Vemma's FTC Settlement Points Out Pyramid Scheme Charge

FTC makes clear in the settlement that Vemma was charged with violations including "operating an unlawful pyramid scheme" and that it agreed to compensate its independent distributors only for retail sales. "There have to be real sales to real people," says FTC attorney Lois Greisman.

Vemma Nutrition Co. continues direct sales of health and wellness beverages as it agrees in a Federal Trade Commission settlement not to operate a pyramid scheme and its CEO agrees to pay nearly $500,000 in fines.

The Tempe, Ariz., firm marketing the brands bod-e, Verve and Vemma said in a statement that it did not admit...