Herbalife: Sells but Weeds and Illusions

Herbalife: Sells but Weeds and Illusions

The Belgian consumer protection magazine: "Test-Achats" sues the organization for multi-level-sales practices forbidden through the law.

Herbalife, a properly-known multinational specialized within the purchase of slimming items and dietary supplements, benefits mainly from the significant network of hierarchically organised independent sales staff. As previously, Test Achats draws the interest of customers towards the ineffectiveness from the slimming items from the Herbalife range. What's new, however, is the fact that Test Achats has made the decision to file a lawsuit the corporation because of its practice of multi-level-sales that is illegal.

This diet items of Herbalife: costly and never good - For a number of reasons (insufficient proteins, low energy value, too costly), "Test- Achats" was always very critical regarding this diet items from the Herbalife range. Their effectiveness in weight loss is not even close to proven.

The reason why for that ineffectiveness of Herbalife's diet treatment would be the following: no education to higher food practices, items are methodically hypocaloric with health problems, a medicalisation from the life-style through the absorption of special items, disproportionate cost in comparison to results acquired. All of the indices of the insufficient approach from the diet coincide to produce doubt regarding the effectiveness of those allegedly miracle items.

Herbalife, a multi-level-sales network

These last several weeks, "Test-Achats" has scrupulously analysed the strategy utilized by the firm. The main objective from the Herbalife product is to recruit new marketers who must make use of a statute of independent. No network marketing towards the consumer occur. The techniques of recruitment and distribution are varied. However, recently, and in an exceedingly aggressive way, disguised "offers of employment" (insofar as Herbalife doesn't appear as a result) flower on the web and within the "employment" posts as well as in free for those letter box distribution. "Budget et Droits" lately completed a completely fledged analysis (B&D 175, This summer 2004).

Once attracted, the interested people must be a part of courses that are real brain washing procedures. Throughout these courses a distribution contract along with a fundamental parcel (Business pack) are suggested for any amount of 100¬. However, at this time, the purchase of those items isn't of primary importance. The administrators along with other people from the "PRESIDENT'S TEAM" are quick to create the students realize that to be able to rise inside the hierarchy they might find it very advantageous to buy large volumes of items and re-sell these phones other new marketers whom they're going to have had the great taste to recruit. The greater the amount one reaches within the hierarchy, the greater the commissions and also the no-claims bonus and also the cheaper the cost from the items. Regularly, customers contacted to purchase items are actually pressed being marketers themselves, for instance, to acquire cutbacks around the cost from the items on their own or their loved ones. But clearly the marketplace soon becomes saturated, and also the promotion and recruitment campaigns then become progressively aggressive.

"Test-Achats" really wants to put an finish to those harmful and illegal practices! "Test-Achats" reckons the sales system founded by Herbalife is definitely an violation of article 84 from the law on trade practices.

All signs of pyramidal sales are cumulated: each person in the network develops wealthy mainly because of the purchases produced by the brand new recruit inside a completely closed sales circuit. The most crucial benefits are acquired not through the purchase towards the ultimate consumer or through the royalties acquired around the sales from the hierarchically low marketers but through the sales being completed inside a closed circuit. The advantage is principally because of the extension from the system which is specifically forbidden through the law. The consumers' organisation has therefore lately implemented Court proceedings against Herbalife, as an action in ceasing of buying and selling under the the law on buying and selling practices.

"Test Achats" thus wants what the law states to become respected within the interest of customers. These latter are extremely frequently uncovered to such dangerous practices. They're regrettably affected by unrealisable promises, which inside a precarious economic context where increasingly more customers would be the confronted with financial hardships and unemployment.