EFUSJON: Is Efusjon Energy Club a Pyramid Scam?

According to the efusjon website:  “efusjon energy club products offer remarkable taste, pack tremendous energy and deliver health and vitality! …Made from 100% all-natural ingredients and with no preservatives or additives, efusjon’s energy drinks give you a rich, smooth flavor you can enjoy anytime – completely guilt-free.”

efusjon is more than a drink… it’s a business opportunity.  Says the efusjon website:  “Not only does efusjon energy club offer the healthiest energy drinks available anywhere, but we also provide you with a unique opportunity to make a serious income! When you become an efusjon energy club Associate, you become part of the most unique compensation structure in the network marketing industry. Our revolutionary new system rewards you not only for the efforts of you and your organization, but even for sales in other people’s organizations! It’s part of the efusjon energy club’s ‘share the wealth’ philosophy that’s a win-win for everyone!”

However, a class action lawsuit has another term for the efusjon energy club’s ‘share the wealth’ philosophy:  An illegal pyramid scheme.  According to the COMPLAINT AND DEMAND FOR JURY TRIAL of LAUREL COOK, on behalf of herself, those similarly situated, and the general public, Plaintiffs, v. EFUSJON, INC., a Nevada corporation; ROBERT TOWLES; R. S. EDWARDS; KEITH DILLON; AARON CALLAHAN; KATHY HUMPHREYS; KENNY GILMORE; MARC SHARPE; KEN VANDER KAMP; and DOES 1-300, inclusive, Defendants filed in the SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN DIEGO, NORTH COUNTY DIVISION dated November 20, 2009:

efusjon_can Efusjon, Inc. (“efusjon”), a Nevada corporation, sells efusjon’s energy drinks to distributors through a pyramid scheme disguised as a multi-level marketing program. The efusjon pyramid scheme is fraudulent because it induces individuals to invest in products and to recruit new victims into the scheme with the false promise of enormous profits. Completely contrary to the law, efusjon forces its distributors to make purchases and then conveniently considers those purchases as “sales” to meet its legal obligations of accruing retail sales.

New entrants into the pyramid scheme are effectively required to invest approximately $170 per month to buy products from efusjon in order to stay qualified and be compensated under the scheme. Because efusjon distributors essentially do not sell products to consumers who are not also distributors, they obtain returns on their investment in the efusjon program only by recruiting new distributors who will then buy products (and recruit more distributors who will buy products), which purchases result in “bonuses” to the recruiting distributor. The efusjon pyramid scheme is a prototypical one, purportedly formed as a multilevel marketing (MLM) system, with rules and regulations which are drafted solely as a pretense, which are not enforced, and which have no substance in the operation of the business.

In the section of the complaint titled “Nature of Classic, Illegal Pyramid Schemes,” the Plaintiffs allege:

“An illegal pyramid scheme is characterized by the payment of money to a company in exchange for: a) the right to sell a product, and b) the right to receive rewards for recruiting others to join the scheme, independent from the sale of products to the ultimate users… Essentially, participants are duped into believing they are buying into a legitimate business opportunity to sell a product but, in reality, the profits are derived almost solely from money advanced by new recruits inducted into the scheme. In efusjon’s case, the new recruits are under exorbitant pressure to “get their three” and purchase the requisite amount of product for personal use, not for resale… Since the financial incentives require distributors to focus on enrolling new participants in the matrix, the sole way to make money is for the Executive Associates to continually recruit new distributors who are also willing to buy and self-consume, inventory load, discard, or give away the efusjon products. There is no incentive to make outside retail sales. This fact alone renders efusjon a classic recruitment pyramid scheme.”

DOCUMENT (PDF): 22852924-COOK-v-EFUSJON

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10 thoughts on “EFUSJON: Is Efusjon Energy Club a Pyramid Scam?

  • November 23, 2009 at 10:32 pm
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    Efusjon is such a scam. They deserve the beat-down they’re about to get. I’ve never seen a MLM that throws people out of the business if they don’t buy stuff.

  • Pingback:CLASS v EFUSJON » Blog Archive » Commentary from networkers efusjon lawsuit

  • December 7, 2009 at 7:14 pm
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    This case has not yet been served to Efusjon so at this point it is just a speculative case. What it comes down to is that the plaintiff had was disgruntled and had some personal issues with a corporate staff member and decided to make a campaign against the company with the intention of damaging their reputation. This is nothing more than a frivolous attempt to discredit Efusjon. It is meant to make a bunch of noise and that is it.

