![]() As of July 2014, the Federal Trade Commission (FTC) received 170 complaints about Vemma and some colleges have issued warnings to their students about the company. ![]() Vemma heavily focused on recruiting college-aged people as distributors, which has brought attention from consumer organizations, and complaints from parents. ![]() Vemma was a multi-level marketing (MLM) company. In December 2016, Vemma reached a $238 million settlement with the FTC, which also banned the company, its CEO, and top distributors from recruitment-focused business ventures, deceptive income claims, and unsubstantiated health claims. The company was placed under an injunction which restricts certain marketing activity and compensation methods, and a monitor was appointed by the court to assure compliance with these restrictions. Federal Trade Commission filed a lawsuit against Vemma, accusing the company of operating an illegal pyramid scheme. The group's report also says that minimum monthly purchases are still required for full eligibility, which Boreyko has said is false. An analysis by advertising watchdog group Truth in Advertising has described this as a red herring, as the company has never required sign-up fees. Boreyko stated that the changes were intended to avoid the fallout from the Federal Trade Commission that has happened to other multi-level marketing companies, such as Herbalife. In April 2014, the company announced that it was modifying its compensation plan by removing sign-up fees and the $150 minimum monthly product purchase to qualify for commission, among other things. Boreyko has said that the compensation plan is the same. In 2013, Vemma started describing itself as an affiliate marketing company, although Benson K. Vemma sold its products through its website, and also through independent distributors (referred to internally as affiliates) who could potentially earn a share of the revenue from their own product sales as well as those from the network of distributors they build. Vemma Nutrition Company was incorporated in 2004, and by 2011, New Vision had been entirely folded into Vemma. The family also owns a limited liability corporation which has purchased commercial real estate, including property rented back to other Boreyko-controlled companies. In 1994, the family founded New Vision International, a nutritional supplement company. Starting in the 1990s, the Boreyko family have been incorporating dozens of companies under the family's control sharing the same address. media, business analysts, and former distributors, and was fined by the Italian government. The company had frequently been accused of being a pyramid scheme by U.S. Most distributors were in their twenties. In 2013, the company reported US$221 million in revenue. The company, based in Tempe, Arizona, was founded in 2004 by Benson K., Lauren, and Karen Boreyko. The company was shut down in 2015 by the FTC for engaging in deceptive practices and pyramid scheming. Vemma ( / ˈ v iː m ə/) Nutrition Company was a privately held multi-level marketing company that sold dietary supplements. ![]()
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