Is Herbalife A Scam (Like Amway)?

Joecool

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http://pyramidschemealert.org/mlm-tr...fe-challenged/

The DSA’ s president, Joseph Mariano, issued a statement in March that a request for an FTC investigation of Herbalife by the National Consumers League and various Wall Street financial companies “threatens the livelihoods of millions of people.”
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“Herbalife’s own data show hundreds of thousands of consumers being financially harmed. Your defense of this model raises questions about what the Direct Selling Association has become and what it now stands for. If Herbalife’s practices and economic effects on consumers are indicative of those of other DSA members, you have made a case for a far wider investigation than NCL requested.”
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The data show:
The top 1% of Herbalife’s reported “Supervisor/Leaders” – 1,185 individuals – received 66% of all commission payments.
The mean average annual “gross compensation” of the bottom 99% of all reported “Supervisors/Leaders” in the USA in 2012 was $21.46 per wk., before all purchase costs and all other business expenses are deducted, indicating an average net loss.
The median average (half receive more and half receive less) is very near zero.
The bottom 49% received no payment and the next 35% on the chain earned only $292 per year, on average. The mean average for the bottom 84% of the reported Supervisor/Leaders is $120 per year or $2.31 per week.
Less than 2% of reported Herbalife Supervisors received $35,000 or more on average, before expenses and product purchases are deducted. The reported income of the top 2% is based on worldwide, not domestic-only recruitment chains.
96% of reported “Supervisor/Leaders” received, on average, the equivalent of less than one-half the wages of a minimum-wage job, before all purchase costs and all other business expenses are deducted.
49% of reported Supervisor/Leaders received no income from Herbalife at all.
67% of reported Americans who joined as first-year Supervisors drop out within the year they join.
49% of all reported Supervisor/Leaders dropped out or lost Supervisor status within a year.
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Charlie Munger was asked, if Herbalife is a pyramid scheme, isn't Pampered Chef (a Berkshire company) also one?

His response:

Charlie Munger said:
There's a lot more potential for flim flam in selling magic potions that there is in selling pots and pans.
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Classic!
 
Is Herbalife A Scam (Like Amway)?










Why, yes, yes it is.*
























*What? You were expecting any other answer (except, maybe, "HELL, YES!!!!!)
 
Was there ever any doubt of that?

When are they gonna RICO these MLM frauds?
 
Then either get in the auditors or change the laws to increase the amount of out of network sales required.
 
According to my oncologist cousin, Herbalife is considerably worse than Amway. Amway only makes you broke. Herbalife actively poisons you.
 
Muldur said:
Was there ever any doubt of that?

When are they gonna RICO these MLM frauds?
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They should have taken a hard line in 1979 instead of clearing Amway. Now other companies just mimic the ruling that cleared Amway, even though set up that way, many companies (including Amway IMO) operate in very different manners.
 
One of the mothers from my daughter's ballet class has recently gotten into Herbalife. What used to be a pleasant way to spend an afternoon has now turned into a weekly hour long Herbalife pitch and pressure to attend her parties and meetings. I wish there were a pleasant but clear way to tell her to zip it.
 
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