    If you actually read the accusations contained in the document (which again has not been served), you will find some statements that clearly apply to all mlm companies. This is the reason this “threat of a lawsuit” is angering many people in other MLM companies, not directly associated with Efusjon. If this case were to go to court and won (which won’t happen) then that would cause a domino effect of class suits against all MLM companies. Read the document for yourself and see what I mean. All it did for me was provide a little comedic relief…what’s even more funny is that this is being taken seriously by people.

    If this case were to actually be served to Efusjon and go to court, Kevin will be up against a GIANT of a legal team…the same team that represents companies like Facebook and Toyota (the just won a massive case for Toyota). Believe me, you do not want to mess with these guys.

    Nope…this is just smoke and mirrors and people will see through it if they don’t already. Efusjon is opening in Canada on Jan. 30th and moving forward full steam. Don’t believe everything you hear!

    P.S. Read the policies and procedures at https://www.efusjon.com/policies_procedures.asp. “Distributors are not required to sell efusjon products at SRP when they purchase from the Company to resell to a customer. They may set their own pricing.” Funny how this was not mentioned in the 30+ pages the prosecutor put together.

  • December 8, 2009 at 10:45 am
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    Yes, it is a scam. What it boils down to is that you are required to buy a case (48 8.5 ounce cans), per month, for which you pay approximately $2.50 per can, plus shipping, which will run $10.00-$20.00 per case depending on the distance shipped because cans of liquid are heavy.

    You make your money by reselling the cans and the difference between your cost and the cost you sell it for is your profit. The hype suggests that you can sell it for $3.50 and make $1.00 per can. For reality, look around you. What does your local restaurant, or market charge for an 8.5 ounce canned energy drink? How much does it cost the restaurant or market to store the cans, how much does it cost them to maintain a refrigerator case? Do you think they can pay you $3.50 per can and make a profit? Not chance.

    If you know someone in the restaurant or grocery business, ask them how they buy the drinks they sell, how much they pay and why they picked the drinks that they sell. They will tell you that they pay far less than $3.50 per can, and often receive additional free goodies, such as a refrigerator case, soda dispenser or neon sign. They will also tell you that they have to be careful about the safety of the drinks and the financial stability of the person they are dealing with, so they tend to choose established, experienced companies with good track records.

    Finally a word about “downline” and “self-healing networks” and other nonsense terms designed to distract your attention from the really important question, How can I make money on e-fusion? You are promised a piece of what other people make, but they have to make a lot of money for your share to be worth anything. 10% of 0 equals 0. Your “downline” lives in the same world that you do and they will have just as much trouble trying to make a profit as you will.

    If you are a good salesman and willing to work, there are thousands of industries that will pay you for your skill and effort. Keep asking questions, its the very best way to protect yourself from scammers.

  • March 20, 2010 at 4:30 pm
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    A business needs to be product focused…that is the key.

  • May 2, 2010 at 8:02 am
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    Save your money by staying as far away from Efusjon as possible! It’s definately a ripoff! Do not enroll friends or family members into this Pyramid, otherwise you’ll probably lose them when they find out they’d been cheated.

    Check out a few Efusjon reviews before falling victim to this crooked scam. With all the overwhelming negative reports on this so-called business, it’s far too obvious that Efusjon is nothing more than a total & complete fraud, cheating people out of thousands of hard-earned dollars!

    The crap inventory that’s delivered to you (efusjon drinks) is just that…crap! Good luck trying to sell that junk. It’s not going to happen.

    I think it’s about time law enforcment agencies crack down on these Pyramid schemes once and for all.

  • August 20, 2012 at 1:38 am
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    I had a close family member involved with Efusjon. I attempted to jump on board as well, but it was just too expensive for me, even though I loved the product. So, there is definitely something to this lawsuit.

  • February 20, 2014 at 5:28 pm
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    It’s funny how many uneducated people just love to yell the word “scam” if it isn’t traditional business. Efusjon is a fully legal entity, and will continue to do so… They’re relaunching the company as I type this.

  • February 25, 2014 at 12:29 am
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    ^^ Definitely agree. Most people call it a scam because they themselves might be tricked into it by friends because the comp plans are too confusing or they can’t actually produce results (whether mlm or not). if you want more info I’m in the first 100 distributors and helping my team grow strong. Shoot me an email with any and all questions at [redacted]. I’ll give it to you straight, educate you, and let you make your own decision.

  • April 8, 2014 at 12:16 am
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    Scam!!! first word that comes out of peoples mouths right? well their life is a scam. Pyramid schemes are your job people, there is the Ceo the managers supervisors, then there is you amongst the employees doing the labor work and getting paid crap!! you will never be higher than the Ceo and will always make less thats a pyramid scheme in my opinion!! take a look around you network marketing is taking over you either embrace a positive change or sit the heck back and watch i happen! uneducated people these days shew

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