Herbalife is absolutely committed to upholding the very highest ethical standards so that our employees, distributors and their customers can have total confidence in dealing with our company. We have a Distributor Ethics & Compliance department to review issues regarding distributor behavior and to take disciplinary action where warranted.

Herbalife is a global nutrition company. Our products are sold exclusively through Herbalife independent distributors who conduct business in more than 75 countries.

Mark Hughes, who founded the company in 1980, passed away in 2000 of an accidental overdose of prescription medicine and alcohol.

As is common with most public companies, some executives receive company stock as part of their compensation package. In compliance with the New York Stock Exchange (NYSE) regulations, members of our executive team have pre-set plans that trigger buys or sells at various stock prices. They cannot change these points once the plan has begun.

No. Herbalife is not a pyramid or Ponzi scheme. Ponzi schemes are set up to fraudulently generate money for people at the top of a pyramid-shaped organizational structure.

These schemes depend on a constant inflow of new participants to contribute money to the longer-term participants in the pyramid’s structure. Such schemes stay afloat only as long as new members continue to come in and give money to earlier arrivals. Sooner or later, such frauds collapse when they can no longer persuade new victims to keep giving money.

Pyramid or Ponzi schemes are illegal, while multilevel or network marketing organizations such as Herbalife are carefully regulated and are legal business structures that involve the sales of real products of value to consumers.

By contrast, the Herbalife business is founded upon product sales. Herbalife independent distributors sell products to customers and to distributors who they have recruited and continue to motivate, directly and indirectly. Depending on the level of product sales a distributor achieves each month, they become eligible for volume price discounts on the products they buy from Herbalife. Higher volume translates to lower product prices, allowing them to make more money and encouraging them to find other customers who may want to buy and in turn sell Herbalife® products.

No. Herbalife is an international, publicly-traded, for-profit company that depends on a network of independent business people who distribute and sell its products and recruit new distributors and customers through a network of relationships.

Herbalife works hard to support its distributors’ success in many ways and to encourage their continued enthusiasm and investment of time and energy in supporting its products.

Herbalife is actively involved in social media. Visit us at:

www.facebook.com/herbalife

www.youtube.com/herbalife

www.twitter.com/herbalifehq

www.discovergoodnutrition.com

Herbalife is proud to be associated with leading experts around the world in the fields of nutrition and health who educate and train Herbalife independent distributors on the principles of nutrition, physical activity and a healthy life.   

Independent distributors purchase products from the company to sell to their own customers. In multilevel marketing, earnings are derived from an individual’s retail sales and, after they have reached the level of supervisor, from the sales of distributors they may have recruited. Herbalife offers customers a 30-day money-back guarantee on the purchase of its products.

No. The more than 2 million Herbalife independent distributors are not company employees; they are independent business people. They choose how and when to operate their own businesses. All Herbalife® products are sold exclusively through Herbalife independent distributors.

Distributors must adhere to strict company policies and legal requirements in each country that regulate product information, sales techniques, advertising, lead generation, social media and many related issues.

73% of retail sales are paid out to distributors (does not include China).

There are many methods of selling used by our distributors, such as talking to people, party planning, nutrition clubs and weight-loss challenges.

The amounts below are in addition to and do not include profits earned on the resale of product to consumers or other distributors.

Dollars in Millions

In 2010, annual sales leader retention increased to 48.9 percent compared to 43.0 percent in the prior year.

As of December 2010:

Our corporate social responsibility program is best summed up by the company value of “do the right thing” and includes corporate governance; business ethics; product safety and quality; commitment to our employees; commitment to our communities; and environmental responsibility.

Yes. The Herbalife Family Foundation is a 501(c)(3), non-profit corporation dedicated to improving children’s lives through its Herbalife Family Foundation Casa Herbalife program by helping organizations provide healthy nutrition to children at risk. Additionally, the foundation responds to requests to provide aid to victims of natural disasters. We also support other programs in our communities, such as the Union Rescue Mission on L.A.’s Skid Row.

Yes. Our Casa Herbalife programs are supported by donations, financially and in volunteer hours, from Herbalife independent distributors and employees.

Yes. In 2005, we introduced our employee wellness program to help educate and motivate our employees and we continue to build upon this program each year. We also encourage participation on Team Herbalife in events that have an opportunity for corporate teams. Men’s Fitness magazine named Herbalife “one of the top 15 fittest companies in America” in 2008. The program was also awarded the Direct Selling Association’s 2008 Success Award.

Yes. All of our employees are empowered by the company’s vision, mission and values.

In 2010, Herbalife sponsored a diverse group of over 150 athletic teams and events. These include soccer teams, such as FC Barcelona and the Los Angeles Galaxy, soccer player Leo Messi, and American Youth Soccer Organization (AYSO). Herbalife also sponsors badminton champ Saina Nehwal and boxing champion MC Mary Kom in India.

The company sponsors major events and many Herbalife independent distributors around the world support local events as well.