Telangana State Road Transport Corporation (TSRTC) Managing Director VC Sajjanar on Thursday called for action against Herbalife, a multi-level marketing company, for scamming people. The MD also urged the management of the Indian Premier League (IPL) to reconsider its partnership with the firm.
Sajjanar took to Twitter expressing concern and said, “Concerns arise over the practices of multi-level marketing companies such as Herbalife, who are accused of deceiving unsuspecting individuals. Leveraging their association with #IPL, they promote their products extensively. IPL management should reconsider aligning with such questionable organisations as official partners. It is essential for law enforcement agencies to take appropriate legal action against Herbalife and put an end to these fraudulent activities. “
Addressing the issue, Sajjanar said, “The firm has carried out enrollment schemes which are banned under the Prize Chits and Money Circulation Act of 1978. It is an illegal scheme; unfortunately enforcement authorities aren’t taking action. The Telangana CID has registered a case and there are a few more in other parts of the country. The firm is punishable under Section 420 of the IPC and Section 3 of the Prize Chits and Money Circulation Act.”
In 2019, the United States Department of Justice charged two of the firm’s employees with conspiracy in violation of the Foreign Corrupt Practices Act (FCPA). They were accused of bribing Chinese officials in order to procure sales permits and to influence an investigation into Herbalife. They were also accused of offering bribes to China Economic Net in order to influence their media coverage. In August 2020, Herbalife agreed to pay $123 million to the US Department of Justice and the U.S. Securities and Exchange Commission.
