Herbalife gets a big fine...
I had a guy try to recruit me into the Herbalife cult.
I told him I wouldn't pay them one dime to work for them.
Herbalife to pay $200 million to settle FTC charges
Herbalife International of America, Inc., Herbalife International, Inc., and Herbalife, Ltd. have agreed to restructure their U.S. business operations and pay $200 million to settle FTC charges that they deceived consumers into believing they could earn substantial money selling diet, nutritional supplement, and personal care products. [Herbalife will restructure its multi-level marketing operations and pay $200 million for consumer redress to settle FTC charges. FTC news release, July 15, 2016] The settlement was announced at a videotaped press conference at which FTC chairwoman Edith Ramirez answered questions about the case. Her opening statement noted:
Herbalife "promised people a dream—a chance to change their lives, quit their jobs, and gain financial freedom."
The dream portrayed by Herbalife's testimonials and marketing materials was "an illusion" because the vast majority of new distributors found they could make little or no money selling Herbalife products.
The settlement included a $200 million judgment for refunds to many distributors and "forces the company to implement a major restructuring of its business operations."
The FTC hopes the principles embodied in the settlement will set an example for the multilevel marketing industry more generally.
In response to the settlement, Carl Icahn (an Herbalife board member and major shareholder) stated that the FTC had "concluded that Herbalife is not a pyramid scheme." However, Ramirez said that was inaccurate, that the settlement made no such determination but focused on correcting Herbalife's improper practices.
https://www.ftc.gov/news-events/press-releases/2016/07/herbalife-will-restructure-its-multi-level-marketing-operations
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