Vemma, Boreyko & Alkazin throw consumers under the bus
The recently filed responses by Vemma, BK Boreyko and Tom Alkazin to the FTC’s pyramid scheme case read pretty much like you’d expect:
Deny, deny, deny!
And that’s fair enough.
But there’s one peculiar assertion raised in their defenses that I don’t quite know what to make of…
I’m not going to lead you in with what was said, but rather just provide you verbatim the relevant excerpt from Vemma’s response:
The FTC and/or the consumers it purports to represent have failed to mitigate their losses, if any.
Any losses sustained by the FTC and/or the consumers it purports to represent were caused by the acts or omissions of third parties over whom the Corporate Defendants had no control or right to control.
Consumers represented by the FTC knowingly and voluntarily, and possibly unreasonably, exposed themselves to any claimed losses with knowledge or appreciation of the risk involved.
Here’s BK Boreyko:
The FTC and/or the consumers it purports to represent have failed to mitigate their losses, if any.
Any losses sustained by the FTC and/or the consumers it purports to represent were caused by the acts or omissions of third parties over whom Defendant Boreyko had no control or right to control.
Consumers purportedly represented by the FTC knowingly and voluntarily, and possibly unreasonably, exposed themselves to any claimed losses with knowledge or appreciation of the risk involved.
And lastly Alkazin;
Any losses sustained by the FTC and/or the consumers it purports to represent were caused by the acts or omissions of third parties over whom Alkazin had no control.
Any consumers represented by the FTC knowingly and voluntarily assumed the risk of losses.
Perhaps I’m missing some legal nuance here or something, but sounds to me like Vemma, Boreyko and Alkazin just blamed their alleged victims.
Without admitting the FTC’s allegations to be factual, the defense effectively reads that if they were found to be, then consumers of Vemma only have themselves to blame.
Seriously?
An MLM company turning on its customers… that’s a new low guys.
Vemma also raise the question of whether the conjunctive relief requested by the FTC (previously granted by the court on a temporary basis), is even constitutional:
The FTC’s claims for injunctive relief, as sought here, may be unconstitutional.
Boreyko puts it more bluntly, outright declaring the claims (and thus the Judge’s initial decision to grant the relief on a temporary basis?) to be unconstitutional:
The FTC’s claims for injunctive relief, as sought here, were and are unconstitutional.
What the Judge thinks about that remains to be seen. Ditto the “our alleged victims should have known better” defense.
TL;DR (for our #YPR readers):
Vemma to court: Anyone who lost money in Vemma can go screw themselves. And you can shove this unconstitutional shit right up Alex Morton’s ass.
Fuck our victims, fuck the FTC and fuck you too. Vemma out.
Footnote: Our thanks to Don@ASDUpdates for providing a copy of Vemma’s, BK Boreyko’s and Tom Alkazin’s responses to the FTC’s Vemma complaint.
i dont think the court is going to take vemmas or boreyko’s blaming affiliates seriously, because the court has noted in its order that boreyko himself has a video in which he said:
and vemma corporate clearly ‘instructed’ affiliates to purchase the affiliate pack and go on autodelivery to start earning in vemma.
so no, vemma and boreyko wont get away by blaming the affiliates.
the ONLY chance vemma and boreyko have in trial court is pushing their self serving definition of ‘ultimate user’ through.
up until now, they aren’t getting any support from the MLM industry or the DSA for this ‘definition’, so i don’t think they can build a case on that argument either.
vemma will lose at trial and will have to pay damages. their only chance is to resurrect themselves via the limited opportunity the court has granted them.
Oh, typical “slut defense”, i.e. “consumer got raped (financially) because they are stupid and can’t follow my directions “properly”, and thus you can’t blame BK/Vemma for taking advantage of their naivete.”
That’s their story and they’re sticking to it.
The psychiatric term is “unprincipled narcissism”, i.e. “I’m smarter than all of you and if you got used, that’s because that’s your place in life… to be used by me”.
Same thing was said by Paul “Zeekrewards” Burks “I never told any one to invest more money than they could afford… it’s their fault. Not mine. Don’t blame me.”
Some things never change.
Instead of throwing the affiliates under the bus, which hasn’t worked in the past, how about Vemma throw the entire MLM industry there?
They are simply doing what other MLMs have done for years which apparently operate legally. How was Vemma to know? I’d try to prove they were just following the system in place.
Come to think of it, why now? Why Vemma and the college kids? Don’t women, especially housewives doing Mary Kay, matter?
Mary Kay has been ripping off, misleading, inventory loading, and starter kit pushing forever. You only need spend a few hours reading pinktruth.com to know the truth.
I want to know why women haven’t been afforded the same protection as these college kids? And what about Latinos in Herbalife?
