Last July, we told you about the FTC’s settlement with Herbalife, which made the multilevel marketing company not only restructure how it does business, but also pay $200 million to people who lost money trying to run an Herbalife business. Today, we mailed checks to about 350,000 of them.
Are you thinking about a multilevel marketing (MLM) business opportunity? Every year, many people join MLM plans – and many also leave. Before joining any MLM company, do some research. Your time and money are too valuable not to. Here are a few things to consider:
- Can you realistically see yourself selling to your network of friends and family? Selling is work, and not everyone is good at it.
- What about the product? Would people you know buy it repeatedly and consistently? Or would they only buy it once as a favor? Can people buy comparable products for less?
- What will it cost you to run this business? You might get pressure to buy a lot of product – in fact, people have lost a lot of money buying more product than they can sell. Also consider things like gas, shipping and packaging costs, sales aids, trainings, and your time. Does that math add up for you? Lots of people leave multilevel marketing programs without making any money, and many lose money.
If the person who recruited you into the business tells you not to worry about selling because you can make money by recruiting others – walk away. In a legitimate MLM program, you need to be able to make money by selling the product, not by recruiting others to join and buy the product.
So, what about the money back from the Herbalife settlement? Well, the settlement covered people who worked with Herbalife between 2009 and 2015. If you were an Herbalife distributor who paid at least $1,000 to Herbalife during those years, but got little or nothing back from the company – and we were able to locate a valid address for you – you should be seeing a check. The check is a partial refund of the money we estimate you lost while trying to run an Herbalife business.
If you get a check refunding some of the money you lost in Herbalife, cash it. If you have questions about why you didn’t get a check, learn more on our refunds page. Thinking about whether a business opportunity is right for you? The FTC has resources for evaluating business opportunities, including MLMs.
In reply to Bridget. I received a check, by RKF2016
Click here for more information. It includes a number to call to ask if you are eligible for a refund.
In reply to Click here for more by FTC Staff
In reply to Got mine yesterday - 4K - not by Cchavez209
In reply to I had no idea of a lawsuit by Blessed
I just a the refund check today. Thank you :) I never expected to received this.
Ch... After I was laid off from my job,I was introduce to Herbalife from a stranger who I didn't know at the time and which that person who then became my supervisor. I invested in Herbalife in 2009 trying to gain customers to buy the product working along with my Herbalife supervisor. Most of my clients didn't want to be distributor which it became so hard to sell the products. It was overwhelming because at times customers will tell me that they don't have the time of being a distributor. I lost money trying to sell the products. I just recently received a letter along with a refund check from FTC. I thought it was a scam until I did my research. I appreciate everything FTC have done as well working hard to resolve the settlement that had us thinking everything will be very smooth sailing. Thank you so much!
There was no signing up. If you were a distributor during that time frame you will get a check. I am still with Herbalife for personal use only and I got a check. Not sure how it works if you moved and didn't file a change of addresses. Just wanted to clear up if your still a active member you won't get a check, not sure.
In reply to I didn't get my refund yet by Yesica Z
In reply to after 2 years buying products by ferchito
You can report this to the FTC at FTC.gov/complaint.
You can also report this your state Attorney General’s office.
In reply to My check bounced. What should by Blackcape
You can call the redress administrator at 1-844-322-8146.
In reply to How do I know if I got a by mgomez0325
If you have questions about why you didn’t get a check, learn more on our refunds page.
In reply to I guess if ididn't receive a by Pichimoreno
If you have questions about why you didn’t get a check, learn more on our refunds page.
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