The "designer" of that domain is a blasted idiot: all urls are hidden.
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FTC Settlement Bans Pyramid Scheme Operators From Multi-Level Marketing The operators of a Kentucky-based pyramid scheme, which enrolled more than 350,000 consumers throughout the United States, Puerto Rico and Canada in the last four years, have been banned from multi-level marketing under a settlement with the Federal Trade Commission and the states of Illinois, Kentucky and North Carolina. The settlement also requires the operators to surrender assets totaling at least $7.75 million, which will be returned to consumers.
May 13, 2014
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http://www.ftc.gov/news-events/press-releases/2014/05/ftc-settlement-bans-pyramid-scheme-operators-multi-level?utm_source=govdeliverySeeking Alpha: Why Herbalife Observers Still Don’t Get It; Herbalife Will Be Shut Down Herbalife’s confidence game is rigged. Make no mistake about it. In a way, the incentive system constructed and sold by Herbalife is just like a Skinner’s box. Students of psychology will know what a Skinner’s box is. A Skinner’s box sets up a controlled environment that conditions mice to respond to incentives in a very specific way. Herbalife’s pay plan is just like an Operant Conditioning Chamber.
May 6, 2014
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Value Walk: LULAC Protests Museum Over Herbalife Ltd. (HLF) SponsorshipRepresentatives of the Lake County chapter of the League of United Latin American Councils (LULAC) protested Herbalife’s sponsorship of the National Museum of Mexican Art (NMMA) annual gala on May 2nd, at the Fairmont Hotel in Chicago, Illinois. Community leaders and victims want to raise the issue on how the NMMA can accept a sponsorship from Herbalife Ltd. (NYSE:HLF) when it is being investigated by federal and state authorities on claims that it’s running a pyramid scheme that preys on the Latino community.
May 6, 2014
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Council Member Palma Praises Attorney General Eric Schneiderman for Herbalife Probe Bronx Council Member Annabel Palma released the following statement praising Attorney General Eric Schneiderman for his investigation into predatory schemes by Herbalife.
“Attorney General Schneiderman has proven himself to be a champion for the Latino community by taking action to protect our families from predatory schemes like Herbalife. I support his investigation and urge him to engage in an in-depth review of this company that looks beyond those who have come forward to share their stories. Victims of pyramid schemes are often too ashamed to file complaints, which allow for these deceptive practices to continue.”
May 2, 2014
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ValueWalk: Pershing Square: ABC News Exposes Herbalife Ltd. (HLF) Fraud Last night on Nightline, ABC News revealed some of the results of its in-depth, six-month investigation of Herbalife Ltd. Using undercover footage of Herbalife-sponsored extravaganzas and hidden camera video of recruiting presentations at nutrition clubs, ABC’s investigative report revealed examples of the pervasive and fraudulent wealth and health claims that drive Herbalife’s pyramid scheme.
April 24, 2014
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ABC News: Weight Loss Company Suspected of Operating Pyramid Scheme in DC A diet and nutrition products marketing company is facing the scrutiny of several federal and state agencies because of its alleged predatory business practices in Washington, D.C. and other area, according to ABC Nightline and ABC World News reports.
The company is being investigated for criminal wrongdoing by the Justice Department and the FBI. Additionally, lawyers of the New York Attorney General’s Office have launched a probe into Herbalife, stating the company may be operating a pyramid scheme, which is illegal in the U.S.
Herbalife is advertised as a business opportunity, but to join, distributors must pay money to buy products that are difficult to sell, according to the report.
April 24, 2014
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Seeking Alpha: Herbalife And The Only 2 Questions That Matter Just last night, one of the little discussed issues surrounding Herbalife – distributors making claims about Herbalife products curing disease and providing health benefits – was a focus of an ABC Nightline report. You can view the details of the investigation at ABC’s report here. Of note from the video was a President’s Team member standing in front of a group of distributors making income claims of over $42,000 a month. Also included, a woman who claimed that Herbalife helped her get pregnant.
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Caught on Tape: Startling Herbalife Health Claims Nearly 600 independent distributors of the diet and nutrition sales brand Herbalife were disciplined last year for making medical claims when selling the company’s weight-loss shakes and supplements, despite company policies aimed at preventing such tactics.
Herbalife revealed the internal figures after an ABC News undercover investigation found numerous examples of distributors boasting to potential customers that the company’s products helped treat maladies ranging from diabetes to heart disease.
April 23, 2014
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NY Attorney General Probes Herbalife By Michelle Celarier New York Attorney General Eric Schneiderman is investigating Herbalife over claims it is a pyramid scheme, The Post has learned. At least two whistleblowers have come forward and given Schneiderman’s investigators sworn …
April 14, 2014
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Criminal probe launched in Herbalife By Dan McCrum in London and Kara Scannell The US Department of Justice and the Federal Bureau of Investigation are investigating Herbalife, the multi-level marketing company that hedge fund manager Bill Ackman has alleged is …
April 11, 2014
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Los Angeles Times: Dietary supplements: The deadly toll of deregulation Harkin, who will retire at the end of this year, he has collected an ungodly amount of campaign money from the supplement purveyor Herbalife and contributors such as the Natural Products Assn. Considering that Harkin reliably stands on the side of the angels in defending Social Security, it’s distressing to see him take a shameful approach to supplements regulation.
