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Thread: The FTC and Herbalife Close to Settlement?

  1. #1
    Luzer is offline Senior Member
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    The FTC and Herbalife Close to Settlement?

    Forbes Welcome

    The discussions with the FTC are in the advanced stages, but there are still a number of material open issues that could preclude reaching final agreement. If discussions with the FTC do not continue to progress, it is likely that litigation would ensue. Although we are confident in our legal position, litigation outcomes by their very nature are difficult to predict and there can be no assurance of a particular outcome.

    The outcome of these matters with the FTC, whether by mutual resolution or through litigation, could have a material adverse impact on the Company’s business operations, its results of operations or its financial condition. The Company believes it is reasonably possible that it may have incurred a loss. At the present time, the Company’s best estimate of the payment amount that would be made by the Company under a mutual resolution with the FTC is $200 million. The Company has not accrued any amounts with respect to any potential monetary payments relating to this matter. If a resolution is not attained and litigation ensues, the Company is unable to estimate a range of potential loss, if any, relating to these matters.

  2. #2
    JimGroan is offline Junior Member
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    Re: The FTC and Herbalife Close to Settlement?

    Hooray! The time has finally come! How Herbalife can possibly see this as a "good" thing for them is baffling. Because they didn't get *called* a pyramid scheme, just completely and totally DEFINED as one and must undergo "major restructuring"??? They now actually have to SELL this stuff... to non-Herbacult members! Tough road to hoe! I wonder who at the top will jump ship first and to where...

  3. #3
    ribshaw's Avatar
    ribshaw is offline Nigerian Ministry
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    Re: The FTC and Herbalife Close to Settlement?

    Quote Originally Posted by JimGroan View Post
    Hooray! The time has finally come! How Herbalife can possibly see this as a "good" thing for them is baffling. Because they didn't get *called* a pyramid scheme, just completely and totally DEFINED as one and must undergo "major restructuring"???
    Stop me if you heard this one before.

    "In re Amway Corp. (93 F.T.C. 618; full name In the Matter of Amway Corporation, Inc., et al.) is a 1979 ruling by the United States Federal Trade Commission concerning the business practices of Amway, a multi-level marketing (MLM) company. The FTC ruled that Amway was not an illegal pyramid scheme, but ordered Amway to cease price fixing and cease misrepresenting the apparent success achieved by the average distributor."

    https://en.wikipedia.org/wiki/In_re_Amway_Corp.

    Fast forward 30 years.

    Amway agrees to pay $56 million, settle case alleging it operates a 'pyramid scheme' | MLive.com

    Quote Originally Posted by JimGroan View Post
    They now actually have to SELL this stuff... to non-Herbacult members! Tough road to hoe!
    I caught this on my drive today, if I remember correctly about 20% of Herbalife's business is US based. So even if the US gets taken to zero, they can still prey on folks elsewhere. Based on the "compliance" we have seen from Amway the FTC has once again dropped the ball.

    GUEST: Ted Braun Documentary Filmmaker "Betting on Zero" Discussing the FTC’s ruling regarding Herbalife’s $200 million dollar settlement from the unique perspective of the film he made "Betting on Zero."

    Running time 07:45 Bloomberg



    "It's virtually impossible to violate rules ... but it's impossible for a violation to go undetected, certainly not for a considerable period of time." Bernie Madoff
    https://www.facebook.com/pages/Scam-...98399986981403

  4. #4
    JimGroan is offline Junior Member
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    Re: The FTC and Herbalife Close to Settlement?

    Quote Originally Posted by ribshaw View Post
    I caught this on my drive today, if I remember correctly about 20% of Herbalife's business is US based. So even if the US gets taken to zero, they can still prey on folks elsewhere. Based on the "compliance" we have seen from Amway the FTC has once again dropped the ball.
    Well, I hope other jurisdictions/ foreign regulators (like Italy's AGCM that threw the book at Vemma) will get with the program and impose similar measures. And you're right-- these harshly-worded rules are only as good as their enforcement...and the US *is* small...

    What I want to know is... if you are a US person and your entire first line is in, say... Mexico, and the rest of your business is elsewhere (international) ...are you, as an American, not able to collect any money unless your foreign downline submits receipts for profitable sales? Even though such measures are not required until their countries laws? Much like with China, I simply do not see how they can have multiple sets of rules and contingencies in different jurisdictions but only ONE universal currency (volume points) and *still* call it a "level playing field."

    I guess they'll just "fake it" til they "make it."

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