Tiber River introduced it was abandoning its MLM enterprise mannequin final month.
Tiber River distributors had been nonetheless in a position to generate gross sales all through January, with ultimate fee checks going out this month.
On February 14th Tiber River advised distributors it was screwing them out of their ultimate commissions.
As per the “vital communication” Tiber River despatched out;
As you already know, we’re restructuring and recapitalization our enterprise.
Sadly, we discovered there’s going to be a big delay on this course of.
In consequence, we’re not in a position to launch your fee fee into your Hyperwallet in the present day.
To make sure you nonetheless obtain compensation, we will likely be issuing your fee fee to you within the type of Loyalty factors.
As a result of we acknowledge this can be a change from how we’ve got paid fee up to now, we will likely 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 will likely be uploaded by Thursday, February 16, 2023 at 4pm CST.
Should you’re considering this can be 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 method, we might have taken it, however we merely would not have the funds obtainable to pay commissions in the identical method as we did beforehand.
We’ve performed one of the best we will to honour your contributions with the one possibility obtainable to make use of at the moment.
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 could possibly’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 nicely versed in lots of MLM authorized proceedings, an MLM firm not paying commissions isn’t considered one of 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 suggestions, unpaid extra time, pressured unpaid protection of company occasions and “private grievances”.