April 9, 2014
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ValueWalk: Herbalife Ltd. (HLF) Probe To Send Shockwaves Through MLM Industry Herbalife Ltd. (NYSE:HLF) and other MLMs spend big bucks every year lobbying just to keep themselves away from regulators’ scrutiny
April 8, 2014
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The Verge: How lobbying dollars prop up pyramid schemes Herbalife spent nearly 800 percent more on lobbying in 2013 than Ackman did. It also didn’t mention that Herbalife’s intense lobbying effort last year is part of an influential, decades-old political strategy undertaken by the multi-level marketing (MLM) industry — a group of companies and industry groups like Herbalife that promote so-called “direct sales” businesses, which sell products in tandem with the opportunity to sell products. This political strategy — with ties to dozens of current congressional representatives who have received handsome donations from MLM companies and industry lobbyists — has pushed federal regulators away from investigating these companies. It’s also encouraged federal regulators to avoid defining the explicit difference between a legal MLM and an illegal pyramid scheme.
April 8, 2014
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The Hill: Herbalife courts Hispanics in lobbying war The supplement giant Herbalife has assembled an all-star roster of Hispanic lobbyists as part of an aggressive outreach campaign aimed at protecting its business from fraud allegations.
Herbalife also came under Federal Trade Commission (FTC) investigation earlier this month, after several groups and lawmakers, such as Sen. Ed Markey (D-Mass.) and Rep. Linda Sánchez (D-Calif.), called on federal authorities to examine its business practices.
In response to the scrutiny, the Los Angeles-based Herbalife has boosted its lobbying spending and gone on a hiring spree of prominent Hispanics from K Street and the government.
Herbalife spent nearly $1.3 million on lobbying in 2013, according to disclosure records, more than twice the company’s $560,000 spending on K Street in 2012.
April 6, 2014
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Fox News Latino: Embattled Supplement Provider Herbalife Enlists All-Star Hispanic Lobbying Lineup Herbalife, the nutritional-supplement behemoth, has assembled a powerful lineup of Latino lobbyists in order to counteract bad publicity stemming… a Federal Trade Commission investigation announced earlier this month. … At the time the investigation was announced, the company said it welcomed the move, “given the tremendous amount of misinformation in the marketplace, and will cooperate fully with the FTC.” But behind the scenes, the Los Angeles-based company has loaded up on Washington lobbyists
April 4, 2014
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Verve energy drink company tries to stay off regulators’ radar Vemma, the high-flying company behind Verve energy drinks, wants to stay off regulators’ radar.
The changes, which went into effect on April 1, set Vemma apart from many MLMs, including Herbalife, which requires distributors and their sales recruits to make minimum product purchases of more than $2,000 to qualify for royalties.
April 3, 2014
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Embattled Herbalife CEO gets a raise March 28, 2014
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Seeking Alpha: Herbalife’s Gold Standard Guarantee Is ‘Fool’s Gold’ Herbalife is a stubborn mule of a company. The idea that the company is concerned with the welfare of its junior recruits is as absurd as it is cynical. The reason this company makes so much money is because it takes advantage of its most junior recruits with a well-designed confidence game. Most don’t make any money, most last less than a year, most churn out of the business with their wallets empty and their pride wounded. Of course, all of those in the upline make out like bandits. Why? Because they are bandits.
March 26, 2014
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ValueWalk: Herbalife Ltd. (HLF): A Changing Message To Distributors? Herbalife Ltd. (NYSE:HLF) changing their messaging? Both the distributors and Carl Icahn seem confused. We look at the evolving Herbalife message and specifically look at comments which Carl Icahn has made.
Herbalife Ltd. (NYSE:HLF) is changing its story so frequently that even its biggest shareholder is confused about whether it’s a job opportunity or a discount club.
March 26, 2014
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Seeking Alpha: Reality Checking Herbalife’s New Website The beauty of this site is that it was likely started long before the FTC investigation was initiated. Now, it doesn’t matter what PR Herbalife throws against the wall – the only thing that’s going to stick is going to be the action that the FTC takes. Again, with the chisel.
Anyone else notice these gems at the bottom of specific testimonials?
Best testimonial wins! Even defending themselves from allegations of duping their distributors, they’re still duping their distributors!
I contend that when the FTC uncovers information about how Herbalife has been conducting its business it will likely shut the company down in the U.S. If the FTC doesn’t shut the company down, they will impose sanctions that will likely prevent Herbalife from the type of growth they’ve had in the past – it’ll either be slowly or quickly, but in my opinion, Herbalife only has one way to go for the long-term, and that’s downward.
