LULAC Protests Museum Over Herbalife Ltd. (HLF) Sponsorship

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LULAC Protests Museum Over Herbalife Ltd. (HLF) Sponsorship
By Herbalife International of America, Inc. (http://www.herbalife.com) [CC BY-SA 4.0], via Wikimedia Commons

The Herbalife war continues. The following was sent to us by LULAC, one of the most powerful latino organizations in the country. They are not fans of the MLM company and recently protested Herbalife’s sponsorship of National Museum of Mexican Art (NMMA) annual gala. Statement and picture from LULAC below.

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Representatives of the Lake County chapter of the League of United Latin American Councils (LULAC) protested Herbalife’s sponsorship of the National Museum of Mexican Art (NMMA) annual gala on May 2nd, at the Fairmont Hotel in Chicago, Illinois. Community leaders and victims want to raise the issue on how the NMMA can accept a sponsorship from  Herbalife Ltd. (NYSE:HLF) when it is being investigated by federal and state authorities on claims that it’s running a pyramid scheme that preys on the Latino community.

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Herbalife’s fraudulent business practices

LULAC has been leading a statewide campaign to raise awareness about Herbalife Ltd. (NYSE:HLF)’s fraudulent business practices which have resulted in financial loses for hundreds of Latino Illinois residents.

“The NMMA was founded to provide accessibility to the arts, education and social justice for the Mexican community. This is blood money that Herbalife earned off the backs of Latinos,” stated Julie Contreras President of LULAC of Lake County.

The Illinois Attorney General’s office, the Federal Trade Commission (FTC), the U.S. Department of Justice (DOJ), the Federal Bureau of Investigation (FBI) and the New York Attorney General’s Office have ongoing investigations into the company’s business practices. According to reports from Herbalife, 60 percent of the company’s distributors are Hispanic; however, more than 88 percent of them make zero money in payments from Herbalife Ltd. (NYSE:HLF).

 

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14 COMMENTS

  1. LULAC looks like such a huge group. The reason why they werent paid anything from herbalife is that they decided not to get off their butts and do the hard work. Herbalife is just like any other business, do the work and you get rewarded. Though with normal business that are not MLM though are structured as a Pyramid, you do the hard work and the person on the top gets the big bucks. As with Herbalife, you do the hard work and you can earn more than the person that sponsored you. Legitimate business and changes lives all over the world with their amazing products. How do you call herbalife a pyramid scheme where there are over 70 million people in 90 countries using their products though there are only 2 million distributors, Figure that out Ackman. I dont know how a person like that can get away of making accusations about a company which are so misleading and stupid and know one has said anything or stopped him. When everything is clear, Herbalife should sue the crap out of this selfish crap of a human. I have been with herbalife for 8 years, Ive lost 18 kg’s, i havent been to a doctor and taken any sort of medication in over 7 years. I feel great every day and have lots of energy. I do the business and dont make much money at the moment due to my lack of work though I will always use the products for my health. Love them! And im sure there are many millions of people like me that feel the same. Thanks for hearing me, Romeo from Australia. :)

  2. Maybe he does condemn Amway and the rest. If he does, I think shorting one of the big ones might be a smart way to have an impact on the entire MLM industry. Actions by the FTC, AGs, DOJ might have reverberations in MLM beyond HLF.

    Besides, that’s a tu quoque argument, logical fallacy. Just because Amway or NuSkin or Vemma or whatever is bad doesn’t excuse HLF’s badness. Would you have the police not arrest the person mugging the pedestrian because another criminal got away with a mugging across town? Let’s please try our best to get all the criminals. The reality is, progress is baby steps sometimes. I am glad Ackman got involved because, before him, no one with power was listening at all about the many troubling aspects of MLMs, and the MLM industry has been buying influence for decades:

    http://harpers.org/blog/2012/08/pyramid-insurance/

    http://www.businessweek.com/articles/2012-04-16/the-multibillion-dollar-direct-selling-industry-dodges-the-ftc

    http://www.motherjones.com/politics/2012/04/mitt-romney-nu-skin-multilevel-marketing-schemes?page=1

    http://www.thenation.com/blog/175349/eye-pyramids-part-3-mlms-and-conservative-republican-infrastructure#

    http://scienceblogs.com/insolence/2011/06/22/orrin-hatch-the-supplement-industrys-lap/

  3. I think he has his hands full right now, but may go after them later. Also, Ackman isn’t going after Herbalife ONLY for altruistic reasons, he is also looking to make his investors’ a LOT of money.

  4. Didn’t know Amway was private. But if Ackman is truly going after Herbalife for altruistic reasons, shouldn’t he also condemn Amway for their practices, private or not?

  5. Ackman CAN’T short Amway, it’s privately owned. However, Amway is ripping off even more Latinos (and anybody else, they are an equal opportunity ripoff type company) than Herbalife.

  6. And how much has Ackman paid off LULAC? We have already seen that the NAACP can be bought for a 5,000 contribution, giving an award to a racist like Sterling. I’m sure LULAC cost Ackman much more.

  7. innocent until proven guilty. Just cause some Ass with a lot of money want to take down a company dose not mean they are guilty of anything. It’s an investigation, just cause Ackman hopes they find something doesn’t mean jack! Typical uniformed people that hear a company is being investigated and want to jump on a a band wagon and point the bad finger with ABSOLUTELY nothing have been found to proven illegal. To mention 2 audits came up clean and OK, but no one wants to talk about that now do they….

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