Now that the dust has settled from the Vemma ruling and we have discussed why a negative FTC ruling does not hurt Herbalife, let us look at why HLF is not in the same kind of trouble with the FTC as Vemma and why the company is not a dangerous pyramid scheme.
Vemma was putting a strong emphasis on selling $500+ starter kits and teaching its recruits how to sell starter kits to others as a way to recoup its costs. A major emphasis was put on these sales to new recruits to the business plan.
Herbalife’s starter kits cost less than $100. No big money involved. No big profits for distributors. No pyramid scheme. Now that we have dealt with the Vemma comparison, what’s next?