March 26, 2014
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The Street: Why Investors in Herbalife and Nu Skin Should Read This Paper March 21, 2014
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[/b]In the Wake of Herbalife Controversy, Consumer Advocates Deliver White Paper on Pyramid Selling Schemes to Senator Markey[/b]
Two attorneys and an expert on pyramid schemes have delivered a white paper to Senator Ed Markey (D.Mass.) concerning the need for more effective regulation of the multi-level marketing (MLM) industry. The paper was drafted by Attorney Douglas M. Brooks, author and pyramid scheme expert Robert L. Fitzpatrick and former Wisconsin Assistant Attorney General Bruce Craig.
March 20, 2014
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FTC investigation could topple Herbalife’s alleged pyramid scheme The announcement of an FTC investigation seemed to show that his claims about Herbalife had merit, and that one of the biggest players in an often-criticized industry wasn’t merely in the sights of a hedge fund manager; it was also in the sights of the nation’s foremost consumer protection agency.
March 18, 2014
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Good Morning America [Video] March 13, 2014
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Major League Soccer’s Herbalife Problem Commissioner Don Garber has also raised concerns about his members’ bottom lines: “Not nearly enough of our clubs are profitable today,” he told ESPN in December. Which is why yesterday’s announcement by nutrition company Herbalife should have MLS executives scrambling to do damage control.
Herbalife revealed that the Federal Trade Commission is investigating whether it is a pyramid scheme. Herbalife has been a major sponsor of the Galaxy for years — the two are in the middle of a 10-year, $44 million extension that runs through 2022 and represents the longest and most lucrative sponsorship deal in MLS history.
March 13, 2014
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Galaxy sponsorship won’t be affected, Herbalife says of FTC probe The Herbalife name is stitched across the front of the Galaxy’s uniforms and therefore also appears in any Galaxy advertising featuring its players. Herbalife also has advertising signs at the Galaxy’s home venue, the StubHub Center in Carson.
If the agency did find fault and penalized Herbalife or placed any restrictions on its business practices, those actions would help determine whether Herbalife’s spending on sponsorships was threatened.
In the meantime, the Galaxy finds itself “playing with a brand under fairly visible federal scrutiny and that’s not good marketing,” said Paul Swangard, managing director of the Warsaw Sports Marketing Center at the University of Oregon.
March 13, 2014
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Herbalife problem doesn’t look good for LA Galaxy, Major League Soccer This isn’t just any soccer club caught up in a potential fiscal fiasco – this is the face of the league. The Galaxy’s success has been a primary booster for the national and global MLS brand …
That’s why the FTC’s involvement is so scary. Whereas Herbalife has always be surrounded by ifs, a federal investigation bolsters those hypotheticals.
March 13, 2014
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Herbalife under investigation by FTC over business model On Wednesday, the Federal Trade Commission launched a formal investigation to look into Herbalife Ltd’s operations regarding allegations that it is operating a pyramid scheme, CNBC said in its report. According to an unnamed source who is familiar with the probe, Herbalife was said to have been surprised with the commission’s decision to investigate the company but decided that the outcome of the probe could silence critics about the company’s business model.
March 13, 2014
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FTC Launches Civil Probe Into Herbalife Ltd. Herbalife revealed on Wednesday that the Federal Trade Commission has opened a civil investigation into the practices of the nutrition company, which sells weight-loss shakes, vitamins and other products.
March 12, 2014
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US regulator launches Herbalife investigation US regulators have launched an investigation into the operations of nutrition and weight-loss firm Herbalife.
The move by the US Federal Trade Commission (FTC) follows allegations that the firm operates a ‘pyramid scheme’ – making money from recruiting new distributors, rather than sales.
March 12, 2014
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[/b]Feds Investigating Nutritional Supplement Company Herbalife[/b]
The nutritional supplement distribution company says it will “cooperate fully” with the probe
The Federal Trade Commission on Wednesday launched an official inquiry into Herbalife, a nutritional supplement company that has been accused of operating a vast pyramid scheme.
March 12, 2014
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Herbalife facing federal trade commission investigation The multi-level marketing company, which sells nutrition and beauty products, announced Wednesday that it received a civil investigative demand from the FTC.
March 12, 2014
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FTC investigating Herbalife amid claims of questionable business practices The US Federal Trade Commission has launched an investigation into nutritional supplement company Herbalife following more than a year of scrutiny over its business practices. The Los Angeles-based company, which has been accused of being a multi-level marketing scheme, said it was being investigated today, briefly halting trading of the stock and sending its future into question.
March 12, 2014
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FTC Investigating Herbalife For more than a year, some have accused nutritional supplement company Herbalife of operating a pyramid scheme and called for federal authorities to investigate the business. Today, the company confirmed that it is indeed under investigation by the Federal Trade Commission, though it did not reveal exactly why.
March 12, 2014
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FTC Launches Herbalife Probe FTC launched an inquiry into Herbalife Ltd., the marketer of nutritional products revealed today.
The FTC probe was announced just one day after Ackman cast the bait in an online presentation Tuesday to lure the Chinese government into investigating whether Herbalife has violated the country’s direct selling regulations and prohibition against pyramid schemes.
