Herbalife managed to spin this as a victory since it escaped being officially labeled as a pyramid scheme. As a result, consumer confidence in the company rebounded and their stock priced soared to record highs, along with their product sales. And love ’em or hate ’em, Herbalife remains an MLM success story to this day.
Therefore, you can conclude that while the whole debate of Herbalife being a pyramid scheme might have come to rest, the concerns about pyramid scheme, in general, have not been. There is a very thin line distinguishing between a genuine multi-level marketing firm and pyramid scheme. It is also very difficult to discriminate between the two.