The Hispanic Federation sent a letter to the Federal Trade Commission on Friday requesting that the regulator investigate Herbalife, a multi-level marketing firm that sells nutrition products.
“It’s our understanding that the company’s marketing materials promise richness for a few hours of work from home. You can imagine for immigrants, particularly those who are underemployed or have no papers, this promise can seem like their ticket to achieving the American Dream,” the Hispanic Federation’s letter states.
Herbalife is the stock that hedge fund manager Bill Ackman, who runs Pershing Square, is publicly shorting.
Ackman believes the company is a pyramid scheme and that the FTC will be induced to investigate the company.
“If the FTC misses Herbalife, it’s the equivalent of the SEC missing Madoff,” Ackman said during a conference earlier this year.
Here’s the letter (Click to enlarge):