MLM Attorney, Kevin Thompson went after this company on behalf of the distributors months ago, and instead of gaining support from the advocates and watchdogs of MLM, he was attached for his desire to protect the average eFusjon distributor. In the end the settlement was sealed.

Then eFusjon filed a lawsuit against Derek Broes their former Master Distributor. Instead of taking it laying down, Broes counter sued, and won. And again the settlement was sealed from the public. However, Broes did go on to launch a competing company in the same niche, Revolucion.

Then last week they inform the eFusjon leaders they were going to leave Network Marketing behind for other retail opportunities.

Today, they let the world know with the following announcement. And what I fine so disrespectful, is the fact the email is not even signed by the founders of the company who promised the field the world, and then left them high and dry.

Letter from Ownership to Distributors

Dear eFusjon Distributors:
It is with great sadness that we announce today that we must cease the direct sales multi-level marketing business of eFusjon, Inc. as of September 1, 2010.

The independent contractor distributor agreements will terminate as of this date. See Distributor Agreement, Section 7 (“The Agreement shall continue in effect between the parties here to until either party terminates the Agreement…”). Qualified distributors will receive their last compensation check for the month of August, less offsets against any amounts that are owed to the Company, on September 10th. Any commissions due will be available in your “Hyperwallet” account until October 31, 2010, after which date you will need to contact the corporate office (to access your “Hyperwallet” account please go to www.efusjonpay.com, or contact customer service for assistance). The Company will send refunds of the $30 membership fee to those distributors who became members in August 2010.

This was a very difficult decision for the Company and not one we had hoped to make. When the owners started eFusjon in 2008, we envisioned a unique and successful MLM business with healthy and unparalleled beverage products. The goal was to market these products through independent distributors via the MLM direct sales business model.

Distributor performance, however, has been steadily declining for over a year now, and as a result, so has the Company’s revenues. The Company can no longer maintain a marketing model that is not generating the funds needed to grow a viable business. In short, the Company’s MLM business model is no longer a sustainable marketing strategy.

With a certain level of optimism, we also announce today our decision to explore other opportunities for the eFusjon product many of you have come to love. For some period of time, you may continue to enjoy eFusjon products through purchases (without compensation) on the eFusjon website www.efusjon.com.

Lastly, we extend a sincere and heartfelt thank you to all of you for your dedication to eFusjon over the years and for standing by our product and the Company during the height of our success as well as through more recent challenging times. We share your disappointment about the recent turn of events, but are cautiously optimistic about the future of eFusjon and eFusjon’s unparalleled, healthy beverages.

With Gratitude,
The eFusjon Corporate Officers

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.

MonaVie Germany Update: Response from Monavie

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 Deutschland@monavie.com.

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.