Herbalife Under Investigation
The nutrition and nutritional supplements company Herbalife is under investigation for allegedly operating a pyramid scheme for financing.
The Federal Trade Commission (FTC) opened an investigation on Herbalife multinational.
Through a statement Wednesday, the company said that “given the tremendous amount of misinformation in the market, we will fully cooperate with the FTC.”
The complaints made to the FTC were raised over a year ago by billionaire William Ackerman, founder of investment fund Pershing Square Capital Management, which directly accuses Herbalife employing an illegal pyramid scheme for their income. Through this practice most of the money is made by recruiting new salespeople rather than on the products they sell. It is a charge that Herbalife has repeatedly denied.