John Oliver: Multi-Level Marketing, Herbalife, Nu Skin, Launch Of #ThisIsAPyramidScheme

Last night, on Last Week Tonight, host John Oliver presented an in-depth report on the business practices of a long list of multi-level marketing (MLM) companies, including Rodan + Fields, Amway, Vemma, Herbalife, Advocare, Max International, Market America, Youngevity, Jusuru, Usana, Kyani, Mary Kay, and Nu Skin.

The entire multi-level marketing industry was reported to have sold $36.1 billion in goods and services in 2015.

The Oliver-multi-level-marketing feature presented a video produced by Herbalife Ltd. (NYSE: HLF), a company with publicly traded shares, a market capitalization of $5.1 billion, and trailing-12-month revenue of $4.5 billion, as reported by Yahoo Finance Canada.

In the Herbalife video, associates can be heard expounding on the many benefits that joining the organization affords. Herbalife associates state that by joining, members can be their “own boss,” “earn extra money,” “work from home,” care for children, set their own schedule, and earn “part-time or full-time money.”

Herbalife members are shown imploring viewers to share the video with ten people who they “care about, love,” and “adore.” One member then ups the video sharing request, first to “20 people!” then to “30 people!” and finally “100 people!”

“They want what we have,” the young man explained to viewers of the Herbalife video presented by Oliver.

Oliver explained that there are two main ways that members of multi-level market companies earn money. The first is by selling products to customers, who are often family, friends, or co-workers. The second is by recruiting people to also sell the products offered, as well as recruit even more people to do the same thing.

As the late-night host pointed out, Herbalife has previously hired former U.S. Federal Trade Commission officials, including Pamela Jones Harbour, as reported by the Wall Street Journal.

Oliver also told the story of when a documentary critical of Herbalife, Betting On Zero, was screened in Washington, D.C. and a lobbying firm for the multi-level marketer bought out all the seats in the theater — 173 in total — to block anyone else from viewing it, as reported by Politico.

The Last Week Tonight host concluded that 93 percent of Nu Skin distributors earn zero commissions after analyzing data provided by the company, which is also publicly traded, as Nu Skin Enterprises Inc. (NYSE: NUS). Nu Skin generated $2.2 billion in revenue over the past year, as reported by Yahoo Finance Canada.

The segment concluded with John Oliver announcing a new multi-level marketing plan making use of the reach of the Last Week Tonight audience and a new hashtag: #ThisIsAPyramidScheme.

Oliver encouraged his audience to share the Last Week Tonight video and the hashtag with family and friends who might be considering joining a multi-level marketing company. The host then moved to a set custom-made for the event, satirizing the one used during an entrance by J.R. Ridinger at a Market America event shown earlier in the show. The set featured a stage lined with live jets of fire.

“Here is how it works,” John Oliver explained his new pyramid scheme. “Simply watch this video and then forward it to five people, and then instruct them to forward it to another five people, and so on, and so on, and so on. Within 14 cycles, every single person on Earth will have seen this.”

Then, in honor of Herbalife, which was shown during the segment being placed in some interesting dialogue in a Spanish-language television show featuring the products, Last Week Tonight announced that Mexican singer and actor Jaime Camil would be presenting a Spanish version of the Last Week Tonight-multi-level marketing video.

The Inquisitr has previously featured the FTC investigation into Vemma, featured in the John Oliver-MLM segment. The energy drink company has been accused of operating as a pyramid scheme and is reported to currently be operating under a “permanent injunction,” as reported by the FTC.

[Featured Image by Stephen Lovekin/Getty Images]