Vemma Served By The FTC
Since July of 2013, I have been warning people about the business opportunity that Vemma offers. Today they have been served with a complaint by the FTC. This complaint has been sealed until Friday. This is usually done so the founders of the company can’t rally support prior to the public notification.
You will find the following warning when you try to login to your account on the Vemma website:
Troy Dooly had the following breaking news just a few hours ago:
Breaking News – I hate seeing independent professionals kill off their wounded. So listen up! Vemma was served with a complaint by the FTC today.
The complaint is under seal until Friday. This is usually done so the founders of the company can’t rally support prior to the public notification.
Sadly it also allows competitors and predators to step in and harm hard working entrepreneurs who have in some cases taken years to build by spreading rumors and trying to dismantle their sales teams.
What happen to the Golden Rule? Because I still believe what you sow you will reap!
Having talked with BK this afternoon it seems the FTC have two issues surrounding pack sales as well as autoship sales Pack sales are no biggie and ideally up less than 7% of all product sales. Autoships are huge! Most companies with solid products will see anywhere from 40% to 75% of all revenues come from the monthly reorder of their products.
If regulators were to win in a court of law that autoships must be stopped. Then EVERY company with an autoship program will have a very hard time paying reps.
This isn’t a Vemma issue alone folks…
This is a direct sales issue and I pray the DSA and other influencers step up.
There has been a ton of speculation on what will happen to Vemma over the coming days. In my opinion, things are going to change in a big way.
The foundation of Vemma is auto shipments. With changes to auto shipments this will be a different company. This could turn out to be the most import MLM court case in my lifetime.
Here is the spin on this that is provided by “The MLM Professfor” and VEMMA Ambassador Ken Stewart:
“…the current issue is a direct result of various YPR leaders and the statements and claims they were making in building their business, which led to complaints being made, and the subsequent investigation by the FTC. Ironic that those same “leaders” left VEMMA to join another company-nothing like leaving dirty dishes for someone else to have to clean up!”