Filed alongside BK Boreyko’s response, in this article I’m going over Vemma’s official response to the FTC’s request for a preliminary injunction.

Not surprisingly Vemma are objecting to a preliminary injunction being granted. Here’s why.

The core of Vemma’s response revolves around purchase of products, with the company seemingly oblivious to the fact that this is a core component of a product-based pyramid scheme.

The overwhelming majority of Vemma’s revenue is derived from the sale of an array of health, energy, lifestyle, and fitness products through a substantial and longstanding business network with global operations, upon which thousands of employees, creditors, affiliates, and customers rely.

The overwhelming majority of revenue in 
any
product-based pyramid scheme is derived from the sale of products.

These sales however, are primarily motivated by participation in the business opportunity – with purchase of said product generating commissionable sales volume and qualifying affiliates to receive commissions (primarily from newly recruited affiliates who also purchase product).

In an otherwise legitimate MLM opportunity, the purchase of product is primarily driven by non-affiliates (retail customers).

The crux of the FTC’s allegation that Vemma operates an illegal pyramid scheme – i.e., that it drives recruitment over product sales – is contradicted by the company’s actual financial data, which demonstrates that the majority of sales relate to consumption by both Affiliates and customers – not recruitment

How Vemma believe financial data demonstrates consumption of Vemma products I have no idea.

Especially when the Vemma Receiver
recently revealed
the extent to which Vemma check product is not being stockpiled.

Vemma’s robust compliance policies saw the company call up 15 random affiliates a month, ask if they were stockpiling products and… well, that was pretty much it.

And as simple as that sounds, Vemma were unbelievably some five months behind in these checks as of mid 2015.

The issue of affiliate packs and accompanying recruitment is addressed, with Vemma explaining that

Affiliates may choose to purchase a pack of Vemma products, marketing materials, and product information at the cost of $600.00 (an “Affiliate Pack”), which would qualify them for bonuses set forth above.

Affiliates may also sign-up for an auto-shipment of products in an amount that can qualify them for the bonuses set forth above.

The “bonuses set forth above” are a brief summary of commissions paid out by Vemma in their response.

Contrary to the FTC’s allegation that Vemma’s business is designed solely to sell the business opportunity to Affiliates through downline bonuses, Vemma employs extensive marketing and training programs to assist Affiliates with the sale of Vemma’s product.

Again, Vemma seem unable or unwilling to grasp the mechanics of a product-based pyramid scheme.

Product is sold in a product-based pyramid scheme, with the issue b

🤖 Quick Answer

What was Vemma's main argument against the FTC's preliminary injunction request?
Vemma contended that the overwhelming majority of its revenue derived from legitimate product sales through its global business network, supporting thousands of employees, creditors, affiliates and customers. The company objected to the injunction, emphasizing its product-based business model rather than acknowledging characteristics typical of pyramid schemes.

How did Vemma characterize its revenue sources in the legal response?
Vemma attributed its revenue primarily to sales of health, energy, lifestyle and fitness products distributed through an extensive, longstanding business network with international operations. The company highlighted its reliance on legitimate product distribution channels and the dependent stakeholders benefiting from these sales activities.

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