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  "documentTitle": "Herbalife, Ltd. (HLF)",
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      "text": "Indicator #7: Complex Compensation Rules. Herbalife imposes an extremely complex set of compensation rules on its distributors...",
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      "text": "Indicator #6: Targeting Financially Vulnerable Members of Ethnic Groups. Herbalife aims its pitch at the poorest, most vulnerable members of various targeted ethnic groups...",
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      "text": "Exploiting Sub-Markets. Herbalife apologists are quick to point to Herbalife's ability to endure in seemingly mature markets as evidence that the company must not be a pyramid scheme...",
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      "text": "Indicator #8: Evidence of Saturation. In a key case, In re Koscot Interplanetary, Inc., the FTC pointed to saturation as a key indicator of a pyramid scheme...",
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      "text": "Pop-and-Drop. The larger the incentive to recruit, the faster the geometric progression of the saturation. Inevitably, as new recruits cannot be found to replace exiting participants, sales decline...",
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      "text": "The demand for prospective participants thus increased in geometric progression while the number of potential investors available in a given community or geographical area remained relatively constant. . . The exhaustion of prospects results from over-saturation . . . [T]he imposition of an inappropriate statewide quota did not negate the endless chain representation, nor did it prevent the chain from soon reaching the saturation point in a number of local areas. — In re Koscot Interplanetary, Inc. (86 F.T.C. 1114, 1132-33)",
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