Lazy Man and Money

  • Blog
  • Home
  • About
    • What I’m Doing Now
  • Consumer Protection
    • Is Le-vel Thrive a Scam?
    • Is Jusuru a Scam?
    • Is Beachbody’s Shakeology a Scam?
    • Is “It Works” a Scam?
    • Is Neora (Nerium) a Scam?
    • Youngevity Scam?
    • Are DoTERRA Essential Oils a Scam?
    • Is Plexus a Scam?
    • Is Jeunesse a Scam?
    • Is Kangen Water a Scam?
    • ViSalus Scam Exposed!
    • Is AdvoCare a Scam?
  • Contact
  • Archive

So the FTC Says Vemma is a Scam…

September 25, 2015 by Lazy Man 2 Comments

About a month ago, the Federal Trade Commission dropped a bomb. I’m not sure if it made a lot of news, but I had some friends who saw it and they emailed me.

The FTC halted Vemma alleging it is a pyramid scheme. They cite that the scheme made $200 million in 2013 and 2014.

Remember the Ice Bucket Challenge? Well that made $100 million dollars. So if the FTC had acted a couple of years earlier, consumers would have been able to donate four times as much money!

That’s a terrifyingly sobering fact.

What’s worse? There are around 1400 companies using the same template to bilk consumers of $30 billion hard-earned dollars a year.

We can get Kim Kardashian and Bill Gates involved in dumping ice over their heads for a good cause… but, we can’t get the FTC to shut down a scheme operating in the public eye costing consumers much more money in a timely manner?

I’m all for ice bucket challenges (when done safely). It’s fun and raises some awareness. However, it seems to me like it is buying paint for a house that’s about ready to collapse. Maybe we should fix the structural problems first?

How Could You Have Known if Vemma was a Scam

Well two years ago, I wrote about the Vemma scam. I’ll toot my own horn for 45 seconds… but only so I can embed one of my favorite videos.

Here’s the immortal Dennis Green:

“They are what we thought they were!”

You didn’t have to take my word for it though, because I pointed out that the FTC punished Vemma’s CEO BK Boreyko in the past.

It sounds like the Saturday Night Live Weekend Update skit called “Really?”

  • Really, FTC. You really didn’t think that someone you cited in the past might be worth keeping tabs on in the future? Really?
  • Really, FTC. You publish guidance that MLMs can be pyramid schemes and you didn’t think that maybe something might be up, given the CEO’s history? Really?
  • Really, FTC. I’ve been writing about these juice MLM scams since 2007. Vemma was around back then. So you decide to do something in 2015 after consumers lose $200 million per year? Really?

I should add that it wasn’t just the FTC that alleged Vemma was a pyramid scheme. A judge ruled they can’t run as an MLM. I found this quote in particular interesting: “Some Vemma material also contains representations the Court would characterize as ridiculous — bordering on absurd — such that a listener could not reasonably be expected to believe them.”

I suppose that Vemma can sell it’s products in stores. I really hope they try. I wonder how many people are going to reach for nearly $3 energy drink vs. the buck for all the other brands out there.

Much like the FTC, I’m a little lost. Should I be optimistic that another domino has fallen? Should I be pessimistic that there’s still 1400 more left to go?

Taking the first step seems to only remind me how long the journey is. Now if you’ll excuse me, I’ve got some ice to dump on my head.

Email (and share) This

  • Email
  • Facebook
  • Twitter
  • Pinterest

Related

Filed Under: MLM Tagged With: Vemma

SIGN UP NOW FOR MONEY TIPS AND A CHANCE TO WIN $25 MONTHLY

Comments

  1. Ryan says

    September 25, 2015 at 9:13 pm

    Definitely understand the conflict between optimism and discouragement. Here’s hoping big things happen to Herbalife next and soon and that somehow opens the floodgates of either FTC litigation or consumer skepticism.

    Reply

Trackbacks

  1. My Ideas for "The Big Short: Part 2" - Lazy Man and Money says:
    July 14, 2016 at 1:36 pm

    […] in about 5-8 years… or even faster. Over the years you've probably seen MonaVie, ViSalus, and Vemma. There's a bunch of smaller ones that you were most likely fortunate enough to ever encounter […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

As Seen In…

Join and Follow

RSS Feed
RSS Feed

Follow Me on Pinterest

Search The Site

Recent Comments

  • Lazy Man on The Google Pixel Watch is an Unmitigated Disaster, but…
  • David on The Google Pixel Watch is an Unmitigated Disaster, but…
  • Mark W. Murphy on What’s My Pension Worth?
  • Mark W. Murphy on Should You Include Your Pension in Your Net Worth?
  • Lazy Man on Artificial Intelligence Changes Everything

Please note that we may have a financial relationship with the companies mentioned on this site. We frequently review products or services that we have been given access to for free. However, we do not accept compensation in any form in exchange for positive reviews, and the reviews found on this site represent the opinions of the author.


© Copyright 2006-2023 · Perfect Plan Publishing, Inc. · All Rights Reserved · Privacy Policy · A Narrow Bridge Media Design