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Herbalife Pyramid Scheme Lawsuit

Jared Byerly

Herbalife has agreed to pay $200 million, in a settlement with the Federal Trade Commission, to reimburse consumers who were deceived about potential profits and lost money on its nutritional supplements. In addition, HerbaLife has agreed to revamp its compensation system, so that participants are compensated on their sales, not just their recruitments.

The $200 million will be used “to provide consumer redress, including money for consumers who purchased large qualities of Herbalife products (such as many Nutrition Club owners, among others),” according to the FTC.

Details about when and how to file a claim for the Herbalife pyramid scheme settlement are not immediately available, and will be updated as the FTC releases more information about its redress program.