NYC pol: It’s Herb-sploitation
By MICHELLE CELARIER
Last Updated: 6:57 AM, June 14, 2013
Posted: 11:28 PM, June 13, 2013
A New York City Councilwoman has added a fourth voice to those calling for a probe of Herbalife, the controversial nutritional supplements company.
Julissa Ferreras, a Democrat who represents a heavily Hispanic district in Queens, yesterday asked the Federal Trade Commission to investigate.
“Latinos in my district, and across the country, are falling prey to Herbalife’s targeted recruitment,” she wrote to FTC Chairwoman Edith Ramirez.
The letter, which The Post obtained a copy of, has also been sent to New York Attorney General Eric Schneiderman.
Councilwoman Ferraras letter to FTC by New York Post
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Ferreras is the second Hispanic lawmaker to appeal to the FTC. Rep. Linda Sanchez (D-Calif.) did so earlier.
The Hispanic Federation also joined the chorus asking for a probe. The National Consumers League was the first group to request one.
The letters came after hedge fund activist Bill Ackman placed a $1 billion short bet on Herbalife in December, calling it a pyramid scheme that regulators would shut down.
“The wider the range of public officials expressing concern, the more the argument put forth by Ackman is reinforced,” said Bill Keep, a college business dean and multi-level marketing expert who has worked with FTC officials.
Herbalife strongly denies claims it is a pyramid scheme and cites the millions of people who purchase its products.
Ferreras told The Post she was concerned about the “proliferation” of Herbalife nutrition clubs in her neighborhood.
“I wake up in the morning, there is one across the street and [another] three doors over,” she said. “Walk across the street, and there’s another one.”
The debate about the Los Angeles company heated up when Ackman and fellow billionaire investor Carl Icahn got into a heated televised debate. Later Icahn bought a sizeable stake in Herbalife and said his research showed it is a legitimate company.
“It is disappointing that Councilwoman Ferreras did not reach out to the company,” Herbalife said in a statement, adding that it provides an “excellent income opportunity” to those in her district. The FTC said it cannot comment.
mcelarier@nypost.com
Read more: NYC councilwoman joins call for FTC to probe Herbalife’s Hispanic targeting - NYPOST.com http://www.nypost.com/p/news/business/nyc_pol_it_herb_sploitation_zr63x783q4YqvSA3hReQEM#ixzz2WD2am2ZO |
