Herbalife Forced to Retool After FTC Review Sought by Ackman
- Firm to pay $200 million for ‘substantial injury’ to consumers
- Company must restructure, rein in claims of distributor income
Herbalife and FTC Reach Settlement...So Who Wins?
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Herbalife Ltd. agreed to pay $200 million and make sweeping changes to its business to settle U.S. claims that the nutrition company deceived consumers with get-rich-quick promises.
The U.S. Federal Trade Commission stopped short of hedge fund manager Bill Ackman’s call to declare Herbalife a pyramid scheme and to shut it down, but it described the company’s business in harshly critical terms and said it must restructure and stop misrepresenting how much money its members are likely to make.