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View Full Version : Belgian court rules Herbalife illegal



littleroundman
01-07-2013, 10:31 PM
Belgian court rules Herbalife illegal after seven year long proceedings.

Here are relevant parts of the courts' ruling:

http://img94.imageshack.us/img94/3740/case.gif

A full copy in .PDF format can be downloaded HERE (http://pyramidschemealert.org/wordpress/wp-content/uploads/2011/12/Belgian.Court_.Decision.pdf)

Herbalife has announced its' decision to appeal.

oldfriend
01-08-2013, 07:41 AM
I was wondering when Herbalife would really start getting hit....ever since I read this:


Multilevel marketing is not like this. Legitimate firms rely on sales of real products for their income, not on fees charged to new recruits. Mr Ackman contends that Herbalife relies on recruitment, not sales of its products to genuine customers (as opposed to new distributors, who are required to buy a batch to join the sales force). Michael Johnson, Herbalife’s chief executive, retorts that over 90% of product sales are outside its distribution network. SOURCE (http://www.economist.com/news/business/21569051-herbalife-shorted-bottom-line)

I've been wondering how Michael Johnson is going to show this to be true. He really stuck his foot in his mouth on this one. MLM's in general, and Herbalife in particular, rely on internal consumption of products for the main bulk of residual sales.

Not to toot my own horn, but in my video (http://www.realscam.com/f41/what-pyramid-scheme-find-out-here-1896/), at about 3:33 onward, I talk about the FTC's particular stance and warning regarding this.

Soapboxmom
01-08-2013, 08:02 AM
Why Bill Ackman is targeting Herbalife - Jan. 8, 2013 (http://money.cnn.com/2013/01/08/investing/herbalife-ackman/index.html?hpt=hp_t2)

This is definitely going to get interesting. Ackman must be thrilled with the Belgian court ruling!

scratchycat
01-08-2013, 09:48 AM
Why Bill Ackman is targeting Herbalife - Jan. 8, 2013 (http://money.cnn.com/2013/01/08/investing/herbalife-ackman/index.html?hpt=hp_t2)

This is definitely going to get interesting. Ackman must be thrilled with the Belgian court ruling!

Good article!! I love the Belgian court ruling!!

Luzer
03-08-2013, 02:24 PM
Why Bill Ackman is targeting Herbalife - Jan. 8, 2013 (http://money.cnn.com/2013/01/08/investing/herbalife-ackman/index.html?hpt=hp_t2)

This is definitely going to get interesting. Ackman must be thrilled with the Belgian court ruling!

Does anyone know why these companies avoid detection in the US by the FTC? Is it political?

Soapboxmom
03-08-2013, 03:39 PM
Law enforcement / enforcement agencies are underfunded and understaffed. Tragically, many obvious scams and schemes fly under the radar because of it. Not to mention these MLMs and other scams have powerful lobbyists that vigorously pursue scam friendly legislation. Many politicians are also basically bought and paid for.

RS is one of many great places to grease the wheel and expose these deals in addition to bringing them to the attention of law enforcement. I will never rest as long as folks are being hurt!

Luzer
03-08-2013, 04:01 PM
Law enforcement / enforcement agencies are underfunded and understaffed. Tragically, many obvious scams and schemes fly under the radar because of it. Not to mention these MLMs and other scams have powerful lobbyists that vigorously pursue scam friendly legislation. Many politicians are also basically bought and paid for.

RS is one of many great places to grease the wheel and expose these deals in addition to bringing them to the attention of law enforcement. I will never rest as long as folks are being hurt!

Thanks. That might explain why Amway is still running.