March 12, 2014
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ABC: Federal Trade Commission to Investigate Herbalife The Federal Trade Commission today confirmed it is investigating the California-based diet-shake company Herbalife, an announcement that has come as Hispanic groups have raised questions about the company’s multi-level marketing program.
March 12, 2014
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[/b]Herbalife hit by US ‘pyramid’ probe[/b]
The US Federal Trade Commission has opened a formal investigation into Herbalife, the multi-level marketing company that hedge fund manager Bill Ackman has called a pyramid scheme.
The probe comes after a year in which consumer groups and members of Congress, in both houses, have echoed the call for the FTC to investigate.
March 12, 2014
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Herbalife faces Federal Trade Commission probe The Federal Trade Commission has launched a civil investigation into Herbalife Ltd., the Los Angeles-based nutritional-products maker said Wednesday.
March 12, 2014
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Federal Trade Commission Starts Herbalife Probe The Federal Trade Commission opened an investigation into Herbalife Ltd. HLF -1.76% , the maker of nutritional supplements that has spent more than a year battling hedge fund manager William Ackman over allegations it is a pyramid scheme.
The FTC has the authority to bring civil cases against companies engaged in unfair or deceptive trade practices. It can ask a court to halt an alleged pyramid scheme, order consumer refunds, and force a company to forfeit ill-gotten profits.
March 12, 2014
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Herbalife Discloses Civil Investigation by FTC Herbalife Ltd. (HLF), the nutrition company that hedge fund manager Bill Ackman has accused of being a pyramid scheme, disclosed that the U.S. Federal Trade Commission has started a civil probe into its practices.
March 12, 2014
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Herbalife Discloses F.T.C. Inquiry Herbalife said on Wednesday that it had received a civil investigative demand from the Federal Trade Commission.
March 12, 2014
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Pershing Issues Statement on Herbalife Response Herbalife has refused to release actual retail sales information that it requires its distributors to maintain, instead relying on third party survey data. Herbalife has refused to address the documented false and misleading sales practices plied by its senior-most distributors, including John Tartol, a current member of Herbalife’s Board of Directors.
March 10, 2014
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Meet Dan Waldron, Herbalife Millionaire The latest dossier from Pershing Square has landed, and this time the Herbalife short campaign would like to draw your attention to a Dallas-based marketer of the nutritional-shake business opportunity.
Mr Waldron, subject of the latest allegations, is a senior distributor who has been involved with Herbalife since 1982, and is associated with several businesses which promote the business opportunity: Waldron Marketing, W3 Capital Investments, Taylor Marketing and Latino Marketing.
March 10, 2014
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Herbalife Ltd. (HLF) Spent More On Lobbying Than Bill Ackman Both Bill Ackman and Herbalife Ltd. (NYSE:HLF) have spent a lot of money on lobbying efforts aimed to help them get their way. Ackman wants to discredit Herbalife as a pyramid scheme, while Herbalife is trying to convince regulators, lawmakers and consumer advocates that it isn’t a pyramid scheme. So far as Herbalife shares have risen, Ackman’s bet against the company got him into the red there. However, CNBC reports that he’s spent less on lobbying than Herbalife has. But then as they say, money talks, and of course there’s also the fact that Herbalife has—so far anyway—been winning the lobbying battle.
The network reports that Herbalife Ltd. (NYSE:HLF) spent almost $2 million in its lobbying efforts last year.
March 10, 2014
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Herbalife’s lobbying tab nears $2 million Hedge fund manager William Ackman spent $264,000 on lobbyists last year to press his case that Herbalife is a pyramid scheme, but the amount pales in comparison with the nearly $2 million Herbalife spent on federal lobbying in 2013.
March 10, 2014
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Ackman outspent by Herbalife in lobbying battle That amount is dwarfed by the nearly $2 million Herbalife spent in 2013 on federal lobbying as the nutrition and weight loss company fought the billionaire investor’s claims it runs a pyramid scheme. In an illegal pyramid scheme members earn more for recruiting new members into the scheme than for selling the products outside the network.
March 9, 2014
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Herbalife Ltd. (HLF) Powerful Union Urges FTC, Nevada AG To Investigate Herbalife Ltd. (NYSE:HLF), the highly controversial multilevel marketing company selling nutritional and weight loss products faces another foe— the Culinary Workers Union Local 226, one of the most influential unions in the country.
Geoconda Arguello-Kline, secretary-treasurer of the Culinary Workers Union Local 226, urged Nevada Attorney General Catherine Masto and Federal Trade Commission (FTC) Chairperson Edith Ramirez to investigate the allegations that Herbalife Ltd (NYSE:HLF) is a pyramid scheme
March 7, 2014
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Herbalife – A Misrepresentation of Health and a Great Promoter of GMO, Dangerous Chemicals All of their products have some harmful ingredients, but let’s take a look at one their Shake Mixes which are considered part of their core product line. They all contain relatively the same ingredients listed below.
For obvious reasons, they neglect to mention the abundance of toxins.
