Statement on Bostick v. Herbalife settlement – National Consumers League
May 15, 2015
Contact: NCL Communications, Carol McKay (412) 945-3242, carolm@nclnet.org
Washington, DC–The following statement can be attributed to National Consumers League Executive Director Sally Greenberg:
While yesterday’s decision is another reminder that Herbalife faces serious scrutiny of its business operations, the National Consumers League (NCL) is disappointed that the Court has approved an inadequate settlement in the case of Dana Bostick v. Herbalife International of America Inc et al.. We remain concerned about the allegations against Herbalife and if true, this settlement is woefully inadequate. Among other things the company was not required to make any substantive changes to its structure and will be able to continue to promote and operate the potentially deceptive business practices identified in the complaint.
As an organization that advocates on behalf of consumers affected by consumer fraud, including pyramid schemes, particularly those that may be disguised as multi-level marketing businesses, NCL was the first consumer organization to call on the Federal Trade Commission to look into whether Herbalife is a sophisticated pyramid scheme or a legitimate MLM. We believe this investigation is critical to protecting consumers hurt by frauds and fraudulent companies, and urge the FTC to continue looking into this and other companies to determine whether they are engaged in legitimate business practices or are illegal pyramid schemes.
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About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.
