Herbalife Issues Statement - February 17, 2015

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February 17, 2015

Herbalife Issues Statement

Herbalife today issued the following statement:

Herbalife is shocked and appalled to learn about the alleged fraud and the dishonest use of our name and have reported this concern to the Hong Kong Commercial Crime Bureau, whom we understand are looking into the case. We have terminated the contracts of the independent members involved after we pursued our own investigation.

Publicly made allegations have left the impression that Herbalife’s name has been misappropriated in relation to an alleged investment scheme. Herbalife is outraged by the alleged unscrupulous actions of these individuals and hope that they are prosecuted to the fullest extent permitted by the law. The perpetrators of this alleged crime are not and never were Herbalife employees.

Herbalife is a global nutrition company operating in full compliance with applicable laws and regulations. We have a very strict ethics policy and code of conduct, which all our independent members are contractually bound to comply with.

Herbalife is first and foremost a nutrition company. We are a product company. All consumers who purchase Herbalife products are entitled to a money back guarantee. Herbalife has independent members who sell Herbalife products in exchange for a commission on each sale. The only required investment to become a Herbalife independent member is the cost of a Herbalife Member Pack at HK$695, and for this, our members receive products of an equal value. Any products purchased by our independent members for re-sale can be returned to the company within 12-months under a 100% product buy-back guarantee.

Herbalife does not require any financial investment by its members other than a modest member pack and refundable inventory.

No part of the operations of Herbalife’s business involves an investment scheme like the one alleged. None of the monies paid by the participants in the alleged scheme were ever received by Herbalife. In addition, Herbalife was never alerted to this issue by the complainants prior to January 29 when we received the first complaints.

As we understand that there is an ongoing Police investigation into this matter, we have been asked to refrain from divulging other details of the case and obviously will comply with this request.

Enquiries

Herbalife
Daliea Mohamad-Liauw
Vice President, Corporate Communications, Asia Pacific
dalieal@herbalife.com

 
 


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