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Monavie Marketing Plan Forbidden in Germany

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Source: http://nowa.biz/rechtliches/monavie-marketingplan-von-landgericht-frankfurtm-verboten/

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.

http://www.mlmrecht.de/2010/08/24/landgericht-frankfurt-a-m-verbietet-monavie-vergutungssystem/

 

 

 

 

Schulenberg & SchenkThe 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 criminal solicitation

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.

Alsterchaussee 25
20149 Hamburg

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:

MonaVie Germany Update: Sound Compensation Plan

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

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Comments (18)

  1. ME QUEDA CLARO QUE ES UNA MEDIDA PROTECCIONISTA PARA PRODUCTOS DE MERCADEO EN RED MOVILIZÁNDOSE EN ALEMANIA, YA QUE EL PLAN DE COMPENSACIÓN DE MONAVIE ES TOTALMENTE REVOLUCIONARIO ROMPIÉNDOSE VARIOS PARADIGMAS DE LA INDUSTRIA DE MERCADEO EN RED.

  2. Contact your Monavie distributor support they there for you
    and don’t listen to the “news” on this webiste to much …Ted loves bad gossips about Monavie
    just about two weeks ago Ted was posting MV turnover here for 2010 and forgot to include
    German, Malasian, and Korean markets OOOPS… Guy has an issue with Monavie ?? and loves to spread
    that stuff here true or not
    Below find contacts for your distributor support talk to them:

    HÄNDLERBETREUUNG DEUTSCHLAND
    Telefon: 0-800-186-0259
    E-Mail: [email protected]
    Erreichbarkeit: Mo?Fr, 12?20 Uhr (WZ)

  3. Mona Vie is a fine business and the industry at large continues to grow. Mona Vie has had some problems in the past year, and I am sure they will evolve and do just fine in the coming years. But let this be a lesson to anyone in the industry. Don’t go around selling a “dream.” When you share you product and opportunity, be genuine, and no matter what be authentic. Most MLM “Experts” do not know much about actual “marketing,” they are recruiters at best. True “marketing” takes time, commitment, consistency and above all trust.

    Yes, with any Modern Binary business model, you can create a nice level of wealth. In-fact, if you can “recruit” thirty to fifty people per year, you can be wealthy. That is great, but if you do not take the time to clearly explain the business behind any great company, you will have far too many people quit. The problem within the industry is that some are not selling people a “business,” they are selling people a “dream.” You can hear it on any Youtube Mona Vie tape. “Just get two who will get two more, and duplicate that.” Mona Vie preaches following a “Map Book,” but when you read the Map Book and ask leaders questions…the follow through and advice is limited at best.

    192,000 people per month enter this industry. Everyone reading this needs to do me one favor: Be honest with every single person you touch. Not everyone is wired to become a business owner. Clearly explain what it takes. Collectively if…

  4. They did not forbid the compensation plan, just parts of it. You need to brush up on your English. It is not uncommon for companies to change parts of their compensation plan based on differing laws in different countries. Amway has been doing it for years and had to change their compensation plan recently in England and France, if memory serves.

    I have a couple of patents in which several claims had to be removed because they were denied by the Patents and Claims department. The patents were granted, but it would not be fair or accurate to say that my patents were forbidden by the US government because parts were denied.

    I’m sure the lawyers are busy working out the details as we speak. I wonder who brought the suit, by the way. It would be instructive and informative.

  5. Ted, for the love of this Industry and for the dedication you have to give real informations to distributors around the world,we will deeply appreciate that you and your team double check the sources of informations when it is about putting “difficult” informations about MLM compagnies.
    We really need to trust the people who provide informations in this Industry as many don’t follow certain principles and value and “hate” this good competition. Many founders of MLM compagnies want to look up and love competition as it push them to improve(product,compensation plan,leadership training….) and value their distributors who is the most important asset for the majority of MLM compagnies.MonaVie is one of them and the past of this compagny has already showed how they value their distributors around the world, the future will tell the rest. Many thanks to all “lovers” of this Industry and to all the ones who will speak lound about the freedoom of INDEPENDENT DISTRIBUTORS !!!


  6. As you well know, MonaVie makes every effort to ensure it operates within
    the laws that govern our industry in each of its opened markets. Germany is
    no exception. We have every reason to believe that we are operating very
    conservatively within the law. In addition, you can be assured that MonaVie
    is doing all in its power to squelch such salacious rumors, and will defend
    its position in the event it is challenged. Please feel free to pass along
    the above communication and assure those who are building a business in
    Germany that they can move forward with confidence. We will keep you
    appropriately informed as we continue to monitor and manage this situation.

