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  "documentTitle": "Herbalife, Ltd. (HLF)",
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  "notes": "Uses legal citations (FTC v. Equinox, Webster v. Omnitrition) to frame the business practice as legally problematic.",
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      "kind": "callout",
      "text": "Courts have established that a 10% restocking fee is large enough to burden distributors with a material non-refundable expense",
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      "text": "A court ruled that time limits on product returns significantly increase distributors' financial risk",
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      "text": "(2) HLF's buyback policy has a 12-Month Expiration; Amway had none",
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      "text": "(1) Herbalife's restocking fee is 10%; Amway's was 5%",
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      "text": "*8 Equinox does have a refund policy. Equinox, however, only refunds 90% of the price of the product which is less than Amway refunded in the case considered by the Ninth Circuit. See Omnitrition, 79 F.3d at 783.",
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      "text": "The latter fact is very significant. The buy-back rule is only effective if it can reduce or eliminate the possibility of inventory loading by insuring that program participants do not find themselves saddled with thousands of dollars worth of unsaleable products.",
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      "text": "*8 Equinox does have a refund policy. Equinox, however, only refunds 90% of the price of the product which is less than Amway refunded in the case considered by the Ninth Circuit. See Omnitrition, 79 F.3d at 783. Distributors that enter as Managers and purchase $5000 in product are effectively paying $500 for the right to participate in the Equinox opportunity. — FTC v. Equinox International, Corp., No. 990969HBR, 2008 WL 1425373, at * 8 (D. Nev. Sept. 14, 1999).",
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      "text": "Compared to Amway, HLF's Buyback Policy Does Not Adequately Protect Distributors From Losses",
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