Why did the FTC rule that Herbalife is not a pyramid scheme?

The Federal Trade Commission settled with Herbalife on Friday, effectively determining that the nutritional supplement marketer is not a pyramid scheme. Separately, the company said Carl Icahn and his interests have retained the right to boost their ownership stake of Herbalife to 34. read more

The FTC did not exactly give Herbalife the Good Housekeeping Seal of Approval. They just said Herbalife was guilty of wholesale sleaze, rather than outright theft, which is what a pyramid scheme is: think Bernie Madoff . read more

The FTC skirted the phrase"pyramid scheme" or"Ponzi" in its pronouncement, but by calling for changes to Herbalife's operations, rather than shutting the company down altogether, critics' main charges against Herbalife were largely quashed. read more

Shares of Herbalife recently rose as much as 20% on the day that the company was deemed by the Federal Trade Commission (FTC) to not be a pyramid scheme."Not a scheme" is good news, although the FTC ruling does not change the fact that there has been significant chatter over the nature of this company. read more

The FTC did not exactly give Herbalife the Good Housekeeping Seal of Approval. They just said Herbalife was guilty of wholesale sleaze, rather than outright theft, which is what a pyramid scheme is: think Bernie Madoff . You invest $1,000. Bernie divvies up $800 to earlier investors, who believe they actually made money. Bernie keeps $200 in fees. read more

The Federal Trade Commission settled with Herbalife on Friday, effectively determining that the nutritional supplement marketer is not a pyramid scheme. read more

"Not a scheme" is good news, although the FTC ruling does not change the fact that there has been significant chatter over the nature of this company. Still, being declared"not a scheme" is way better than the alternative and the ruling should help Herbalife going forward. read more