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Herbalife Faces New Attack From State Senator Seeking Crackdown


herHerbalife Ltd. came under a fresh attack from a New York state senator, who called the company a pyramid scheme and said he’s found more victims of its “shakedowns.”

State Sen. Jeff Klein, holding an event in New York on Friday, said he has spoken with more than a dozen victims of Herbalife, including one man who lost $100,000. Klein is introducing legislation Friday to crack down on the practices, he said.

Klein previously went after Herbalife in October, when he compiled complaints about the company from 56 victims. They lost an average of $20,000, he said at the time. The investigation also looked at 60 so-called nutrition clubs — the groups that help sell Herbalife’s weight-loss shakes and supplements — in the Bronx, Queens and Brooklyn.

After October, Klein said he found more victims.

“They are saying you can achieve the American dream,” he said Friday. “The only thing that does happen is people lose lots and lots of money.”

Herbalife relies on independent distributors to sell its products, which range from weight-loss shakes and supplements to snack bars and skin creams. Its critics include billionaire Bill Ackman, who has waged a more than three-year campaign against the business. Herbalife has repeatedly denied Ackman’s accusations that it’s a pyramid scheme, but the criticism prompted a probe by the Federal Trade Commission.

(c) 2016, Bloomberg · Matt Townsend



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