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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "authorName": "William Ackman",
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  "presentationDate": "2012-12-20 00:00:00",
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  "notes": "The slide uses a series of bullet points to dismantle the company's claim that low returns imply high retail demand.",
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      "text": "A non-refundable Surcharge and a 10% restocking fee mean that Sales Leaders only get 79% of their money back on returned product",
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      "text": "To return product to the Company, distributors are required to resign, forfeiting their hard-earned downline forever",
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      "text": "Herbalife’s buyback policy is not a 100% cash back guarantee",
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      "text": "In many cases, Sales Leaders are better off repurchasing product from their downline rather than allowing them to return it to Herbalife",
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      "text": "A meaningful amount of product is purchased by Non-Sales Leaders from Sales Leaders in the “field,” not directly from the Company, and is not eligible to be returned to Herbalife",
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      "text": "Herbalife’s buyback policy permits the company to deduct recruiting rewards earned on returned product retroactively (“clawback”)",
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      "text": "return percentage: 0.4%",
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      "text": "Purchases directly from the company – of that 82%, a lot of people never purchase from the company. So they sign up to be a distributor from their sponsor, but they still buy product from the sponsor… Again, a million of our distributors don’t order directly from the company. — John DeSimone, CFO, Herbalife at the Citi Global Consumer Conference (5-23-12)",
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      "text": "(1) Products are only eligible for return to the company “if the products were purchased from Herbalife.” (2) E.g., a Sales Leader who pays $50 plus a $7 Surcharge for $100 of SRP product is entitled to get back $45.",
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      "text": "Herbalife's 0.4% Return Percentage Does Not Necessarily Indicate Retail Activity",
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