American court said that the company Herbalife has to pay 200 Million dollars for lying the people. The company’s management decided to accept the penalty in order to avoid additional costs. They are not satisfied with the decision, but however they have decided to accept it.
The Federal Trade Commission had criticized the business model of the company. So, in addition, they must change their business model or they will lose their license. This company has mislead people to become their members and recruit other people. She did that by showing them pictures from luxurious houses and cars as a reward. So, because of that, many people have quit their jobs or have invested money in order to achieve their dreams. But, unfortunately, they were not even close.
Herbalife must start to work legitimate and must compensate the losses that customers have suffered.
However, these 200 million dollars might seem like a large amount, but considering the fact that this company has gained profit for about 4.5 billion dollars from their illegitimate work, it is not that much.
For now, there are no rumors about their products. We do not know were they part of the investigation or it was just their business model. If some investigations shows that their products are not what they say they are, the company probably will lose their license and will pay larger amount of money that this one.
People who were part of this false campaign have started to show in public and have many negative words about the company and its marketing departments.
This company is very popular among people around the world. It sells diet supplements and has many weight loss programs. Many people start renting their places for this company, but they have regret it. Will they receive their money back, we will see. But one thing is for sure, they will think twice before make a similar move.
Whatever happens, time will show how this process will act on Herbalife’s popularity among people.