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.
Once appointed, the ICA will
assess and report on implementation of reforms in the following general areas of Herbalife’s U.S. business: tracking of retail sales; distinguishing between business opportunity participants and discount buyers (also known as “preferred customers”); observing limitations on compensation based on personal consumption of products; calculation and payment of multi-level compensation; and certain training requirements.
The term of the appointment is for seven years.
Herbalife and the FTC will ideally agree on a nominated ICA which will then be approved by the court. This nominee doesn’t necessarily have to be from within the pool of applicants.
If Herbalife and the FTC can’t reach a decision, the court will step in and appoint an ICA.