Archive | Herbalife

More regulatory woes for Herbalife

Continue Reading 2

Posted 20 April 2020

Global direct sales company Herbalife Nutrition Ltd. has recently extended its decades-long record of being the subject of regulatory actions.

  • Last year, it agreed to pay $20 million to settle Securities and Exchange Commission (SEC) charges that it made false and misleading statements in numerous U.S. regulatory filings about the compensation model for its China-based service providers. SEC alleged that the actual model used is multilevel and based on downline purchases rather than hours worked. While direct selling is permitted in China, multilevel marketing is not. SEC found that Herbalife’s misleading statements deprived investors of the information they needed to fully evaluate the risk of investing in Herbalife stock.
    Reference: Herbalife to pay $20 million for misleading investors. US Securities and Exchange Commission press release. Sept 27, 2019

  • Two former company executives, Yanliang Li and Hongwei Yang, were charged in November on criminal and
Read the rest
Continue Reading 2

Multilevel Marketing: The day job that doesn’t pay

Continue Reading 0

Posted 19 December 2017

From TruthinAdvertising.org

When then FTC Chairwoman Edith Ramirez took the stage at the Direct Selling Association’s Business & Policy Conference in Washington, D.C. in October 2016, she did not mince words when it came to the widespread use of inappropriate earnings claims as a means of recruitment in the MLM industry. More than a year later, it appears few if any of the DSA members in attendance that day took the warning to heart.

A TINA.org investigation found more than 97 percent of DSA member companies are (or have been) engaged in marketing schemes that peddle false and unsubstantiated earnings claims to try to convince prospective distributors to join their MLM network.

​​​​​​​TINA.org has amassed more than 3,000 examples of companies and/or their distributors making inappropriate earnings claims on their websites and social media platforms. These claims range from assurances of achieving financial freedom, to making Read the rest

Continue Reading 0

Herbalife research connections questioned.

Continue Reading 0

Posted 04 March 2013

Herbalife research connections questioned

The Los Angeles Times has published a startling report about the financial relationships between Herbalife, prominent researchers who been promoting the company, and the University of California-Los Angeles Geffen School of Medicine. [Hiltzik M. Herbalife cozies up with UCLA Los Angeles Times, Feb 22, 2013] The report notes:

Read the rest
Continue Reading 0

Herbalife toxicity?

Continue Reading 1

Posted 29 September 2011

This medical article concludes: ” Our results support the relationship between the consumption of Herbalife products and hepatotoxicity, underscore the concern regarding the liver-related safety of this dietary supplement, and emphasize the need to establish further regulatory measures.”

Read the rest
Continue Reading 1