Herbalife is what is known as a multi-level marketing company. Herbalife is one of the best independent multilevel marketing companies in this world. Although Herbalife products are not sold in retail stores, they have built an empire through independent contractors who in return deal with consumers.
Herbalife has changed the lives of several individuals of different ages and ethicist by providing nutritional and energy supplements that contain all natural herbs and resources. “One of the biggest arguments against Herbalife is its line commissions. “Currently, Herbalife contractors can earn commissions on what every recruit below them buys or sells”(Ferrell, Thorne, & Ferrell, 2016, pg. 461). Herbalife contractors are profiting off the backs of recruits below them with no sort of
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“Herbalife sells weight-management, targeted nutrition, energy and fitness, and personal care products all intended to support a healthy lifestyle” (Ferrell, Thorne, & Ferrell, 2016, pg. 456).
Bill Ackman accused Herbalife of defrauding their customers and Herbalife was a Pyramid Scheme. “Herbalife sells products," Ackman said. "But what they really sell and what their distributors make money from is by selling a business opportunity, and the business opportunity is to sell the business opportunity to your friends, who in turn sell it to their friends”( Farrell, 2013). In this case, Ackman was pointing out how Herbalife was profiting which indeed appears to be a pyramid scheme.
Bill Ackman is an activist investor, which he has been talked down on, judged by many as a loser due to the fact that Ackman has dedicated himself to destroying Herbalife Company. In the process of doing so, “Mr. Ackman has lost a ton of money for his investors on his bet against