In a settlement with the Federal Trade Commission, Herbalife has agreed to overhaul its business practices as well as provide $200 million in consumer compensation. This is an interesting story because, despite having executed a settlement agreement, both sides view its meaning quite differently. The FTC sees the settlement agreement as a way to force Herbalife to legitimately operate their business and make truthful claims to its members. Herbalife considers the settlement as a way to continue its operations without the distraction of protracted litigation. Thus, whether Herbalife continues to operate its business as it did pre-settlement remains to be seen. In the meantime, affected consumers will be compensated under the settlement agreement. For a detailed overview of the settlement, here’s a link to the USA Today article.
