The Federal Trade Commission is sending checks to nearly 350,000 people who were previously involved in Herbalife's multi-level marketing business, according to a Tuesday press release.
Last July, Herbalife was required to pay $200 million and fundamentally reshape its business model. It paid people based on how many of its nutrition and personal-care products they had sold, but some accused of it of operating like a pyramid scheme, which prompted an investigation in 2014.
WATCH | John Oliver blasted Herbalife in a "Last Week Tonight" segment on multi-level marketing in November. He starts specifically calling out Herbalife at 10:35.
This is a win for consumers.
The checks were partial refunds for those who ran a Herbalife business between 2009 and 2015 and paid at least $1,000 to Herbalife but got little to nothing in return. Most checks ranged from $100 to $500, and some were more than $9,000, the FTC said.
It also released guidelines to avoid being caught in another multi-level marketing company.
The FTC broke it down in graphic form.