Herbalife Agrees To Pay $200 Million To Settle Complaints It Deceived Consumers
Source: NPR
Herbalife has agreed to pay $200 million to reimburse consumers who lost money on its nutrition supplements and will also make major changes in its sales and distribution practices, the Federal Trade Commission announced today.
The FTC filed a complaint accusing the company of deceiving consumers about how much money they could make selling its products, noting that most Herbalife distributors make no money at all.
But federal officials stopped short of calling the company a pyramid scheme and allowed it to keep operating. That was seen as a victory for the company on Wall Street, where Herbalife had become the target of a short-selling campaign by investor William Ackman.
Still, the FTC had extremely tough words for Herbalife and made clear it sees many of its practices as deceptive.
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Read more: http://www.npr.org/sections/thetwo-way/2016/07/15/486174340/herbalife-agrees-to-pay-200-million-to-settle-complaints-it-deceived-consumers
July 15, 20166:42 PM ET
JIM ZARROLI
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FTC Press Release: Herbalife Will Restructure Its Multi-level Marketing Operations and Pay $200 Million For Consumer Redress to Settle FTC Charges
Tal Vez
(660 posts)at Trump University.
ErikJ
(6,335 posts)I think he once said.
bucolic_frolic
(43,176 posts)to deceive, and for few to make money
My state allows something like $500 to be an entry fee for MLM, and many
states have similar laws. Long distance and calling cards were sold like
that when Worldcom was wholesaling to MLM companies.
High entry fees and high cost of products are often a feature of MLM
Yet some have been around for many many decades. I think Watkins
started in the mid 1800s. Some companies sold shoes direct.
rocktivity
(44,576 posts)Last edited Fri Jul 15, 2016, 10:14 PM - Edit history (2)
whose founder committed suicide?
rocktivity
TexasBushwhacker
(20,196 posts)Little Tich
(6,171 posts)rusty quoin
(6,133 posts)The others wore pins saying "lose weight now, ask me how". I knew it was bullshit, but I was there. Wasn't this one of the companies which used ephedrine as its weight losing formula...you see back then, you could get it over the counter, because it treated hay fever.
Regardless the FDA had no control over that industry, which chose names like herb + life = Herbalife to make it sound healthy. The junk used to be called patent medicine...see H. G. Wells Tono-Bungay.
These companies should never have been allowed to exist and should be put under the FDA so they require clinical studies to prove their claims. In my mind they are criminals doing anything to make a dollar at the expense of public health at their worst, to duping people into believing unproven, and obviously false claims at their best.
I'm glad the suit turned out the way it did...all about the pyramid scheme, but it's ironic that the greedy people who set up the other greedy people, sent out to sell shit and fool people, and the latter won...while nothing is done to protect public safety, is ironic, very much so.
mdbl
(4,973 posts)None of their IBO's make any money either but the idiots go to these religious like events and believe all the lies they feed them. I hope the FTC goes there next.