Network Marketing Company Directory
Products: Energy drinks and liquid nutritional supplements.
Vemma is the clearest cautionary example in this directory: a nutrition-drink MLM that regulators moved to shut down as an alleged pyramid scheme.
In August 2015 the FTC obtained a court order that halted Vemma as an alleged pyramid scheme, froze its assets and appointed a receiver. A 2016 settlement imposed a $238 million judgment (mostly suspended), banned pyramid practices and deceptive income claims, and required pay to be based on real customer sales — without an admission of guilt. Vemma never returned to its former scale.
This is what a regulatory shutdown looks like. The warning signs the FTC cited — recruitment-driven rewards, buying product to "qualify", and big income claims aimed at young people — are exactly the red flags in our pyramid-scheme test. If a new opportunity rhymes with this, walk away.
By the regulators' account, the vast majority of participants lost money — which is the point of the case. It is the strongest reminder to model your real net with the income calculator before joining anything.
The FTC alleged Vemma was operating as an illegal pyramid scheme and, in 2015, obtained a court order to halt it. A 2016 settlement banned pyramid practices and deceptive income claims and imposed a $238 million judgment (mostly suspended), without an admission of guilt.
Vemma was effectively shut down by the FTC action in 2015 and never returned to its former size. It stands as a cautionary example of the recruitment-driven red flags regulators act against.
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