Latino groups want the Illinois attorney general to investigate a nutritional supplement company for being a pyramid scheme. Herbalife is a multi-level marketing company that sells its products only through distributors, who invest their money to get products, and then can supposedly profit by finding customers. According to Julie Contreras, president of the League of United Latin American Citizens (LULAC) in Waukegan, in reality, almost all distributors lose money.
Click here for summary
She claims Herbalife really makes its profits by getting new distributors to buy in, which would fall under the definition of a pyramid scheme. “They are a fraud,” Contreras said. “They are like thieves coming into homes of Latinos in Illinois, and we must have our attorney general do what she needs to do to help keep our families safe.” Herbalife has been taken to court in several states and countries over its business practices. The company has stated these legal battles are based on “misinterpretations of our direct-selling sales method.” A spokesman for the attorney general’s office said the information provided by Contreras and others is being reviewed.