FTC shuts down nutritional drink's alleged pyramid scheme

TEMPE, Ariz., Aug. 27 (UPI) -- A federal judge shut down nutritional drink company Vemma on Thursday in response to a Federal Trade Commission complaint the company allegedly lured college students into a get-rich-quick pyramid scheme.

The FTC took issue with promises the Tempe, Ariz., company made to potential young recruiters, saying they could earn up to $50,000 per week without working a typical, 9-to-5 job.

"Rather than focusing on selling products, Vemma uses false promises of high income potential to convince consumers to pay money to join their organization," said Jessica Rich, director of the FTC's Bureau of Consumer Protection. "We are also alleging that Vemma is an illegal pyramid scheme."

For an initial investment of $600 for products and business tools and a monthly $150 fee for more Vemma products, young adults could become sellers of the product. The FTC alleges Vemma didn't offer to help recruiters sell products and only rewarded them for persuading other people to become sellers.

In response to the FTC complaint, the U.S. District Court in Arizona temporarily seized Vemma's assets and prevented sales through the company's website.