Money back for 350,000 Herbalife distributors

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Last July, we told you about the FTC’s settlement with Herbalife, which made the multilevel marketing company not only restructure how it does business, but also pay $200 million to people who lost money trying to run an Herbalife business. Today, we mailed checks to about 350,000 of them.

Are you thinking about a multilevel marketing (MLM) business opportunity? Every year, many people join MLM plans – and many also leave. Before joining any MLM company, do some research. Your time and money are too valuable not to. Here are a few things to consider:

  • Can you realistically see yourself selling to your network of friends and family? Selling is work, and not everyone is good at it.
  • What about the product? Would people you know buy it repeatedly and consistently? Or would they only buy it once as a favor? Can people buy comparable products for less?
  • What will it cost you to run this business? You might get pressure to buy a lot of product – in fact, people have lost a lot of money buying more product than they can sell. Also consider things like gas, shipping and packaging costs, sales aids, trainings, and your time. Does that math add up for you? Lots of people leave multilevel marketing programs without making any money, and many lose money.

If the person who recruited you into the business tells you not to worry about selling because you can make money by recruiting others – walk away. In a legitimate MLM program, you need to be able to make money by selling the product, not by recruiting others to join and buy the product. 

So, what about the money back from the Herbalife settlement? Well, the settlement covered people who worked with Herbalife between 2009 and 2015. If you were an Herbalife distributor who paid at least $1,000 to Herbalife during those years, but got little or nothing back from the company – and we were able to locate a valid address for you – you should be seeing a check. The check is a partial refund of the money we estimate you lost while trying to run an Herbalife business.

If you get a check refunding some of the money you lost in Herbalife, cash it. If you have questions about why you didn’t get a check, learn more on our refunds page. Thinking about whether a business opportunity is right for you? The FTC has resources for evaluating business opportunities, including MLMs.

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Comments

Please make these rules/regulations for all MLM's (Primerica, Anway, NuSkin, Mary Kay) Herbalife is just one of them. They need to be stop. Thanks!

Another one that should be looked at is Life Vantage. They do the same thing.

They should also look up Ambit Energy and melaleuca

Hi there. I am stunned to hear this about Herbalife. I joined Herbalife in 1993. What about the rest of us in the UK who spent lots of money, but made nothing like myself? I am still a member but due to the fact that I lost a lot of money, I only use it for myself now. I attended a lot of Seminars, gave up my precious time, saw how rude people can be in those seminars (if you were not part of their downline and you tried to get help from them). I could not attend anymore. I only use the product now for personal use.

I want my money back

You guy's didn't go far enough. Should've shut them down for good in the USA.

i sent in a claim and never heard back anything

You should be recieving a check pretty soon i just got mine.

I never sent In anything this was a total surprise to me

Thank you for your informative post about Herbalife; btw I'm testing the reCAPTCHA on the site.

Is th refund money legitimate?

legitimate FTC check?

I'm wondering the same? Did you find out for sure if it was legit?

and where is my money I needed it bad

Considering the money I spent to join Herbalife as a Supervisor, and the amount spent buying leads for their products the check I received is very minimal this is not to down their products by no means. I'll like to Thank the FTC For your effort to protect the consumers, with all the marketing scam today we need much more attention from the FTC. THANK'S

I got my check today and I am thrilled because I was not expecting it. Kudos to the FTC for the great job they have done! Hopefully, other companies and their participants will learn from this.

I heard about this last year but never thought I would receive anything. I spent over $2500 and just received my check for $384 a little more of my money would have been nice but I'm happy I've received this.

I spent over 3,000 and only got a small refund. How was the amount of refund determined? This is the first I've heard of this.

The FTC used Herbalife’s records to determine who would get a refund and the how much the refund would be.

In general, the FTC is giving partial refunds to people who ran an Herbalife business in the United States between 2009 and 2015, and who paid at least $1,000 to Herbalife, but got little or nothing back from the company.

Most checks are between $100 and $500. The largest checks are more than $9,000.

I made a business investment of USD3,345.62 into Herbalife and received a check from the FTC for USD371.75. 11+ US cents on the dollar invested by me.

By the way; Hebalife added a 9.5% California retail sales tax on my business investment based on a retail product value of USD4,308.26. (I was told my my sponsors that My business investment into Herbalife was at the Supervisor wholesale distributor level which is not retail.)

Continuing; If I would have sold Herbalife products at retail, not, I was required to add another 9.5% California retail sales tax on to the retail sales price.

So Herbalife collected a 9.5% California retail sales tax (USD409.30) on my original business investment with Herbalife and then I was also required to collect another 9.5% California retail sales tax. Say what?

I would be paying California, in this example, two 9.5% retail sales taxes. This is wrong.

