![]() The FCPA has a broad scope and applies worldwide to publicly traded companies and their personnel. individuals and business entities from bribing foreign government officials in the pursuit of business interests. The Foreign Corrupt Practices Act of 1977 is a U.S. Herbalife finds itself once again in potential legal trouble, this time foralleged violation of the Foreign Corrupt Practices Act of 1977. In reality, between 20, where Herbalife’s alleged misrepresentation occurred, Herbalife’s practices in China mirrored those in the rest of the world, the SEC said. The payment was to settle a claim that the company falsely told its investors that its operations in China used different business practices, as the multi-level marketing business diagram that Herbalife uses in the U.S. In addition, just last year, Herbalife agreed to pay a $20 million settlement with the SEC. In 2018, the Federal Trade Commission fined Herbalife $200 million after an investigation into the company’s core business model but did not officially label the company a pyramid scheme. ![]() Herbalife as well is no stranger to lawsuits and legal troubles. The multi-level marketing business diagram means that unlike a traditional business strategy that builds the majority of its revenue on the sale of goods or services, Herbalife’s push for recruitment of new distributors of its product acts as a significant source of its income. Ingrained in the social media era, Herbalife has sometimes been called a predatory pyramid scheme, one that obtains their monetary benefits primarily from recruitment rather than the sale of goods and services to the consumer. ![]() Herbalife Nutrition Ltd., the multi-level marketing health supplements corporation, is no stranger to controversy in the public eye.
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