SUPPLEMENTAL CASE 4
Multilevel Marketing Under Fire: Herbalife Defends Its Business Model
Introduction
History
Products
Multi Level Marketing
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Independent Contractors
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Code of Ethics
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As a consumer you should expect salespeople to:
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As a salesperson, you should expect a DSA member company to:
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Pyramid Scheme
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Is Herbalife a Pyramid Scheme?
Criticism Against William Ackman
In accusing Herbalife of operating a pyramid scheme,
The Controversy Continues
Herbalifes Social Responsibility
Conclusion
Questions
Sources
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,
Los Angeles Times,
New York Post,
Los Angeles Times,
Forbes,
Forbes,
Foundations of Marketing
Business Ethics: Ethical Decision
[[Footnote Starts here]]
*© O.C. and Linda Ferrell, 2014. This case was prepared by Michelle Urban for and under the
direction of O. C. Ferrell and Linda Ferrell. Special thanks to Gerald Albaum for his assistance
in developing the case. This case was prepared for classroom discussion rather than to illustrate