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  • Report:  #118435

Complaint Review: Herbalife

Herbalife Herbalife Class Action Settlement Reveals "Secret" Business. Pyramid Scheme Alert has formally requested that the FTC investigate Amway/ Quixtar's recruiting practices. Century City California

  • Reported By:
    Grand Rapids Michigan
  • Submitted:
    Wed, November 17, 2004
  • Updated:
    Sat, October 08, 2005
  • Herbalife
    Century City, California
    Century City, California
    U.S.A.
  • Phone:
  • Category:

Herbalife Class Action Settlement Reveals "Secret" Business, Similar to Amway/Quixtar's Exposed on NBC Dateline

Pyramid Scheme Alert has formally requested that the FTC investigate Amway/Quixtar's recruiting practices. It is now expanding this request to also include Herbalife, which follows the same pattern of deception.

*****

Plaintiffs accuse NWTW and Herbalife of:
- wire and mail fraud
- racketeering
- fraud and deceit
- operating an illegal pyramid scheme
- running an endless chain scheme under California law
- violation of California Seller-Assisted Marketing Scheme Law
- deceptive business practices

Herbalife Class Action Settlement Reveals "Secret" Business, Similar to Amway/Quixtar's Exposed on NBC Dateline

July 14, 2004

A $6 million settlement reached by attorneys for victims of Herbalife and its recruiting organization, The Newest Way to Wealth, reveals the same type of "secret" business that was exposed at Amway/Quixtar in the May 7, 2004 NBC Dateline. Both Amway/Quixtar and Herbalife are members of the Direct Selling Association.

Pyramid Scheme Alert has formally requested that the FTC investigate Amway/Quixtar's recruiting practices. It is now expanding this request to also include Herbalife, which follows the same pattern of deception.

The victims of Herbalife's recruiters tell the same story as those interviewed during NBC's expos on Amway/Quixtar. They are lured to recruitment meetings and told about the extraordinary income opportunity in the business, in which speakers claim they have personally become wealthy. Recruits are then told they also need to purchase books, tapes, marketing materials and attend seminars offered by the kingpins in order to become as successful as they are.

According to a story in the Los Angeles Business Journal where Herbalife is based, "The suit alleged that top-level distributors made more money selling independent promotional materials, which were supposed to help the lower-level distributors drive sales, than on the actual sales of Herbalife products."

This is exactly the charge made to NBC Dateline by top-level Amway whistle blowers. They stated that the claims by Amway's kingpins of high income from Amway product sales are false and that actually the top-level recruiters earn most of their money from the recruitment business itself, not from the Amway business. The NBC report focused on the recruitment operations of Amway kingpin Bill Britt of North Carolina

Victims in both cases, Amway/Quixtar's and Herbalife's, stated that these recruiting programs operate as secret pyramid schemes in which the upper level recruiters pay the lower levels a portion of the money gained from sales of these recruitment-based products (books, tapes, seminar fees, etc.) when they bring in new recruits. These products are not resold to the public on a retail base. They operate as an "endless chain" in which investments can only be recouped by recruiting others who would then do the same.

The Direct Selling Association, of which Herbalife and Amway are members, is currently lobbying state legislatures and the US Congress (HR 1220) to enact a new law that will legalize non-retailing endless chain marketing schemes. It would also exclude the sales of "tools" sold to recruits from the definition of a pyramid scheme. Pyramid Scheme Alert has sent warnings to all members of the House Subcommittee on Commerce, Trade and Consumer Protection, which is reviewing the bill, alerting them of the harm this bill will inflict on consumers and informing them of the special interests that are promoting it.

Pyramid Scheme Alert has also called on Congresswoman Sue Myrick of Charlotte, North Carolina to withdraw her name from sponsorship of the bill. Mrs. Myrick has been an Amway distributor, spoken at Amway recruitment meetings where these deceptive practices occur and has received hundreds of thousands of dollars in political contributions from Amway/Quixtar kingpins.


UK Distributors/IBOs for Amway/A2K needed for important study. Are you willing to be interviewed? More information.

If you have been involved in the Britt Worldwide motivational organization of Amway/Quixtar, and you live in North Carolina, contact the NC Attorney General. More information.

Take Action Now!



Advancing lives
Grand Rapids, Michigan
U.S.A.

