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Pyramid scheme pilloried

This article was originally published in Foodnews

ITALY's anti-trust authority has slapped mangosteen juice marketer, Xango Italy, with a EUR250 000 (USD354 000) fine for dubious sales and marketing practices. The authority found that XanGo Juice was misleadingly promoted as helping to prevent or cure illnesses including cardiac problems, diabetes, cancer, skin conditions, Parkinson's and Alzheimer's. Furthermore Xango Italy's sales system, dependent on numerous consumers who would in turn become small-scale distributors, was similar to a pyramid scheme. Customers were invited to register through a website and had to pay a fee to join and receive a starter kit. The anti-trust body said the practice was 'not correct', because it caused confusion about the properties of the drink, and the pyramid-like sales method was in violation of articles on consumers' rights.

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