PM International sues TV2 over pyramid & “sugar powder” claims
PM International aren’t happy with TV2’s Health Control report into their MLM opportunity.
The company has filed a lawsuit against the Norwegian broadcaster for breaching the Damages Act.
Health Control’s report aired on November 2nd and, among other things, claimed PM International was operating as a pyramid scheme.
A commissioned analysis of PM International’s products by the University of Oslo also found that it was made up of at least 50% sugar.
Health Control reasoned that this was evidence the products couldn’t deliver advertised nutritional and health benefits.
As part of their research Health Control contacted PM International, who initially agreed to an interview with CEO Rolf Sorg.
The day before the interview PM International sent Health Control an “interview contract”, demanding screening of all questions and final approval over broadcast of the review.
The contract also stipulated if Health Control broke the contract, a 250,000 EUR fine would apply per violation.
Health Control saw this an attempt to undermine their investigative report and refused to sign.
The report thus went to air without any direct input from PM International management.
Health Control did however receive a letter from PM International’s Norwegian lawyer, which it published alongside its article on the Health Control report.
PM International are seeking an injunction to prohibit Health Control’s report from being broadcast. This includes online publication on TV2’s website.
Whether damages have been sought is unclear. PM International’s Norwegian lawyer refused comment when asked.
TV2 Program Director Jarle Nakken stated the broadcaster stands by the report and
that they do not see anything that is illegal or a violation of the press’ ethical rules in the reports.
It is drastic to ask the court to censor the press and enforce the removal of critical journalism.
Normally a business responds in the press. This is the case here, and we have published PM International’s views, as far as they have been communicated to us.
The way I see it, TV2’s defense should be pretty straight forward.
If the University study was conducted above-board, simply present the process and finding as evidence of what’s in PM International’s products.
As for the pyramid scheme claim, BehindMLM reviewed PM International in October and noted “a distinct slant towards affiliate autoship recruitment”.
If the majority of PM International’s revenue is generated from affiliate orders (autoship or otherwise), then indeed the company is operating as a pyramid scheme.
I’m not briefed on the specifics of Norwegian lawsuits, but at some point PM International should be required to disclose its retail revenue percentage.
That will either support Health Control’s assertion or demonstrate healthy retail sales.
Having gone over PM International’s compensation plan, personally I’m just not seeing it (retail sales). As for sugar powder, wouldn’t surprise me.
If PM International’s products are at least half sugar and that’s not correctly labeled, then clearly the company has a problem. Both ethically and on a regulatory front.