Dietary Supplement Safety Committee Co-Founder and Attorney Christopher Grell receives 40 page, 10 year study on Herbalife (NYSE: HLF) and Usana; results of study reveal that 99% of distributors earn income, not counting
expenses, of 13 dollars per week.
OAKLAND, Calif., June 20 /PRNewswire/ -- In newly released lab results from one of the nation's largest labs with a presence in over 30 countries, both Usana and Herbalife (NYSE: HLF) have lead levels that are over 1000 times the lead allowed under California law when taken as directed daily. The new results also revealed that the average lead content for non multi level marketing health drinks averaged 0.607 micrograms per day while Usana and Herbalife combined for a whopping 9.760 micrograms of lead per day. "I do not care what your liberal interpretation of Proposition 65 might be," said attorney Christopher Grell, "but these percentages are astounding and will hopefully catch the eye of California regulators."
Also released today was the results of a 10 year study conducted by multi level marketing expert Robert Fitzpatrick where he analyzed 11 multi level marketing company's, five of which are publicly traded.
In that study (a copy of which can be found at http://www.frauddiscovery.net), Mr. Fitzpatrick reveals the truth regarding the myth of the multi level marketing business opportunity by uncovering three undeniable truths: (1) on average no net income is earned by MLM distributors from door to door "retail" sales (2) the sales forces of Herbalife, Usana and the other company's analyzed are churned (lost money/quit/replaced) at rates between 60-90% each year and (3) 99% of all sales representatives each year in the sample of companies analyzed earned on average less than $13 a week in commission income.
According to Mr. Fitzpatrick in the report prepared for Mr. Grell, "The (income) figure represents a significant financial loss for virtually all that join these schemes. As extreme as the loss rate is, this figure is conservatively understated because it is calculated before all business expenses, inventory purchases and taxes are factored, which would increase total losses and the percentage of those losing."
As for the materiality of the lead tests (actual lead test results can be found at http://www.frauddiscovery.net), the below graph summarizes the results of testing on a Usana Health Sciences product and has found outrageous results.
One serving of the Usana Macro-Optimizers Nutrimeal Shake contains over
6.7 micrograms of lead, 1,252% more than the level allowed under
California's Proposition 65. If taken twice a day as suggested on the
Nutrimeal label, an individual will consume 13.4 micrograms of lead a day,
or 2,584% more than allowed under Prop 65. Herbalife did not fair much
Percent Max Percent
Lead Serving Servings Lead Serving
Lead Per Exceeds Per Per Exceeds
Product MLM? Allowed* Serving Allowed Day ** Day Allowed
Nutrimeal Yes 0.50 mcg 6.710 mcg 1242.00% 2.0 13.420 mcg 2584.00%
Mix Yes 0.50 mcg 3.050 mcg 510.00% 2.0 6.100 mcg 1120.00%
Ensure No 0.50 mcg - mcg 0.00% 1.0 - mcg 0.00%
Boost No 0.50 mcg - mcg 0.00% 1.0 - mcg 0.00%
Slim-Fast No 0.50 mcg 0.910 mcg 82.00% 2.0 1.820 mcg 264.00%
MLM Average Lead Per
Serving 4.880 mcg 9.760 mcg
Non-MLM Average Lead Per
Serving 0.303 mcg 0.607 mcg
* - Under California's Proposition 65
** - Based on recommended daily consumption per product label
|SOURCE Law Offices of Christopher E. Grell|
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