The Federal Trade Commission (FTC) is actively seeking candidates for an Independent Compliance Auditor (ICA) position, a key component of the settlement agreement with Herbalife. This auditor will be tasked with ensuring the nutrition company adheres to the terms of its resolution with the agency.
The FTC announced the search for applicants on August 9th via a press release. The appointed ICA will conduct a thorough review of Herbalife’s U.S. business operations. Their responsibilities include assessing the implementation of reforms related to tracking retail sales, differentiating between business opportunity participants and discount buyers, known as "preferred customers." The auditor will also monitor adherence to limitations on compensation based on personal product consumption. Furthermore, the role involves scrutinizing the calculation and payment of multi-level compensation and verifying compliance with specific training requirements.
This oversight role is slated for a seven-year term. Ideally, Herbalife and the FTC will jointly nominate an individual to serve as the ICA, with the court granting final approval. However, the pool of applicants is not the sole source for this appointment. Should the company and the commission fail to reach a consensus on a nominee, the court will assume the responsibility of selecting and appointing the auditor.