Herbalife Company vector logo
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About Herbalife Company
Herbalife International is a multi-level marketing company that sells nutrition, weight management and skin-care products. The company was founded in 1980, and it employs around 5,000 people worldwide. Herbalife reported net sales of US$3.45 billion in 2011 with a retail sales turn over of US$5.1 billion with an increase of US$1.1 billion retail sales on 2010. Though incorporated in the Cayman Islands, its corporate headquarters are in Los Angeles, California, United States.
The company distributes its products in 87 countries (as of December 2012) through a network of approximately 2.7 million independent distributors, some of whom earn profit on product sales and additional commission from a multi-level marketing (MLM) compensation structure.
The Commercial Court in Brussels, Belgium, has ruled Herbalife to be an illegal pyramid scheme. The company has been criticized by, among others, Bill Ackman of Pershing Square Capital, who claims that Herbalife operates a “sophisticated pyramid scheme”.