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Is veema legit?

Discussion in 'BlackHat Lounge' started by jambo3, Sep 11, 2013.

  1. jambo3

    jambo3 Junior Member

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    So there are many people joining and participating in this veema thing. A LOT! More than the normal small budget campaign or whatever they are. Like really does anybody know what they are? How do they make money? Are they legit?

    Is this a way for these companies to get people to word-of-mouth their product?
     
  2. jambo3

    jambo3 Junior Member

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    I'm not asking because i am interested or thinking about signing up.. Just curious as to how they work, and what they tell their workers.
     
  3. Kthrulu

    Kthrulu Newbie

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    The FTC has received at least 40 complaints about the company and its products, according to results of a Freedom of Information Act request filed by TINA. Complaints range from allegations that the company is a pyramid scheme that preys on college and high school students to customers saying their credit cards were repeatedly charged for Vemma products they didn?t want. (Update: Vemma announced that starting Sept. 1 it will no longer allow minors to join Vemma, though teens 14-17 who are already brand partners and have parental permission can continue.)

    In order to become a brand partner and make money with Vemma, you must enroll in a negative option offer and recruit other ?brand partners? in the negative option offer as well. This ?offer? allows your credit card to be charged automatically each month for products and can be hard to get out of, according to complaints from consumers.

    Contrary to what Boreyko says to parents in this YouTube video, Vemma does not currently have an A+ rating from the BBB. In fact, Vemma has a C+ rating. The BBB has received 31 complaints about the company.

    Boreyko has been in hot water with the FTC in the past. In 1999, the FTC went after him for a previous business, New Vision International, Inc., for making claims that its dietary supplement, ?God?s Recipe,? could cure, prevent, or treat ADD and ADHD. As a result of the action, Boreyko agreed to an order banning him from making any claims about the safety or efficacy of supplements without reliable scientific evidence to back them up. That agreement is in effect until 2019.

    The Environmental Research Center Inc., a nonprofit based in Calif., sued Vemma for products offered under the New Vision line that the center claimed exposed consumers to lead, a chemical listed as a carcinogen and reproductive toxin under the state?s Safe Drinking Water and Toxic Enforcement Act, without proper warning labels. As a result of the suit, the company agreed to submit its products to lead testing and put a warning label on them if they contained more than 0.5 micrograms of lead.

    Boreyko claims that Dr. Oz called the Vemma formula his ?favorite fatigue fighter.? Oz, who recently announced he is going after phony endorsements using his name, does indeed list Verve on his website as a ?surefire way to get a jolt of energy.? It?s one of the few products listed by name on Oz?s site. This is not an endorsement, his spokesperson insists. You see, Boreyko is an advisory board member of Oz?s charity, HealthCorps, and Vemma has been very supportive, to the tune of $650,000 in donations to the charity. ?I?m sure Vemma is a favorite company of Dr. Oz because of its generosity,?? said Oz spokesman Tim Sullivan.

    The FDA cited Vemma after a November 2012 inspection of its Scottsdale headquartersfor not having a system in place to conduct investigations into customer complaints or pursue follow-up action. ?Conducting a review and investigation is critical to the health and safety of the consumers,?? the report stated. Complaints from consumers ranged from allergic reactions to the product to gastrointestinal problems after drinking the beverages. The company responded to the FDA report in December 2012 saying it had provided the FDA inspector with the customer complaint procedures it uses.

    Very few people actually make it to a level of true ?financial freedom.? According to Vemma?s own income disclosure statement of 2012 about 75 percent of active ?brand partners? (distributors) make less than $1,400 a year by recruiting others to the company. Less than one percent make more than $100,000. And just .01 percent become Star Royal Ambassadors. You might have a better chance at financial freedom by purchasing a lottery ticket.

    It appears that Vemma members? compensation is based primarily on getting others to join their ?team? and not on how many individual cans of Verve or other Vemma products they sell to actual customers. That sounds an awful lot like anillegal pyramid scheme.