Is it a pyramid scheme to open a nutrition club milkshake to make money?

Nutrition Club Milk Shake is a project of Herbalife Company, and its concept is to bring customers a brand-new concept of healthy living, and provide customers with the healthiest diet, the most professional nutrition matching consultation, weight management plan, disease nutrition conditioning and other services.

On March 29th, 20 18, the Beijing News reporter confirmed from Zhengzhou Municipal Government Legal Network that Herbalife (China) Health Products Co., Ltd. was investigated by Zhengzhou Erqi District Administration for Industry and Commerce and fined 5.73 million yuan. This case has become the biggest case investigated since the establishment of Zhengzhou Industrial and Commercial Bureau.

Extended data:

Herbalife MLM activities

According to the news marked Zhengzhou Administration for Industry and Commerce on the legal website of Zhengzhou Municipal Government, in July, 2065438+2007, the Quality Supervision Bureau for Industry and Commerce of Erqi District received the Reply from the State Administration for Industry and Commerce on the illegal operation of Herbalife China, and set up a task force to investigate the suspected illegal operation of the company.

After many administrative interviews, inquiries and investigations, data comparison, clue sorting and case analysis, the task force found and mastered the illegal clues of Herbalife Henan Branch in Henan Province suspected of violating the Regulations on Direct Selling Management.

Law enforcement officers of the task force immediately went to Herbalife's Shanghai headquarters in China to investigate and collect evidence, and finally extracted the purchase list of 4 199 Henan regional direct sellers, accounting for more than 20,000 key evidence materials.

According to reports, the whole case lasted for 6 months, which is the largest case investigated since the establishment of Zhengzhou Industrial and Commercial Bureau. On February 27th, 20 17, the task force issued a penalty decision to Herbalife (China) Health Products Co., Ltd., ordering the parties to correct the illegal behavior.

And confiscated illegal sales income of 5.48 million yuan; The administrative penalty of a fine of 250,000 yuan, totaling 5.73 million yuan, was turned over to the state treasury.

According to the news, in the supervision of direct selling business in Henan Province, this case has set a record with the least number of case handlers, the shortest duration and a large amount of fines per case, making it the largest case investigated since the establishment of Zhengzhou Industrial and Commercial Bureau.

The Beijing News reporter found that Herbalife has been exposed by the media for many times. 20 14 "Rule of Law Weekend" reported that Herbalife was suspected of pyramid selling, and some China direct sellers who had participated in Herbalife's direct selling stood up and accused Herbalife of losing everything.

According to foreign media 20 14, Herbalife's business model in China is very complicated, and it has been accused of pyramid selling for many times. The Federal Trade Commission (FTC) launched a civil investigation against Herbalife for being accused of pyramid schemes, and then Herbalife's share price plummeted by more than 8%.

2065438+In July 2006, the US Federal Trade Commission agreed that Herbalife should pay 200 million US dollars for settlement, and asked Herbalife to change some unreasonable commercial terms, such as not setting incentives for recruiting dealers, misleading the potential and possible income of dealers, etc.

Beijing News-Herbalife was fined 5.73 million yuan by Zhengzhou Industrial and Commercial Bureau for illegal direct selling.