What the FTC Settlement Means for Your U.S. Business
Over the next several months, we will be rolling out improvements that will strengthen Herbalife and the entire U.S. direct selling industry culminating with the change to distributors earning compensation based on retail receipts effective May 2017.
The settlement does not change our business model as a direct selling company, but has resulted in some enhancements that will make it easier for us to demonstrate what we have known all along – that there is overwhelming consumer demand for our products and the services our Members provide.
There will be mandatory training for all Distributors to ensure that you have all of the tools and support you need to understand and implement the changes. Here is an overview of the improvements you can expect:
|WHAT WE DO TODAY||WHAT WE WILL DO|
|Member Categories||All Members are treated as potential business builders and can join for the discounts on products or for the business opportunity to retail, recruit and earn. They are not required to designate their reason for joining||• All current and future Members will be asked to select the Membership category that best fits their goals, and will be provided the training and materials they need:
|Income & Lifestyle Claims||All income and lifestyle claims must be true, be verifiable and include the disclaimer. • Provide Members with our Statement of Average Gross Compensation.||We will provide additional training and guidance to ensure that income claims are truthful and accurate. • Our Statement of Average Gross Compensation will continue to be provided.|
|Nutrition Clubs||90 day waiting period and a required training course before opening a Nutrition Club.||
|Refund / Buyback Policy||100% buyback, including return shipping, for a time period of 90 days for an Herbalife Member Pack and one year for products.||100% buyback for all Distributors, including initial shipping as well as return shipping. This will be for a time period of one year for an Herbalife Member Pack and one year for products|