WASHINGTON (Legal Newsline) — The Federal Trade Commission
(FTC) has announced it is taking applications for an independent compliance auditor
(ICA) to oversee Herbalife’s compliance with a judicially enforceable
stipulated order for permanent injunction and monetary judgment.
The ICA will need to provide reports on Herbalife’s
implementation of the order. The ICA will assess whether the company is
tracking its retail sales, distinguishing between business opportunity
participants and discount, observing limitations on compensation based on personal
consumption of products, calculation and payment of multilevel compensation, and
certain training requirements.
The ICA will be selected jointly by the FTC and Herbalife.
If they cannot agree on the person, a court will make final decisions.
The ICA will oversee the implementation of the order for
seven years. The FTC is posting a description of the work required by the
project as well as information that must be included in the application, on its
The FTC is accepting applications through midnight EDT Aug. 29.