Core Insights - Herbalife China is facing multiple controversies including false advertising, refund difficulties, data violations, and product safety issues [1][2] - Consumer complaints on platforms like Black Cat Complaints highlight serious allegations against Herbalife, including claims of misleading recruitment and product ineffectiveness [1] - The company has been previously penalized for illegal direct selling practices, indicating ongoing regulatory challenges [2] Group 1: Consumer Complaints - On September 4, 2025, a consumer accused Herbalife of false recruitment practices, leading to product purchases without refunds, labeling the company as a "pyramid scheme" [1] - Complaints also include adverse health effects experienced after using Herbalife products, such as pain, bloating, headaches, and insomnia [1] - Allegations of inducing consumers to take loans for product purchases have been reported, raising ethical concerns about sales practices [1] Group 2: Data Security Issues - In August 2025, the Shanghai Communications Administration reported that three Herbalife apps violated personal information processing rules, necessitating rectification [1] - This incident highlights vulnerabilities in Herbalife's data governance and compliance with the Personal Information Protection Law [1] Group 3: Product Safety Concerns - In July 2025, Herbalife recalled 5,888 bottles of "Relax Tea" due to incorrect raw materials supplied by a vendor, raising safety concerns among consumers [2] - The ongoing issues with product safety contribute to a growing distrust in the brand [2] Group 4: Regulatory Challenges - Herbalife has a history of regulatory scrutiny, including a significant fine of 5.73 million yuan for illegal direct selling practices in 2018 [2] - The company has been operating in China since 1998 and has received approval to conduct direct selling in over 250 cities, but faces increasing operational and compliance challenges [2] Group 5: Leadership and Strategic Direction - In January 2024, Herbalife appointed Cai Menghong as the General Manager for China, tasked with overseeing market strategy, business development, and sales operations [2] - The effectiveness of this leadership change in addressing the current crises remains to be seen [2]