If Ms. Harbour does her job thoroughly, this should be the final nail in the coffin. Why?
The MLM system is inherently flawed hence the very reason why clubs, tools scams, and exaggerated claims exist in the first place. Duhhh
If Ms. Harbour does her job thoroughly, this should be the final nail in the coffin. Why?
The MLM system is inherently flawed hence the very reason why clubs, tools scams, and exaggerated claims exist in the first place. Duhhh
Pamela Harbour, former FTC Commissioner:
"There have been times in my career where I’ve stuck my neck out, but I only will do that if I’m really confident of my own convictions and willing to live with the consequences,” she said in an interview. “This is one such instance.”"Harbour also is an Herbalife customer. She said she bought her first Formula 1 weight-loss shake powder, Herbalife’s best-selling product, from a family member at a reunion in 2004 just to be nice. She liked it, though, especially the Cookies ’n Cream flavor, and would occasionally mix up a shake for dinner after a long night at the FTC. She bought more at future reunions."Full story:"Harbour said she’s satisfied that Herbalife executives are committed to compliance and that she sees “substantial efforts” and “considerable investments.”
“Compliance should be a part of a company’s culture, and I got that very strong sense when I was at Herbalife,” she said."
Herbalife
You know, because if it turns out that Herbalife is convicted of running a massive pyramid scheme, it's ok, because they can always promise not to do it any more.
She like it so much........she would wait until the next reunion to buy it. Even of that reunion was 10 years away i guess. Why not just find a local rep to buy it from or or have her relative sell her more and ship it? Wonder if she wandered on over to the FDA to see if the crap really contributed to weight loss. That would be a ringing endorsement. Kinda get the feeling she's selling her soul.
Here's a snippet of the letter Ackman sent to Pamela Jones:
Ethan Vanderbilt has more here:"Herbalife operates the largest and best-managed pyramid scheme in the world.
Consider what would happen if, in all meetings with potential recruits, the recruiters were required to remind the audience clearly of certain key facts, for example:
88% earn nothing from the Company;
Most money goes to the top 1%;
Members churn rapidly and leave the system;
Most distributors suffer net losses after accounting for time and money spent;
Herbalife does not track retail sales;
Millions of recruits have come and gone in recent years."
Bill Ackman Confronts Herbalife
"Herbalife Agrees to Settle “Pyramid Scheme” Class-Action Lawsuit for $15 Million"Herbalife says:"The "multi-level marketing" company Herbalife, which recruits individuals as distributors who sell its products to friends, family, and other consumers, has agreed to pay $15 million to settle a class-action lawsuit that alleges its business model is a pyramid scheme. The suit was initiated by a Herbalife distributor in California who says the company violates that state's colorfully named Endless Chain Scheme Law. From Bloomberg:"
Full story:"We are fully confident that we would have prevailed,” Herbalife General Counsel Mark Friedman said in an e-mailed statement."
Herbalife pyramid scheme lawsuit: $15 million settlement in class action.
SEC Drops Herbalife Inside-Trade Case After Witnesses Leave U.S.
..."The SEC is seeking to withdraw its case against Jordan Peixoto because two “essential” witnesses left the U.S. for Poland and are unavailable to testify, according to a filing by the agency’s staff in administrative court today."
Full story:"There were significant legal and fact problems with this action that cried out for this dismissal,” Derrelle Janey, Peixoto’s lawyer, said in a statement. “The division of enforcement should be applauded for doing the right thing.”
SEC Drops Herbalife Inside-Trade Case After Witnesses Leave U.S. - Bloomberg
"Dec. 17 (Bloomberg) -- Bill Ackman, chief executive officer at Pershing Square, discusses new internal video he’s obtained to back up his allegations that Herbalife is a pyramid scheme two years after his short call on the company..."
Video Released by Pershing Square Capital Management Exposes Senior Distributors Admitting that Herbalife Uses a “Level of Inauthenticity,” leading to “Eventual Deception”
White paper about the video from Pershing Square Capital Management, L.P. is here:
http://www.factsaboutherbalife.com/m...r-12.17.14.pdf
From the whitepaper:
Later in the white paper:"At the outset, we highlight just a
few of the most remarkable statements:
―We sell people on a dream business, that they can make it. Yet
deep down inside, what do we really know? Yeah. We know that
the reality is that most of them aren‘t going to make it.‖
(Disc 1, 1:00:16.)
