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Herbalife Under FTC Investigation

March 13, 2014
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The Federal Trade Commission announced yesterday that it is investigating Herbalife. Claims have been made over the years that the company is operating an illegal pyramid scheme. This bears close following over the coming months.

31 Comments leave one →
  1. David Miller permalink
    March 13, 2014 8:41 am

    It’s propaganda. The government said that they’re going to bring an end to supplements. There’s a bill for it. These private companies have some of the best products that help to sustain life. By doing so it’s digging into the big pharmaceutical pockets.

  2. Joecool permalink
    March 13, 2014 9:35 am

    I suspect because these issues are political, it will be the same result as Amway. They will investigate, they will find some wrongdoing. Herbalife will make some concessions and possibly pay some small fines. and they’ll be off the hook on loopholes and conceded changes. Then the pro MLM brigade will brag about how Herbalife is the model of a legal and proper MLM.

    I hope I’m wrong but somehow I doubt it.

  3. Patrick permalink
    March 13, 2014 9:58 am

    I’ve seen some Ambots putting down Herbalife for this too and bragging about how Amway is the model for legal and proper MLM. Of course they ignore how Amway has gone through the same thing.

  4. Melanie Morgan permalink
    March 13, 2014 2:59 pm

    If found to be an illegal pyramid scheme, (based on the law, & requirements of legitimate Customers vs Recruiting!! Seriously where would they all be without the ‘redefining’ of a real customer?

    They continue…The mass majority of MLM “propaganda” and same ole MLM standard red herring arguments ( my favorite being Corp “structure”…it’s a ‘pyramid shape’ where you will never make more money than the TOP guy/CEO…Funny that defines the MLM world to a tee..but that diversion tactic is nothing more than thought stopping response, and distracting BS. I am really humored and disgusted at the same time with these really worn out red herring arguments.

    The ‘product’ whether proved to be good or bad is always priced way above market, taken from the already broke masses( (97% most cases 99% bottom) who have no clue, and been recruited in on many false pretenses and promises and most cases at least the bottom 97% .. but then how else they going to pay the TOP less than 1% to convince them it “works” and they too can have what the less than 1% ever will have?

    But as far as the product goes, it is not on trial & irrelevant. It has nothing to do with “Big Pharma.” if that be their agenda, it has no bearing on whether Herbalife is found to be an illegal pyramid scheme.

    My sentiments are with Joecool. the track record and certainly history for decades shows that probably be likely the case but not all hope is lost> I believe if people don’t give up and “don’t quit” making the world aware :)…eventually it’s a given…after long enough, something is going to cave.

    Unfortunately and shamefully people are deceived intentionally, their integrity and character, opinions, votes, & souls are bought and sold daily and in the name of God. If their ‘leaders’. and company are as upstanding..the best in the world, etc. (whatever their dogma is…the same as ALL MLM’s hype and claim) , then why not just be transparent and PROVE it and be done? Give all the data and shut the world up?! Simple prove it with the real facts behind the company?

    From my experience with MLM….the many miles of walking that destructive road and obviously being deceived myself….I don’t need confirmation and imo, in most cases..when you have seen one you seen them all…but time will tell.

    I applaud Mr. Ackman for standing up and standing strong and the outcome obviously, if goes the way it should….the shock waves will cause a tsunami!

    At least for me it would give hope that all are not corrupt!

  5. Melanie Morgan permalink
    March 18, 2014 7:18 pm

    Found this very Interesting, I know it isn’t related to Herbalife, and didn’t know where else to put this but it is a “habitual fraudster” convicted and going to prison for 10 years, according to the sentencing judge. Most probably have heard of him, “T.V. (Infomercial) Pitchman” Kevin Trudeau. Convicted & Sentenced to 10 years in prison for defrauding people with his book.

