Report: #967538

Complaint Review: OnLine Business Systems

  • Submitted: Sat, November 10, 2012
  • Updated: Thu, December 13, 2012
  • Reported By: Joe K — Penfield New York United States of America
  • OnLine Business Systems
    6946 N. Academy Blvd Suite 166
    United States of America

Show customers why they should trust your business over your competitors...

Online Business Systems sold me a $4000.00 "Supervisor" commission pachage for $839.05     and after having me wire transfer the money to them, the switched me back down to the "Distributor" commission level.  When I tried to find out who authorized the switch nobody would respond to my inquiries.  All in all, they stole $1,397.95 from me.  A word to the wise, don't have anything to do with this company.  RUN, don't walk away from On Business Systems.
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This report was posted on Ripoff Report on 11/10/2012 06:14 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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Updates & Rebuttals


#1 Author of original report

Silence From Online Business Systems


For anyone who has gotten this far in this ripoff report I know that you will find it as interesting as I do that MBK - Aldergrove (Canada) replied to my first two posts with a bunch of BS as to how this could never happen with Online Business Systems.  When I posted the proof of the "Bait & Switch" which was a copy of the E-Mail I received from my "Coach",  for some reason we haven't heard from MBK again.  Gee, he/she responded to my first two posts, why has he/she not responded to this third post?  My guess is that he/she does not want to be caught in a lie.......AGAIN.  This is how Online Business Systems/Herbalife operates.  Have nothing to do with them.  Save yourself a lot of money by not having anything to do with these ripoff companies. 
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#2 Author of original report

OnlineBusiness Systems Rebuttal Lies


Shown Below is an e-mail I received explaining why the "Bait & Switch" occurred.  However, no one would ever tell me who authorized the switch.  Please note that this was all done with Herbalife's blessing.  When OBS did a rebuttal to my RipOffReport they lied and said that I was still a Supervisor.  I guess that they did not think that I had written proof.  As I said before, don't have anything to do with Online Business Systems and/or Herbalife.

Cathy Callahan
Jul 25, 2012

I talked to Herbalife today and will call them again with you, but the problem is that you were put in the system as a Distributor on April 24th.  When you bought the 1000 volume point order, we had another who did not have enough to do a one month qualification, so we planned on tagging you together.  Then you had the problems with the training and we needed to get the other in as a Sup. and were not sure how long you were going to take to get the training done and up and running.  We found another person to tag on to him, so that left you with  no tag on.  Since you bought the 1,048 vp in March, you are still a Distributor at a Success builder level.  You may go on and order product at a 35% discount, but in order to get to supervisor (50%) you have to sell or order 3,052 by March 2013, or you can do 2500 vp's in 2 consecutive months, or 4,000 vp's in one month.  The 1000 vp was a gift and although you bought product, you did not finish the training or start your business, so that gift was given to someone else.  Now you can sit and stew and threaten law suits or you can buy 1 wheel slot and get started @ a 35% discount.  'You can make excuses or you can make money, but you can't do both'  Corey Reynolds, President's team.  I will still call you tonight at 7:00.  You can order from Herbalife and start making vp's to get it going.  enter your ID number and the pin code is 1234.  I want you to be successful, now it depends if you are willing to move on and make this work.  I hope you stay with it and blow by me.  You don't move anywhere by standing still.  We will still call Herbalife  so you can hear the same thing from them.

I'll talk to you tonight.

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#3 REBUTTAL Owner of company

You are a registered Supervisor

AUTHOR: MBK - (Canada)

Joe.  After checking with both OBS and Herbalife, you are registered as a supervisor with both companies.  I looks like you bought a 1000 VP order at which point your coach was able to buddy you to this position. 
Not sure where the "bait and switch" has come to play as you have access to all the benefits that every other Herbalife Supervisor and Online Business Systems member has.
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#4 Author of original report

Online Business Systems / Herbalife - Scam


Online Business Systems / Herbalife
Online Business Systems is the major marketing/distributor for Herbalife products. I got involved with OBS when I received an e-mail from a trusted friend recommending that I try OBS. I found out later that an OBS operative had hacked into my friends E-Mail Favorites list and sent the recommending e-mail to all of his favorites.
However, I had already responded to the e-mail before I found this out. I received a call Brian Frasier who told me what a great company it was and then he put Cathy Callahan on the conference call. They explained that I should send $9.95 to Brian and he would send a packet which would explain what the company was all about. After reviewing the informational packet and after several phone conversations with Brian & Cathy, I agreed to send Brian $399.00 for a sample of most of the Herbalife products. Soon after receiving the samples I then agreed to send Brian another $39.95 and OBS $100.00 so that I could get started (I thought).
After I had paid them $548.90 I then found out that the only way to get leads and to get a good commission on the sales was to become a Supervisor. Brian and Cathy then told me that it would cost $4,000. to become a Supervisor.  I told them that I could not afford that amount of money.  They then told me that I could cut the payment to $2,000. by joining with another person who would also pay $2,000. and then we both would become Supervisors. After talking it over with my wife we decided that we could not even afford $2,000. because the only way to get leads was to spend approximately $500.00 monthly for the leads. We thought that the $548.90 was down the drain.
Several weeks went by & I received a call from Cathy who told me that another person was willing to pay $3,200. and I could become a Supervisor for only $800. if I wired transferred the $800. to them within two days.  My wife and I talked it over and we decided to go for it.  I wired transferred the $800.00 to OBS and I was told that I was now a Supervisor. My next move was to complete my training which would take several weeks.

Just after completing my training I called Cathy and told her that I was ready to purchase some leads.  Cathy informed me during that phone call that my status had been switched and lowered from that of a Supervisor to a distributor.  I asked how they could do that since I had just paid them $800. to become a Supervisor.  She told me that she did not know who had made the decision.  I tried to call everyone above Cathy in the chain of command and not one call was returned.  I sent numerous e-mails to the so-called Head of our team and they refused to respond to my e-mails.
So, the long and the short of my experience is that I am out $1,397.95

My advice to anyone and everyone is to not have anything to do with Online Business Systems / Herbalife.  If you are ever approached, RUN, dont walk away from them.

I have since heard that this bait & switch tactic has been used by them before.
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#5 UPDATE Employee

Like to Know More

AUTHOR: MBK - (Canada)

I would really like to know more about this situation.  A couple things have me puzzled about this situation.  First off from what you are stating, this particular sponsor has broken many codes of conduct on a number of different fronts.  If this is indeed the situation, then this person should have their membership and distributorship suspended or revoked as this is not how Online Business Systems handles there potential members. 

You paid $399 for your initial distributorship package which was charged by your sponsor.  This cost gave you your distributor kit, a months worth of product, your training manual and a live training ticket.  This is for a combined OBS / Herbalife membership and distributorship which should have all been explained.  As for the $839, I am guessing that would have been charged by Herbalife International for a 1000 volume point order of products which would have possibly given you enough to "buddy" to the supervisor position.   Once your paperwork was submitted, then you would have been at the supervisor compensation level.  This does take a bit of time, however you situation may have been something different which is why I would love the chance to investigate this to find a solution.
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