Monday, February 18, 2013

Might Other Companies Be Liable If Herbalife Is A Pyramid? - Seeking Alpha

Might Other Companies Be Liable If Herbalife Is A Pyramid? - Seeking Alpha analyses the question and concludes:

I have formed the legal opinion that there is evidence to suggest Herbalife pays more money to its "distributors" for their recruitment of new "distributors" than it does for their sale of Herbalife products. This would satisfy the definition of a pyramid scheme, making the practice illegal. Herbalife could therefore be prosecuted. Herbalife's own CEO admits that "us calling everyone a distributor confuses people."

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