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  "documentTitle": "Herbalife, Ltd. (HLF)",
  "authorId": "01_Pershing_Square",
  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2013-04-09 00:00:00",
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      "kind": "callout",
      "text": "We believe the typical distributor earns less than $100 per year before expenses. Only the top ~0.1% of Herbalife distributors earn enough to “achieve financial freedom.”",
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      "kind": "paragraph",
      "text": "Blaming the Victims. According to the company's website, Herbalife tells millions of people its opportunity will let you \"earn what you're worth.\" That phrase allows Herbalife to blame the distributors when they fail.",
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      "kind": "paragraph",
      "text": "Misleading Testimonials. Herbalife-published magazines are filled with testimonials of successful distributors. These testimonials follow a simple rags-to-riches formula.",
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      "kind": "paragraph",
      "text": "Overstated Opportunity for Profits. These testimonials and other Herbalife distributor marketing materials create the perception for potential recruits that is inconsistent with their likelihood of success.",
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      "kind": "quote",
      "text": "If an organization sells goods or services to the public and the participants in the organization obtain monetary benefits from (1) recruiting new members and (2) selling the organization's goods and services to consumers, the organization is deemed a pyramid scheme if the participants obtain their monetary benefits primarily from recruitment rather than the sale of goods and services to consumers.",
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      "kind": "quote",
      "text": "If an organization sells goods or services to the public and the participants in the organization obtain monetary benefits from (1) recruiting new members and (2) selling the organization's goods and services to consumers, the organization is deemed a pyramid scheme if the participants obtain their monetary benefits primarily from recruitment rather than the sale of goods and services to consumers. — Dr. Peter J. Vander Nat, Senior Economist at the FTC",
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      "text": "Vander Nat, Peter J. and William W. Keep, \"Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes,\" in Journal of Public Policy and Marketing, Vol. 21 (1), Spring 2002, at 139-51.",
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