Response to accusations of Mr. Ackman:
I would like to point out that internal consumption alone is not an indicator of a pyramid scheme. 100 percent of Coca Cola consumption is internally consumed. In fact there are several persons who become independent contractors so that they can consume Herbalife products that are given to him. Further, Herbalife is a company with consistent retail sales. So, by the test given by law enforcement agencies, Herbalife is not a pyramid scheme. Further, a contractor is required to buy more products only if they need it or require it for personal use. There is a large number of contractors who do not care about commission and their "earnings" are not positive. This does not mean that contractors lose money.
I would like to point out that internal consumption alone is not an indicator of a pyramid scheme. 100 percent of Coca Cola consumption is internally consumed. In fact there are several persons who become independent contractors so that they can consume Herbalife products that are given to him. Further, Herbalife is a company with consistent retail sales. So, by the test given by law enforcement agencies, Herbalife is not a pyramid scheme. Further, a contractor is required to buy more products only if they need it or require it for personal use. There is a large number of contractors who do not care about commission and their "earnings" are not positive. This does not mean that contractors lose money.