    Here are a few links:

    http://www.nydailynews.com/news/national/tv-infomercial-star-kevin-trudeau-sentenced-10-years-article-1.1724871

    http://abcnews.go.com/US/wireStory/tv-pitchman-kevin-trudeau-10-year-sentence-22947552

    http://www.foxnews.com/us/2014/03/18/tv-pitchman-kevin-trudeau-sentenced-to-10-years-in-federal-prison-for-bilking/

    Read more: http://www.nydailynews.com/news/national/tv-infomercial-star-kevin-trudeau-sentenced-10-years-article-1.1724871#ixzz2wN8udZ3K

    Judge called him a “habitual fraudster”, and stated; “Since his 20s, he has steadfastly attempted to cheat others for his own gain,” Guzman said, adding that Trudeau is “deceitful to the very core.”

    “Trudeau had been described by prosecutors as preying on the sick, poor and insecure.

    The judge was not lenient, which comes as no surprise since Kevin Trudeau defied the judges orders to the tune of 32,000 times more that he aired his infomercials AFTER he was ordered by the judge not to! Sorry can’t feel bad for the guy like all his followers do.

    Kevin Trudeau:

    “Addressing the judge earlier in a 10-minute statement, Trudeau apologized and said he’s become a changed man. He said he’s meditated, prayed and read self-help books while locked up at Chicago’s Metropolitan Correctional Center.”

    “I have truly had a significant reawakening,” said Trudeau, who was dressed in orange jail clothes. “If I ever do an infomercial again … I promise: No embellishments, no puffery, no lies.”

    Hmm…I bet he has changed now that he is caught again,.no doubt but little too late, he had a “significant reawakening”, did that awakening happen perhaps because he was about to get sentenced up to a possible 20 years and got 10?!

    After reading a few articles, watching a few videos and his FB page, blows my mind, he has the audacity to ask others for donations for his legal fund!!! What is wrong with people…unbelievable (he made 39 million off his book!) He says he and his wife are basically homeless now and of course he is in jail, but read what the prosecutors think about where his money could be.

    He promises “,No embellishments, no puffery, no lies.”…admits his guilt, but amazing how they try and justify the loses to the defrauded consumers. Sickening. He sold 850,000 books,and raked in 39 million dollars!!! I also noticed he seems to have a defending cult like following.

    Just Unbelievable what greed does to people! Good news… that is one less person defrauding consumers and they are being caught and convicted!!

  6. March 18, 2014 9:24 pm

    Melanie: Yeah, that Trudeau guy is something else. Score one for the good guys this time!

  7. March 19, 2014 8:59 am

    Melanie – I wrote a follow-up post about Trudeau here:

    https://amthrax.wordpress.com/2014/03/19/kevin-trudeau-believers-are-going-to-believe/

  8. Melanie Morgan permalink
    April 17, 2014 9:35 am

    INVESTOR ALERT: Class Action Lawsuit against Herbalife Ltd.🙂

    Wall Street Journal

    http://online.wsj.com/article/PR-CO-20140417-909698.html

  9. April 17, 2014 4:01 pm

    And the SEC has shut down TelexFree, alleging it’s a Ponzi and pyramid scheme:

    https://amthrax.wordpress.com/2014/04/17/sec-files-charges-against-telexfree-alleging-it-is-a-pyramid-scheme/

  10. noteam permalink
    April 17, 2014 6:51 pm

    I’ve often wondered why there was never a class action lawsuit against Orrin Woodward. Not for his tool scam. But when he was in Quixtar, he was blatantly violating many of Quixtar rules and encouraging his downline to do the same.

    The main rule violation was not fully disclosing to everyone that by putting several personals down one taproot, they were cutting themselves out of the spread they would have made if they put those personals on their frontline.

    There has to be thousands of former TEAM members who technically made less money by utilizing Orrin’s depth strategy than they would have if they followed the Quixtar rules. The problem is, many of them are still unaware of this. How many people out there personally registered 2, 3 or more leaders and put them all in the taproot? They would have made A LOT more money if they had followed the Quixtar plan and put them in separate legs.

