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What type of scheme has Herbalife been accused of operating?

  • Ponzi Scheme

  • Pyramid Scheme

  • Get-Rich-Quick Scheme

  • Multi-Level Marketing Scheme

Answer

Herbalife has been criticized for allegedly operating a "sophisticated pyramid scheme". A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products.
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