Herbalife International of America, Inc., Herbalife International, Inc., and Herbalife, Ltd. will restructure their U.S. multi-level marketing business operations and pay $200 million to compensate consumers to settle the FTC complaint that the Herbalife companies deceived consumers into believing they could earn substantial money selling their products.
The FTC complaint also charged that Herbalife’s compensation structure was unfair because its distributors were rewarded for recruiting others to join and purchase products in order to advance in the MLM program, as opposed to actual retail demand for the product, causing economic injury to many distributors.
According to the complaint, Herbalife claimed that people could earn thousands of dollars a month or even get rich in the program. But the complaint alleged that the majority of distributors earn little or no money, with more than half the distributors—known as “sales leaders”—receiving less than $300 in rewards for 2014. According to a survey by Herbalife itself, Nutrition Club owners spent an average of about $8,500 to open a club, and 57 percent of club owners reported making no profit or losing money.
A week or so ago I covered the lawsuit filed by Matthew Nestler a former leader in Jeunesse Global. (Read Here)
As our team started reviewing social media to see what the Jeunesse field culture was promoting we quickly found that many of the up and coming Jeunesse Diamonds and other leaders were promoting income and lifestyle claims, even though the Jeunesse Global policies and procedures are very clear this is a violation. We also saw where inside the Jeunesse P&Ps it was clear the company didn’t condone raiding other direct selling companies either!
So what is going on and is the company holding people accountable for policy violations or looking the other way?
In this edition of the MLM News & Info Report, we may discover that Facebook doesn’t really need your personal info. We learn about a new ID Theft recovery service provided by Safe ID Trust, and much more.
WOW! This news could change the landscape of the MLM Functional Health Juice Wars forever. How can two powerful, but diabolically opposite leaders Dallin Larsen and BK Boreyko have found common ground?
Well, as most of you know, I have been blessed to have established trust and respect from both of these MLM CEOs and Founders, so when I first heard the news, I quickly started making phone calls. I knew BK was on the road, out supporting his Brand Partners this month, as Vemma comes off a seven figure increase in volume. And, Dallin has been flying around the world as MonaVie opens new countries to break yet another MLM corporate record.
My goal was to catch them before Good Friday, when they both would be taking time with family for the Easter Celebration.
Finally late last night I was able to get to the bottom of things…