Regulation & law
Vemma case (2015)
An FTC action that halted Vemma's operations and led to a 2016 settlement banning pyramid practices.
In 2015 the FTC obtained a court order halting Vemma Nutrition, alleging it operated a pyramid scheme that targeted young adults. The 2016 settlement, according to the FTC, banned the company from paying compensation tied to purchases by participants and required a majority of sales to be to real customers. The case is frequently cited for its treatment of affiliate purchases.