March 7, 2014
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Regulators Respond to Senator’s Herbalife Queries Both the U.S. Securities and Exchange Commission and the Federal Trade Commission have responded to Sen. Edward Markey’s letters concerning global nutrition company Herbalife. The Massachusetts Democrat questioned Herbalife’s business practices and requested further investigation in the wake of investor Bill Ackman’s ongoing campaign against the company.
March 6, 2014
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SEC Responds To Sen. Ed Markey On Herbalife Ltd. (HLF) U.S. Sen. Ed Markey sent a letter to regulators demanding an investigation into whether Herbalife Ltd (HLF) is a pyramid scheme
The Securities and Exchange Commission’s letter to Sen. Ed Markey regarding Herbalife Ltd. (NYSE:HLF) is pretty scant on answers.
March 5, 2014
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SEC Response to Markey Letter March 4, 2014
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Herbalife investigation: Health products company or pyramid scheme? Flyers stapled to the Toronto streetcar shelter promised the opportunity to “WORK FROM HOME!” for “a billion-dollar NYSE-listed company.” The name of the company wasn’t mentioned, but it’s Herbalife, a behemoth, international, publicly traded multi-level marketing company that’s sold weight loss and health products for more than 30 years.
The flyers didn’t mention allegations the company is a massive pyramid scheme that could one day collapse or be shut down, putting a staggering amount of money — from some of the world’s poorest and richest people — at stake.
March 4, 2014
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Markey’s Herbalife Concerns Getting ‘Every Consideration’ by SEC The U.S. Securities and Exchange Commission is giving “every consideration” to concerns raised by Senator Edward Markey that Herbalife Ltd. may be a pyramid scheme, the agency’s chairman said in a letter dated today.
March 4, 2014
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FTC Mulls Regulatory Action Against Herbalife Ltd FTC chair Ramirez tells Senator Markey that action against Herbalife is being ‘carefully considered’
US Federal Trade Commission chair Edith Ramirez sent a letter to US Senator Edward Markey telling him that she is considering taking action against Herbalife Ltd. (NYSE:HLF), the multi-level marketing company that critics accuse of being a pyramid scheme.
March 3, 2014
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UPDATE 1-U.S. FTC says considering lawmaker’s concerns about Herbalife The U.S. Federal Trade Commission on Friday refused to tip its hand on how it may be react to allegations that Herbalife is a fraud, but said it is taking a lawmaker’s concerns about the company seriously and underscored its record of shutting down pyramid schemes.
“With respect to the allegations against Herbalife, Ltd., a number of statutory provisions and the Commission Rules of Practice prevent me from discussing what action, if any, the Commission may take in any particular situation,” her letter said.
February 28, 2014
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Markey’s Herbalife Concerns ‘Carefully Considered’ by FTC U.S. Senator Edward Markey’s concerns that Herbalife Ltd. (HLF) may be a pyramid scheme are being “carefully considered” by the Federal Trade Commission, the agency’s chairwoman said.
Edith Ramirez, head of the agency, declined to comment on “what action, if any” the FTC may take against Herbalife, according to a letter sent to Markey and made public today by his office.
February 28, 2014
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U.S. FTC says considering lawmaker’s concerns about Herbalife The U.S. Federal Trade Commission on Friday refused to say whether it is taking any action on allegations made against Herbalife but said it is considering a U.S. lawmaker’s concerns about the company.
February 28, 2014
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Herbalife Throwing Money At Its Problems She broke the news about Herbalife making donations to the Latin groups that supported the company via the NY Post:
Herbalife recently donated money to five of the seven Hispanic groups that signed a letter last week supporting the company,
February 28, 2014
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FTC Response to Markey Letter February 27, 2014
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Legislators Aren’t Buying What Herbalife is Selling… In what seemed like a desperate attempt to make more friends in the State Capitol, mega-corporation Herbalife offered free shakes last week to members and staffers, along with an opportunity to learn more about the company and the product.
Herbalife, however, was likely disappointed in turnout. While there were a few people who stopped by, the morning meeting was short on any legislators. And by short, I mean completely absent.
February 25, 2014
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FTC Shuts Down Fraudulent Net Company Apply Knowledge While it’s always nice to see a fraudulent company get shut down, many are drawing comparisons with the practices of some Herbalife Ltd. (NYSE:HLF) recruiters who tell prospective distributors that they can make enormous amounts of money by joining the company and selling goods from home.
At its core, Apply Knowledge is a lead generation/marketing system similar to those used by Herbalife Ltd. (NYSE:HLF) recruiters like Shawn Dahl, and the case shows that the FTC may be paying more attention to multi-level marketing businesses.
February 24, 2014
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Not just Herbalife, but an entire industry selling to itself Essential reading for anyone interested in Herbalife, it is undersold by the title — Multilevel Marketing and Pyramid Schemes in the United States: An Historical Analysis. A bit of false modesty there, as it addresses head on the problems at the heart of a business model built around a narrow and potentially flawed idea of legality.
