Xango closed down in Italy
The largest newspaper in Italy the: CORRIERE DELLA SERA is reporting in it's edition of 3 january 2011 that the Italian AntiTrust organization has closed down Xango's operations.
– Update: See also the official response! –
Reason: No product compliance for Italy, Health claims and a Compensation plan focused on Recuitment not on Sales.
See also here our post on Nutritional product compliance in Europe
Below is a google translation from the Italian version:
A lobby for the trouble in the exotic juice drink 'miraculous'
L 'Antitrust recruitment firm: the network of salespeople is misleading
Rome: – His name is Xango. Bottle orange-red, yellow cap, is a drink made with mangosteen juice – no relation to the mango – the fruit of the exotic islands of Sunda and Moluccas, advertised as a powerful natural remedy against a range of 44 diseases, from 'acne to cancer.
At a cost of € 115 for 4 bottles of 750 ml, almost 30 per piece. It placed through a network of customer-dealer that acts as a chain of Sant 'Antonio. And it is precisely this system of recruitment, pyramid structure, which has focused the 'attention' s Antitrust.
L 'authority to protect competition and the market, its decision of 15 December, called on the Xango Italy srl of Milan, an importer of American brand made in Utah, to suspend all activities of recruitment and registration of new officers' and promotional use only 'without any reference to the healthy properties of the product.
The investigations started from the records of consumers' association Altroconsumo, Codacons, Adusbef and FEDERSALUS. Highly dubious about the healing powers of real fruit cocktail (in addition to the mangosteen, which smacks of peach and litchi, Xango Juice contains pear, apple, grape, blueberry, raspberry, strawberry, cherry and cranberry) which, on the website of the Italian firm is touted as a maxi-antioxidant-rich xanthones (as well as catechins and polysaccharides) as good as' antibiotic, antiallergic, anti-inflammatory, antiviral, useful against osteoporosis, psoriasis, menstrual pain, diabetes, eczema, Parkinson's and Alzheimer's.
In its decision the 'Antitrust notes that the campaign mode can cause serious error in about the health qualities of the product, not confirmed by scientific research. It motivates the 'intervention with the grave danger of offensiveness Xango system, able to reach and engage even more consumers.
The tam tam Internet sales have grown in number and in fact the turnover has increased from 500 thousand to 1 million euro per month and a half already with 21 000 employees. Recruited by a capillary system that works like this: you sign up on the internet by buying the kit the dealer for 34 €. Each charge also agrees to purchase each month, 4 bottles of Xango. The double (230 euro) when it goes qualification, in a hierarchal pyramid consists of 9 classes of sellers. At the bottom of the novices at the top of the 'premier', which can earn up to 50 000 €.
But the main task of the individual salesman is not so much magic to sell the drink, but to get other buyers-sellers. It is on this point that the 'Antitrust found the misconduct, because the possibility of gain comes only from the creation of a purchasing organization.
As for the alleged medicinal properties, just to hear the opinion of Prof. Carlo Cannella, nutritionist 'La Sapienza University in Rome: Here c' is people speculating, as they did with the papaya … The food is not a drug but a food. And may contain any
substance that has a 'protective effect, of course, to prove, will be present in small quantities, completely inadequate. To be effective, the principle should be administered in much higher concentrations. So the drink would become also a calorie bomb. This mangosteen do not know him, but will not have anything that you can not find in our Mediterranean fruit.
Giovanna Cavalli PLAY PRIVATE **** 34 euro, the figure for the seller to receive the kits 21 000 **** are the sellers of the commercial network * Multilevel Degiovanni Virgilio, president of Freedomland, was among the first guru of the multilevel Market. Animator groups of sellers, encouraged, they were sent around to sell house to house links to a web television. Freedomland was publicly traded but on the day the title was withdrawn and the judiciary opened a dossier.
