Question Description
The objective of this assignment is to become familiar with the MLM and pyramid structure to identify when it is a MLM and when it is an endless chain.
Write up 2 to 5 pages on the Herbalife FTC decision. Answer the following questions
- Why did Ackman go after Herbalife as a pyramid scheme?
- What was the accounting fraud?
- What does not determined not to be a pyramid scheme mean?
- Why are the damage payments criticized?
- What is the outcome for the company if 200,000 of the 500,000 distributors are reclassified as preferred members?
- What is an endless chain in California?