Note also that the paper’s co-author, Peter Vander Nat has been involved in all the recent prosecutions of pyramid schemes bought by the Federal Trade Commission, which has lauded him as “arguably the country’s preeminent expert on pyramids”.
February 24, 2014
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Greenberg: Why Investors in Herbalife and Nu Skin Should Read This Paper Perhaps nothing in the paper is more compelling to multi-level marketing aficionados as their discussion of internal consumption. This is when distributors get compensated for sales to themselves and other distributors. A key issue in the debates on Herbalife (HLF), Nu Skin (NUS) and others is how much compensation comes from internal consumption vs. genuine external sales.
February 21, 2014
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Herbalife is not going to answer your questions, senator, but be assured it is a good corporate citizen February 20, 2014
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Ackman accuses Herbalife director of misleading recruits
Activist hedge fund manager Bill Ackman continued his relentless attack on Herbalife, releasing a report that accuses millionaire Herbalife distributor John Tartol of misleading others into selling the company’s nutrition products.
Ackman’s company, Pershing Square Capital Management, said in the report released on its website Thursday that Tartol has made millions of dollars by misleading people into believing they can get rich as independent Herbalife distributors.
February 20, 2014
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Herbalife is doing great in China—but maybe not for long What’s interesting: The boom might be short lived. As Quartz has pointed out, the Chinese government doesn’t look favorably on direct-sale schemes, which officials say involve brain-washing and cult-like organizing. Last month, the government launched an investigation into the Chinese operations of Herbalife’s rival, Nu Skin. To meet Chinese regulations, Herbalife said it has a “unique marketing program” in place, but warned that sales could potentially be impacted by “uncertainties relating to interpretation and enforcement of legislation in China governing direct selling” as well as “adverse changes” in the Chinese legal system or government policies.
February 19, 2014
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China to tighten rules on direct-sales companies Beijing plans to tighten regulations on how direct-sales companies train sales staff and introduce products, as authorities probe allegations of abuses by Nu Skin Enterprises, said two people familiar with the matter.
Tighter restrictions stand to affect the mainland Chinese operations of companies including Amway, Herbalife and Avon Products.
February 19, 2014
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China Said to Plan Tighter Direct-Sales Rules Amid Nu Skin China plans to tighten rules on how direct-sales companies train sales staff and introduce products, as authorities probe allegations of abuses by Nu Skin Enterprises Inc. (NUS), said two people familiar with the matter.
China’s State Administration for Industry & Commerce is drafting rules that would regulate sales-force training, monitor marketing meetings and tighten application procedures when direct sellers seek to enter new regions in China and offer new products, said the people, who asked not to be identified as the matter isn’t public.
February 18, 2014
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Latino Groups Pressing Hard for Investigation Into Business Practices of Herbalife LULAC and its allies contend that Herbalife is a pyramid scheme that preys on the aspirations of its distributors without offering a real and legally viable opportunity for success based on normal business efforts. They say the Latino community, especially those in the lower economic spectrum, are particularly susceptible to what they see as unfair recruitment efforts, including promises—or at least very strong suggestion—of inflated financial outcomes.
February 15, 2014
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Latino group pushes for Herbalife probe Calling it “the worst player–bar none–operating in Latino communities across the country,” the executive director of the League of United Latin American Citizens (LULAC) continues to push for federal regulators to investigate Herbalife, the California-based diet shake company, ABC News reports.
February 14, 2014
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Latino Group Demands Herbalife Probe One of the nation’s largest Hispanic civil rights groups is lobbying members of congress for help in persuading federal regulators to investigate the California-based diet shake company, Herbalife, which has recruited hundreds of thousands of Latino-Americans as distributors to sell its products.
“It’s the worst player – bar none – operating in Latino communities across the country,” said Brent Wilkes, national executive director of the League of United Latin American Citizens (LULAC).
February 13, 2014
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Ackman’s Latest Target: Senior Herbalife Distributor Leslie Stanford Two things that become clear from reading the exposes are that senior distributors all know and support each other to some degree and there is an enormous emphasis placed on bringing other people into the hierarchy (what Herbalife calls your downline). Unlike the previous profile on Shawn Dahl, there aren’t any convictions to show proof of wrongdoing, but the report shows that Stanford owns numerous companies and websites that encourage the use of lead generation (the practice that got Dahl in trouble), and which seem to make misleading testimonials to get people interested in the business.
February 12, 2014
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Ackman launches broadside over Herbalife member earnings Ackman’s new research mentions Leslie Stanford, one of Herbalife’s top distributors and a company director from 2002 to 2005, and her claims that anyone can earn a lot of money.
February 12, 2014
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Advocacy groups step up pressure on Herbalife Like many MLM companies Herbalife has come under criticism for allegedly pushing distributorships over products. Each distributor who signs up another distributor receives a portion of that distributor’s profits.
The latest to criticize the company is a coalition of consumer advocates that is putting pressure on the Federal Trade Commission (FTC) to launch an investigation of Herbalife. The coalition, which includes the League of United Latin American Citizens (LULAC), accuses the company of running an illegal pyramid scheme that uses deceptive business practices to target low-income communities, particularly Latinos, with false promises of wealth and success. The groups say the vast majority of Herbalife distributors earn no income from the company and most end up losing money.
