Herbalife, specializing in the sale of nutritional supplements and products for weight control, will pay $200 million to absolve themselves of charges of organization of a financial pyramid, said in a statement on the website of the Federal trade Commission (FTC).
In addition, Herbalife has pledged to restructure its business in the United States. “Herbalife will have to start to work legally, be honest about how much you can earn distributors products. The company will have to compensate for the losses suffered by consumers,” — are reported words of the Chairman of the FTC.
The company will more fully disclose information about its distributors, as well as to tie their income to actual retail sales, not the number of “recruited,” notes The Wall Street Journal.
Us regulators launched an investigation into the company after 2012, the investment Fund Manager Pershing Square Capital Management, bill Williamson has called Herbalife “the most effective pyramid scheme ever.”
Herbalife, specializing in direct sales, was established in USA in 1980. The company’s representative offices operate in dozens of countries, including in Russia, where the first office was opened in 1995.