Herbalife @ BehindMLM

Herbalife “Circle of Success” distributor case reopened

The “Circle of Success” event class-action filed in Florida has been reopened. We’ve also got some updates on you on split proceedings taking place in California.

Herbalife cops $122 mill criminal fine over fraud in China

Ever wondered how US MLM companies do business in China? Boy have I got a story for you…

$260,575 worth of weed found in Herbalife meal shake tins

Authorities in the Philippines have seized over 11kg of weed, shipped from California in Herbalife meal replacement shake tins. Who says criminals don’t have a sense of humor?

Herbalife cops $20 million SEC fine for fraud in China

Following an investigation into Herbalife’s Chinese operations, the SEC has determined the company uses it’s global compensation plan across the country. As Herbalife reveals in its own SEC filings, ‘[i]n China, while direct selling is permitted, multi-level marketing is not.‘

Herbalife products tied to acute liver failure in India

Consumption of Herbalife products to acute liver failure, according to a case study report published by medical staff in India. The report also details heavy metal, toxic compounds, psychotropic substance and bacterial contamination.

Some Herbalife distributors get arbitration, venue change to California

Following on from yesterday’s coverage of the class-action Herbalife “Circle of Success” lawsuit, a ruling has been made on filed arbitration and change of venue motions.

Herbalife “Circle of Success” event fraud targeted in class-action

A group of Herbalife distributors have filed a class-action complaint. What makes this case interesting is it targets the company’s “Cycle of Success” events, which the class plaintiffs allege has resulted in over a billion dollars in Distributor losses.

Herbalife affiliates continue to earn on recruits through loophole

Enforcement of Herbalife’s settlement with the FTC is certainly one of the more bizarre episodes of MLM regulation I’ve seen. As part of the settlement, Herbalife agreed to “restructure” their business. And a big part of the restructuring was only paying commissions on actual retail sales going forward. Considering retail sales volume was negligible to the [Continue reading…]

Herbalife’s top Chinese executive quits, new compensation plan?

In addition to the $200 million dollar fine Herbalife copped for running a pyramid scheme last year, the company was given ten months to introduce a new compensation plan. Among other things, Herbalife’s new plan must accurately track genuine retail sales activity and cease paying affiliates solely on recruitment of new affiliates who purchase Herbalife [Continue reading…]

FTC to return $200 million to 350,000 Herbalife victims

As part of the “we’re not a pyramid scheme, *winkwinknudgenudge*” settlement Herbalife reached with the FTC last year, $200 million will be returned to 350,000 Herbalife victims.