Update (6/10/17): As a result of the $200M settlement, the Federal Trade Commission is mailing checks to nearly 350,000 people who lost money running Herbalife businesses.
“We are pleased to announce that hundreds of thousands of hard-working consumers victimized by Herbalife’s deceptive earnings claims will receive money back,” said Jessica Rich, Director of the agency’s Bureau of Consumer Protection. “Along with changes the company will make to its business structure, this is a win for consumers.”
The FTC used Herbalife’s records to determine who would receive a refund and the amount of each check. Generally, the FTC is providing partial refunds to people who ran an Herbalife business in the United States between 2009 and 2015, and who paid at least $1,000 to Herbalife but got little or nothing back from the company. Most checks are between $100 and $500; the largest checks exceed $9,000.
Original Post: 8/17/16
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 will be updated as the FTC releases more information about its redress program.