How Usana Compares With Herbalife's Pyramid Scheme Allegations
- Usana operates similarly to Herbalife where commodity-like products are sold at premiums through a heavy emphasis on recruiting rather than traditional means of advertising and R&D.
- Confirmation that the FTC (and now allegedly the DOJ/FBI) has launched an investigation on Herbalife overshadows Usana’s seemingly strong financials.
- China relented to direct selling companies in 2001 under the pressure of the US. New rules by the FTC could would spillover to China.
- Hong Kong sales are suspiciously declining at an alarming rate, while offset by growth in China where MLMs are banned.
- Evidence that supplements have any long-term benefits for preventing cancer and cardiovascular disease (CVD) remains inconclusive by the US Preventative Service Task Force (USPSTF).