Recently on the economic pages and not only a news has been read that is disconcerting and that, in the opinion of those who live the more than positive experience of Herbalife firsthand, has absolutely no basis. This is an investigation that would like to blame Herbalife as“pyramid sales system
” which would mean a kind of deception, which is absolutely not. Before outlining the various aspects of the investigation - which we are sure it will only ascertain the correctness of Herbalife and its operators - we want clearly state how things stand
:Herbalife is not a pyramid
! In fact, the new employees do not have the initial investments necessary to enter Herbalife only 13 euros a jar of formula 1 and absolutely nothing is gained from inviting new people into the structure, but only from their sales. In addition, the new sales representative who, within 6 months, decides to give up the activity, will also be able to return all possible stocks to the company and be reimbursed, both for returned products and for membership costs. In short, a pyramid selling system is a system in which people at the top of the pyramid earn money by inviting people "below them", who in turn will have to invite others. On the other hand, Herbalife's MLM multi-level marketing system does not provide direct affiliate earnings, but only earnings percentages based on sales made ... the more you sell, the more you earn! Now that we have explained in a few words how things really are, for the record we explain, schematically, the reason for thisesta investigation
But Herbalife is a pyramidal sales system In fact, it has thrown into the most complete despair and total confusion the fact that Herbalife, a well-known brand that specializes in the sale of dietary supplements intended for weight loss as well as for skin care , appears to be investigated by the US FTC. So, according to what is known, the Federal Trade Commission has launched an investigation into a hypothesis of scam. To better understand the events it is necessary to take some steps.
From what is suspected by theFederal Trade Commission
, Herbalife is allegedly accused of having instituted a sales system known as the pyramid. It should be remembered that this sale is prohibited as it is deemed to be misleading. The thesis supported by the US FTC is that Herbalife's earnings would not come so much from selling its products to consumers, as from the continuous recruitment of sellers. Herbalife, whose registered office is in the Cayman Islands while the operational headquarters is in California, operates in numerous countries and has something like two million independent distributors.
Accused of having implanted a pyramid selling system, known to most as the SantAntonio chain, Herbalife has, of course, rejected this accusation. Underlying his defense is the concept of network marketing, which is considered a modern commercial system. In extremely concise terms, theil network marketing
it is a business model for which a network of distributors is needed to build the business. Hence, it is generally regarded as a type of business opportunity which is also very popular among people looking for a part time job.
Finally, in mid-July 2015, the final verdict was finally issued! The US Federal Trade Commission FDT has ruled that Herbalife is NOT a pyramid scheme or a fraud as multibillionaire Bill Ackman has accused for years.n.