Vemma Company Targeting College Students
Written by Andrew Havranek
Last updated on July 14, 2014 @ 7:05PM
Created on July 14, 2014 @ 6:18PM
While the idea of making fast, easy money is something that a lot of people might like, it doesn't always happen the way companies claim.
A drink company is being accused of advertising a large yearly pay that is so appealing, its causing college students to drop-out, putting themselves in financial trouble.
The Federal Trade Commission received over 160 complaints against Vemma, a company that sells, what they call, "healthy" energy drinks.
They claim by selling their product, you can make nearly $50,000 per year. While this sounds appealing to many people, the reality isn't nearly as nice as the possibility.
To try to make the money advertised, you have to buy their product, sell it, and recruit others to do the same.
This company in particular uses fast-paced advertisements with club like music to sell their products to the young adult, college age generation, those most likely to be looking for a job.
“These multi-level marketing schemes, I don't think, are normally targeted at younger generations. I think it is a little more appealing if you can convince them that there's an easy way to get rich fast, and also, these young people are connected to a lot of friends and family that they can easily recruit to get into the system, which is how these multi-level marketing schemes work,” said Dr. Elizabeth Cohen, Media Professor at West Virginia University.
Vemma was investigated in Italy, and was deemed a "pyramid scheme," and was fined nearly $140,000.
While Vemma claims you can make $50,000 a year, reports say over 80% of their company makes less than $1,600.
5 News reached out to the Vemma company today, but no body was available to comment.
Experts say even though the idea of easily making a lot of money is desirable, if it sounds too good to be true, it probably is.
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