New Pyramid selling company targets students

Br1

A new pyramid selling company called Vemma is targeting college and university students. It's an American company that recruit students who take out monthly contracts (usually for £120 a month). They get sent cans of an energy drink called Verve(usually 40 cans). They then get paid to recruit more students (usually £12 for recruiting one member and a percentage for everyone below in your chain). I think it is legal because the students are receiving a product. They aren't supposed to sell the drinks and most just drink them. The CEO sold a previous product in America called 'gods recipe' which got banned as it claimed to cure ADHD.
I know a lot of students that have been charmed into this business venture. They are building up even bigger debts as a result.
Does anyone know the legality of pyramid selling schemes in the uk?
Or any advice for how an institute can warn its students legally?

MothballsWallet

Have you contacted the NUS and asked them to look into it? If they did and can verify what you're saying, they can get word out to most universities in the UK.

Br1

Thanks I'll give that a go now.

Nice_Weather_For_Ducks

What is it with "energy drinks".

That is the real con here!!

maninthestreet

So, for £120 a month, they get 40 cans? That's £3 a can!!!

hollydays

https://www.truthinadvertising.org/eight-things-you-should-know-about-vemma/
The US BBB ( better business bureau) has had 35 complaints about vemma They have a C + rating on there

Love the word " Beveridge"!!

This is the video where he says they have an A rating with the BBB , plus other " misinformation"

Weird hypnotic eyes too..too much caffeine..
Look into my eyes..

http://m.youtube.com/watch?v=_j75pnxxpSw&desktop_uri=%2Fwatch%3Fv%3D_j75pnxxpSw

hollydays

Rip off report about vemma/ verve

http://www.ripoffreport.com/reports/specific_search/VEMMA/%20VERVE/%20Bod-e%20&%20GPS

Anna_Glypta

Thank you so much for posting this. It was extremely timely. My niece was telling us how wonderful this opportunity was and was not listening at all when I sent her links showing her that this was most definitely not easy money and that it would end up costing her. This was the final page that I emailed her and it seems to have done the job - she has said she won't be taking it any further. Thank you BR1 - very grateful. AG.

zagfles

Basically it seems it's illegal if they con people into paying to join a scheme which they claim will make them money mainly from recruiting new members to the scheme. See http://www.oft.gov.uk/shared_oft/business_leaflets/cpregs/oft979.pdf

Some "MLM" schemes are a grey area - where the participant is selling a product but also recruiting other to sell - these I think are OK provided they don't con you into thinking you can become rich by recruiting others, because if they do it's no different to any other pyramid scam.

paddyrg

MLM's typically fall into a grey area by being pyramid schemes *disguised* as owner/operator business opportunities (by having a product). They generally claim not to be pyramid schemes, but when you look at the shape... walks like a duck, quacks like a duck if you get the metaphor.

http://www.mlmwatch.org/01General/recruiting.html

MLMWatch - the articles are a bit dated now, the company names have changed but their way of working is still exactly the same. Some useful resources on there.

Br1

Thanks for all the helpful posts. I was really glad when I read your post about your niece AG. I'm determined to get the message out about this company and all the links people are posting are helping. Br