As part of ongoing litigation by the FTC against Vemma, both parties have filed a joint Proposed Case Management Plan.

Filed on December 7th, the plan lays out the FTC’s case against Vemma and projected timeframes (disagreements included) from both parties.

As per the proposal, the FTC’s case against Vemma accuses them of

(1) engaging in an illegal pyramid scheme;

(2) falsely representing that members of the Vemma program (“Affiliates”) were likely to earn substantial income;

(3) representing that consumers who became Affiliates had the ability to earn substantial income, while failing to disclose, or disclose adequately, that Vemma’s structure ensured that most Affiliates would not earn substantial income; and

(4) providing the means and instrumentalities for the commission of deceptive acts and practices by furnishing Affiliates with promotional materials to be used in recruiting new participants that contained false and misleading representations.

Vemma contends that

for more than a decade, Vemma has sold high quality products to many thousands of loyal customers.

Although this Court initially concluded, based on the limited evidence available at the preliminary injunction stage, that the FTC was likely to succeed on its claim that Vemma was a pyramid scheme, a more fulsome review of the sales data and other evidence will show that Vemma was not operating as a pyramid scheme.

Statements like this suggest that Vemma hope affiliates being end consumers will equate them to retail customers:

The rewards paid by Vemma to Affiliates were primarily from the sale of products to ultimate users of the products – both Customers and Affiliates who were purchasing the products primarily for retail sale and/or personal consumption.

The data and evidence will show that commissions paid by Vemma came primarily from the sale of products to ultimate users, not from recruiting.

Interesting considering Vemma already tried that argument, resulting in a preliminary injunction against them and retail (non-affiliate) volume requirement for commission qualification.

I guess they’re hoping the concept of a “product-based pyramid scheme” is ignored, in favor of asserting genuine product purchases by affiliates override the requirement they do so in order to qualify for commissions.

Good luck with that.

Interestingly enough Vemma International Holdings, despite coming under the Vemma umbrella, claims it

is not a “common enterprise” with Vemma. Thus, it is not jointly and severally liable with Vemma.

Moreover, the conduct involving companies located in Asia, Australia, Europe, New Zealand and South Africa (none of whom are parties in this action) which is the subject of the FTC’s complaint, did not have a “direct, substantial, and reasonably foreseeable domestic effect.”

What with US-based affiliates likely having profited heavily on recruitment activities in the above named markets, again best of lucking proving Vemma International Holdings had nothing

🤖 Quick Answer

What were the main allegations against Vemma in the FTC case management proposal filed in December 2017?
The FTC accused Vemma of operating an illegal pyramid scheme, falsely representing earnings potential to affiliates, and inadequately disclosing that the company's structure prevented most members from earning substantial income. The agency also claimed Vemma provided means for deceptive practices in recruiting and compensation structures.

What document did both parties file in the ongoing FTC litigation against Vemma?
Both the FTC and Vemma jointly filed a Proposed Case Management Plan on December 7th. This document outlined the FTC's accusations, established projected timeframes for legal proceedings, and included disagreements between the parties regarding litigation schedule and procedures.

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