The original link: https://archiviostorico.corriere.it/2011/gennaio/03/Una_lobby_per_succo_esotico_co_9_110103017.shtml
Milan, January 3 2011
XANGO Italy Srl Strongly Disagrees with the Antitrust Authority Ruling and is Confident its Appeal to the TAR Will Prevail
Company sees ruling as opposition to the direct sales industry and is prepared to defend the rights of tens of thousands of Italian consumers and numerous entrepreneurs
Today, parent company XANGO LLC President and CEO Robert S. Conlee issued the following statement:
“In the past year, XANGO Italy Srl, leader in its market, has thrived as the fastest-growing company in the Italian direct sales industry. This growth has attracted the attention of consumer advocacy groups and government agencies anxious to understand our success. XANGO is committed to consumer protection and has welcomed this opportunity to work together with these groups to develop additional safeguards beyond its already responsible business practices.
“Unfortunately, in the midst of this collaboration, the Antitrust Authority has surprised XANGO with an unwarranted ruling to restrict the entrepreneurial activity of tens of thousands of Italians. This ruling has the potential of being replicated to all direct sales companies in Italy—an industry whose 400,000 representatives contribute retail sales of more than 1 billion euros annually to the local economy. As a global industry leader supported by other industry partners, XANGO is challenging this ruling with a strong legal appeal before the TAR. XANGO is confident it will prevail and that this ruling will soon be overturned. In the interim, the company complied with the Antitrust Authority’s ruling.
“For more than eight years, XANGO has shared the benefits of goodness of the mangosteen and other natural botanicals, in particular through its global flagship product, XANGO® Juice. In Italy and more than 30 other markets around the world, millions of consumers have safely enjoyed our products as part of an overall natural lifestyle. XANGO also gives back to communities globally by donating portions of its profits to worthy children’s charities through its XANGO Goodness program. In Italy, XANGO supports cleft-lip and cleft palate corrective surgeries through Operation Smile and the Smile House in Milan.
“This ruling and its temporary impact will not deter XANGO from its mission to improve the wellness and economic status of many thousands of Italian consumers and entrepreneurs who benefit from our business. We are committed to our mission and to Italy.”
For more information www.xango.it
Press Office: CBO Milano, Tel 02 85458311 [email protected]
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. Its roster of premium products now includes XANGO 3SIXTY5™, a whole food nutrition multi-vitamin, Glimpse® Topical Skin Nutrition and eleviv™. XANGO is privately-owned and powered by a global network of more than 1 million independent distributors in the U.S. and more than 30 international markets such as Canada, Mexico, Japan, Germany and Malaysia. For details, visit https://www.xango.com.
Login with Google
Bad news for the Direct Selling Industry. Product Compliance is so important in Europe. Xango has to fix that…
What surprises me first of all is that this website reports an article from the 3th of Januari, when there’s already a response article on the 6th of Januari in the same newspaper.
Secondly the Italian market isn’t closed at all for XanGo. We are doing as much business this month as last month. Before publishing an article this way, at least if you pretend to be an internet authority on providing positive energy to the MLM market in general, you should maybe also check first with the company itself and ask their input on the article before publishing an article…or do we miss something…another reason!?
Danny you are lieing. You have different plans for us! You have better comp plan for United States but keep more money for yourselves by giving us different plan! It was closed, but now we close it because we are tired of unfair plans. Do you think this is right? Do you think our comp plan we should get so much less? Why do you let us be treated unfair when American distributors get more? Daniel Laroque is terrible for us. We will not allow this. Explain for all the people here the unfair difference between american comp plan and comp plan for italy? or europe? or russia?
@ Danny, I have not found any official response from Xango. Love to publish it.
It’s interesting that any Foreign Government would give a corporation like XANGO a problem. Now, I don’t know much of anything about the Italian Government, but big money goes into protecting the over-all “Sickness” industry. We all know it does in the United States where 1 in 2 men, and 1 in 3 women will get Cancer and a name like Max Gerson is not known for a reason that would make many Americans sick.
Listen, there are quite a few incredible companies offering top-notch products that the world should know about. In my opinion, XANGO is an excellent company and product line. Now, if it was a mistake by XANGO corporate in paperwork or something along those lines, than they should learn from it. But I have a feeling they did what they were supposed to.
