Pyramid Scheme

FTC refunding $149 million to distributors victimized in AdvoCare scheme

09-May-2022 By Hank Schultz

The Federal Trade Commission is returning $149 million to consumers who lost money acting as distributors for Advocare, a former multi level marketing company deemed by regulators to have been an illegal pyramid scheme.

Herbalife stock at all time high after Ackman throws in towel

01-Mar-2018 By Hank Schultz

Activist investor Bill Ackman has reportedly exited his short position on Herbalife, ending a high profile, multi-year attempt to drive down the company’s stock price with allegations that its business model constituted an illegal pyramid scheme.

Herbalife earnings recovering after FTC fine, restructuring

23-Feb-2018 By Hank Schultz

Herbalife says it is successfully emerging from the pall cast by an investigation and subsequent fine levied by the US Federal Trade Commission. The network marketing giant said fourth quarter earnings showed that business is trending back up after taking...

Usana passes $1 billion mark with strong Asia growth

14-Feb-2018 By Hank Schultz

Usana Health Sciences passed the $1 billion mark in annual sales with a strong year-end earnings report that included strong growth in key markets in Asia.

House bill could finally end pyramid scheme charges leveled at MLMs

18-Dec-2017 By Hank Schultz

A bill now before the US House of Representatives that seeks to clarify the boundaries of Multi Level Marketing operations is imperfect but better than the status quo, said an attorney familiar with the sector.

Herbalife turns up pressure on Ackman

19-Sep-2016 By Hank Schultz

Network marketing giant Herbalife is bolstering its defense against activist investor Bill Ackman, who has stridently criticized the company as part of a campaign to profit from a short position on the company’s stock.

Herbalife shrugs off Ackman's latest pyramid scheme allegations

16-Sep-2015 By Hank Schultz

William Ackman, the activist investor who has been attacking Herbalife’s business model for several years, has claimed that Herbalife’s mode of doing business does not differ materially from that of Vemma Nutrition, the network marketing company that...

Court shuts down energy drink network marketer Vemma over pyramid scheme allegation

28-Aug-2015 By Hank Schultz

Vemma Nutrition, a multilevel marketing company that based its business on a line of mangosteen juice drinks, has been shut down by an Arizona court acting on a Federal Trade Commission request for allegedly operating an illegal pyramid scheme.

Herbalife touts strong compliance record on product claims despite Ackman's video attack

12-Dec-2014 By Hank Schultz

Activist investor Bill Ackman has released a new video attack that takes nutritional products network marketing giant Herbalife to task over non-compliant disease treatment claims made for the products on the part of distributors. The company responded...

Court's ruling on illegal pyramid scheme turns spotlight on Herbalife

06-Jun-2014 By Hank Schultz

A recent ruling by an appellate court judging a multi-level marketing organization to be an illegal pyramid scheme puts the spotlight on the legality of network marketing companies active in the dietary supplement and nutrition businesses.

Vemma makes changes to business model in response to Italian ruling

25-Apr-2014 By Hank Schultz

The network marketing sector has come under renewed scrutiny with the news that Vemma Nutrition, a multilevel marketing comany that markets beverages based in part on mangosteen juice, has been sanctioned by an Italian regulatory body for being a pyramid...