February 10, 2014
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CT Latinos Join Call for Investigation of Herbalife A delegation from the Center for Latino Progress – CPRF in Hartford traveled to Washington DC this week to join a coalition of Latino organizations and consumer advocates from across the US in asking Congress and government regulators to look into Herbalife’s business model.
The Connecticut representatives joined the League of United Latin American Citizens (LULAC) and other civil rights and consumer advocacy groups in claiming that Herbalife is running an illegal pyramid scheme that uses deceptive business practices to target disadvantaged communities, particularly Latinos, with false promises of wealth and success. In reality, the coalition claims, the vast majority of Herbalife distributors earn no income and most end up losing money.
February 10, 2014
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Latino advocacy group pushes for investigation of Herbalife The League of United Latin American Citizens met with Edith Ramirez, chairwoman of the Federal Trade Commission, to provide her with details of alleged abuses by Herbalife.
The group has said Herbalife deceives Latinos and other disadvantaged consumers with false promises of wealth and success. Peter Kaplan, a spokesman for the agency, declined to comment or confirm the meeting’s content.
February 6, 2014
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Consumer And Immigrant Rights Advocates Meet With FTC, Lawmakers To Press For Federal Probe Into Herbalife “This is not the American dream,” said 68 year-old Miguel Calderon, who claims he lost more than $22,000 within 18 months of investing in Herbalife in 2008.
A Waukegan resident originally from El Salvador, Calderon said he initially invested $100 to become an Herbalife independent distributor based on the company’s promises that he would make a profit.
February 6, 2014
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FTC Reportedly Meets with Latino Group to Discuss Herbalife The Federal Trade Commission on Wednesday reportedly met with a Latino group to discuss complaints about Herbalife, Ltd.
The League of United Latin American Citizens (LULAC) has called for an investigation into Herbalife, alleging that the marketer of nutritional products lures Latinos with false promises of riches.
February 6, 2014
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Latino, consumer groups push for Herbalife investigation Representatives from groups like the League of United Latin American Citizens, the Coalition for Humane Immigrant Rights of Los Angeles and many others have been in Washington, D.C. this week, meeting with lawmakers and representatives of the Federal Trade Commission.
The groups claim the company targets low–wage communities, with vulnerable immigrants who hope to earn extra cash investing in Herbalife’s inventory to sell, but often finding they can’t.
February 6, 2014
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Civil Rights Groups Say ‘Herbalife’ is a Multi-Level Marketing Scheme Calling its campaign “Stop HerbaLIES, the group traveled to Washington DC on Feb. 5 to urge the Federal Trade Commission (FTC) to open an investigation. While in the nation’s capitol, members will also meet with legislators from their home states as well as give an earful to Attorney General Eric Holder at the Justice Department.
February 6, 2014
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Herbalife Ltd. (HLF): Alleged Victims Meet With FTC, Call For Probe Hector Cruz of Los Angeles, a former Herbalife Ltd. (NYSE:HLF) distributor, spoke with ValueWalk this afternoon. He told us that the company basically told him that if he worked hard, he could buy a big home, an expensive car, and become a “rags to riches” story. He said he was told that he could earn $20,000 a month selling Herbalife products.
February 5, 2014
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Herbalife Detractors Meet With FTC to Press Ackman Pyramid Claim The League of United Latin American Citizens, or LULAC, met with U.S. Federal Trade Commission Chairwoman Edith Ramirez to detail alleged abuses, it said. At an earlier press conference, LULAC said Herbalife deceives Latinos and other disadvantaged consumers with false promises of wealth and success. Peter Kaplan, a spokesman for the agency, declined to comment or confirm the meeting’s content.
February 5, 2014
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Latinos Pressure Herbalife Over Distribution Practices What the gallery does not show is the spectacle that unfolded outside the convention center on Oct. 18, as dozens of protesters brandished signs saying “Stop Exploiting Us” and handed out a letter to distributors alleging Herbalife has targeted the “family-oriented and trusting Latino community” with false hopes of making easy money selling its products.
February 3, 2014
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Ackman fires more bullets at Herbalife Ackman’s Pershing Square releases the first of what it promises will be a series of profiles highlighting the deceptive practices and recruitment schemes of top Herbalife (HLF -2%) distributors. Today’s report is on Canada’s Shawn Dahl, a member of Herbalife’s Chairman’s Club until the company distanced itself from him last year. Dahl’s took over his lead generation business, Online Business Systems (OBS) from his mother-in-law and her sister after the two were convicted (in Canada) of operating an unlawful pyramid scheme in Canada in 2004.
February 3, 2014
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Pershing Square Capital Releases In-Depth Study of Herbalife’s (HLF) Top Distributor Shawn Dahl Countering Herbalife’s (NYSE: HLF) aggressive buyback plan and solid financial outlook today, short seller Bill Ackman’s Pershing Square Capital Management released an in-depth study on the deceptive practices and recruitment systems used by Shawn Dahl of White Rock, Vancouver, Canada, who started in 1999 with Herbalife Ltd., a member of its Chairman’s Club until June 2013, and one of Herbalife’s top distributors in recent years.
