Herbalife Facing 130 Consumer Complaints
More than 130 Herbalife customers from The Coalition to Stop Herbalife filed complaints with the California attorney general claiming that the nutrition management company is running a pyramid scheme, according to CNS.
Herbalife distributes weight management and nutrition products to over 90 countries.
According to their website, they hire “distributors” or people who pay an entrance fee to sell products and to recruit other distributors. Distributors can buy into the company and receive sample-sized products for a payment of $59.50 or buy the Full HMP package for $92.25.
Currently 525,251 people have bought into the company.
Some consumers are not happy, with one claiming to CNS that Herbalife conducts “predatory business practices.”
Critics have grown so frustrated with the company that they created a website called HerbalifePryamidScheme.com. The website features a profiles of different success stories that the company uses to attract distributors and then dismisses them.
The website also features areas where people can take action and lodge a complaint against the company.
A Herbalife trader is also in the news for insider trading.