Herbalife Settles with the FTC

Herbalife agreed to pay a fine of $200 million and to restructure their business operations. According to the Federal Trade Commission Chairwoman Edith Remirez, the fine will be used to compensate the distributors who have suffered losses. The company will also pay their workers according to retail sales rather than on how many new sales people they recruit. In exchange Herbalife was able to avoid being labeled as a pyramid scheme. As a result of the ruling Herbalife’s stock shot up by over 14 percent.

 Herbalife branded car. Photo by: Philafrenzy

Herbalife branded car. Photo by: Philafrenzy