FTC Disturbed by Herbalife (HLF) Practices; No Official Probe Launched
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Herbalife (NYSE: HLF) is down about 2 percent Wednesday morning following the company meeting with the Federal Trade Commission (FTC) earlier this week.
According to the NY Post, the FTC told advocate groups that its found Herbalife's practices
One rep with an advocate said the FTC might find it difficult to launch a probe solely into Herbalife.
FTC officials were particularly bothered by the amount of Hispanic distributors, said to account for up to 65 percent of the total, according to the company itself. Advocate groups believe the vast majority of distributors lose money.
According to the NY Post, the FTC told advocate groups that its found Herbalife's practices
disturbingand would look into the company. However, it wasn't confirmed whether or not the regulator launched a full-scale probe into Herbalife yet.
One rep with an advocate said the FTC might find it difficult to launch a probe solely into Herbalife.
FTC officials were particularly bothered by the amount of Hispanic distributors, said to account for up to 65 percent of the total, according to the company itself. Advocate groups believe the vast majority of distributors lose money.
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