Herbalife
TINA.org investigated Herbalife, a California-based multilevel marketing company that sells nutritional supplements, and found that the company has used unsubstantiated disease-treatment claims to market its products, as well as atypical income claims to recruit distributors.
Highlights
- Filed amicus curiae brief opposing class-action settlement
- Notified company of deceptive marketing claims
- Filed complaint with the FTC concerning company's inappropriate coronavirus claims
Timeline
2024
February 14
As part of its 2023 investigation into 100 MLM companies, TINA.org notifies Herbalife of its findings that the company has used atypical income claims to market its business opportunity.
2020
April 27
TINA.org files a complaint with the FTC against Herbalife for deceptively claiming that its supplements and nutritional products can prevent and help treat the coronavirus by boosting a person’s immune system, and urging the agency to take action.
2017
December 18
As part of its 2017 investigation into all DSA-member companies, TINA.org notifies Herbalife of findings that it uses atypical income claims to market the business opportunity.
2016
November 22
As part of its 2016 investigation into DSA-member companies that sell nutritional supplements, TINA.org notifies Herbalife of findings that it uses unsubstantiated disease-treatment claims to market its products.
July 25
The FTC lawsuit against Herbalife results in $200 million Stipulated Judgment against the company.
July 15
The FTC files a lawsuit against Herbalife for using deceptive earnings claims to market its business opportunity.
2015
May 11
The Final Fairness Hearing is held. The judge grants TINA.org’s Motion for Leave and thus considers its objections to the settlement agreement.
May 14
The Court grants final approval of the class-action settlement agreement.
April 27
TINA.org files a reply to plaintiffs’ opposition.
April 13
Plaintiffs file an opposition to TINA.org’s Motion for Leave to file brief as amicus curiae.
March 16
TINA.org files a brief as (Latin for “friend of the courts.”) A person or organization that is not a party to a lawsuit but has a significant interest in the case and offers information that may be important to the court’s determination. opposing the proposed class-action settlement reached by the parties, as well as a Motion for Leave to file the brief.
2014
November 3
The parties in the class-action lawsuit reach a settlement agreement.
2013
April
A class-action lawsuit is filed against Herbalife (and amended in July 2014) alleging that the company is operating a pyramid scheme and deceptively claiming that consumers can make money by recruiting new members to the company and selling its products when, in reality, most Herbalife members don’t make any money at all.
Featured
TINA.org Alerts FTC to Herbalife Distributors’ Coronavirus Claims
TINA.org complaint comes four years after MLM paid $200 million to settle FTC deceptive advertising charges.
The Latest
Do MLM Earnings Statements Constitute Deceptive Advertising?
Despite the availability of the data, MLM earnings statements fail to disclose crucial information to recruits, writes guest blogger William Keep.
By the Numbers: Federal Crackdown on Dietary Supplements
Regulators send united message about deceptively marketed supplements.
TINA’s List
Readers have told us to look into these MLMs.
FTC Pyramid Cases Post-Amway
See the FTC’s track record when it comes to pyramid cases.
MLMs Tap College Campuses for Recruits
MLM and pyramid scheme experts say more must be done to educate and raise student awareness.
5 Reasons Herbalife’s Survey Won’t Save It from Prosecution
Deconstructing Herbalife’s defense that a survey found most people join for discounts.
Herbalife Class-Action Settlement By the Numbers
Here’s the breakdown of the $17.5 million settlement pie.
Herbalife: ‘I Thought I was Going to Make it Big’
Former distributor says a class-action settlement isn’t going to help a majority of recruits who lost money.
Not Your Grandma’s Tupperware: MLMs vs Pyramid Schemes
More needs to be done to shut down pyramid schemes.
Lawyers to Pocket $5.25 Million in Unfair Herbalife Settlement
Consumer Group TINA.org Objecting MADISON, CONN. March 17, 2015 — Ad watchdog organization, truthinadvertising.org (TINA.org), filed a brief on Monday asking the court to reject the proposed settlement of a…
Class-Action Tracker
Herbalife Live Events
In September 2017, a false advertising class-action lawsuit was filed against Herbalife (a multi-level marketing company) and many of its top-earning distributors for, among other things, allegedly running “a predatory…
Herbalife
November 2015: A judge dismissed the complaint because plaintiffs failed to adequately allege material misrepresentations or scienter (intent or knowledge of wrongdoing). The dismissal was When a complaint is dismissed…
Herbalife
May 2015: After a final fairness hearing, a federal judge granted final approval of the proposed settlement of this class-action lawsuit. March 2015: TINA.org filed an (Latin for “friend of…