Jueves, 15 Marzo 2012 00:00


  • (Provvedimento 22299. Bulletin 16 May 2011). The Italian Anti Trust Authority has valuated  the Marketingsystem of XanGO as a misleading pyramid system for the following reasons:     
    1. charge of enrollment fee
    2. compulsory purchase of monthly order
    3. the focus on recruiting instead of selling products to final customers
    4. Commission was less than the notional one for 90% of the sales force
    5. The relation customer/distributors was 5%/95%
  • (Provvedimento 23100. Bullettin N. 51 of 9 January, 2012) In the above mentioned Decision of the Italian Anti Trust Authority, XanGO was obliged to modify its compensation plan to be conforming to a lawful Multi-level system. According to this, XanGO has deleted following obligations from its compensation plan:
    1. Compulsory purchase of fixed monthly orders
    2. Compulsory minimum purchase of products either by the direct sellers or the by the promoted down-liners to be able to be entitle to commission
    3. Compulsory sales of products to appointed down-liners with a specific qualification within the structure.

Although the enrollment fee remains in the modified compensation plan, the Italian Authorities state that, upon elimination of the above mentioned obligations, the XanGO system can not be further considered an illegal pyramid sale, as on the one side distributors’ compensation is not longer based mainly on the recruitment of new customers for the down-line structure and on the other side there is not minimum volume of sales for being able to get commission.