In particular, there have been many Latino leaders who have become increasingly concerned with Herbalife's predatory business practices and how the company targets the Latino community in a methodical and calculated manner. Yet the company has refused to consider even one of them. They refuse to disclose the average net profit or loss of Herbalife distributors. From the standpoint of a civil rights organization like the League of United Latin American Citizens, this is wrong no matter what the company's stock price is. If distributor income is primarily based on sales to the public, the company may be legitimate.
If distributor income is primarily based on sales to the public, the company may be legitimate. In particular, there have been many Latino leaders who have become increasingly concerned with Herbalife's predatory business practices and how the company targets the Latino community in a methodical and calculated manner. Yet the company has refused to consider even one of them. There are , Herbalife distributors in the United States. At Herbalife, the company's end users and distributors are one in the same. I have spoken to many of Herbalife's Latino distributors, both at the company's recent "Extravaganza Latina" held in Los Angeles for thousands of their Latino distributors, as well as in the Latino neighborhoods that the company's , U. Ninety-nine percent of Herbalife's distributors will lose money in the scheme. The vast majority of income generated by the company is from the products purchased by new distributors duped into buy their way into the business. If Herbalife is profitable, why should anyone be concerned? These distributors have told me that the only way a distributor can succeed in Herbalife is to recruit new distributors and that the most successful distributors are the ones that become "recruiting machines. So at the end of the day, is Herbalife a legitimate and effective business model for Latinos or an illegal pyramid scheme that targets and preys on them? We encourage other organizations and people of good will to join us in this fight. The vast majority are not able to sell much at all and most are never able to recoup what they spent to get into the business and maintain their level. If left unchecked, Herbalife could recruit, defraud and dispose of as many as 4 million Latino distributors over the next 10 years. According to the Federal Trade Commission, there is an easy way to tell. While most of the focus has been a battle between hedge fund titans, what is often overlooked is its actual impact on the low income, often minority, individuals who are lured into "the business opportunity. While it's true that starting your own business is fraught with risk and many if not most small businesses fail, the difference with Herbalife is that the losses suffered by their failed distributors fuel the company's profits because the losses are incurred by company incentives and policies that force their distributors to purchase more product than they can sell. And the stories they told me present a truly alarming picture. Unfortunately, the few "successful" distributors are those that have learned how to become recruiting machines -- deceiving their friends, family members, co-workers, and just about anyone who will listen to them into paying money to join a "business opportunity" that is destined to become a financial loss for the vast majority. I have asked Herbalife to make six common sense reforms that could help it become a better company, where distributors might have a chance to make an honest living selling their product. But if distributor income is primarily based on the number of people recruited and the sales to them, it's a pyramid scheme. Furthermore, I challenge Herbalife to report their retail sales to the general public people who are not distributors and their sales to new recruits so that we can settle this issue once and for all. I believe that the evidence is overwhelming that the compensation of Herbalife distributors is primarily based on the number of people each distributor recruits and their sales to them. From the standpoint of a civil rights organization like the League of United Latin American Citizens, this is wrong no matter what the company's stock price is. What does it matter if the company is a pyramid scheme , some wonder, so long stock price keeps going up?
Video about herbal life scam:
ABC News Investigates Controversial Diet Shake Company Herbalife
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