I've been follwing the saga of Herbalife recently as the FTC is still investigating the accusation that they are an illegal pyramid scheme. One of the troubling things with Herbalife (and other MLM's) is that their distributors in many occasions have made outrageous and false income claims, as well as medical claims such as Herbalife's products cure cancer and diabetes. I also have read on other forums where Herbalife distributors freely give dietary and sometimes medical advice to others.
Herbalife gets to claim that they distributors are independent so they cannot control what these distributors tell people. However, if Herbalife products are sold or distributorships are sold, Herbalife certainly reaps rewards for the misleading claims or outright lies of these distributors.
I believe a reform in MLM that can cure many ills is to hold the MLM companies responsible for their distributors and/or require MLM's to hold mandatory training (provided free by the MLM company) that goes over these issues and trains new people on what is allowable or not when selling products and/or the opportunity.
For too long, MLM's have been allowed to escape trouble with the legally conventient excuse that their distributors are independent and they cannot monitor them. If MLM companies cannot monitor their sales force, they should be required to or suffer the consequences because they reap the financial rewards of the mis-information given by their sales force.
Herbalife gets to claim that they distributors are independent so they cannot control what these distributors tell people. However, if Herbalife products are sold or distributorships are sold, Herbalife certainly reaps rewards for the misleading claims or outright lies of these distributors.
I believe a reform in MLM that can cure many ills is to hold the MLM companies responsible for their distributors and/or require MLM's to hold mandatory training (provided free by the MLM company) that goes over these issues and trains new people on what is allowable or not when selling products and/or the opportunity.
For too long, MLM's have been allowed to escape trouble with the legally conventient excuse that their distributors are independent and they cannot monitor them. If MLM companies cannot monitor their sales force, they should be required to or suffer the consequences because they reap the financial rewards of the mis-information given by their sales force.
via International Skeptics Forum http://ift.tt/1UF9SNU
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