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LULAC Welcomes FTC Probe into Herbalife's Deceptive Business Practices

March 12, 2014

Contact: Paloma Zuleta, pzuleta at LULAC.org, (202) 812-4477

WASHINGTON, D.C. – Today, LULAC Executive Director, Brent Wilkes, issued the following statement in response to the announcement by the FTC that it has opened a formal investigation into Herbalife.

“The League of United Latin American Citizens, this nation’s largest and oldest Hispanic civil rights organization, welcomed the news that the Federal Trade Commission (FTC) has opened a formal investigation of Herbalife’s business model.

"LULAC has maintained that the company has been defrauding hundreds of thousands of their own distributors by promising a lucrative business opportunity when the vast majority suffer financial loss. In the United States more than 60% of Herbalife’s distributors are Latino.

"According to Herbalife’s statement of average gross compensation paid by Herbalife to United States distributors in 2012, 88% of its distributors earned no payments from Herbalife in 2012, and only 3.67% received more than $1,000 for that entire year.

"LULAC believes that the company directly targets low income individuals and is especially concerned that many of their victims are Hispanic. LULAC is confident that the FTC investigation will determine that Herbalife engages in deceptive business practices that have enriched a few at the expense of many. In the meantime, LULAC along with community-based organizations from across the country will continue to educate minority consumers so that they do not fall prey to these kinds of predatory business practices and will continue to assist victims who have already suffered financial losses. Individuals who believe they have lost money to Herbalife or other fraudulent schemes can contact LULAC at ayuda@LULAC.org, www.lulac.org or (202) 833-6130.”

About LULAC:
The League of United Latin American Citizens (LULAC) is the nation’s largest and oldest civil rights volunteer-based organization that empowers Hispanic Americans and builds strong Latino communities. Headquartered in Washington, DC, with 900 councils around the United States and Puerto Rico, LULAC’s programs, services and advocacy address the most important issues for Latinos, meeting critical needs of today and the future. For more information, visit www.LULAC.org.

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