How The Network Marketing Community Can Support Vemma And Other MLM Companies

Best Practices

Since at least 1979, regulators and critics alike have questioned direct retail sales to the ultimate user inside a direct selling aka MLM company. This last month we saw once again this concern raise it’s ugly head when the FTC went after Vemma as a pyramid, stating they didn’t have enough “ultimate users” to be justified a legit network marketing company.

Have You Heard Of The VEMMA Challenge? All Networkers Should Watch. Critics May Hate It!

The Rest Of The Story…How The Network Marketing Community Can Support Vemma And Other MLM Companies

Disrupt Terminates Top Level Affiliate For Selling Unauthorized Shares

Disrupt Terminates Top Affiliate Daryl YG Kingston WHY?

Yesterday Jason Elrod, founder and CEO of Disrupt Worldwide, LLC. made the following announcement on his Facebook wall.

We have been informed that a former Disrupt affiliate had apparently been soliciting people to give him money in exchange for a purported “share equity” investment in
Disrupt.

Our investigation proved that the allegations were accurate and the affiliate was immediately terminated.

Disrupt is not selling any ownership interest or stock and has not authorized the resale of any ownership interest by this former affiliate or any others. Disrupt did not receive one red cent of investment money from this individual.

Disrupt takes all regulations seriously, and if our legal and compliance staff feel this action is grounds for regulatory discipline we will file a complaint against the former affiliate with the appropriate authorities, in our home state, the affiliate’s home state as well as with federal regulators.

If you are solicited by anyone purporting to represent Disrupt for investment purposes, immediately report any person who claims to be selling an investment or ownership interest in Disrupt to the the following: compliance@disruptcorp.com 

It was not a surprise to me, as I had been following the saga all weekend long. Elrod had reached out and shared his side of the issues. I then reached out to Kingston to get his side of things.

The Rest Of The Story…Disrupt Terminates Top Level Affiliate For Selling Unauthorized Shares

Does The Receiver Report Support The FTC Claim VEMMA Is A Pyramid?

Angle Of Justice

FTC Receiver Report Support The FTC Claim VEMMA Is A Pyramid?
The receiver appointed and approved by the court hearing the FTC case against Vemma for running a pyramid scheme, Robb Evans, has released his initial findings. To review the original articles you can click here: Part 1: FTC Claims VEMMA Illegal Pyramid, Part 2: What Does The DSA Have To Say About The FTC Claim VEMMA Is A Pyramid?, Part 3: What Can We Learn From The FTC TRO Application Against VEMMA?.

Before I get into the receiver’s report, I want to share a link to an article written by Robert FitzPatrick. FitPatrick is one of the most outspoken critics of network marketing/MLM and one of the most quoted anti-pyramid experts by the FTC.

He wrote an article over at Seeking Alpha titled -- ‘Unfair And Deceptive’: The FTC’s Prosecution On Multi-Level Marketing. 

The Rest Of The Story…Does The Receiver Report Support The FTC Claim VEMMA Is A Pyramid?