    I’m very surprised there has not been a class action lawsuit about this. I believe the amount could be in the millions of dollars that Orrin would have to pay back if he lost such a lawsuit.

    That was one of the problems Quixtar/Amway had with Orrin. By him continuing to put people in depth without full disclosure, Quixtar/Amway was very concerned that Orrin was opening them up to the same type of lawsuit.

    It would be great if a law firm would take this type of case on.

  11. Vogel permalink
    April 17, 2014 8:35 pm

    Thanks for sharing the latest news on Herbalife Melanie. The list of groups going against the company now includes the FTC, DOJ, FBI, and the parties involved in the class action lawsuit. Shows you the extraordinary effort it takes to bring MLMs to justice. It will be a victory to savor.

    Herbalife was one of the few big name MLMs that the promoters of smaller MLMs routinely pointed to as evidence of the legitimacy of the industry as a whole. They couldn’t really cite Amway in that regard because, unlike with most MLMs, many people have heard of Amway and regard it as THE quintessential pyramid scheme zombie cult (with overpriced soap); not to mention that the company has also had quite a few well publicized scandals and lawsuits.

    Pitching MLMs is going to get a lot harder after all this adverse publicity and Herbalife going down in flames.

  12. Vogel permalink
    April 17, 2014 8:40 pm

    Oh wow! Just announced today — the Illinois Attorney General is now launching their own investigation of Herbalife. I don’t see how the company can possibly survive the onslaught.

  13. Melanie Morgan permalink
    April 18, 2014 2:42 pm

    No Team~ 100% Agreed! You never know, as the saying goes: It’s not over until it’s over.🙂

    Vogel~

    “Shows you the extraordinary effort it takes to bring MLMs to justice. It will be a victory to savor.”

    Exactly!! This is BIG stuff and the “positive” effects remain to be seen!🙂

    Love this site, and the people who contribute to helping others, just wish there was a Like button, lol.

  14. freedomhaha permalink
    April 21, 2014 10:01 am

    When will be be Orrin’s turn?

  15. Vogel permalink
    April 21, 2014 1:37 pm

    The good news for now at least, Freedom, is that Orrin no doubt has to work much much harder these days to keep his crappy little pyramid scheme from imploding. He should change his name to Sisyphus Woodward. Rest assured that his uppance will soon come.

  16. Joecool permalink
    April 21, 2014 3:06 pm

    It looks like a heavy load for Herbalife to tote. Somehow though, I just get a feeling that Herbalife will get fined, and make some concessions and changes and they will slide by. Then all the MLM junkies will be pointing out hoe Herbalife is the model for MLM legitimacy.

    Truth be told, I would like to see the FTC take a strong stance and uphold their own general rule of the majority of sales needs to be to people who are not participating in the MLM itself.

  17. Melanie Morgan permalink
    April 21, 2014 6:23 pm

    Joecool~

    Where’s the power of positive thought? “If you dream it, and you see it, you can achieve it!” Visualize, Visualize, Visualize!!! It’s on my “dream board” and in my mission statement!…LOL

    The heat is on pretty heavy…I haven’t lost all hope if anything it has spurred it on… most certainly will be telling when it plays out!

  18. Melanie Morgan permalink
    April 21, 2014 6:53 pm

    It has been said and is common knowledge that the biggest problem with the pyramid schemes being allowed with getting away with running for years and years (even after years of insider builders sharing the contrary…they KNOW it is “recruiting without customers”)…decades sometimes….It is the lobbying $$$$…(in my opinion, it is just legalized bribery)… paying others to ignore and for them to be exempt from laws etc…and because for years and years these millions given continue to blind and allow these scams to continue as “business as usual”… it is the top objection handling response used by almost every defender from every MLM to try and legitimize them. “If they were a illegal, then how come they haven’t been shut down?” or “Don’t you think these companies have ‘lawyers'”

    So I know where you are coming from Joecool and unfortunately this is the reality:

    Found this and thought I would share: http://www.theverge.com/2014/4/8/5590550/alleged-pyramid-schemes-lobbying-ftc

    I’m just glad good people haven’t given up!