If you are reading this, and you are with a company, team and representing a product you believe in…than don’t sit around here and bash XANGO. We are all sharing great products and opportunities people need to learn about! All of the products are unique if you truly understand the science. Good Luck to XANGO in Italy. Good Luck to everyone who shares from the heart and helps people around them!
Facebook: -Peter Dean Bouloukos-
Facebook: -Social Media Success Secrets-
Facebook: -XOWii Ventura-
Yours in Success,
PDB
I don`t think this is true! Xango is a productbased-company with a good product and plan.
If Xango is having problems in Italy is this bad news for all of us who loves the free enterprise of Network Marketing. Wish Xango all good in this case – on behalf of all the serios networkers in Europe!
Steinar H
My personal regards to all IPCs company XANGO: The grace would grant them good health and love of neighbor, understanding and compassion.
If Xango have really been closed down in Italy coming close on the well publicized problems Monavie have had in Germany, this would seem to be another big nail in the coffin of the herbal blend and juice industry.
Another big challenge for that industry will be full implemetation of the European Herbal Medicines Direcetive in April, which within the body of the Act covers a much wider range of products thatn the title suggest. The act requires all new products to undergo lengthy, and expensive, clinical trials before being offered for sale. It also gives the power to require trials for those products with less than thirty years of comercial history.
Although it would diminish the industry to lose even one network presently offering an opportunity for the ambitiuos and providing incomes for tens of thousands, I would not want to bet my mortgage on which comapnies will survive the next thirty six months until the dust settles while companies, Governments and committees, often well funded by the major pharmaceutical organisations, debate which products continue on sale, which require change and which have to be withdrawn from sale
If you and your team are highly involved in the juice industry maybe now would be a good time to be considering a plan B with an organisation outside that industry, already successful in 80 countries and is the first, and only company in the world to offer instant pay.
You can get more information at http://www.theglobalpartnership.biz or to speak directly call me on +44 (0) 1452 621222
As per usual our friend Ted gets excited about not confirmed news.
I would not believe for the moment that Xango Corporation
endorses any health claims (and I am not with Xango)
If Xango closes in Italy because of few distributors
behaving badly ?.The Catholic Church will be next on the line ???.
Few months ago Ted was excited about Monavie closing down in Germany???
and I cannot find any info on this website about Monavie?s Congress we?re having in Frankfurt this March and official Monavie opening on the German market this coming Spring
Wonder why Ted?
@Chris, I am just a reporter of good or bad news and I love the good news…. I publish both sides of the story, see also the Xango executive response on the Italian situation.
Sure Ted …
Still looking for “the good news” about the subject I have mentioned in my post.
How come you never reported this: https://www.ukskeptics.com/forum/showthread.php/2705-Vemma-Europe-a-misleading-company
To close to home perhaps?
Majority of public doesn’t know or is against MLM
and article like you are quoting here makes good reading and sells newspapers and … websites
I am just surprised that you are playing along these lines on this forum…. that?s all.
While scary and often damaging to a company’s PR, these governmental actions don’t tend to stick on honest and stable companies. My guess is Xango is experiencing a combination of a zealous regulator, bad luck and perhaps a claim-y distributor or two in Italy.
Unfortunately, these kinds of charges are a cost of doing business in our industry – there are financial, economic and political reasons why agencies tend to target companies in our industry. Companies who are truthful and honest throughout their organizations weather the storm, while the fly-by-nights or recruitment-driven companies get hit hard, not only with fines but with a fickle field seeking new pastures.
One way for companies to help avoid this scenario is to provide distributors the tools and technologies to tell their own stories while remaining compliant such as websites and content that are so good or personally appealing that distributors don’t ever feel the need to create their own non-compliant versions and thus expose the company.
These days with the openness of the Internet, compliance is incredibly difficult, but has to be done well. There are plenty of ways to encourage compliance, they just need to be thought of in advance of a government nasty-gram!
Good luck to Xango corporate and its distributors. Fight the good fight!
