thursday, 23 august of 2018

Law

They challenge Herbalife for $ 1 billion for cheating

roup of distributors of the multinational Herbalife has inserted into one Miami court (USA) a demand of 1,000 million dollars against the company of course deception in the promise of winning sums of money, something that was not fulfilled, local media reported Tuesday.

The lawsuit was filed by Patricia and Jeff Rodgers, two distributors who said they attended all conventions and events "Circle of success", events that promised to make a lot of money with the sale of their food products but only reported losses.

In fact not only were they not rich, but Patricia Rodgers estimated that they had losses of about $ 100,000, including $ 20,000, used to attend the events of Herbalife, a multinational with a net profit of approximately $ 4,400 million in 2017, reported the Miami Herald.

Now, Rodgers and other Herbalife ex-distributors have filed a $ 1 billion lawsuit for damages to a court in Miami, potentially involving more than 100,000 people in a similar situation.

"We did everything they told us to do. We attend all events. We travel and spend money. And we did not succeed because they said we would have it"Rodgers said in an interview with the aforementioned newspaper.

"You get so involved that it's almost a cult mentality," he said.

One of the points that distinguishes this claim in Miami from others against Herbalife is that it refers to the system of events known as the "circle of success", which persuades distributors that they have all the events in the can attend country with costs in itself, the lawyer of the couple, Etan Mark, told this newspaper.

Distributors are "promoted" with the question of how "learn to get rich" and at the same time "hiring more people to become a distributor in what is called the" downline "," he added.

"I took the money I had, I followed the dream they were selling me. It was addictive. It was almost as if they hypnotized you and you were in some sort of trance, "Rodgers complained.

"Then you realize that they really deceived me", the former distributor of this company complained that vitamin supplements and weight loss were sold through a network of independent distributors.

Herbalife, with headquarters in Los Angeles, has 8,300 employees worldwide and approximately 2.3 million independent distributors, with its main market in North America, China and Asia.

In 2016, the Federal Trade Commission (FTC) of the United States forced Herbalife to pay $ 200 million to consumers / distributors who were deceived with promises to earn sums of money that never happened.

The company that sells supplements for vitamins and weight loss agreed to reimburse that amount and restructure the commercial system to meet the FTC's requirements.

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(Published by Navva, August 21, 2018)

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