FTC Sending Checks to Herbalife Distributors

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January 10, 2017 -- The FTC announced it is mailing checks to almost 350,000 Herbalife distributors as part of the ettlement with Herbalife. Herbalife agreed to pay $200 million and to restructure its business in order to avoid being classified as a pyramid scheme. Herbalife publicly disagreed with the FTC's allegations but said it was settling to avoid the costs associated with litigation.

The FTC is sending partial refunds to distributors who paid at least $1,000 to Herbalife between 2009 and 2015 and had little or no earnings.

The FTC also released guidance for MLMs to avoid conduct which would draw scrutiny and possibly violate the law, which can be found on its website.