One could presume that these ‘college kids’ come from affluent, well educated parents and that’s why the FTC is taking action against Vemma.
Is the FTC primarily made up of a bunch of white, college educated men?
If the defense can prove contributory negligence then it should mitigate damages, fines and penalties for Vemma in the FTC v Vemma case.
I think that’s about all that is going on here…and yes extreme greed, coercive sales techniques and misuse of promotional materials by the affiliate’s themselves did contribute to their own losses so its not so surprising this is on the table. It needs to be.
The whole damn crowd were pyramid pimps and maybe its time to get into that. The defense is opening the door, whether the court is willing to walk through it remains to be seen.
That’s one possibility, but its also possible that its just an easy case to make, whereas the others you mentioned are not.
That’s the opposite of what I saw–boys making videos from their parents’ homes that were anything but affluent, each wanting to be the next motivational speaker or top leader for Vemma.
I saw a lot of kids who were barely literate. I don’t know about the parents’ situations, but it doesn’t sound like affluence.
The enticement for kids who worked hard for their money was the ability to earn more faster,and they are the ones who lost the most, I think, not affluent kids.
The FTC is taking action against Vemma specifically because of it’s calculating predatory tactics and lies toward kids who are vulnerable and naive, with affiliates telling them the only to fail was to quit.
What teenage kid wants to be called a failure or a quitter?
Vemma knew that was the case. What other companies do this?
@ Cindy
Answer: Pretty much any company using the current MLM Model.
This practice was actually started a long time ago. I read where Dexter Yager, one of the top money maker in Amway, was earning 2/3 of his income from selling self-help tapes/books/motivational rallies.
It’s actually rare to find an MLM company today that is earning 50% of their income/profits from Retail Sales.
So, what are they SELLING?
Hope and Opportunity!
And the MLM Professors/Superstars/Gurus/Experts use the same emotional manipulation ploy you mentioned above to move the money.
In fact, Vemma just did the same thing when they blamed their OWN customers for their losses (failure).
Take a look at the “This American Life” podcast episode of “Wake Up Now” which imploded not long after that episode aired.
WUN was very much like Vemma, with energy drink as the main schtick, and a couple other things stuck along.
Their main role model is a guy who goes by C’more Green, and that ain’t even his real name. I thought he’s a black dude, turns out he’s lily-white.
I was specifically referring to starry-eyed kids. What other companies target kids in such a predatory and cult-like manner?
Believe me, I understand everything you said. We lived through it, and it was pretty horrendous.
Of all the kids targeted, it seemed that mine was the only one foolish enough to follow along.
Other kids didn’t have the money or their parents wouldn’t allow them to. My kid had her own income.
Former vemma recruit. Knew going in was pyramid although encouraged to listen to propaganda video “not pyramid”. Laughing.
Nverve product not launched yet. New company and new to my area. Pyramids work if at the beginning.
Contacted 25 friends to do the double double . .showed them the “scam”…all knowingly in…. then the real message revealed. . Must havr each person with $250 a month on their own sale in buying the product plus their 2 down line must buy $250.
I had recruised people who I knew could use extra money in sales. They (we ) were told there was no enroll fee.. well $250 a month for life or u don’t get paid is quite a fee.
I quickly learned other lies . I had enrolled wrong group ..should have called wealthier group who wouldn’t miss the money. Product profit to get to $250. Is ALOT TO BREAK EVEN.
Also was being groomed for our city by major up line person who had said only doing 2 major legs in our town. When the 3rd leg was opened – that was the last lie.
The college line was targeted and praised as the way to go as the mass marketing opportunity. ..is obvious.
I didn’t use energy drinks ..had nothing to compare it too. Didn’t care for it.
Was told vemma would help me lose weight, assist with muscle aches; and help me generally feel better. This was inferred as accurate as a “medical doctor ” immediately associated used the product and lost 25 pounds…and I should also be able to also.
And Dr. Oz supported the product for weight loss. Literature was provided stating Dr. OZ Sup ported Vemma. Also the NC. Basketball team used Vemma.
I recommended all my people withdraw. I happened on this threat today while looking up information on “another energy drink”.
Imho..the best energy drink is PUSSY …that’s right …PUSSY.. sold in your was being sold retail here. .. stopped..in southeastern u.s. .mare terrible issues.
This is the retail distribution opportunity. Tastes like champagne. .without the alcohol. ..
I don’t think anyone can say they go Inot it without knowing it’s a “marketing level plan” . … ho ..ho.. ho.. it’s Christmas. .. but the amount of money it personally it personally takes to be in the black is seriously distorted.
For instance, we did some “well known laundry detergent plan” ..just for the discounts on the superior product. ..as did many. .. but it didn’t cost a car payment to do so.