February 3, 2014
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No bad apples on the Herbalife tree Pershing Square has launched a new line of attack on Herbalife with a study of Shawn Dahl, until last year one of the top businessmen in the California based multi-level nutritional shake marketing scheme.
February 3, 2014
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Pershing Square New In-Depth Study Released On Herbalife Ltd. (HLF) Practices Pershing Square Capital Management, L.P. released today an in-depth study on the deceptive practices and recruitment systems used by Shawn Dahl of White Rock, Vancouver, Canada, who started in 1999 with Herbalife Ltd. (NYSE: HLF), a member of its Chairman’s Club until June 2013, and one of Herbalife’s top distributors in recent years.
February 3, 2014
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Bill Ackman Launches A New Website To Go After Herbalife HerbalifePyramidScheme.com, which was unveiled today, focuses on some of the company’s distributors and their recruiting practices that Pershing Square believes are deceptive. The new site specifically features ex-distributor Shawn Dahl, a former member of Herbalife’s Chairman’s Club.
February 3, 2014
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Ackman questions Herbalife recruiting tactics on new website Billionaire investor William Ackman on Monday charged that Herbalife (HLF.N), a seller of nutrition and weight-loss products, found new distributors through a business that had been convicted in Canada of running an illegal pyramid scheme. On a new website, Ackman profiled Shawn Dahl, a former Herbalife distributor, and Dahl’s lead-generation business, Online Business System, charging that Dahl lured people to become Herbalife distributors with false promises of making money fast. (
www.herbalifepyramidscheme.com)
February 3, 2014
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FTC chief to meet consumer activists about Herbalife One week after Sen. Ed Markey (D-Mass.) sent the FTC boss a letter asking her to investigate Herbalife, Ramirez agreed to meet with minority and consumer activists to hear their pyramid concerns about the company, The Post has learned.
February 2, 2014
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Pyramid scheme talk in the House A California congresswoman held a closed-door briefing on pyramid schemes for fellow lawmakers on Wednesday.
The information session hosted by Rep. Linda Sanchez (D-Calif.), the first member of Congress to ask the Federal Trade Commission to investigate Herbalife over pyramid concerns, comes less than a week after Sen. Edward Markey (D-Mass.) called on the regulator to investigate the LA company.
January 30, 2014
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More clouds over Herbalife with complaints in Canada, letter from Sen. Edward Markey Herbalife, the world’s biggest network marketing company devoted solely to selling nutrition products, has come under renewed scrutiny with reports of complaints about the company made to a regulatory body in Canada and the receipt of a letter from Sen. Edward Markey, D-MA, seeking information on Herbalife’s business practices and compensation plan.
January 30, 2014
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The pyramid scheme Herbalife targets Latinos and minorities In the fall of 2008, Miguel Calderon, 68, a resident of Waukegan, got involved with Herbalife due to a persuasion tactic from a friend who was involved with the business….“They are there telling you how everything is going to happen in a high level and one feels enthusiastic. The first thing you have to do is take out money, and that’s how one falls into it. Let’s call it a trap, and one can’t really get out of it,” said Calderon. “I lost around $22,000.”
January 30, 2014
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Oh, Canada (Registration may be required) If you go back to the very first post in our Living the Herbalife series, you’ll play spot the difference between two remarkably similar but corporately distinct websites from 2004.
That went with an FT story about how involvement in pyramid scheme was no impediment to continued participation in the Herbalife business opportunity, and the role of Shaun Dahl, until last year one of the top distributors in the nutritional shake multi-level marketing scheme.
January 29, 2014
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Local Latino group launches attack on Herbalife January 28, 2014
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Canadian regulator probing Herbalife Canada’s top consumer regulator has launched a formal inquiry into pyramid scheme complaints made against Herbalife, The Post has learned.
January 28, 2014
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It Was A Yo-Yo Week For Dietary Supplement Company Herbalife It’s been quite the week for Herbalife, the controversial nutrition and supplement company that’s had the hedge fund world divided for more than a year.
January 28, 2014
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Little Village Job & Resource Fair, 27 Agencies and Businesses, Herbalife Scam HERBALIFE SCAM: Chicago community Latino activists are calling on Illinois Attorney General Lisa Madigan to investigate the business practices of Herbalife. Herbalife sells weight loss and nutritional products but this a multi-level marketing company that sells products only through distributors who invest their money to get Herbalife products, and then can [supposedly] profit by finding customers.
January 28, 2014
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Markey Calls for Investigation into Herbalife Business Practices Lawmaker concerned nutritional supplement company could be operating outside securities law as a pyramid scheme – sends letters to FTC, SEC and Herbalife seeking additional information.
January 23, 2014
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Topic: British regulators nix several health claims / FTC settlement bans MLM operators (Read 2264 times)