Herbalife Ltd. (HLF): Distributor Earnings Disclosure Statements by William Keep, Seeking Alpha
Summary
Herbalife Ltd. (HLF) wants distributors "to have realistic expectations of the possible income you can earn".
The FTC wants consumer protection.
Earnings statements as currently structured ensure that neither happen.
A month ago I asked if current MLM distributor earnings statements constitute deceptive advertising, referencing the selective disclosure of data readily available to an MLM company and highlighting the failure to report the persistence of earners in each category. To the extent that the same people occupy top earning categories year-after-year (and unbeknownst to readers of the earnings statement), the apparent opportunity of reaching a particular earnings level appears to be much greater that the actual opportunity. In...
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