How many vemma members are there

According to the complaint, the defendants encouraged participants to buy products to qualify for bonuses and to recruit others to do the same. The result, the agency alleged, was a pyramid scheme that compensated participants mainly for recruiting others rather than for retail sales based on legitimate consumer demand for the products.

Vemma expanded throughout the U. Under the stipulated order announced today, the Vemma companies and Boreyko are banned from any business venture that:. The order also bars these defendants from involvement in any pyramid, Ponzi, or chain marketing schemes and prohibits them from making misrepresentations about the profitability of business ventures or the health benefits of products. It also requires Vemma to provide compliance reports from an independent auditor for 20 years.

Vemma said in a statement said the settlement contained no admission of fault or proof of a pyramid scheme. Vemma settled, it said, because fighting the complaint was too distracting. Boreyko founded the company in , and it found little success until latching onto social media. As many as , affiliates signed up. This is Boreyko's second FTC settlement in less than two decades. New Vision International claimed a product called "God's Recipe" could cure attention-deficit disorder without the use of traditional medicine.

Boreyko settled that lawsuit in Most importantly, the FTC deemed Vemma's true business wasn't selling products such as its Bod-e and Verve drinks, but instead, recruiting new distributors.

The FTC pointed to Vemma's lack of guidance to distributors on how to sell product, and the company's alleged focus on giveaways that were the linchpin of recruiting new participants. The FTC also accused Vemma of misleading marketing, particularly about the income prospective distributors could earn.

Despite claims of a lifestyle where distributors could afford BMW cars and earn income to live off, the regulator found that most participants lost money, and the vast majority of distributors earned no meaningful income. Those companies have disclosed investigations by major regulators such as the Securities and Exchange Commission, however, they remain among the biggest battleground stocks on public markets.

During its campaign against Herbalife Pershing Square released a study of Anthony Powell , a top distributor, who has since defected to Vemma. This is a BETA experience.

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