- Bill Ackman has accused Herbalife (NYSE:HLF) of breaking direct-selling laws in China - the nutrition company's fastest growing market - by making recruits pay entry fees and allowing distributors to recruit new members.
- The allegations appear to be Ackman's latest attempt to prompt authorities to investigate Herbalife, on which he has a $1B short position.
- The company responded by saying it complies with Chinese rules, while legal experts in the country said the law is anyway unclear and enforcement is lax.
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