Direct sales programs that call themselves “multilevel marketing” (MLM) companies run the gamut from being merely annoying to full-blown pyramid schemes, and the folks at the Federal Trade Commission are responsible for holding MLMs accountable when they cross that line from irksome to illegal. But two pieces of legislation, both backed by a trade group with direct ties to Education Secretary Betsy DeVos, are attempting to limit the FTC’s ability to investigate and prosecute rogue MLMs. [More]
Herbalife
Group Tied To Betsy DeVos Is Trying To Block Feds From Investigating Multilevel Marketers
By 9.19.17
Herbalife To Pay $200M To Members Who Lost Money; Must Change Business Model
By 7.15.16
Five months after Herbalife was reported to be working on a settlement to resolve a federal probe into its often controversial business practices – or what some people claim is a pyramid scheme – the company has agreed to restructure its business model and pay $200 million to consumers who purchased large quantities of its products and lost money. [More]
Herbalife Working On Settlement To Resolve FTC Investigation Into Business Practices
By 2.26.16
Nearly two years ago nutritional company Herbalife revealed that it was under investigation by the Federal Trade Commission for its often controversial business practices, or what some people claim is a pyramid scheme. Now, it looks like the company is ready to put the federal probe behind it. [More]
Report: Federal Law Enforcement Poking Around At Herbalife
By 4.6.15
Despite receiving good news from a judge who dismissed a lawsuit against the company recently, it seems Herbalife is still fighting other battles. A new report cites insiders at the company who say federal law enforcement officials have been asking questions at Herbalife, and getting in touch with some members individually. [More]
Judge Dismisses Lawsuit Accusing Herbalife Of Running A Pyramid Scheme
By 3.18.15
After two years of accusations calling Herbalife a pyramid scheme, the company has won the dismissal of a lawsuit against it alleging it was set up to only enrich those few at the top of its multi-level marketing business. [More]
Herbalife To Re-Train Distributors Not To Say Products Cure Brain Tumors
By 5.6.14
When you go to a meeting to learn more about potentially joining a multi-level marketing organization, you expect to hear testimonials about how the product has changed lives. You should not expect to hear about how the company’s products have cured brain tumors and performed other impossible feats. At least, that’s what Herbalife says after undercover reporters from ABC News filmed Herbalife distributors doing just that. [More]
FTC Investigating Herbalife
By 3.12.14
For more than a year, some have accused nutritional supplement company Herbalife of operating a pyramid scheme and called for federal authorities to investigate the business. Today, the company confirmed that it is indeed under investigation by the Federal Trade Commission, though it did not reveal exactly why. [More]
Shares Of Herbalife Fall After It Defends Itself Against Pyramid Scheme Accusations
By 1.11.13
Herbalife has been scrambling to do damage control and defend itself against accusations that it’s a fraud or as one hedge fund manager called it, a pyramid scheme. But after stating its case to the contrary yesterday, it seems investors are still unsure about whether they should risk their money in the company’s stock. [More]
