​​Is Herbalife a pyramid scheme? (2024)

FAQs

Is Herbalife still a pyramid scheme? ›

No, Herbalife is not a pyramid scheme.

Herbalife is a pyramid scheme that preys on would-be entrepreneurs around the world. Claim: If the company has been around for many years, it can't be a pyramid scheme, it would have collapsed by now. Truth: Pyramid schemes eventually implode when they run out of new victims to recruit.

The company has been alleged to have fraudulently operated a pyramid scheme. Some products sold by Herbalife have caused acute hepatitis.

BOTTOM LINE: The Herbalife diet is pricey and involves highly processed shakes and many supplements, some of which have been linked to negative health effects. Short-term use likely causes weight loss, but long-term effectiveness is yet to be studied.

In 2004 Herbalife settled with 8,700 former and current distributors in a class-action lawsuit that accused the company and other distributors of “essentially running a pyramid scheme,” according to The New York Times. The company did not admit guilt, but paid out a total $6 million.

For more than 40 years, Herbalife has helped individuals worldwide to earn some extra income and build a wellness business on their own terms.

Many references accentuate harmful effects of herbal products. Their most frequent harmful side effect is hepatotoxicity (4). Herbalife® products are connected to various grades of liver damage, from minimal hepatogram changes to fulminant hepatitis that requires liver transplantation (5-7).

According to its admissions, between 2007 and 2016, Herbalife knowingly and willfully conspired with others in a scheme to falsify its books and records and provide corrupt payments and benefits to Chinese government officials.

The nutrition products of herbalife, is very popular for weight management and nutritional supplementation. The minor issues associated with Herbalife products are headaches, dizziness,allergic reactions, gastrointestinal issues and irregular heart beat.

Health Risks of the Herbalife Diet. Some supplements recommended are linked to liver damage. Herbalife shakes contain ultraprocessed ingredients that may lead to increased risk of diseases like heart disease and cancer.

Is Herbalife full of chemicals? ›

An Assessment of Herbalife

Upon analysis, all of the sourced Herbalife products contained high levels of heavy metals, and 75% of the samples contained undisclosed toxic compounds, while 63% of the samples contained bacterial deoxyribonucleic acid.

Is Herbalife FDA Approved? The FDA does not approve foods, non-drug cosmetics or dietary supplements for safety or effectiveness. Instead, it is the responsibility of manufacturers like Herbalife to ensure that nutrition products meet regulatory standards governing their content, manufacture and labeling.

Herbal life is a product which helps to reduce weight very fast but the worst side effects of this product is to regain weight once you stop taking this.

All Herbalife products are safe when consumed as directed on the label. To support consumer safety, we recommend any consumer with a medical condition or dietary restrictions to talk to their doctor before use. Herbalife is safe for your health.

There have been many reports of acute, clinically apparent liver injury in persons taking Herbalife products, but the link to the HDS product has often been controversial. The specific ingredients in the various Herbalife products that might cause liver injury have not been identified.

Is Herbalife FDA Approved? The FDA does not approve foods, non-drug cosmetics or dietary supplements for safety or effectiveness. Instead, it is the responsibility of manufacturers like Herbalife to ensure that nutrition products meet regulatory standards governing their content, manufacture and labeling.

Despite the controversy, Herbalife has continued to grow and expand its business. In 2021, the company reported net sales of $5.5 billion, a 14% increase from the previous year. It is challenging to predict the future of any company accurately, and Herbalife is no exception.

Herbalife settled with the FTC and agreed to pay $200 million to compensate consumers and fundamentally restructure its business. The FTC mailed the first round of checks in January 2017 and the second round of checks in May 2019. These distributions resulted in nearly $194.3 million in refunds.

In the past year, the company has seen its stock fall 53%. The stock closed at $8.45 on Aug. 15. On July 31, Herbalife reported an adjusted net income of $54.8 million (54 cents a share) for the quarter ending June 30, compared to adjusted net income of $74 million (74 cents) in the same period of the previous year.