Here’s the latest news to what our government has been working on: shutting down a music-inspired, multi-million dollar MLM company that promised income potential to college students… Wait did I read that right?
It turns out that our very own government agency, the Federal Trade Commission, deemed Vemma as an illegal pyramid scheme. I am no lawyer, but I did not think it was illegal to sell a product, have affiliate marketers or distributors, and provide an income opportunity for those wanting to join. To me, it sounds like the government is doing more bad than good with their latest effort to make America stronger.
Temporarily shutting down a multi million dollar business affects so many people… there are people whose income solely relies on Vemma. These people are now out of a job because of the FTC and Vemma conflict. I don’t understand why Vemma is being deemed a controversial company… They have products and they sell them. Rather than spending money on advertisements, the company uses network marketing to grow their business. Usually prolific mentors such as Simon Stepsys take new affiliates under their wing and teach them how to market the products. It should not be a requirement of the MLM company.
Does the United States government have nothing better to do? It seems to me like their time could be far better spent… There are issues on terrorism, taxes, the war on drugs, securing the borders, healthcare reform, social security, national debt, I mean the list could go on and on.
Just because someone doesn’t agree with their advertising style, doesn’t mean the government needs to shut down the whole company operation… It negatively affects so many people. You look at all the other MLM companies out there and wonder what Vemma did different that landed them in this scrutiny. What defines the company as an illegal pyramid scheme? There are no reports of embezzlement, unfair payouts, breached contracts, or anything of the sort. Who cares that their advertising has a picture of young guys with yachts and cars? Is that illegal to motivate recruits to be hungry in their efforts? We see television commercials all the time. Athletes in nice cars, movie starts in nice homes, celebrities with their expensive outfits, all promoting and endorsing products and services from expensive razor blades, to rental cars, to premier carpet cleaning services. The companies of those products aren’t shut down for the same reasons are they? What makes Vemma that different?
As a strong advocate for minimal government control, this issue concerns me. Obviously we don’t want young kids getting taken advantage of… But the only evidence the FTC has provided was that they were “specifically targeting young adults and promising monthly payouts of up to $50,000” (Cincinnati.com). So what? When someone invests in a stock they have the potential to make thousands or even millions… It doesn’t mean it is being guaranteed. “Up to $50k” in no way means that they are guaranteeing that much for every affiliate.
I don’t see anything illegal about informing affiliates of their income potential with a company. Even if they really did have pictures of guys with private jets and yachts, I do not see a big enough issue for the government to get involved, let alone shut down a company’s entire operation.