Click here to read other Rip Off Reports on Herbalife International Work from Home

1 Updates & Rebuttals


Joel

Wichita,
Kansas,
U.S.A.

Advancing lives or Muting Progress

#2Consumer Comment

Sat, October 08, 2005

I think the author of this report needs to reconsider Wal-Mart then. Wal-Mart takes products and distributes them to customers. Wal-Mart takes money and then does not return a dime back. A product is sold and a profit is made. Sam Walton made a lot of money off of his consumers. Wal-Mart gets sued every 9 hours because people want to blame everyone else except themselves.

Sam's club has members. They charge $35 dollars a year for a membership. Members only get access to bulk and discounted products. Sam Walton still makes money off of all of his consumers.

Wal-Mart has stock holders who make alot of money.
In order to get stock you have to "buy" stock and then hope it goes up. Stocks work off of varying factors. Stock holders make the most money not the employees. Nobody complains about that.

You tell me what the difference is.

Quixtar- Connects the IBO, consumer, or client with the manufacturer. They in turn, through a website make a purchase, and has it delivered directly to their door. Consumer has purchased a product and paid money. Does someone make money? Yes, that would be absurd to think different. If everybody made the same money we would live in a Communist Country and be eating bread soup every night for dinner.

IBO's are not "required" to do anything. They can buy for themselves or sell retail. IBO's are given opportunities to build a business with over a million products at their finger tips. IBO's also can buy materials that help further education on their business aka CD's and books. Does someone make money? Yes. IBO's do not have to listen to their "up-line". I really don't pay attention to mine. I just educate myself on how to become a better business owner. If people don't take the time to educate themselves then they will not have a successful business. That goes with any business venture.

The up-line is not allowed to force any one into anything. They only serve as mentors. The point is that we are in business for ourselves but not by ourselves. (That's one for all the ex-amway/quixtarers.) It's not really that complicated of an idea. The complicated part is how people get paid. But in what business is it not a complicated deal? Everything is complicated when it comes down to getting paid. That's why they have the pay scale in plain view, explained.

I can build a huge business off of selling products to members and clients and never buy one CD or book. So in a sense I take the place of Wal-Mart. I am my own store. If I so see it to set up other franchises, I can do that too. If I put someone else in business they duplicate what I do and Quixtar rewards me for my effort. I never pressure them into things that would put them into any financial harm or something that they don't want to do. My philosophy is to let them grow and educate them in the right way. I don't always agree with some people's practices but that is not going to stop me from running a successful, liked business. Once again it goes back to everyone wanting to blame someone else for their failure. Now I understand that in this business because of how big it has become and how fast it moves, people fall in the cracks and get confused and lost and all that good stuff...but the jist of it is, is that when they sign up its THEIR BUSINESS. EDUCATE YOURSELF; DON'T BLAME OTHERS FOR YOUR FAILURE. You can find the people in your group you like and work with them. I was just over at an IBO's house tonight and we watched the Hephalump DVD with them and their kids and then I showed them how to do the "Worm." But you people wouldn't understand that because you were not there. We ordered some stuff from their daughter because she is now officially a "Brownie Scout". We talked about how business is going and how we can work as a team to make things better for our group. I'm younger than the couple and also they are my up-line. Last time I checked they're humans too. With struggles too. So go tell them that this is just a Pipe Dream...and he'll tell you that it just takes time and finding the right people. Especially, when he just got an in with the City of Wichita with one of our products that just so happens to come from Quixtar. I know for a fact that through his persistence that the City of Wichita will buy enough product from him to create a $2000 a month profit just from their purchases. The cool thing about it is that I was a part of getting that deal for him. So as business partners we are going to split the profit. Why? Because I'm in his down line, it wouldn't do me any good if he sells the product. But he is grateful and it's only fair, I did the talking and he got me in. Before you bash why don't you look for the good people in this business. Show me a business where everybody is good and I'll show you a scam.

We don't want people who just expect it to happen over night. Why? Because it doesn't! I want people who think long term and are willing to see a website full of Haters and push on. Because the Haters are the ones who bashed on Sam Walton, Ray Crock (McDonald's), Mr. Goodyear, Lincoln, etc...And then they ate their word and went back into the holes they crawled out of.

