Herbalife, Usana Have 1000 Times Lead As Ensure, Boost

Armen Hareyan's picture
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In newly released lab results from one of the nation's largest labs with a presence in over 30 countries, both Usana and Herbalife have lead levels that are over 1000 times the lead allowed under California law when taken as directed daily. The new results also revealed that the average lead content for non multi level marketing health drinks averaged 0.607 micrograms per day while Usana and Herbalife combined for a whopping 9.760 micrograms of lead per day. "I do not care what your liberal interpretation of Proposition 65 might be," said attorney Christopher Grell, "but these percentages are astounding and will hopefully catch the eye of California regulators."

Also released today was the results of a 10 year study conducted by multi level marketing expert Robert Fitzpatrick where he analyzed 11 multi level marketing company's, five of which are publicly traded.

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In that study,

Mr. Fitzpatrick reveals the truth regarding the myth of the multi level marketing business opportunity by uncovering three undeniable truths: on average no net income is earned by MLM distributors from door to door "retail" sales the sales forces of Herbalife, Usana and the other company's analyzed are churned (lost money/quit/replaced) at rates between 60-90% each year and 99% of all sales representatives each year in the sample of companies analyzed earned on average less than $13 a week in commission income.

According to Mr. Fitzpatrick in the report prepared for Mr. Grell, "The (income) figure represents a significant financial loss for virtually all that join these schemes. As extreme as the loss rate is, this figure is conservatively understated because it is calculated before all business expenses, inventory purchases and taxes are factored, which would increase total losses and the percentage of those losing."

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Comments

The information in this post is wrong. Herbalife responded to allegations from a fraud discovery group with a press release on June 8 explaining that testing conducted at a leading independent laboratory confirmed that Herbalife products do not contain levels of lead that would require labeling under California Proposition 65 disclosure requirement. You can read the entire statement here: http://herbalife.com/global/investor_relations_frset.jsp?news& The founder of the group is a convicted felon who has has publicly admitted to investing $50,000 in Herbalife 'puts' to profit from the stock going down with misleading information. G. Fischer - Herbalife