Will the Government attempt to show that Herbalife pays rewards based on the purchasers of products by new recruits that are unrelated to the sale of a product or service outside of the Multi-Level Marketing (MLM) network?
How would the Government attempt to do this?
Well, no one really knows (outside of the Government agents involved in this investigation) exactly how the Government will go about pursuing this investigation. However, if the Government goes about demonstrating that Herbalife representatives are in a never-ending process of paying rewards only or substantially only by new recruits purchasing products that are unrelated to the MLM network.
What kind of services or products would these be? Well, once again this is the responsibility of the government to show that these services/products are unrelated to the MLM network. But, some examples might be:
1. Forcing the members of the MLM to attend classes
2. Forcing the members of the MLM to purchase materials
3. Forcing the members of the MLM to purchase "trade materials" or "trade products" to be eligible to sell to other parties
4. Making it mandatory for members of the MLM to sell only to distributors beneath the member.
How would the Government attempt to do this?
Well, no one really knows (outside of the Government agents involved in this investigation) exactly how the Government will go about pursuing this investigation. However, if the Government goes about demonstrating that Herbalife representatives are in a never-ending process of paying rewards only or substantially only by new recruits purchasing products that are unrelated to the MLM network.
What kind of services or products would these be? Well, once again this is the responsibility of the government to show that these services/products are unrelated to the MLM network. But, some examples might be:
1. Forcing the members of the MLM to attend classes
2. Forcing the members of the MLM to purchase materials
3. Forcing the members of the MLM to purchase "trade materials" or "trade products" to be eligible to sell to other parties
4. Making it mandatory for members of the MLM to sell only to distributors beneath the member.
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR
IS IT INTENDED TO BE LEGAL ADVICE. IF
THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.
NOTE: ANY INDIVIDUAL WHO HAS NOT PLED GUILTY TO A CRIME OR
WHO HAS NOT BEEN FOUND GUILTY BY A JUDGE OR JURY IS INNOCENT UNTIL PROVEN GUILTY
AS PER THE LAWS OF THE UNITED STATES OF AMERICA.
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tausk
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