Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Feds bust another “nutrition company” as a pyramid scheme

Another MLM pyramid scheme has been exposed and is getting a huge spanking from the feds; perhaps others will be busted soon.

vemma pyramid scheme

vemma pyramid scheme

Yet another pyramid scheme bites the dust

One of the latest pyramid schemes to be shut down is Vemma Nutrition Company, which promotes health and wellness drinks to young adults, typically those in college. Vemma is allegedly recruiting students to peddle their products, claiming their distributors will get rich without the typical 9-5 job.

The problem is that the focus is on recruiting new distributors instead of selling the product. This makes it a pyramid scheme, which is illegal in the United States, as well as many other countries around the world.

Vemma charged with lying about earning potential

Every person wants to hear that they can get-rich-quick, without any work on their part. This is one way that multi-level marketing hooks people so easily. In this case, Vemma purports that their affiliates can earn as much as $50,000 per week. The only limits are your own effort. In addition to the claims of being a pyramid scheme, Vemma is charged with making false allegations about earning potential.

How can you tell if you’re getting involved in an illegal pyramid scheme? The biggest red flag is when you are encouraged to bring other people in beneath you to make money. The company doesn’t focus on the product, but on the distributorships. You should:

• Learn all you can about the company
• Ask lots of questions
• Talk to other distributors, make sure they are legitimate, not shills
• Get advice from an accountant, trusted friend, businessperson, as a gut check
• Make sure the plan fits your goals and dreams

Advertisement. Scroll to continue reading.

So who are the legit MLM companies?

There are legitimate multi-level marketing plans, Avon, Pampered Chef, and Amway. The line between legal and illegal is a thin line. The FTC says it comes down to product. The focus has to be on the product. There are probably more companies than Vemma that are a distributor-scheme instead of a legitimate selling business. If you think you’ve gotten involved in a pyramid scheme, you can make a complaint to the FTC for them to investigate.

The only way to really make money is to work hard. People who tell you otherwise are just trying to get you to buy into their scheme to make them money. Save your money and your time. Invest in tried and true get-rich plans. Work hard. Go to college. Save money. Spend wisely. Don’t go into debt for things like vacations or durable items like clothes. Pay your bills. Live within your means. And don’t fall for get-rich schemes.


Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business Entrepreneur

Even if you don’t know what the acronym MLM stands for, chances are high that you’ve stumbled across one. Maybe a friend keeps inviting...

Social Media

Everyone loves a good podcast, and we're listening to endless episodes and surfacing gems for you.

Business Entrepreneur

(ENTREPRENEUR) MLM pyramid schemes are already predatory enough, but for victims trying to get out of the cycle, scammers are waiting on the sidelines.

Opinion Editorials

(EDITORIAL) Cue the Boss Babes and that acquaintance from high school in your DMs: The MLM, Monat, is offering up a "PhD" program for...


The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.