    Please do not hesitate to contact Doug Whitehead, MonaVie Associate General
    Counsel at (801) 748-3437 or myself at (801) 748-3453 should you have any
    follow-up questions or additional information that would help us navigate
    this situation.

    Kind regards,
    Brent Ririe

    R. Brent Ririe

    Sr. Vice President, International

    Office: (801) 748-3453

    Mobile: (801) 819-2202

    Fax: (801) 812-8287

    Email: [email protected]

  7. It proves how the comp plan and other like it should be illegal and how they benefit the owners and those that are at the top. Thank you for the German courts for realizing something that others should have a long time ago. Answers the question why people jump from deal to deal in Bianaires now doesn’t it! If they had a REAL comp plan that reward every last rep and it was seem-less globally then they and other companies would not have to consider comp plan changes from country to country either. I am just stating the obvious here folks. MLM is the best industry in the world. Lets just clean it up! http://www.johnzenes.com

  8. Dear Ted,

    This may be a breaking news. Although you having claimed all fairness in treating all MLM companies in your comments, somehow your hastened action to publish news that is one sided could be detrimental to Monavie and thousands of Monavie distributors. If I were to be Dallin Larson I may consider initiating legal action against you. I hope you would refrain from such negative publicity not only to Monavie but all responsible MLM companies in the industry.
    This company has shown a lot of corporate responsibility in their decisions and actions. Though this news may sound bad to Monavie distributors including me, I believe Monavie will prove it is indeed a North Star as envisioned.

  9. Dear Ray,

    I publish good news f.i. the earnings for 1,104 Monavie Top earners on this website as bad news. I am a great supporter for the Direct Selling / MLM industry. You can not deny there is a legal problem in Germany, I am not responsable for that, I am the messenger, not the organization who filled a case against Monavie.

    My mailing service reach approx. 8,700+ subscribers all over the world and I do understand a “breaking news” email could have significant effect. In general the MLM industry act on bad news not that well. Bad news happens as good news, there is such no difference with the corporate world.

    I will continue to report both for what ever company may exist. Monavie, Amway, ACN, Xango what ever. If I stop reporting bad news under the pressure of distributors or companies I do not operate an independent website.

    I have published the link to the source, a german lawer and Monavie’s official response. Any legal action against this website would not be smart. I do not believe any Dutch court would order me to stop publishing independent facts and figures or news. It’s called in the USA the First Amendment and in The Netherlands the “Vrijheid van meningsuiting”.

    I will monitor the legal case against Monavie, if there is a final court decision I will publish again, if it is good or bad news. Don’t kill the messenger….

    Best regards, Ted Nuyten Founder http://www.businessforhome.org

  10. Ted,

    I also feel you were a bit misleading in your email alerts. In the subject you mentioned “Monavie Compensation Plan Forbidden in Germany” and “Monavie Marketing Plan Forbidden in Germany.” However your site actually states that “parts” of the plan are forbidden.

    And then we find out this is likely just a large rumor.

    I’m not against you posting the info, and thank you for posting MonaVie’s official response in a timely manner.

    In the future possibly your email blasts can have better subject lines, such as “Parts of MonaVie compensation plan MAY be against German law.” or something like that.

  11. Well, I?ve got some good news and some bad news?
    Ted, thanks for doing your very best and creating a fantastic website here.

    The Good News: I love this website?s pertinent information and timely updates; it’s quite effective when correctly understood and used appropriately. As someone who has-and-does consistently use BusinessForHome.org as a resource, I appreciate this great service. It’s a daunting task to have a website and keep everyone happy. You’re doing great balancing it all ? keep it up?

    As for this topic, I completely agree with Mr. Ririe; you’re spot on! MV is a good and extremely successful company that obviously must follow correct legal protocols. Henry Marsh is a brilliant owner and mlm industry icon who clearly has and follows strict core values.

    Reality Check: MV does very good things for the rest of us profitable up-and-coming companies who want to follow suit and expand internationally ? I?m very grateful for these ?pioneers.?

    The Bad News: Being a “Trail Blazer” (like MV) unfortunately means you take a lot of “arrows” for the rest of us ? thank you for doing that, by the way. It’s interesting how certain people are threatened by competition. As a fan of Clint Eastwood and the movie “The Outlaw Josie Wales,” I just have to say, take ’em for a ?Missouri boat ride” and keep outsmarting those naysayers. The more you blaze MV, the smoother the road we all ride on. I wish you well in Germany and beyond…

  12. It is Great interesting news from Germany.Good.
    In Thailand, there was killing and shoting among direct distributors.
    In Burma, there was fighting and beating among the direct distributors happenned at the same Chinese MLM company.
    Keep up coming news about MLM around the world.

  13. Ted, are you a distributor or have financial interest in any mlm company? It has been reported that you are a rep for Vemma.

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