Today the Financial Times revealed that the FBI and the DOJ have been investigating Herbalife (HLF), another multilevel marketing company similar to USANA (USNA) but much larger. This news comes a month after revelations that the FTC is also investigating Herbalife. This will be an industry wide ripple effect that can collapse every MLM product-based pyramid scheme like Amway, Nu Skin, Monavie, USANA, and hundreds of others that all have very high distributor failure rates.
These failure rates are fixed, predictable, and designed to fail the majority of participants. The general rule is this: Product is overly priced even at the distributor's cost. Product must be purchased periodically throughout the year in order to collect points and be able to receive a commission. The majority of funds used to pay out commission to the distributors is primarily generated by the required purchases made by the distributors rather than from actual sales to people outside the network. Worst of all, about 99% of participating distributors end up losing money and never make a profit.
There are not enough cells to hold all the criminals perpetrating these pyramid schemes. If you believe you have been duped by one of these pyramid schemes I strongly urge you to file a complaint with the FTC or your local government.
Showing posts with label fbi. Show all posts
Showing posts with label fbi. Show all posts
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