―Who wants to bring their family into a struggle to make it? Who
wants to bring their family into an eventual deception?‖
(Disc 2, 7:20.)
―We tell people, hey, you know, sign on the dotted line, you know,
start working from home, it‘s going to be unbelievable, you‘re
going to have this incredible life. . . . So there really is this
situation or this level of inauthenticity that‘s there.‖
(Disc 2, 8:28.)
―The Herbalife business model is based on distributors purchasing
volume from them. . . . The Herbalife business model, at this point
in time, is not based on customers purchasing, it‘s based on
distributors purchasing volume.‖
(Disc 2, 14:34.)
―These sixty thousand people [whom the speaker lost as
distributors over the preceding five years], primarily, why do you
think they came into the business? Primarily? Primarily?
Opportunity! Money! Right?‖ (Disc 1, 46:05.)
―
[S]uccessful people in retailing in our business, it‘s a very small
percentage.‖ (Disc 2, 28:08.) ―The majority of our people have a
difficulty in selling products, in general.‖ (Disc 2, 29:46.)
―‘Fake it ̳til you make it.‘ Some of us got so good at f
aking it, we forgot to make it!‖ (Disc 1, 54:04.)
The video demolishes any suggestion
by the Company or its defenders that
deceptive recruiting practices and
misleading income claims are the work of a few bad
actors in the Herbalife distributor ranks."
"And then, just to demolish any suggestion that
Herbalife‘s overall business has anything to do
with selling products to genuine retail customers, Gratziani declares,
in no uncertain terms:
"The Herbalife business model is based on distributors purchasing
volume from them. OK? And that‘s, that‘s really the Herbalife
business model. The Herbalife business model, at this point in
time, is not based on customers purchasing, it‘s based on
distributors purchasing volume. And we are paid, through the
marketing plan, we have levels through the marketing plan, and
that volume that gets purchased from the Company in our
organizations, that is going to give us what our business results are."
Last edited by JustTooMuchTime; 12-17-2014 at 11:19 PM.
Here is 3h Insiders video Bill talked about: Herbalife Unmasked - Full Presentation | Facts about Herbalife
And, the same goes with most MLM schemes. What has happened with NuSkin! I hear of another that has risen out of Salt Lake City Xyngular: Starve, Binge, Purge, Repeat! (Does not sound healthy to me.) I saw BehindMLM had done some reviews of this one. Maybe there should be more investigation into this one as it is growing on FB and locally. Anyway, now we have Avon in court with DOJ, so it is just a matter of time some of the others get on their list... Herbalife pushed that "owning your own business" back when people were trying to make a living by staying home and took in a lot of suckers, including me (sorry to admit). They only way you could earn a dime with them was to sell the same BS to someone else and get them to sign up but you still have to turn around and invest in more product, so you were still stuck in the same mud.
My daughter-in-law has a friend peddling this Xyngular and trying to get her involved, I think she is smart enough to stay away from it but we have some other distance family members getting involved. Glad to see some truth coming out about Herbalife.
Don't get ripped off!! Stay informed!
The only thing necessary for the triumph of evil is for good men to do nothing
The only thing necessary for the triumph of evil is for good men to do nothing
Investigative Unit 2014: Going Undercover in Herbalife - ABC News"A year-long investigation, in which ABC News sent two reporters undercover as Herbalife recruits, revealed in April a company that has struggled to prevent its distributors from embellishing the financial prospects of a sales career there and hyping the health benefits of its products.
ABC News found that nearly 600 independent distributors of the diet and nutrition sales brand Herbalife had been disciplined in 2013 for making medical claims when selling the company’s weight-loss shakes and supplements, despite company policies aimed at preventing such tactics."
Full story:"The Food and Drug Administration has asked Herbalife to stop airing a video the regulator claims gives the false impression that its weight-loss shakes and other products have gotten the FDA seal of approval.
