Herbalife and FTC reach $200M settlement in pyramid scheme investigation
Published: Jul. 15, 2016 at 3:54 PM EDT
Herbalife and the Federal Trade Commission announced a $200 million settlement Friday.
The deal means the FTC won't classify the company as a pyramid scheme, while the nutritional supplement marketer has agreed to restructure its U.S. operations.
The FTC says Herbalife has been selling an illusion to its sales people, leading them to believe they could gain financial freedom.
As a result, Herbalife must now compensate people for selling their products, and it must scrap incentives that reward them for recruiting other sales people.
