months later, the student (who is not a millionaire yet) get’s a call from his parents asking about these charges on their debit card from “Vemma”.

And the explanation does not go very well, because college students might have already quit building their business by then and moved on to other things or the explanation does not include all of the important facts that college students are known to leave out in order to protect themselves.

So parents go to “The Google” and see some articles about Vemma that do not paint Vemma in good light and the parents end up complaining to the FTC.  Partially because the parents did not pay for college thinking that Billy was going to sign up for a business selling energy drinks and partially because they read a biased and slanted article on a web site (Truth In Advertising).

Sometimes companies are scams.  Vemma is not one of them.  When a company like Vemma get’s in trouble, it’s usually not the company that is behaving badly.  It’s usually the distributors, reps, brand partners, etc. that are causing the problems.

I’ll post more as the story unfolds.

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