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Herbalife Settlement

In 2016, MLM Herbalife and the Federal Trade Commission settled out of court. Check out these articles to learn about the details of that settlement, the complaints the FTC raised, and the impact this out of court settlement could have on MLM companies and the network marketing industry at large.

  • March 26, 2017

    Eight Tips for Avoiding Legal Battles

    No one can tell you with certainty how to stay out of the crosshairs of regulatory bodies. No two rulings (or settlements) are identical. As circumstances change, regulators change their focus. But we see regulators going after certain practices again and again, and from that we can draw some common sense con... Read more ›

  • March 20, 2017

    Do the Vemma and Herbalife cases impact party plans?

    An interview with Karen Tobin and Bob Hipple

    What insights can Party Plan companies learn from the Vemma and Herbalife court cases? One of the findings seems to be problems with use of autoship? Bob: In a call with DSA, I learned that it wasn’t so much a problem with autoship as it is a problem with who are the retail customers, and how much are th... Read more ›

  • November 7, 2016

    Does the Herbalife settlement affect your operations?

    I’ve released a few articles discussing the Herbalife settlement and what it means for the industry already. Commissions are my area of expertise so my previous articles focused there, but I’m also intrigued by the operational implications of the settlement. Three of the restrictions we see in the Herbali... Read more ›

  • October 31, 2016

    Herbalife, inventory, and personal consumption

    Legal action taken against any MLM catches the industry’s attention. Company owners find themselves perusing court documents, studying the details, and trying to identify takeaways about the legal climate. The recent Herbalife settlement leaves us with many takeaways. One of them is a new and perplexing app... Read more ›

  • October 24, 2016

    POST-HERBALIFE COMP PLAN CONSIDERATIONS

    “What does my company need to do in order to stay off the FTC’s radar?” This is the question on everyone’s mind in light of the recent Herbalife settlement and Vemma action. I’m not an attorney, but as the InfoTrax Vice President of Commissions Operations, I’ve read the court documents for both ca... Read more ›

  • August 22, 2016

    FTC Demands Customers. How Will You Comply?

    The Herbalife settlement is out. We’ve had time to examine its contents. We have compared this settlement with last year’s Vemma case. Several of the particulars the FTC went after in each case are similar. One similarity—the focus on customers—is daunting. The FTC wants most of your sales to be made ... Read more ›

  • August 13, 2016

    The Case for a Chief Compensation Officer

    In the August issue of Direct Selling News, InfoTrax Systems Vice President of Commissions Operations, Kenny Rawlins, makes a compelling argument for the inclusion of a chief compensation officer (CCO) on the executive team of every direct selling company. Last year’s Vemma injunction and the recent Herb... Read more ›