Multi-level marketing companies that advertise shakes and potions designed to help you lose weight and get healthier are generally all guilty of the same offense: Distributors making false health claims.  The products are generally terrible for losing weight and maintaining the weight loss. And the health benefits are nothing more than one could get from eating well and taking a simple multivitamin.

Nonetheless, people involved in MLMs routinely claim these potions cure things like ADHD, arthritis, high cholesterol, lupus, asthma, migraines, cancer, fibromyalgia, and more. The most disturbing part of this is when the distributors encourage people to stop taking medications that are critical to their health. This advice is simply dangerous.

Today Bill Ackman released a video demonstrating that Herbalife distributors are violating U.S. law by making false and deceptive claims about the Herbalife products. How do they get away with this? The company likely would contend that there is nothing illegal about distributors giving personal testimonials about the results they received from the products.  Good luck with that defense.

Watch the videos below to see distributors in action making these questionable claims.

See the full video here.

See a shorter version here.

7 Comments

  1. Rashemae 12/11/2014 at 8:13 pm - Reply

    The most interesting part of this short video by Pershing Square is at 6min and 42seconds, the disclaimer. “Pershing Square currently maintains a substantial short position in the common stock of Herbalife Ltd. (“Herbalife”) and derivatives related to its common stock. Pershing Square will profit if the trading price declines for common shares of Herbalife and will lose money if trading price increases for common shares of Herbalife.” Strangely there was no mention of Cellular Nutrition, this is what Herbalife is based on, what makes it stand out from the crowd.

  2. Tracy Coenen 12/11/2014 at 10:11 pm - Reply

    And Herbalife executives gain every time the stock goes up, which is why they lie about the company, the products, and the performance.

    Herbalife products don’t stand out from any products, MLM or otherwise. Shit products, from a shit company. Total waste of money, no matter how many times you shills parrot the talking points.

  3. Rashemae 01/01/2015 at 1:27 am - Reply

    Firstly, I am not a Herbalife executive, and as such stand to gain nothing from “parroting” the talking points. I am simply an ordinary person with an opinion, the same as anyone else who reads your posts. Attack the marketing plan if you believe it deserves it, however the products are another story. Have you ever needed to lose weight? Have you tried the Herbalife products? If yes, how long were you on them for? Basically my beef with you is that you are putting down the product to get at the company. Herbalife products help me lose the last 10 kilos of baby weight that I have been trying to lose since having my 5 kids (not a testimonial, just the truth). Herbalife products rock, customers gain by losing weight and getting their lives back. No comment on what the distributors go through, just joined to lose weight and get healthy. I resent being called a shill, not one word I have typed is a lie, can you say the same for yourself? You are an angry little birdie aren’t you? Cheep, cheep.

  4. Tracy Coenen 01/01/2015 at 8:00 am - Reply

    shill

    noun
    1. a person who poses as a customer in order to decoy others into participating, as at a gambling house, auction, confidence game, etc.
    2. a person who publicizes or praises something or someone for reasons of self-interest, personal profit, or friendship or loyalty.

  5. Tracy Coenen 01/01/2015 at 8:01 am - Reply

    No, I haven’t lied. No, I’m not angry… although the lies by MLMs do bother me a lot.

  6. Rah 01/24/2015 at 1:07 am - Reply

    I am not posing as I customer, I am one, and have been for two years. It is not my aim to get people to buy the products, rather to try anything they feel is right for them, just like I did. The only gain I will get out of this is maybe someone out there gets the help they need to lose weight. Maybe someone will read this post, decide not to take a chance on any weight loss products and just go out there and cut out all the crap in their diet and get healthy, either way they win not me. Thanks Tracy, good luck with the anti MLM mission. To all those out there trying to lose weight, do what is right for you, pay what you can afford (don’t let anyone push you around, unless it’s a personal trainer), and never give up, it’s totally worth it.

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