Business Ethics

Herbalife’s $200 Million Settlement: A Lesson in MLM Accountability

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Herbalife's $200 Million Settlement: A Lesson in MLM Accountability

TL;DR: In 2016, Herbalife paid the FTC $200 million and rebuilt its pay model.Regulators confirmed the harm, yet the stock outlasted its most famous short seller. On July 15, 2016, the Federal Trade Commission announced that Herbalife would pay $200 million for consumer redress and fundamentally restructure how it compensates its distributors. FTC Chairwoman Edith … Read more

CVS Walked Away From $2 Billion to Match Promise With Action

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CVS Walked Away From $2 Billion to Match Promise With Action

TL;DR: In 2014 CVS pulled tobacco from all 7,600 stores, forgoing about $2 billion a year.The exit unlocked its healthcare pivot, capped by the $69 billion Aetna deal. On February 5, 2014, CVS Caremark announced that every one of its more than 7,600 U.S. drugstores would stop selling cigarettes and other tobacco products by October … Read more