Thursday 9 April 2009

Destroying families Herbalife way

I received an email from a housewife narrating how she lost more than one hundred thousands rupees by way purchasing products of Herbalife. So is the case with Forever Living Products.
These fraudulent companies invite you to attend a seminar in which you are given a lush green picture of your future. All you have to do is becoming the member and purchase products and sell them. They heap praises on their products stating that they would heal all ailments under the sun. At the same time they say that their products are only food supplements. Never ask how can ailments be cured by consuming food supplements. That is the whole racket. The twist of words would get you off the ground. If you fall for them you would just become another loser.
All the time the company would get the benefits and the people are the losers. All products are overpriced and the upline members would share the booty.
Though we have been telling people not to fall prey to these fraudulent companies there would always be new victims.
My fellow countrymen. Wake up. Before attending any seminars or 'business opportunities' do some research into the scheming business model of these fraudulent companies.
It is not a business opportunity but a crime. As per the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978, joining into such schemes and making others to join such schemes are crime attracting the punishment imprisonment and fine. Unwittingly you are becoming a criminal for no fault of yours. Whenever you come across such invitations, go to police and lodge a criminal complaint such organisers of such schemes. The DGP of Andhra Pradesh has already issued directions to all police stations to book cases against money circulation schemes.
It is high time we acted in unison and stop these fraudulent companies.
Here is the list of fraudulent companies which are promoting money circulation schemes in the guise of selling products and services including insurance policies.
Amway India Enterprises
GoldQuest International (Now extinct and facing criminal case)
Herbalife
AMC Cookware
Avon Beauty
Forever Living
Hindustan Unilever Network
Modi Care
Oriflame India
Quantum International (Now extinct)
Sunrider India
Tupperware
Max New York Life
Alto Enterprises
Daeshan Trading (India) Pvt Ltd
Sriram OTH Ltd
CNI Enterprises India Pvt Ltd
RMP
Team Life Care Insurance Ltd
Golden Trust Fund
Securelife
And the list is endless.

12 comments:

Prashant said...

Person who dont know about the product, then they would obviously have negative impression. other MLM companies are fraud other than Forever Living Products. The reason, why forever living product is best because this company is vertically integrated. they have their own farm, people, processing unit, even they manufacture plastic bottles by their own,so no question of quality, right? not like other companies which are dependent on contract manufacturer.

Shyam Sundar said...

This is how these apologists are misleading people. Why should a simple toothpaste cost Rs. 225? Why a bottle of Aloe Vera gel should cost Rs. 900. This is how this multinational company has been cheating the gullible with false promises. If the products are that superior, they could sell them in the open market.

SimplyTheBest said...

Your opinion is incorrect. The products are excellent, and although they are not cheap, they are very good value and last a long time. Any products sold in a shop have to have a markup of about 100% for the wholesale price, as well as costs such as rent, wages, advertising, utility bills.

Sylvester said...

I am personally using Forever Living Products and find them extremely beneficial and have seen positive results.

You don't mind paying that extra buck when you get such quality products. And yes, they (FLP) are a genuine organisation who are into ethical business.

Unknown said...

The example Shaym Sundar brought in could be true but the lady lost the money probably because she went and bought 100k worth products over the excitement with having no clue on how to sell them!
I understand FLP offers upto 48% commission which is their selling cost. the admin cost shud be minimal except for the IT infrastructure! Do we have any FMCG products with less than 100% margin? i doubt.
These are muti-billion dollar companies and many individuals including professionals have chosen MLM over salaried job and they make much more and work at their convenience. they cant register a branch in the country if the prevalent legal system doesnt allow the business model!
I am a consumer of Forever living products and i find it beneficial for the entire family.
While i appreciate the good intention behind this post, it would have been more appreciable if a proper study was undertaken first.

Unknown said...

forever living products are best products on this planet and I personally suggest them to use before talking anything about them...
Hardeep Singh
9050384938

Shyam Sundar said...

Harpreet Singh, We are not talking about the quality of products here. We are discussing the business model which is illegal in India. In the name of selling products, these companies are indulging in illegal money circulation scheme cheating the gullible.

pant said...

Forever living products is a leagal and proven system. If it is wrong then why the government doesn't take any action towards the company. The company is running in 158 countries. That means it is approved from the 158 countries and no complain has been logged in any country against the company. The other thing is that it is not a pyramid scheme becuase pyramid scheme works on money circulation while FLP works on product circulation. Who says it is mandatory to make a member, just use the product or sell them. there is no money involve to join the FLP. some people say that the business will collapse when we fall short of the people. that is mathematically possible but not practically since as per the UNESCO every second two childs born in the world means you will never fall short of people. In FLP you do not get anything for granted, you need to work hard to keep the active qualification. no work, no money. if you get the money for some work that is legal but if you get some money without work that is illegal. In other company people do the work to sell the comb to bald person but in FLP people are taught to be ethical and thus their first priority is to help to grow hair for bald person with world's best products. once the person is happy with the result and gets hair on his head then he will automatically take comb from us.

Shyam Sundar said...

Santosh, selling in 168 countries won't make it a great product. Look at its business model and its compensation plan. It is nothing but money circulation scheme. Your point why the government is not taking action. If nobody complains police or government cannot take action. People must realise that they are duped by this company. Most of them resign to their fate. That is why nobody complains.
ETHICS. HA HA HA!

pant said...
This comment has been removed by the author.
Unknown said...

I am a consumer of Forever living products and i find it beneficial for the entire family.
While i appreciate the good intention behind this post, it would have been more appreciable if a proper study was undertaken first.

Ashok K Vasudevan said...

The Forever Living India Pvt Ltd is a registered company and follows the norms laid down by Government of India .
Just by quoting few legal references and simply casting meaningless allegations is incorrect.

First and foremost one joins this company at no cost and with no compulsion to buy for one's use .

Secondly straightaway one gets a discount of 2-15% just by joining .

Fourthly this discount can go upto 48% by entering into marketing plan , which is also not compulsory .

Fifthly having entered a marketing plan these products becomes zero cost and rather one can earn an unlimited amount .

Sixthly a company which makes you join at zero cost its sale reaching
Dollar 3 Bn speaks about the quality and efficacy of products

Seventhly a company meeting business norms of 162 countries and operating from 40 years speaks about its legal validity .

Eighthly the company in its joining documents straightaway states that bulk purchases is not the recommended method and asks to complaint the person who asks you to invest in bulk .