Earlier today OneCoin’s CEO appeared in a YouTube video to promote the scheme’s new €118,000 EUR investment packages. Less than 24 hours after it was published, YouTube has removed the OneCoin video for violating their policy on ‘spam, deceptive practices and scams‘. Without ruling out the violation of more than one, which of the three YouTube [Continue reading…]
UPDATED 4:31 P.M. EDT U.S.A. Zeek Rewards was always inexcusably horrid, fueled by serial willful blindness and the sort of practiced disingenuousness that props up so many MLM “programs.” In dollar volume, Zeek ended up being more than seven times larger than the $119 million AdSurfDaily MLM Ponzi scheme that put ASD operator Andy Bowdoin in federal […]
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“Guaranteed50KIn30Days” and associated programs were “pyramid promotion schemes” that depended on recruitment rather than product sales to “ultimate-user consumers,” investigators from the office of Nebraska Attorney General Doug Peterson said today. The PP Blog wrote about the schemes in July 2013 — in part because they were being pushed by affiliates who also pushed the Profitable […]
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The claims information below was received July 22, 2016, by the PP Blog from Stephen B. Darr, the court-appointed trustee in the TelexFree bankruptcy case. ** __________________________** September 26, 2016 at 4:30 p.m. (prevailing Eastern Time) has been established as the deadline for each person or entity (including individuals, partnerships, corporations, estates, trusts, joint ventures, […]
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3RD UPDATE 3:17 P.M. EDT U.S.A. Dorian da Silva Santos, described by Bloggers and in media accounts as a politician and promoter of TelexFree in Brazil, reportedly has been found murdered execution-style in the Brazilian state of Bahia. The news adds to a disturbing series of events that, since at least 2013, have become part of […]
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Multi-level marketer Herbalife will pay $200 million back to people who were taken in by what the FTC alleges were misleading moneymaking claims. But when it comes to protecting consumers, that may not be the most important part of the just-announced settlement. What could matter more than $200 million? An order that requires Herbalife to restructure its business from top to bottom – and to start complying with the law.
“This settlement will require Herbalife to fundamentally restructure its business so that participants are rewarded for what they sell, not how many people they recruit,” FTC Chairwoman Ramirez said. “Herbalife is going to have to start operating legitimately, making only truthful claims about how much money its members are likely to make, and it will have to compensate consumers for the losses they have suffered as a result of what we charge are unfair and deceptive practices.”
The company will now differentiate between participants who join simply to buy products at a discount and those who join the business opportunity. “Discount buyers” will not be eligible to sell product or earn rewards.
Multi-level compensation that business opportunity participants earn will be driven by retail sales. At least two-thirds of rewards paid by Herbalife to distributors must be based on retail sales of Herbalife products that are tracked and verified. No more than one-third of rewards can be based on other distributors’ limited personal consumption.
Companywide, in order to pay compensation to distributors at current levels, at least 80 percent of Herbalife’s product sales must be comprised of sales to legitimate end-users. Otherwise, rewards to distributors must be reduced.
Herbalife is prohibited from allowing participants to incur the expenses associated with leasing or purchasing premises for “Nutrition Clubs” or other business locations before completing their first year as a distributor and completing a business training program.