Herbalife agrees to $200k payout

Herbalife Ltd. has agreed to pay $200 million to consumers and change its business practices to settle a two-year federal investigation triggered by allegations from activist investor Bill Ackman.

The Federal Trade Commission announced the settlement Friday, saying the Los Angeles company’s compensation practices were unfair.

In a complaint filed in U.S. District Court in Los Angeles, the agency said Herbalife rewarded distributors for recruiting others to join the company and purchase products instead of basing compensation on “actual retail demand for the product.”

Herbalife sells weight-loss shakes and nutritional products through independent salespeople — which it calls its members — in more than 80 countries.

Retail sales up modestly in June

Retail sales in June rose 0.6 percent from May, to $457 billion, the Commerce Department said Friday. It was the third straight month of gains, although May retail sales were revised slightly down to 0.2 percent, from a previous estimate of 0.5 percent.

Economists said the increase was a reassuring sign of consumer confidence after a lackluster start to the year. Consumer spending represents more than two-thirds of economic activity, making retail sales a strong gauge of the nation’s economic health. It also followed a strong rebound in the job market last month, allaying fears that economic growth was slowing.

The past three months of gains could signal broader economic growth in the second half of the year.

— From wire reports