Jonathan Gilliam
Momentum Factor
http://www.momofactor.com
XANGO wasn’t shut down in Italy! https://www.mlmwatchdog.com/Time_Magazine.html
This decision could shut down all MLM companies in Italy if not challenged. XANGO is going about it the right way.
XANGO was not shut down or forced to stop it’s operations in Italy. The Italian Autoritá Garante Della Concorrenza e Del Mercato temporarily requested changes to how XANGO (and potentially any other direct-selling companies) does business in Italy. Most of their business will be unaltered. XANGO?s products will remain as they are. Consumers will continue to purchase products through retail and wholesale subscription purchases. Existing demonstrators will continue to participate in the XANGO compensation plan and earn commissions for their product sales.
Buenas tardes, considero poco afortunadas las declaraciones ya que están saturadas de conceptos erróneos y desconocimiento del producto y de la metodología de comercialización de XANGO. NO es un sistema piramidal, noto que la persona o institución que opina sobre el tema desconoce por completo el MLM NetworkMarketing, la ignorancia es atrevida. Sospecho que la industria farmacéutica, “presuntamente” está atrás de ellos, ya que estoy convencido que NO les conviene económicamente que el ingreso de un suplemento nutricional, como es XANGO, sustituya sus drogas que “tapan” la sintomatología de las patologías y a la larga NO curan. Es vergonzoza la actitud que tomaron en nuetro hermano País, con ciudadanos de mente abierta y amantes de la libertad, tanto de mercado como personal. El tiempo nos dará la razón. Por último destacar que es el único País de 35 en que estamos que tiene una actitud represora como esta. Gracias. Los saludo cordialmente.
Alex Salmún Brunet
Distribuidor Independiente Nro.: 11809327
España
Italy has got it right, they know that Xango is a huge scam and soon the rest of the world will know. I predict that the Federal Trade Commision in the United States will soon heavily fine Xango or completely shut it down. Dig deep into the company and you will find very weak science(google mangosteen fraud)
Xango’s top sales man Sherman Unkefer went to prison for fraudulent schemes, he did 4 years of a 10 year sentence. (Google Sherman Unkefer prison)
varius lawsuites against the company(google xango wikepedia)
Xango was refused a U.S patent for thier juice. The patent office stated that certain blends of juice do not justify any thing unique.
A 2006 warning from the Food and Drug Administration.
One of thier top doctors, Shawn Talbott was fined About a million diollars for making false medical claims.(google dr shawn Talbtt FTC)
No one from Xango will tell you how much mangosteen is in a bottle
The juice is Pasturized and irradiated, killing all the nutrients before it goes on the shelf.
Xango’s top doctor Fredric Templeman has a daughter that is married to David Morton, he is brother to the founders Joe and Gorden.
Dr Fredric Templeman is a paid pitch man for xango and has never been published in any medical or scientific journals.
Dr Templeman would have you believe that he travels the world speaking to doctors and universities abot the wonderous healing effectcs of the mangosteen. I have not found a schedule or record for his lecturing any where beside a Xango convention.
Dr Templemans resume states that he was a family Physician in Georgia.
David Morton is brother of Xango founders Joe and Gordon as I stated above. He has a phd in biology and has written a book to be used as a guide for autopsies( google David Morton PhD bio). He is often speaking about Xango and has written a small book about Xanthones. As to any ones knowledge his expetise is not in the field of botanicles but since he has Phd at the end of his name, people tend to think that this must mean that he has done extesive research into mangosteen.
still there are no articles authored by him in Pub med or any respectful medical or scientific journals that I can find.
Xango’s founders were involved in another miracle juice company and quit to start Xango. According to founder Joe Morton he just happened upon a mangosteen in Malaysia at a cafe and soon discovered that he had struck gold. The little known fruit was hiding in plain sight for centuries until us dumb westerners discovered that it was a miracle healing fruit .
Basicly the trend of miracle wonder juice is starting to fade, after it has been around for awhile, The cost and lack of any scientific human studies in these juice cures have got people wondering.Is this $38.00 dollar U.S juice really going to cure my ills or is this just a placebo wrapped in a get rich pyramid scheme?