The German District Court in Frankfurt am Main has important parts of the Monavie Marketing Plan forbidden in Germany by its decision of 24.08.2010.
It's also a decision against two MonaVie distributors in a earlier case. The decision seems to be even so strong that German Monavie distributors could get up to 2 years in prison, if recruitment will go on.
I suggest to use Google translator if you want to read the source article in your own language.
The case has been filled by the Hamburger law firm Schulenberg & Schenk who are MLM lawyers. Schulenberg and Schenk are publishing on a regular basis in the German MLM magazine Netcoo according to their website.
A reason for this temporary injunction according Schulenberg website is a non-compliance on parts in Monavie's marketing plan for the German law on Progressive Kundenwerbung (§ 16 Abs. 2 UWG) which can be translated in english as Pyramid selling.
Below the google translation for Progressive Kundenwerbung :
Progressive canvassing is in § 16 para 2 UWG made punishable.. This is so called pyramid schemes. Who led consumers to buy in the trade of goods, services or rights by promising that they would obtain either the organizer or by a third party benefits if they encourage others to complete similar transactions, in turn, the type of advertising such advantages for an to obtain further appropriate advertising customers will be penalized.
It is for this offense to the development of such a distribution system. There is evidence that such systems operate at best short-term and relatively quick collapse. Because of their exponential growth Schneballsysteme are particularly dangerous.There are a wide range of affected quickly integrated into the system, which are then damaged in the Zusammnbruch. That is the reason of the special criminal sanction in § 16 para 2 UWG.
Such distribution methods are of special distinction having these days (maximum) distribution activities that take place primarily on the Internet. Meant the so-called Power Shopping. The lifeblood of that effort is beginning to several people at an Internet product offered. Even reverse auctions, where automatically the price of a commodity depending on the surcharge-free period decreases below do not belong to this criminal offense. In the case of the so-called multi-level marketing is § 16 para 2 UWG does not meet mandatory. The customer is not alone here involved as customers in the distribution system, but also as agent used, for which they usually receive material benefits.
If you need further information on this case I suggest to contact Schulenberg & Schenk:
Rechtsanwalt Stephan R. Schulenberg LL.M.Eur.
Phone: +49 (0) 40 / 73 440 86 0
Fax: +49 (0) 40 / 73 440 86 29
E-Mail: [email protected]
Update 26 august:
Monavie official response:
We are committed to the Germany market and are excited about the tremendous growth this market has experienced since launching full business operations in May 2010.
This past week, you may have heard rumours and allegations that parts of the MonaVie compensation plan are unlawful and that a temporary injunction has been obtained in a Frankfurt court against two MonaVie distributors. MonaVie has not been officially notified of any court proceedings nor have any MonaVie distributors notified MonaVie corporate of any legal proceedings. MonaVie has every reason to believe that such salacious rumours or ungrounded injunctions are retaliation by an unscrupulous competing firm who we believe has infringed upon protected assets of MonaVie and whom MonaVie has sued in order to protect its rights and the business opportunities of its valued distributors.
We will vigorously defend our position and our distributors. We would like to reassure our valued distributors that our compensation plan has been carefully constructed and reviewed by a large reputable international law firm in Germany which has ample experience in network marketing and competition law. We thus believe that the MonaVie compensation plan is lawful and provides a sound financial opportunity for our Germany distributors.
If you have further questions or receive any official notification of such accusations, please contact Distributor Support immediately at 0-800-186-0259 or send an email to [email protected].
Thank you for all you are doing to assist us in promoting the good name and reputation of MonaVie and for your help in ensuring the MonaVie brand and products become welcome and positively recognised throughout Germany.
Author: Ted Nuyten