Almost 350,000 consumers lost money as a result of the scheme
The Federal Trade Commission (FTC) is sending out checks to almost 350,000 people who lost money by running a Herbalife business.
These checks resulted from an FTC settlement in July 2016. Under the terms of this settlement, Herbalife was required to pay $200 million as well as restructuring its business on a fundamental level. This is one of the biggest distributions that the FTC has made to date as consumer compensation in any consumer protection action.
"We are pleased to announce that hundreds of thousands of hard-working consumers victimized by Herbalife's deceptive earnings claims will receive money back," said Jessica Rich, Director of the agency's Bureau of Consumer Protection. "Along with changes the company will make to its business structure, this is a win for consumers."
The FTC used the company's records to figure out who would be refunded and how much they would receive. In general, the agency is partially refunding consumers who ran a Herbalife business in the U.S. between 2008 and 2015 and who paid the company at least $1,000 but received little or nothing back from it. Most of the refund checks will be between $100 and $500, though the biggest ones exceed $9,000.
Consumers who receive a refund check should either deposit or cash it within 60 days. Consumers are never required by the FTC to pay any money or give out any account information in order to cash a refund check.