Herbalife Ltd. — Ethics Grade D

Herbalife Ltd. receives an overall ethics grade of D (34/100) on CancelCo's corporate accountability database. Sector: Food & Beverage. Market cap: Mid Cap.

Category scores

• labor: 40
• privacy: 80
• consumer: 20
• environment: 55
• humanRights: 60

Documented incidents (3)

• Pyramid Scheme Allegations (high, 2016) — FTC ordered a $200M settlement and required the company to restructure after finding most members made little to no money while incentivized to recruit.
• Foreign Corrupt Practices Act Violation (high, 2020) — The company paid $123M to settle charges of bribing Chinese government officials to obtain direct selling licenses.
• Deceptive Earnings Claims (medium, 2022) — Consumer protection agencies flagged continued use of deceptive marketing regarding the potential income of new distributors.

Documented good deeds

• Casa Herbalife Program — Provided funding for nutritional programs at orphanages and community centers worldwide.

Ethical alternatives

• Garden of Life — Certified B Corp with organic, non-GMO verified nutrition products.