Herbalife Wins Dismissal of Belgian ‘Pyramid Scheme’ Suit
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Herbalife Ltd. won a Belgian appeals court ruling rejecting claims the company is a pyramid scheme, and concluding that income its distributors earn from others recruited to buy or sell its products isn’t a violation of European consumer protection laws.
The ruling, from the Court of Appeal in Brussels, reverses a decision by a Belgian judge that would have blocked compensation at Herbalife derived primarily from the introduction of new consumers into its sales system, rather than from sale or consumption of its products. A copy of the ruling, which couldn’t be independently verified in court records, was provided by Herbalife.