TVI Express in 2010: Expansion or inevitable collapse?
It’s no secret that TVI Express has had a rough year. Their first major hiccup was in Australia after the ACCC accused TVI Express of being a pyramid scheme and launched court action.
The case is currently being played out.
Meanwhile over the in the US, TVI Express received a confirmed cease and desist in at least one state – citing that TVI Express was engaged in unfair and deceptive acts or practices‘.
Despite these two major setbacks however, there are still those out there claiming that business in TVI Express has never been better. Depending on who you listen to… either TVI Express is on the verge of cataclysmic collapse or a massive global expansion boom.
So which one is it?
The court action taken against TVI Express by Australia’s ACCC is no small matter. The regulatory body, responsible for ensuring that individuals and businesses comply with the Commonwealth’s competition, fair trading and consumer protection laws, have flat out labelled TVI Express a giant pyramid scheme.
So strongly do they feel about this that they’ve not only publicly declared TVI Express to be a pyramid scheme but have also made them the test case for new laws introduced on July 1st, permitting civil action to be taken against pyramid scheme operators.
The case is currently being played out but things aren’t looking to good. Regarding the TVI Express business opportunity, the ACCC are claiming that
there was either no product being sold or the product was of no value and that the presentations were mainly about ‘deriving income from introducing others”.
TVI Express’ defence?
Ms Jutsen told the court that the ACCC case was ‘deeply flawed”.
‘Deeply flawed’ going up against specific detailed evidence doesn’t sound like a solid argument to me.
Over in the US the state of Georgia issued a cease and desist which was recently made public. As Kasey from Kasey’s Korner pointed out,
TVI Express was given 21 days to appeal. Nothing happened, even though headquarters was notified as soon as this letter was received. This order is now permanent and cannot be appealed.
Not even bothering to challenge the cease and desist it seems TVI Express are a bit light on the defence side of things. Either that or they know their business plan isn’t legit and simply don’t have a defence to present.
Well at least in the short term.
Roz Kaspi and Vanessa Jackson, who run the ‘TVI Express Professionals’ blog, are claiming that there are three law firms in the US who are
working hard on making 100% sure that all TVI Express terms, conditions, policies and everything else are in full compliance with all United States law.
Indirectly of course this admission concedes that currently TVI Express is not in compliance with United States Law. I’m not entirely sure what a team of lawyers are going to be able to do for TVI Express barring a complete overhaul of their business model.
I myself have steadily maintained that TVI Express is about nothing more then deriving commissions from recruiting others to the opportunity. The travel club membership is irrelevant and vaporware.
This in itself is reflected in the selling points of the business. Even with all the regulatory hammers coming down the strength of TVI Express is portrayed in the amount they can recruit.
In touting the future of TVI Express, Kaspi and Jackson write ‘TVI is now set to bring in an additional 500,000 new members by 2012‘. Where this half a million number comes from I have no idea but to say it’s ambitious is a bit of an understatement.
Furthermore it perfectly highlights the core problem with marketing TVI Express. There’s no mention of a product or any updates or changes to the product line. The sole attribute used to promote and describe the future of TVI Express is that ‘hey guys, we’re gunna recruit half a million new members!’
Why? Because that’s half a million new commission payouts for existing members. Oh and there’s a travel club in there somewhere too? Could have fooled me.
Kaspi and Jackson also write about a new US based support centre that’s been predicted to open around January 2012. The US based support centre will be based in Florida and designed to offer support to TVI’s US distributors.
If all these regulatory hammers continue to come down on TVI Express and the company doesn’t change it’s core business model anytime soon, I kinda get the feeling that TVI distributors are going to need all the support they can get.