Xango Pops Up On The FTC Radar0
Xango Pops Up On The FTC Radar
The FTC is a USA government organization, their mission:
“To prevent business practices that are anticompetitive or deceptive or unfair to consumers; to enhance informed consumer choice and public understanding of the competitive process; and to accomplish this without unduly burdening legitimate business activity.”
One of the results of the FTC battle against Vemma, is their case against Tom Alkazin, Vemma’s nr. 1 top earner.
In the latest filing from the FTC vs. Tom Alkazin, Utah based direct Selling Company Xango pops up.
Xango, founded in 2002 is a B classified company by Business For Home.
A number of Vemma top leaders joined Xango in October – November 2015 and the company introduced a initiative simular to the YPR (Young People Revolution) program of Vemma. That program was one of the triggers of the FTC case against Vemma.
“The initiative, called MBX, provides innovative products, tools, and training to help young entrepreneurs build a thriving direct sales organization at their own pace and without needing access to capital.
The acronym stands for “millennial builders of XANGO,” but the program is broader than just that”
Subsequent to the filing of the reply (July 22nd), it came to the FTC counsel’s attention that there was evidence that Alkazin was promoting Xango.
“(Tom) Alkazin was actively involved in promoting Xango, an MLM with business characteristics similar to Vemma’s business model, as of January 2016. (Tom) Alkazin was still doing presentations with Xango affiliates as of March 2016.
Xango offers mangosteen products, as well as “the opportunity for a happier, healthy, wealthier life.” Xango describes its business opportunity as offering “limitless potential for a personal business” and, if desired, the opportunity for a “full-fledged lifestyle upgrade.”
The Xango compensation plan seems to require distributors to have a personal “Automatic Delivery Program” (“ADP”) order in place to qualify for some bonuses.
The “PowerStart” bonus appears to specifically reward distributors for recruiting new distributors”. His involvement with a Vemma-like marketing program poses potential economic harm to consumers and warrants the Court’s placing him under an injunction to prevent future consumer harm”.
About XANGO, LLC
A leading global nutrition company, XANGO, LLC, is a recognized leader in health and wellness products. Currently expanding into a wider range of botanicals, XANGO was the first company to market a premium mangosteen beverage, XANGO Juice, to consumers worldwide.
XANGO is privately owned and powered by a global network of more than 2 million independent distributors in the U.S. and more than 40 international markets, including Canada, Mexico, Australia, Japan, Russia, South Africa and more. For details, visit www.xango.com.