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In 2008, Herbalife was sued after laboratory tests indicated that levels of lead in several Herbalife products were in excess of California state law and could lead to liver problems over an extended period of time. The company commissioned its own lab testing and found that those products did not contain high enough amounts of lead to require special labeling. It’s a herbalife thing you wouldn’t understand shirt Herbalife Nutrition is a multi-level marketing company. According to a 2010 article in the Los Angeles Business Journal, it was claimed that Herbalife Nutrition was one of the most profitable companies in Los Angeles County and directly benefitted from its business model.
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As a result of the 2016 FTC settlement, the company is required to prove that at least 80 percent of its sales are made to individuals outside of its distributor network. Distributors are responsible for providing receipts for sales and proving they have legitimate customers. The settlement also required that distributors are only able to earn two-thirds of their rewards based on retail sales of Herbalife Nutrition products. In the U.S., the company now differentiates between individuals who join as a member to buy discounted products and those who join as a distributor seeking a business opportunity. Discount buyers are unable to earn rewards or sell products. Herbalife Nutrition is also required to have its practices monitored by an outside party for seven years to ensure compliance.
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