The agency has no oversight over natural dietary supplements, it said in a letter to Herbalife CEO Michael Johnson requesting the YouTube video and any ads that use the video be taken down and not shown."
FDA to Herbalife: Stop suggesting we approve your products | New York Post
You can view the original story on New York post
The only thing necessary for the triumph of evil is for good men to do nothing
Full story:"Herbalife’s stock took a dive on Tuesday for the second consecutive day, indicating more bad news for the embattled Los Angeles nutritional supplement company and more good news for hedge fund manager Bill Ackman.
Tuesday’s 8 percent drop came after CNBC reported that Paul Sohn, the chief architect of Soros Fund Management’s bullish bet on Herbalife, had quietly departed from the firm last year. That added on to a 12 percent tumble for Herbalife stock on Monday.
Sohn is rumored to be the man who got Soros into its position on Herbalife in the first place. He told fund managers at an idea dinner that “George Soros broke the Bank of England” and that “George Soros can break the back of Ackman,” the New York Post reported in 2013."
Herbalife Continues to Plummet | Los Angeles Business Journal
..." Activist investor Bill Ackman renewed his attack on Herbalife during a CNBC interview Wednesday, likening the nutrition and weight management company to Bernie Madoff.
"Herbalife, we're doing God's work," he added.
"When you shine sunlight on Madoff it makes it difficult for Madoff to find victims. The same thing is happening at Herbalife," the founder of the $18 billion Pershing Square Capital Management hedge fund said on "Squawk Box" as the show debuted in its new home in New York City."
Full story:" Ackman also claimed: "You have a flight of top [Herbalife] distributors, senior employees from around the world, contacting us, contacting the government, sharing information."
Ackman also claimed: "You have a flight of top [Herbalife] distributors, senior employees from around the world, contacting us, contacting the government, sharing information."
The company did not respond to a CNBC request for comment."
Bill Ackman: How Herbalife is like Bernie Madoff
Link to video: Bill Ackman: How Herbalife is like Bernie Madoff
Herbalife dismisses latest Ackman comments - MarketWatch"Published: Jan 7, 2015 5:25 p.m. ET
SAN FRANCISCO (MarketWatch) -- Herbalife HLF, +7.98% said late Wednesday that comments made earlier in the day by Pershing Square hedge fund billionaire Bill Ackman were "entirely predictable." The company said "with his Herbalife put options expiring next week, he is off on yet another tirade of misrepresentations, the sole purpose of which is to drive down our share price." Ackman, who has been on a lengthy campaign against the nutritional supplements seller, made more critical comments in a TV interview earlier Wednesday."
"Fox Business, Charlie Gasparino, reports that Herbalife is in the process of filling stock manipulation charges against the billionaire investor.""“I do know they are prodding regulators, SEC, I would even think the justice department to go after him. To say that this guy is doing stuff, leaking stuff, going after the company saying stuff to move the stock and to profit off that,” said Mr. Gasparino.""Gasparino maintains it might be a dead end for Herbalife Ltd. (NYSE:HLF) on its pursuit of Ackman considering there has not been any company that has been successful on this front. The analyst also notes that regulators perceive short selling as an important aspect of trading as it always goes a long way in keeping the market safe."
Read full story at Is Herbalife Ltd. (HLF) Suing Bill Ackman Over Stock Manipulation Allegations? - Insider Monkey
wow! if true, that would be really stupid on Herbalife's part! it would 'open the door' so to speak on the true financials of the company for the entire world to see....really give high profile to the issue eh? true they are a publicly traded co. and anyone can access the annual reports, quarterlies etc, but a court case would be in your face not to be ignored news fodder!
...."It’s an embarrassment to the country that this company exists,” he told reporters after speaking at a church gathering in Chicago. He said the effective value of his bet is $1.2 billion."
From: Ackman renews attacks on Herbalife, says it will be gone within a year - Fortune"Herbalife has vehemently denied Ackman’s allegations that its business is a pyramid scheme. The company described his church appearance as “the latest stunt in Ackman’s ongoing campaign to drive down our share price for profit.”
Herbalife will fail because increased transparency about its practices, due to scrutiny from Ackman and regulators, has made it harder for the company to recruit distributors for its products, Ackman said."
Bookmarks