The League of United Latin American Citizens (LULAC) pressed the Federal Trade Commission for an investigation into Herbalife's business practices in mid-2014. This call for action sparked an ongoing dispute, with LULAC's National Executive Director, Brent Wilkes, stating he believes Herbalife defrauds over 300,000 Latino consumers annually.

"I'm mad," Wilkes stated. "I've seen Latinos ripped off by banks and others, but this scheme really takes the cake." He concluded Herbalife's practices defraud hundreds of thousands of Latinos each year after unproductive discussions with company representatives.

Herbalife executives met with LULAC three times to address the concerns. These meetings yielded little progress. Herbalife President Dan Walsh later wrote an open letter to Wilkes on May 31, 2014, expressing frustration.

Walsh's letter highlighted Herbalife's presence in the Latino community. He noted the company's role in promoting healthier lifestyles through education and products. He also defended the business opportunity offered to those seeking part-time or full-time income, attributing strong support in the community to product popularity and the availability of this opportunity.

"Yet, in your letter you continue to state as 'evidence' what are in fact misconceptions and unfounded, inaccurate allegations," Walsh wrote.

Walsh specifically addressed retail activity within Herbalife. He explained that the company, like many direct sellers, relies partly on independent, third-party research to gather point-of-sale information. Research from Lieberman Research Worldwide and Nielsen indicated that 78% to 87% of Herbalife's US customers do not belong to its network of Members. The company's reliance on external firms to track its own retail sales has drawn scrutiny. Herbalife maintains its policies protect both members and consumers.