Can I get a refund after joining Herbalife as a distributor?

Full question:

I recently paid to become an herbalife distributor through 'the online business systems' The cost was $399. You make this decision before there is ever full disclosure of what the program is all about and I was was never told that it was non refundable. Received all the products and training manuals in the mail but never opened them. I never even filled out my distributor application. After receiving some more info from my business coach I decided it was not for me. This all happened within 6 days. I am wondering if legally they have to give me my money back? It was all done over the phone and internet.

  • Category: Contracts
  • Subcategory: Recission
  • Date:
  • State: New Hampshire

Answer:

Your situation involves contract law, specifically the terms of your agreement with the company. It's important to review the documents you received to understand your cancellation rights and the company's obligations.

Generally, the federal law regarding automatic cancellation does not apply to internet purchases. According to the Federal Trade Commission's Cooling Off Rule, you can cancel certain contracts within three business days, but this typically applies to door-to-door sales or contracts made outside the seller's usual business location (e.g., at a sales presentation).

Since your transaction was conducted online and over the phone, this rule may not apply. If you believe you were misled about the non-refundable nature of your payment, you might consider filing a complaint with the Better Business Bureau.

If you wish to pursue legal action, it's essential to know that contracts are enforceable agreements that establish the rights and duties of both parties. Breach of contract occurs when one party fails to fulfill their obligations, and remedies may include money damages or restitution. However, proving an oral contract can be challenging.

For further assistance, you may want to consult a legal professional who can provide guidance based on your specific circumstances.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

The Herbalife lawsuit resulted in a settlement of $200 million in 2016. This settlement was part of an agreement with the Federal Trade Commission (FTC) to resolve allegations of deceptive practices. However, the amount paid out to individual claimants varies based on the specifics of their claims and the settlement terms.