The truth about Herbalife Scam– Herbalife became a household name whether we like it or not.
- Most of us young-adult in our generation grew up with that name together with some other businesses names which they were part of the straw-string of our lives growing up.
Pyramid scheme, in most countries is illegal, pyramid schemes are not legally permitted to do usual business transaction but with some exceptions, like they can promote their products on air or via print ads and can register the company name.
Pyramid scheme is the only illegal type of business that is widely and legally accepted. Hence: Can publicly demonstrate its scheme with their products.
In fact, in the United States, Canada and numerous European and South American countries so as South East Asia where in every corner, pyramiding schemes springing up like mushrooms almost every other week. Its strategy freely moves, comes in different labels of herbal and skin care products, from virgin coconut oil to any fruit bearing wild plants to support the schemes. The target? The weakest link.
According to its common term, a pyramid scheme is an unsustainable business type of marketing that involves instant return of investment from participants (from the weakest link) payment or services.
So there, Herbalife Company, outsmart every multi-leveling scheme for taking its business into the next level for a a $1 billion bet against its stock. If it is actually illegal then Herbalife Company revised the code and made it into legal. Hence: Promotes freely on TV commercials, huge street ADS and transacts business as usual.
“Ackman since December 2012, when the billionaire accused it of running an illegal pyramid scheme and announced The company has repeatedly denied his accusations, but the criticism has prompted probes by U.S. regulators and law enforcement. Meanwhile, the company has continued its expansion abroad, with a particular focus on China. Sales there rose 39 percent to $236.7 million in the quarter.”
Last March this year, Herbalife company won the dismissal of a lawsuit that claimed the maker of weight-loss and nutritional products fraudulently portrayed itself as a legitimate company, and that shareholders lost money because it was actually an illegal pyramid scheme, Reuters reported.
Around the globe especially in South East Asia, bunch of businesses multi-level type of business which blueprint pattern after Herbalife company, same scheme that also sells nutrition, weight management and skin-care products.
Herbalife Scam, the truth about it, is when illegal becomes legal, somewhat in a ‘Stockholm syndrome’ so to say. In the first place, illegal type of ‘whatsoever’ businesses are not supposed to do legal transaction publicly but in this case it comes with an exemption.
“Herbalife Scam –People would say that there is no doubt that it is a multi-level marketing scheme, otherwise known as a pyramid scheme like Amway.”
“A pyramid scheme is when participants profit off of recruiting others rather than the sale of actual products.”
According to Scee’s analysis, Herbalife is not a pyramid scheme and has put many protections in place to make its business model superior to other MLMs and bricks-and-mortar peers. However, the analyst cautioned that even though there is no reason for the FTC to fine the company, there is the possibility that the FTC could change its rules.
In this business, Pyramid scheme type category it is when illegal becomes legally accepted and the weakest link always end up loser. Business means business after all.