Every business has its flaws as does Advancing Lives but they won't tell you that about them. Their whole staff is perfect. There is no perfect business out there because of one factor that you will never get away from, PEOPLE. I don't care if you're the Red Cross, it still isn't going to be perfect.

As for the people who make more money at the seminars than in the businesswell maybe they do but I think they should get paid for what they do. You won't work at your job for freeso why should they speak for free? I don't think Zig Zigler got rich by selling fire extinguishers. But people pay big money to go see him speak and then they buy all of his motivational materialswhere is the rip off report on that?

I don't go to every business meeting and don't buy all the books and CD's. I know my up-line doesn't approve but it's my life and my business not theirs and honestly I don't care. I just care about taking care of the people I deal with. I didn't let them pressure me into starting at the $181 dollar deal. That deal comes with products but I just said No thanks, not now, and that's all these complainers have to do is say is No. Then if they keep bugging you then put a foot in their ace and tell them that it is your business and you will determine how fast or slow you go. I do it all the time and they back off. In fact my up-line doesn't like me because I'm unique and it makes them look bad when I strike a big deal with a company. Half of the people that they were teaching are now starting to come to me for answers. Why? I've taken the time to find the answers and then give it to them. If I don't have an answer I look it up and then tell them. I use my head instead of my mouth.

The start up cost: $51.50 cents. Business Name: New Revolutions
Cost for 2 years of College: $10,000
Start Up cost for Endure Productions LLC: $50,000 and no guarantees of success.
What I've got from college: Nothing other than being involved with Student Activities Council. Why? Because College is for Sheep and a good way to control people from ever getting free. Education is good but doesn't teach you how to be free. (Great, now someone is going to start a string on the benefits of college. Maybe I should start one on how college ripped me off.)
What I've got from this business: Help with my traditional business: Endure Productions LLC and some new friends. I have easily made back the initial investment, plus more. I have been introduced to a great product line and love the feeling of being a part of a great but not perfect organization.

In short, If your looking for a perfect, flawless organization then you need to go home and sit on your couch and do nothing in life because they do not exist.

I could sit here and complain all night with hens in the chicken barn but I've decided to be the solution.

Solution: It takes one person to start a Revolution. If all of these complainers actually just took the time to figure out the right way of doing things and started doing them, it would take less time to fix the problem than it took for me to write this rebuttal. All they have to do is teach people the right way. Start it and keep it going. It's not easy but it can work. If you don't like something in an organization then change it. The right rules and regulations are at your finger tips; you just have to read them and then start the changing process. Be the leader of a New Revolution and make a name for yourself as the one who changed things. That's what I do and the word is starting to spread. My team loves me and how I help them make money. That's why I'm their leader. I do it the way it's supposed to be done. Truth, Honesty, Respect.

One last thing: 120 partner stores Circuit City, Bass Pro Shop, Gateway. Just to name a few. Over 100,000 brand names. Over 1,000,000 products you can buy. The FTC or Federal Trade Commission has looked into this business idea and has deemed it A legitimate Network Marketing Business and I'm sure a couple thousand lawyers have looked into this also. Just could be a guess. Sorry to burst your bubble Pyramid Scheme Alert.

Date Line bit: Date Line went in an untruthfully signed up into the business of Quixtar. They intently entrapped a small portion of the business and then aired what they wanted you to see. Then misused their power as the media to misinform their audience. Nobody will ever bring that up in this argument.

I challenge you to go here: www.quixtar.com and click on the Quixtar Facts link at the bottom of your page. Study up on what has been going on. I don't think they could get the Golden Reel award for being a Pyramid scheme or what ever all these other people are calling it. Quixtar Newsroom is the link.

Have a comment for me: Send them through this website: www.wichitaeventsdj.com

Note: Please don't use the bit about how I'm brainwashed...you don't have a leg to stand on in that argument. I'm quite an intelligent and street smart human being. Also, if you want to use the regurgitate argument you need to think about all the stuff you regurgitate every day. It's all been fed to you and all you do is regurgitate. He shoots, he scores! Come on people use your heads, instead of trying to push it off on someone else.

And to the people who wrote this...yes I am willing to be interviewed on one condition. I do the editing of the story. I'm not about to be cut and sliced into a slanted view point to try to help your case. See I don't even trust you... :-p

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