  19. freedomhaha permalink
    April 22, 2014 6:39 am

    I won’t give up posting here until TEAM LIFE is unable to ruin the lives of others.

  20. Helloeeze permalink
    April 22, 2014 8:02 pm

    My friend says she made $1400 since October and is three steps away from being job optional. She has been it in about two years but recently started recruiting others. I guess she will eventually get dismayed, but at this rate I think it will take years, if not a good decade, to figure out it doesn’t really work that easily.

  21. freedomhaha permalink
    April 23, 2014 8:10 am

    Helloeeze- I would bet everything I have (which is much more than when I was in TEAM) that the $1400 she claims to have made is not profit.

  22. Melanie Morgan permalink
    May 10, 2014 6:24 pm

    Never ceases to amaze me…Read the “Former Distributors Testimonies” (from link below) wonder if they didn’t mention WHAT MLM their “experiences” were from, if people would be able to figure out which one MLM they were in?!

    It is disturbing and incomprehensible to me that ANYONE could still promote the MLM “industry”; after KNOWING or finding the truth!

    There are millions of people who have been churned through and damaged in more ways than one from the industry and the “promoters” KNOW this truth!!! I will never understand how they sleep at night!

    http://www.factsaboutherbalife.com/former-herbalife-distributors-in-their-own-words/

    Astounding how the TOP get away with all the false promises and rigged comp plans where 97-99% plus in most cases will NEVER make a profit let alone become some “millionaire!” Yet the scum bags tout that everywhere!

    If it didn’t create such a train wreck in people’s lives, I might find it humorous!

    Disgusting how they all use the same deception and tactics!

    I have heard it too many times…. they are leaving a “LEGACY”…HA!.. as if creating relationship and financial losses, devastation and in some cases irreparable damage to families and income…. deception, lying and misleading people… The “LEGACY”…NOT something great to be remembered by?!!!!

    Self deception & Delusional.

  23. fastfruit2oo9 permalink
    May 11, 2014 3:23 am

    The simple definer is focus on the “pipe line”…
    With a top 1, and then his top 6… Few understand the exponential monies sent to the top (imagine a glass of lemonade with the lips at the top the Top 6 and maybe their directs of about 30 more)…
    The pipeline is the straw from these lips (the top 1 to 6 to 30) going down to the BOTTOM of the glass.
    The lemonade in the glass is a very small amount being constantly replenished by the 97% with their constant Refreshing and Turnover and ABILITY TO BUILD ALL THE REVENUE!!!
    This revenue is the vehicle that allows the top to appear they OWN (but do live in) mansions with guest houses, have yachts (where nearly a 100 are invited to ‘fish’ on, but then can not because the weather is bad after they all drove triple P/P… you could not go spend $50/head to go out on a charter as a back up plan.. cheaper that all the fuel to even get that yacht moving – my gut says those 3x p/p’s WERE NEVER GOING TO BE TREATED TO A SHARK FISHING ADVENTURE.. more of the mystic keeping the lower levels clamoring for the ‘life style’.) drive Bugghati’s or Sterling’s or Vipers or M/v Black Benzs’..
    I spoke to a family friend that is a financial planner (near the fabled ‘mother land’ which is Ada/gr) about what % of his clients are in mlm (not to name any mlm companies..) and he said GOOOOOOOOSE EGG.
    Either you are the lips or the lowly pulp in the bottom of the glass.

  24. May 11, 2014 7:48 am

    @Melanie – that was a good link to the video. Substitute the name “Herbalife” for other deceptive and questionable MLMs, and you’ll get nearly the same reactions, stories, and financial losses.

  25. Melanie Morgan permalink
    May 11, 2014 8:57 am

    Amthrax~

    Exactly! And those who completely ignore these accurate testimonies…The Reality… (knowing this IS truth and the rule rather than exception, of the industry) and all those who ‘fight’ to keep these despicable, damaging, greedy scumbags…um oops….”benevolent world changers” & “business opportunities” covered & perpetuating, are thee lowest forms of human beings, imo.

