Scam Tactic: Redefine Common Words / Doublespeak

The term doublespeak was introduced to the world by George Orwell's book "Nineteen Eighty-Four", where it was defined as "using language to introduce ambiguity and confusion to block out facts and aims that does not fit in the program." (slightly paraphrased)  It is no surprise that it is among the arsenal of the scammers.

One such example of doublespeak is the appropriation of the term "sharing" to mean promoting / selling, and "selling" as buying.

According to the Vemma promotional material updated in late 2013, members are no longer representing the brand as "brand ambassadors". Members are instead, "affiliates" in affiliate marketing where member affiliates refer customers to the company, and earn some commission for sales they brought in. And affiliates are encouraged to buy some products as "some to enjoy and some to share". There are special bonuses for those who buy large starter packs.  The following screencap is how it was explained on most Vemma affiliate sites:

Screen cap from a Vemma "affiliate" website explaining what you need to do to get paid: BUY STUFF FIRST!

Did you see the problem yet?

HINT: Your upline (who recruited you) gets commission for the stuff YOU buy, both the starter pack, and the monthly autoship.

Let that sink in for a moment.

Why Italy Said Vemma's a Pyramid Scheme; Analysis by TINA

My Vemma Haul! (Photo credit: BenSpark)
But who's actually getting (keel)hauled? 

Truth in Advertising, i.e. TINA, has published a full analysis and translation of why Vemma was deemed a pyramid scheme in Italy back in March 2014.  From TINA article:

The investigation by Italy’s Competition and Markets Authority (AGCM), which sanctioned Vemma €100,000 (roughly $140,000), began in June 2013 after two consumers complained about the Arizona-based company’s marketing and sales practices. During the investigation, Vemma proposed changes to its Italian compensation structure. It also announced changes in its U.S. structure. But a TINA.org analysis has found that the changes to the U.S. compensation plan do not make the plan significantly different from the one Italian regulators found to be a pyramid scheme.

Here are some interesting facts about Vemma's membership in Italy, released by AGCM, where Vemma was given months to cooperate with the investigation, and even presented a defense.

• Only 27% of associates were eligible for bonuses by regularly ordering products from Vemma.
• Fewer than 100 individuals on average generated six-month sales commissions higher than €1,000 (about $1,300 in June 2013), while nearly all the other associates received quite low or even paltry compensation.
• A significant portion of the orders consisted of purchases made by associates themselves, presumably for their own consumption, which in the network are known as “autoship” sales.
• Approximately 20% of the total income generated from product sales was obtained from the sale of expensive Vemma packages called “Builder Packs” that cost €599 or €999 (about $700 to $1,300 in June 2013), and over 60% was generated from autoship sales.
• Only about 16% of the income was generated from the sale of products to third parties.
• Only 24% of associates had a VAT number (European version of "resale license"), which would enable them to sell products to third parties. 

BREAKING NEWS: Italy fined Vemma, Organo Gold, and Asea 500K Euros for pyramid scheme and false claims

Flag of Italy (Photo credit: Wikipedia)

Italy's Financial Regulators (Guardia di Finanze) Special Market Protection Unit, Anti-Trust Group, just issued fines to Vemma Italy (100K Euro fine), Asea Italy (150K Euro fine), and Organo Gold Europe (250K Euro fine) for "unfair business practices" (i.e. pyramid sales) of pushing illegal MLM beverage business.

Asea and Organo Gold got extra fines because they also made unsubstantiated health claims. Asea apparently claimed their product strengthens the immune system, promote healing process, and reduce harmful effects of free radicals. Organo Gold apparently claimed that their ganoderma mushroom made it effective in prophylaxis of nerve diseases, vascular diseases, and cancer, without side effects.

http://www.helpconsumatori.it/acquisti/vendite-piramidali-antitrust-decide-multe-per-500-mila-euro/79331

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