BULLETIN: (3rd update 10:17 p.m. EDT U.S.A.) The Federal Trade Commission has gone to federal court in Arizona, alleging that Vemma CEO B.K. Boreyko violated a court order within 11 days after a federal judge imposed a preliminary injunction against the MLM company.
Boreyko contacted certain affiliates on an unknown date with Vemma “sales or marketing material” in violation of U.S. District Judge John J. Tuchi’s Sept. 18 order prohibiting such contact “without prior delivery to the FTC and a five (5) day period for the FTC to review the materials,” the agency argued.
The violation occurred “a mere eleven days or less” after Tuchi’s Sept. 18 order, the FTC contended,
“FTC staff recently located two Facebook postings by self-proclaimed Vemma Affiliates that include a message from Defendant Boreyko outlining details about Vemma’s new compensation plan . . . ,” the FTC argued. “The postings assert that Vemma has doubled its Auto-delivery discount from 10% to 20% and will be having a ‘Customer Thank You Sale,’ and attaches a revised price list of Vemma products . . . None of the information contained in the messages had been disclosed to the Monitor or the FTC before being disseminated.”
Prior to today’s FTC argument, Vemma asserted (yesterday) that “it is clear that the FTC’s interpretation of what constitutes ‘new marketing or sales materials’ and the scope of its authority to dictate the content of communications by the Corporate Defendants under the Order extends far beyond the intended scope of the Order. Furthermore, the persistent objections by the FTC to any communications that the Corporate Defendants propose or send is preventing Vemma from restarting operations as permitted by the Order and causing it irreparable harm.”
NOTE: Our thanks to the ASD Updates Blog.
More later . . .