Work from Home (expose of Herbalife MLM scam)

[Nigel]

That's one hell of an article. Thanks Abdul. Yes, it is long, and I can't vouch for his math regarding the exponential numbers of recruits, but the principle of the thing is something to be commended. Here's a regular shmoe who got tired of seeing these ugly signs around, and did the legwork finding out who was behind it. It won't end up changing the world, but every bit that gets the word out on this kind of crap is worth it.

[Anaxagoras]

Herbalife tanks after senator calls for probe

California attorney general to meet with Herbalife critics, group says

[Anaxagoras]

FTC Sends Checks to Nearly 350,000 Victims of Herbalife’s Multi-Level Marketing Scheme

January 10, 2017

The Federal Trade Commission is mailing checks to nearly 350,000 people who lost money running Herbalife businesses. The checks are the result of a July 2016 settlement with the FTC that required Herbalife to pay $200 million and fundamentally restructure its business. This represents one of the largest redress distributions the agency has made in any consumer protection action to date.

“We are pleased to announce that hundreds of thousands of hard-working consumers victimized by Herbalife’s deceptive earnings claims will receive money back,” said Jessica Rich, Director of the agency’s Bureau of Consumer Protection. “Along with changes the company will make to its business structure, this is a win for consumers.”

The FTC used Herbalife’s records to determine who would receive a refund and the amount of each check. Generally, the FTC is providing partial refunds to people who ran an Herbalife business in the United States between 2009 and 2015, and who paid at least $1,000 to Herbalife but got little or nothing back from the company. Most checks are between $100 and $500; the largest checks exceed $9,000.

Also today, the FTC released Redress checks and compliance checks: Lessons from the FTC’s Herbalife and Vemma cases, which, for multi-level marketing companies, provides guidance drawn from the FTC’s cases against Herbalife and Vemma, including four key principles on compliance.

:De_Bunk:

[Doctor X]

I still see Herbalife decals and signs on cars.

I laugh to myself.

--J.D.

[Anaxagoras]

But good news for Herbalife:

Herbalife Stock Rises After FTC Chairwoman Resigns (HLF)

Federal Trade Commission (FTC) Chairwoman Edith Ramirez, who took leadership of the commission on March 4, 2013, announced on Friday that she will be stepping down from her post effective Feb. 10.

The news, first reported by the New York Post, sent shares of Herbalife Ltd. (HLF) rising as much as 4.5% Friday to a session high of $52.20. The Post noted that Ramirez's departure will leave only two FTC Commissioners – one Democrat and one Republican – on a five-person governing body. (See also: History of the U.S. Federal Trade Commission.)

Investors see this as a positive development for Herbalife, given that Ramirez has been a strong opponent of the multi-level marketing businesses – the type that Herbalife runs. Ramirez was "urged to leave" the panel altogether by the Trump administration and not merely resign as chairwoman, a source told the Post, which noted that she was seen as an antitrust activist given her position to block various mergers, including Office Depot (ODP) and Staples (SPLS).

The new interim FTC Commissioner will be Republican Maureen Ohlhausen, according to the Post, which also said Ramirez's record includes bringing nearly 400 law enforcement actions covering a range of consumer protection issues. One of these actions involves Herbalife, which last year agreed to a $200 million settlement with the FTC involving its dealings with its distributors.

One wonders what the FTC will do under the Trump administration. I guess we'll find out!

[Doctor X]

What are you implying, Anax?

--J.D.

[Witness]

Rejoice, you will get screwed in more than one way. :twisted:

[Anaxagoras]

What are you implying, Anax?

--J.D.

Only that apparently, stock traders see this as good news for Herbalife.

Which is why didn't go any farther. Like I said, we'll just have to wait and see what actually happens.

Although generally Republicans have more of a reputation for being laissez faire about regulations, so maybe it's not totally unfounded. Plus things that Trump himself has said (whether they apply specifically to the FTC, or to Herbalife, is another question):

Vowing To Roll Back Regulations, Trump Faces Uphill Task

President-elect Donald Trump says he has a simple goal in mind when it comes to federal regulations. In a video he released Monday, Trump said he "will formulate a rule that says that for every one new regulation, two old regulations must be eliminated. So important."

Two other relevant points:
Trump taps Carl Icahn for regulations busting post

Trump's transition office said Wednesday that activist investor Icahn "will be a leader in helping American entrepreneurs shed job-killing regulations that stifle economic growth."
. . .
"It's time to break free of excessive regulation and let our entrepreneurs do what they do best: create jobs and support communities," Icahn said in the announcement. "President-elect Trump is serious about helping American families, and regulatory reform will be a critical component of making America work again."

Icahn, who has advised Trump on some of the people picked to run regulatory agencies, claims an expertise "in seeing stupid things being done" by government agencies. Icahn says agencies like the Environmental Protection Agency are ruining businesses for no reason.

"I'm not anti regulation. I'm anti the stupidity of some of these regulations and it has just run amok," he told CNN.

And who happens to be a top shareholder in Herbalife?
Herbalife top shareholder Icahn says he may boost stake to half

Icahn, speaking Tuesday at the Delivering Alpha conference conducted by cable channel CNBC, said he is serious enough about the possibility of owning half of Herbalife — up from 21.1 percent now — to discuss it with the Federal Trade Commission.

The agency’s permission is required for an investor to take a major stake in any company.

So, am I wrong?

[Doctor X]

Why do you hate Capitalism, Commie?!

--J.D.