Breaking News

Burned by BurnLounge?

June 4, 2014

Herbalife says court ruling is a win for MLM.

Herbalife, a multllevel marketer of nutrition and skin care products, has been embroiled in a battle with Bill Ackman who insists the company is a pyramid scheme in an effort to devalue the stock.


However, a Herbalife took heart from yesterday's ruling by the Ninth Circuit Court of Appeals in its decision in FTC v. BurnLounge, Inc. The company issued the following statement:


"Today's decision by the United States Court of Appeals for the Ninth Circuit in the FTC v. BurnLounge, Inc. validates product consumption by participants as a legitimate measure of demand for multi-level marketing companies and rejects Bill Ackman's fundamental thesis against Herbalife. This ruling from one of the country's most influential courts is consistent with Herbalife's position that the widespread demand Herbalife has demonstrated for its products, by members and non-members alike, confirms that it is a multi-level marketing company with proper business practices."


Not everybody, read shorts, views the ruling in the same light. Short-sellers insist the ruling is just an example of the Feds starting to crack down on pyramid schemes. It is only a matter of time, they insist, before Herbalife finds itself in regulators' crosshairs.




Related End-User Markets:

  • What’s Up with Brexit?

    What’s Up with Brexit?

    March 9, 2017
    During In-Cosmetics, industry experts from the CTPA will weigh in on what’s ahead for the beauty industry.

  • Fit for Fitness

    Fit for Fitness

    Christine Esposito, Associate Editor||February 21, 2017
    Kinx Active is a new brand targeting women who want beauty products that can stand up to their fitness routines.

  • Catch These Rising Stars of Beauty

    Catch These Rising Stars of Beauty

    Nancy Jeffries, Contributing Editor||February 6, 2017
    Who won what at Fashion Group International's Rising Star awards show

  • OTC = TLC

    OTC = TLC

    Christine Esposito, Associate Editor||March 1, 2017
    Over-the-counter treatments provide consumers’ skin and hair with extra care.

  • The Green Dot

    The Green Dot

    John Kim and Lambros Kromidas, PhD*, Shiseido Americas||March 1, 2017
    Insights into one of the most used trademarks in the world.

  • An Essential Read

    An Essential Read

    Tom Branna, Editorial Director||March 1, 2017
    Industry expert Nadim Shaath takes the reader on a fascinating journey through the history and the future of essential oils.