Tiber River introduced it was abandoning its MLM enterprise mannequin final month.
Tiber River distributors had been nonetheless capable of generate gross sales all through January, with closing fee checks going out this month.
On February 14th Tiber River advised distributors it was screwing them out of their closing commissions.
As per the “essential communication” Tiber River despatched out;
As you already know, we’re restructuring and recapitalization our enterprise.
Sadly, we came upon there’s going to be a big delay on this course of.
Because of this, we’re not capable of launch your fee cost into your Hyperwallet right now.
To make sure you nonetheless obtain compensation, we shall be issuing your fee cost to you within the type of Loyalty factors.
As a result of we acknowledge it is a change from how we have now paid fee previously, we shall be including a 20% premium to the factors you’re paid.
With loyalty factors, it is possible for you to to order merchandise from our web site which you need to use or promote at your discretion.
All loyalty factors shall be uploaded by Thursday, February 16, 2023 at 4pm CST.
In case you’re considering it is a stop-gap with commissions to be paid at a later date, you’d be mistaken.
We apologize for the problem this presents you.
If there was one other means, we might have taken it, however we merely wouldn’t have the funds out there to pay commissions in the identical method as we did beforehand.
We now have carried out one of the best we are able to to honour your contributions with the one choice out there to make use of presently.
Adriana and Michelle
The overall greenback quantity Tiber River is screwing its distributors out of is unclear. The cynic in me sees a failed MLM firm hoping to dump merchandise it will probably’t promote onto its distributor-base.
What I’m much less clear on is the authorized ramifications of Tiber River failing to pay owed commissions out. Tiber River hasn’t filed for chapter. There aren’t any authorized proceedings right here, the corporate has simply determined to not pay out.
Whereas I’m effectively versed in quite a lot of MLM authorized proceedings, an MLM firm not paying commissions isn’t one in all them.
I’d assume there’s been some authorized breach of contract right here however that’s in any other case a query for a lawyer to reply. I’ve seen MLM associated class-action lawsuits filed over far much less.
Sadly this isn’t Tiber River’s first run-in with unpaid earnings.
In 2021 Tiber River retail storefront staff detailed withheld wages and ideas, unpaid time beyond regulation, compelled unpaid protection of company occasions and “private grievances”.