Herbalife lobby hits the Hill

SALES FORCE: There's now more to the Washington dimension of the ongoing war between billionaire short-seller Bill Ackman and the nutritional supplements seller he calls a pyramid scheme, Herbalife. The Direct Selling Association, the trade group for so-called multi-level marketing companies like Herbalife, has its fly-in today, when more than 500 consultants representing 20 companies will meet with legislators and their staffs. Thirty-one members of Congress have joined a new Direct Selling Caucus, co-chaired by Reps. Marsha Blackburn (R-Tenn.) and Marc Veasey (D-Texas).

The International Coalition of Consumers Advocates seized on the occasion to warn caucus members about the industry's alleged abuses. "We believe the organizing of a 'congressional caucus' is not to 'support opportunities for independent work' as the DSA claims, but rather to defend itself and some of its members against public scrutiny, FTC/SEC/DOJ investigations, and recent Wall Street activism," they wrote in a letter. Amy L. Hinojosa, president and CEO of MANA, a national Latina organization, chimed in: "We know there are bad actors luring victims into pyramid schemes. In the case of Herbalife, Latina consumers are being disproportionately targeted and victimized." DSA President Joseph N. Mariano shot back: "Placing a scarlet letter upon an entire sales channel is irresponsible and does not protect consumers."