The settlement was previously proposed in May by Herbalife to the Securities and Exchange Commission, and Herbalife disclosed the payment in a Friday filing. In 2016, Herbalife made headlines when it agreed to pay $200 million to the Federal Trade Commission to settle charges it deceived consumers into believing they could make significant money selling its products. That’s how much Herbalife will have paid in total fines to the federal government since the 2016 FTC settlement. Multi-level marketing companies are often referred to as “pyramid schemes,” although the FTC has no strict definition of what constitutes one. Further readingHerbalife, Younique, LuLaRoe And Other MLMs Suddenly Under Fire (Forbes)Herbalife Pays SEC $20 Million To Settle Charges It Misled Investors (Forbes)

Source: Forbes August 28, 2020 17:37 UTC