Today has been a very interesting day. Vemma has been served a complaint by the FTC on August 25th, 2015 in the USA for their autoship program.
As of right now, the back office is temporarily unavailable.
Autoships are very important for all network marketing companies because a lot of revenue is generated through them.
For example, most companies with a great product will see anywhere between 40% to 75% of all revenues from the monthly reorders…
The FTC (Federal Trade Commission) is a powerful USA government organization and it’s mission is to “Protect USA customers”.
Overall, this isn’t really a Vemma issue, but it’s an attack on this industry…
Sadly, Vemma was just the guinea pig and will cost a lot of time and money to defend against this FTC investigation.
The weird thing is, Vemma’s autoships are OPTIONAL so this doesn’t really make any sense. This must be on an “Old” complaint before when autoships were mandatory or distributors.
If you look at the BBB, Vemma is actually rated the highest at A+ and they named it an accredited business and organization.
To actually hit that status, Vemma had to show that it is committed to making “a good faith resolve any consumers complaints”.
Right now, the FTC has 2 issues with the pack sales and autoship sales.
Overall, the pack sales are not really a concern because only 7% of their product sales come from that.
Right now, the FTC complaint is under seal until August 28th 2015.
This is done so the founders of the company can not rally support before the public notification.
So let’s look into what an Autoship program really is…
An autoship program lets customers to schedule on a monthly basis when their products are shipped.
And the MLM industry is not the only industry that is doing that…
There are grocery stores, utility companies etc. have been doing this forever.
They just don’t call it an autoship.
An autoship let’s you set it and forget it on your favorite products…
Most companies even give you a discount when you are on an autoship.
Kevin Thompson, the MLM Attorney stated:
It’s a very big deal. Remember, Vemma is a long-time DSA member. The DSA has come to the side of Herbalife and helped them out. We’ll see how they respond here.
The FTC sued the wrong company, in my opinion. They would’ve gotten more bang for their buck if they popped one of the many bubbles forming in the space.
If the FTC wins in court, then the new law will state that you can’t have an autoship.
This will be a huge problem for the network marketing industry.
80% of Vemma sales are customers or wholesale non building reps.
I think it’s pretty lame that the FTC would intervene, this makes absolutely no sense.
I was looking at some Facebook comments on the issue, and they think the FTC is wrong here.
Here are some of the comments below:
This is stupid on the part of the FTC….everything is Auto ship these days….my rent/ mortgage, insurance, phone bill etc…FTC should be looking into the Wrong-Doings of why Wall St is Failing the people of the USA, instead of solid companies like Vemma..!! – Matthew
Next thing you know, they’ll go after the Dollar Shave Cub for their Autoship program. The FTC and other Government agencies can be so rediculous at times…. – Michael
Hang onto your seats folks! Corporate America is just beginning their fight against home business. I believe this could get very ugly in the coming months and years as big business realizes how much is at stake with individuals working for themselves. Government responds to corporate lobbyists, here is a perfect example. – Pam
Autoship is similar to auto-billing for the utility bills, electricity, gas, phone, internet, TV. If the FTC even imagines killing autoship, they’d have to justify keeping autobilling in place. and that ain’t gonna happen! – Tek
Here is some info about Vemma:
The company was founded by BK Boreyko and his two sisters, Karen and Lauren.
Vemma has products like Verve energy drink, Vemma bod-e, a transformation weight loss line.
Vemma is headquartered in Tempe, Arizona, and had a large distribution chain in over 50 countries.
For a full blown review, please visit: http://hotmlmcompanies.com/vemma-review-good-business-or-scam/
In my opinion, I think the FTC is going a little overboard with this…
They definitely went after the wrong company because they should focus their attention on real pyramid schemes or ponzi schemes.
There are so many of those out there!
Anyway, I wish Vemma the best!
Bless and Be Blessed,