In the wake of the recent FTC vs 'Herbalife' ruling in the USA, I've been asked:
Why has Herbalife been allowed to operate in the UK without any similar investigation?
Will the new rules preventing Herbalife from running a pyramid scheme in the USA be extended to the UK?
In answer to the first question -
I can confirm that UK regulators and law enforcement agents have been made fully-aware of the 'Herbalife' racket, but there have been stacks of people, and organisations, in the UK (not just 'MLM' front companies and racketeers) with a financial interest in denying the criminal reality behind the corporate-front known as 'Herbalife UK Ltd.'
Following the devious example of 'Amway', 'Herbalife UK Ltd.' has been cleverly paying Value Added Tax to the UK government on the unlawful losing investment payments (based on the false-expectation of future reward) made by its transient British adherents. These unlawful payments have been laundered as lawful retail sales (based on value and demand). Thus, the UK government has actually been profiting from a major dissimulated fraud, but would never voluntarily admit this. Furthermore, significant numbers of UK police officers are known to have been involved with 'Herbalife.' Again, senior UK police officers would never voluntarily admit this.
In September 2012, it was announced that Herbalife had taken a 10 year lease on 16500 sqare feet of office space in the prestigious Atrium building in Uxbridge (to the North of London) at £25.50 per sq ft per year (or £420 thousands per year). Making the total value of this lease more than £4 millions. Again, the UK government has taken, and is taking, a share of this ongoing transaction in taxes, and local government in Uxbridge has also been taking a share. None of the estate agents, lawyers, service providers, etc. and certainly not the owners of the Atrium (Aviva Insurance) have had the slightest interest in where 'Herbalife's' money comes from to pay them, and why should they?
Interestingly, the local Member of Parliament for Uxbridge, is Britain's new Foreign Secretary, Boris Johnson, who has already been lured into promoting a British-based 'Amway' copy-cat 'MLM' racket known as 'Utility Warehouse.'
Apparently, at the time they visited 'Utility Warehouse,' Boris Johnson (then Mayor of London), David Cameron (then UK Prime Minister) and their advisers sincerely believed the pernicious fairy story that 'Multi-Level Marketing' is an entirely lawful enterprise from which anyone can earn income.'
These examples demonstrate how 'MLM' rackets have infiltrated traditional culture to a point where the truth has become virtually unthinkable.
|The 'Herbalife' fairy story being peddled at London's Wembley Arena, 2014|
As to whether the FTC's new limits on the 'Herbalife' racket in the USA will be extended to the UK, they already are, because 'Herbalife's' US bosses (like Michael Johnson) and shills have been regularly broadcasting their fraudulent propaganda to the UK, and these individuals are apparently now under surveillance and they are no longer allowed to peddle the 'MLM Income Opportunity' fairy story. Agents of the FTC insist that they exchange information with regulators and law enforcement agents all over the world, but so far, I've not been able to determine exactly who they have been talking to in Britain.
David Brear (copyright 2016)