The FTC will be mailing refund checks totaling more than $2.2 million to people who lost money to an alleged pyramid scheme operated by Vemma Nutrition Company.
The refunds are the result of the FTC’s settlement with Vemma, an Arizona-based multilevel-marketing company that sold health and wellness drinks through a network of distributors known as “affiliates.” Vemma allegedly targeted college students and other young adults with materials that presented its affiliate program as a profitable alternative to traditional employment, but failed to disclose that the program’s structure ensured that most affiliates would not earn substantial income. The FTC alleged that the program operated as a pyramid scheme that compensated participants mainly for recruiting others rather than for retail sales based on legitimate consumer demand for the products.
As part of the settlement, the FTC will be sending 28,224 checks averaging $78.93 to victims of the alleged scheme. The checks will expire after 60 days, as indicated on the check. The FTC urges people to cash them before they expire. The FTC never requires consumers to pay money or provide account information to cash a refund check.
Consumers who have questions about the refunds should contact the refund administrator, JND Legal Administration, at 1-833-759-2980. To learn more about the FTC’s refund programs, visit www.ftc.gov/refunds.
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