Herbalife Claims No Harm, But FTC Hails 'Unprecedented' Settlement's Impact
In addition to imposing a $200m fine, the settlement requires the direct seller to determine compensation for its distributors based on actual retail sales, rather than on the number of additional distributors they bring into their networks, and to show at least 80% of its revenues are to end-users.
Herbalife Ltd. and the Federal Trade Commission agree they reached a settlement on the agency's complaint alleging misleading business practices, but are far from agreement about its impact on the firm and other direct sellers.
While Herbalife heralded the settlement as a victory that will not affect its business practices, FTC says the...