Tiber River introduced it was abandoning its MLM enterprise mannequin final month.
Tiber River distributors have been nonetheless capable of generate gross sales all through January, with remaining fee checks going out this month.
On February 14th Tiber River instructed distributors it was screwing them out of their remaining 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 major delay on this course of.
In consequence, we aren’t capable of launch your fee fee into your Hyperwallet right now.
To make sure you nonetheless obtain compensation, we shall 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 have now paid fee up to now, 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 the event 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’d have taken it, however we merely should not have the funds out there to pay commissions in the identical method as we did beforehand.
We’ve performed the very best we will to honour your contributions with the one choice out there to make use of right now.
Adriana and Michelle
The full 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 might 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 are not any authorized proceedings right here, the corporate has simply determined to not pay out.
Whereas I’m effectively versed in loads 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 workers detailed withheld wages and suggestions, unpaid additional time, compelled unpaid protection of company occasions and “private grievances”.