Tiber River screws distributors out of final commission check
Tiber River announced it was abandoning its MLM business model last month.
Tiber River distributors were still able to generate sales throughout January, with final commission checks going out this month.
On February 14th Tiber River told distributors it was screwing them out of their final commissions.
As per the “important communication” Tiber River sent out;
As you already know, we are restructuring and recapitalization our business.
Unfortunately, we found out there is going to be a significant delay in this process.
As a result, we are not able to release your commission payment into your Hyperwallet today.
To ensure you still receive compensation, we will be issuing your commission payment to you in the form of Loyalty points.
Because we recognize this is a change from how we have paid commission in the past, we will be adding a 20% premium to the points you are paid.
With loyalty points, you will be able to order products from our website which you can use or sell at your discretion.
All loyalty points will be uploaded by Thursday, February 16, 2023 at 4pm CST.
If you’re thinking this is a stop-gap with commissions to be paid at a later date, you’d be mistaken.
We apologize for the challenge this presents you.
If there was another way, we would have taken it, but we simply do not have the funds available to pay commissions in the same manner as we did previously.
We have done the best we can to honour your contributions with the only option available to use at this time.
Adriana and Michelle
The total dollar amount Tiber River is screwing its distributors out of is unclear. The cynic in me sees a failed MLM company hoping to dump products it can’t sell onto its distributor-base.
What I’m less clear on is the legal ramifications of Tiber River failing to pay owed commissions out. Tiber River hasn’t filed for bankruptcy. There are no legal proceedings here, the company has just decided to not pay out.
While I’m well versed in a lot of MLM legal proceedings, an MLM company not paying commissions isn’t one of them.
I’d assume there’s been some legal breach of contract here but that’s otherwise a question for a lawyer to answer. I’ve seen MLM related class-action lawsuits filed over far less.
Unfortunately this isn’t Tiber River’s first run-in with unpaid earnings.
In 2021 Tiber River retail storefront employees detailed withheld wages and tips, unpaid overtime, forced unpaid coverage of corporate events and “personal grievances”.