  26. Melanie Morgan permalink
    May 11, 2014 9:02 am

    Off topic of thread sorry, but…Happy Mothers Day to ALL the FREE MOMS! What a great day it is!🙂

  27. Melanie Morgan permalink
    May 11, 2014 4:36 pm

    Hmmm….wonder how excited the masses losing all that money feel about this?

    http://nypost.com/2014/03/28/embattled-herbalife-ceo-gets-a-raise/

  28. TruthSeeker permalink
    May 11, 2014 8:51 pm

    Amazingly powerful video Melanie, thank you. “It was like the slot machine, I kept pulling the handle hoping that the next pull would bring the big one.”

    Those tears are real, many here have shed the same. I fully respect anyone who has experienced the horror of being associated with these companies, and is here sharing their experiences.

    Thank you all for every comment, and point of view, but I thank you most for being willing to stand for truth.

  29. Melanie Morgan permalink
    May 12, 2014 10:04 am

    Truthseeker~

    I agree too many of us have been through the same and I am grateful they had the courage to share the truth here. I hope more will have the courage to tell their stories. It would be overwhelming if EVERYONE who lost money told how much they lost and shared their experiences. Probably could pay off the U.S. debt!

    The video is very powerful and ALL know these stories are not the exception, but Distract, Divert & Deny is the game (as if people are stupid and don’t see right through it!)

    Thank you for your contribution, it is not taken lightly and appreciated. There are also written “Former Distributors” testimonies on that site as well, including some high level testimonies. Funny how the thread is the same through with a few specifics I encourage people to read those too.

    Sadly, those companies with their TOP 4 or 5 “multi-millionaires” who continue to entice the “losers” with their lifestyles and material riches continue to leave a wake of destruction and train wreck in others lives they distract & point to the very few and convert those “defenders” who continue to LOSE but can’t see the forest through the trees due to the sophisticated undue influence methods used. Smart intelligent people who continue to be convinced to believe the pot of gold is just on the other side of the next seminar or training cd or mentoring session!

    But The TOP handful out of tens of thousands say look over here, not at those loser “critic testimonies” who didn’t want to do the work and are just negative LOSERS and see our only allowed adulation>….. “testimonies”…. that we told others to share only how the system changed our entire lives for the better so others will continue to believe in the lies & how great we are! We are making a difference & changing the world one person at a time! So sick. They bank on others emotional needs and apparently think others are stupid.

    All the while the masses continue to fall prey and have stories like these. The TOP handful pay big dollar attorney’s and have their strategic unethical games they play to try and silence people and the saddest of all is it is those masses who pay for it! And who eventually are the ones who will end up the same stories as more than 99% usually lose! Thus leads to a continual destructive cycle!

  30. Melanie Morgan permalink
    May 12, 2014 10:38 am

    Referring to some LIEfers…. they still continue their shady and predictable (strategic/set ups)… unethical cowardly methods… sending in their posers like QRUSH identical twin who has the audacity to wonder why others are “pissed?”….

    Then turn right around and go on stage and claim these posers… “who are the same,on a off stage” get promoted as they walk on water and are the ONLY ones in the world who “cares about YOU, your life and would never hurt your business.. are the most “Honest, Christian men” alive…and then quickly switch to vindictive, vengeful ways and then of course are only human when they are called on their nasty & obvious bs… then cry poor me my feelings are hurt and you are evil?!

  31. Melanie Morgan permalink
    January 13, 2015 8:26 am

    http://www.valuewalk.com/2015/01/ackman-herbalife-hicago/

    Bill Ackman, is another amazing man fighting the good fight and hero in my eyes. Thank You, Mr. Ackman!

    When you are done with Herbalife, you could go ahead and call…next!!😀

    Although what happens with Herbalife, will more than likely create a tsunami for the industry as a whole!😀😀

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