However the firm acknowledged that greater than half of all retailer house owners make no revenue or lose cash, in line with data included in a 2016 lawsuit from the Federal Commerce Fee. Greater than 60% of the corporate’s product gross sales got here from promoting merchandise to its personal distributors, in line with a 2014 Herbalife press release and the FTC grievance. The grievance pressured the corporate to restructure and to derive extra of its revenue from product gross sales than distributorships.
The FTC finally discovered that the corporate was not a pyramid scheme, however that the corporate “deceived customers into believing they might earn substantial cash promoting food regimen, dietary complement, and private care merchandise,” in line with the 2016 grievance.
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