My business investment into Herbalife was not a retail transaction but a wholesale transaction and should not have been taxed as a retail transaction.

What relationship does the USD371.75 FTC check to me have to do with my business investment of USD3,345.62 into Herbalife? How did you arrive, in my case, at damages of 11+ US cents on the dollar invested?

. . . When does the USD409.30 owed to me for a tax I didn't owe California in the first place come into your calculations for damages?

IF time, please advise. Thank you.

How could I find out if I'm eligible for a refund?

Hi Bridget Small-FTC. I received a check for $950.00 2 months past the expiration date of the check....due to an error in the mailing address...So finally receiving the check I have been trying to get answers, with no luck. The FTC has told me that someone may contact me within a month and I have been checking back with them and they state the same thing. Nobody is giving me a person to talk to, a number to call to get this taken care of. I am a bit frustrated as it is very obvious the money is issued to me, yet I am getting the run around. Please give me some guidance in regards to this manner. my email is . Thanks

Please make a copy of the comment you submitted here and send it to BlogInfo@FTC.gov.

hm they've must of given it to many other "satisfied" customer/members. 6 people i know of(and counting) that received money that still consume herbalife and were never complaining to begin with, hmm those FTC algorithms....

A cant remember my ID #

No one had called or reached me by mail that there was a class action against Herbalife, so imagine my surprise when I got a nice sum of money in the check I received today. I'm so glad, after all I put $3,200. into Herbalife from a savings account in 2010, I had over 1/2 of the product left that I never sold, so this is great. Thank you FTC.

Thank you for the info. You're right, if I can't make money selling it then it's not worth it.

Ya i lost about 6k, purchase items and tools to move forward and try to make money with it. I bought products to even went out to big mall event's to sale. It was not about us being to sale a product it was about them feeding off of a dream that wouldn't never come true. I would love to have all the money i spent back in my pockets. Its only far

Thank you very much for helping us learn about the refunds. This gave me faith to our government in preventing abuses by business operators.

got mine

I INVESTED MORE THAN $3,000 THREE THOUSAND DOLLARS IN HERBALIFE GOT PEOPLE IN THE BUSINESS WITH NO TRAINING, SOLD PRODUCTS AND ALL I GOT BACK ONCE A CHEK FOR LESS THAN $2 TWO DOLLARS I WOULD LIKE TO GET ALL MY MONEY bACK. THAT IS NOT COUNTING ALL PAYED ON GAS,EVENTS, MEETINGS, GAS AND TIME.

JAVIER, I agreed WITH YOU. Invested more than $6,000. We just find out today about this mess. That's what I'm talking about. We want our money back as well...gas events, meetings and time. We even sold out of USA soil to family members in another country AND bought products in that country to sell over there and spend over $300.USD. Would love to see all my money back on that fat check with my name on it. See what would happens now.

What is link for refund

How did the ftc determine how much money each person gets? Just curious I know I bought in for over $1,000 initially, so who or what determines if someone gets a $100 check or a "$9,000" check?

The FTC used Herbalife’s records to determine who would get a refund and the how much the refund would be.

In general, the FTC is giving partial refunds to people who ran an Herbalife business in the United States between 2009 and 2015, and who paid at least $1,000 to Herbalife, but got little or nothing back from the company.

Most checks are between $100 and $500. The largest checks are more than $9,000.

Is there a way we can check to see if we are getting a check?

MY NAME IS SHARON C, I WOULD LIKE TO KNOW IF I HAVE A REFUND FROM HERBALIFE. I HAVE BEEN SELLING FOR 7 YEARS.

Do we have to report this check as income on our taxes?

Where can we cash these checks

where can I call or who can I call to see if I am eligible for a refund since I have a nutrition club for almost 2 years and had people under me that got checks and I didn't get a cent after putting quite the amount of money in to herbalife not saying the product doesn't work but for a business its not a good idea!

I been calling and calling. Left messages and no answer or return call
Curious why I didn't get one

I'm one of the distributors of Herbalife at that time. How will I know if I'm going to get a check?
I lost $2300.00 is there any thing I need to do?

My daughter recieved her check this past saturday for $332.00 so others should be getting theirs.

My Boy Friend got his check January 14th 2017 who else has received theirs ?

Got my 1700 today

My question is if this is only for inactive members, there is no where that specifies this

I believe it is for only inactive members. I called and was told that I wasn't receiving a check because I am still an "active" distributor...

I received my check but it's a drop in the bucket met to what I spent I owned a store where can I see if I'm untitled to more

I invested over 4000 but now i live in a different address from the last time i invested on herbalife,what can i do to get a refund

IF WE HAVE BEEN IN THIS BUSINESS SINCE 2012 UP TO NOW, WILL WE SEE ANY OF THE MONEY. WE INVESTED SO MUCH MONEY INTO THIS.

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