VEMMA -vs- FTC => MLM Attorney's Warning

Get your questions answered by other leaders in the mlm & home business industry on any topics, as well as share your ideas and be recognized as a home business leader.

Moderator: admin

VEMMA -vs- FTC => MLM Attorney's Warning

Postby Peter Arnold on Wed Oct 21, 2015 1:43 pm

Hello Partners:

An update on Vemma -vs- FTC (which affects ALL of us) ...

Kevin Thompson is one of the top MLM Attorneys in the USA.

He has been on Vemma's Legal Support Team during the recent FTC attack (lawsuit / court case) against Vemma.

It is anybody's guess whether Vemma will be able to survive, since its "hands are severely tied" - with BIG BROTHER looking over its shoulder - like a PAROLE OFFICER, watching every single move it makes (including 'any' correspondence to the field - requesting 'any' approvals - having 'accountability' sessions, on and on).

The impact on Vemma, of this legal mess, has already been painful. They have been terribly restricted as to "what they can and cannot do now, and in future" - and recently, their Online Payment Provider recently abandoned them, so now, any 'Customer Orders' must be made either by phone, or fax, or they can now use an Amazon Credit Card, if they have one. They have also had to declare "bankruptcy" in certain countries (Australia and others, I believe).

ANMP - As I mentioned in another post here - having had the priviledge of serving on the Board Of Directors of the industry's professional association for 4-years, representing Canada (ANMP [dot] com - Association of Network Marketing Professionals - a global, non-profit organization, which serves to educate, protect and inspire "field Reps" everywhere) - sadly, I witnessed many, many similar tragedies - where both Companies, and Reps, suffered similar fates.

LESSONS LEARNED - One (of many) things Thompson makes abundantly clear (from "his" perspective) is this:

INDUSTRY WARNING - If the industry does not "clean up its act" -- by changing their Compensation Plans to favor "RETAIL SALES to CUSTOMERS" -- instead of the current "RECRUIT-RECRUIT-RECRUIT more REPS" model -- Network Marketing companies everywhere, will leave themselves wide open to the wrath of the FTC. It's just a matter of time. Companies who continue to "bury their heads in the sand" about this, do so at their own peril.

QUESTION #1 - But my "own" initial response is this => whatever happened to our FREE ENTERPRISE SYSTEM?

QUESTION #2 - WHY should we in this industry (IF we are running an ethical, NON-Pyramid business) have to bend to bureaucratic regulators (who happen to "hate" MLM - who have "never understood" our business model) - why should we not "stand up and fight" against their heavy-handed abuse against the industry -- and why has the DSA (Direct Selling Association) not come forward "on behalf" of our industry - their silence is deafening? Hopefully, they're working "behind the scenes" to address this.

CUSTOMER ACQUISITION - Nevertheless, I DO believe MLM companies (and Upline Leaders) should "greatly tone down" their Ads / Promotions / Seminars / Squeeze Pages / City Tours / Conventions / Trainings / Webinars / 3-Way Calls / GoPro Weekends / etc, -- from the "hype" and "heavy emphasis" on only TEAM BUILDING -- and instead, start focusing more attention on quality Information / Tools / Resources that will teach members "how" to ATTRACT LOYAL 'CONSUMERS' through proper 'PRODUCT' EDUCATION (especially when it comes to the "nutritional wellness product" sector - assuming that consumers WILL find "exceptional" health products).

Bringing in an "army" of Happy Consumers (who have NO attachment to the Comp Plan) -plus- a "few" Biz Partners, who will do the same thing - will be KEY to building long-term success in this industry ((and, keeping the "regulators" at bay)).

SILVER LINING? - I continue to see the "business model" of Network Marketing (when implemented "right") - as one of the greatest inventions of the human mind. NO other industry / profession / business can offer (all tied "together") the powerful three (3) combined factors that MLM can -- 1)- Compounding -- 2)- Leverage -- 3)- Residual Income.

Here's the (sobering) article on this ...

Sincerely / Peter A.

Peter Arnold, CLU, CFC / Founder
Academy Group Online / Canada
User avatar
Peter Arnold
Contribution Level: 3
Posts: 205
Joined: Mon Oct 08, 2007 1:18 pm

Return to Main MLM Discussion

Who is online

Users browsing this forum: No registered users and 10 guests