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…
Herbalife @ BehindMLM
$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.
FTC seeking applications for Herbalife compliance auditor
As part of the settlement agreement between the FTC and Herbalife, an Independent Compliance Auditor (ICA) will be appointed to oversee Herbalife’s adherent to the agreement. As per a press-release issued on August 9th, the FTC are now seeking applications for the position.
