Herbalife Works To Rewrite Pyramid-Scheme Narrative, Improve Transparency

The multilevel marketer of weight-management shakes and other nutritionals says its independent distributor network, far from being a pyramid scheme, is in fact essential to helping people lose weight and adopt healthy lifestyles. Herbalife is implementing changes to clarify its business model for investors.

Direct sellers and multilevel marketing companies in the personal-care sector could take a cue from Herbalife Ltd., which is making strides to educate the public and increase the transparency of its business model to stave off attacks from detractors that threaten the stability of its stock.

According to Herbalife executives, the firm is many things – a healthy food and nutrition company, a home for industry-leading...

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