Crayton.Webb

January 20, 2022 Leave a Comment

Six years ago, on July 15, 2016, the Federal Trade Commission (FTC) in the U.S. announced Herbalife had agreed to fully restructure its business operations and pay $200 million.

The FTC said Herbalife had deceived consumers into believing they could earn substantial money selling its products.

The settlement required Herbalife to restructure its compensation plan so that it would reward members’ sales to customers, eliminating the incentives paid primarily for recruiting. It also mandated a new arrangement in which success would depend on selling Herbalife products, not on buying them.