The History Of Herbalife

Introduction
Founded in 1980 by twenty-four-year-old Mark Hughes, Herbalife has become one of the largest weight management and nutritional supplement firms in the world. The Company offers a wide range of weight management products, nutritional supplements and personal care products intended to support weight loss and a healthy lifestyle. As of December 31, 2002, the Company conducted business in 56 countries in the Asia/Pacific Rim, Europe and the Americas. The Company’s products are marketed primarily through a network marketing system comprising approximately one million distributors. In 2002, the Company had gross revenues of $1.8 billion.
Herbalife’s principal products are:
· Formula #1 (a meal-replacement protein drink mix)
· Formula #2 (an herbal tablet)
· Formula #3 (a multivitamin/mineral tablet)
· Thermojetics (a weight-control system that includes herbal tablets)

The numbered formula products were originally marketed as components of Herbalife's Slim and Trim Program. Today the program is called Herbalife Cellular Nutrition Health and Weight Management System, and some of the ingredients are different.

1982: Legal Troubles For Herbalife – False Advertising
In 1982, the FDA sent Herbalife a Notice of Adverse Findings, which stated that certain products were misbranded because of labeling claims that they were effective for treating many diseases, dissolving and removing tumors, rejuvenating, increasing circulation, and producing mental alertness. A 1984 FDA Talk Paper notes that the agency had received many complaints about side effects that had occurred during the use of Herbalife products and had stopped when use of the products was stopped.

In fact, said the Talk Paper, "Literature given Herbalife distributors states that up to 25% of product users will have adverse effects but claims that this is evidence of the body's improving itself." People who alleged that the products had harmed them filed several suits. Some of these suits were settled out of court with substantial payment, but the amounts have not been disclosed and the case records are sealed.

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