Local Latino and inner city advocacy groups filed a complaint with state Attorney General Kamala Harris against Herbalife, a nutritional supplement company based in Los Angeles.
Last week, a Massachusetts Senator called on the FCC to investigate the health and weight loss company for running a pyramid scheme after receiving complaints from constituents.
Herbalife says it has successfully established itself in the Latino and working class communities with good reason. But the Coalition to Stop Herbalife accuses the company of using predatory practices to aggressively promote its multi-level marketing schemes in immigrant communities.
Pacifica KPFK’s Ernesto Arce spoke with both sides in the contentious debate.

A group of angry residents gathered outside of the Ronald Reagan state building in downtown LA to ask Attorney General Kamala Harris to enforce an injunction against Herbalife International.

There’s a growing chorus of disgruntled former Herbalife distributors who allege high pressure tactics to invest their life savings into the company. Many say they gave their all but still got no return for their investment.

Argelia Leon with the Coalition to Stop Herbalife accuses the nutritional and diet supplement company of preying on Latino immigrants and low-income communities. She wants the company to open its books and change what she calls its illegal business practices.

Now, Latino advocacy groups such as LULAC, the League of United Latin American Citizens, as well as Vamos Unidos, and others have joined with traditional African-American churches; Weller Street Missionary Baptist and Bel Christian Center that accuse the company of ripping off investors from their communities.

Marco Gonzales is a senior spokesperson for Herbalife. He says the group’s claims have no merit.

For more than three decades, Herbalife has carved a niche for itself by recruiting people who want to be their own boss and go into business on their own.

Herbalife International reported more than $4 billion in sales in 2012. Last year’s figure is expected to be even greater. It’s mostly due to the diligence of over 3.2. million independent distributors.

Leon with the coalition shared the story of Hector, a low-income head of household who says he was scammed by the company.

Gonzales with Herbalife says distributors enter into agreement with the company the way any entrepreneur would enter any business. He says there’s no guarantee of immediate success but that distributors can rely on the company’s support.

Herbalife says it plans to cooperate with a possible Congressional investigation into its business practices. The company says the probe is fueled by an angry former business partner who is now making money off selling Herbalife stock.

But Leon says the supplement giant is ignoring their complaints. She says there are many allegations of improper business practices. Leon says Sheree is another former distributor who was promised a permanent residency if she sold well.

The Coalition to Stop Herbalife wants Attorney General Harris to audit and enforce an order against the company. They also want local lawmakers to put pressure on Herbalife so it can review the cases of people who claim they’ve been cheated by the company.