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Former FTC big jumps on board Herbalife

By
Michelle Celarier
Published Oct. 7, 2014, 1:12 a.m. ET

Herbalife, the diet shake seller under investigation by the Federal Trade Commission, has hired a former FTC commissioner to head its beleaguered compliance division.

Pamela Jones Harbour, an FTC commissioner from 2003 to 2010, joined Herbalife Monday in a newly created role of senior vice president, global member compliance and privacy.

Herbalife’s ability to ensure its independent distributors follow the law has long been a concern, as the company has only about 300 compliance professionals to oversee some 4 million distributors worldwide.

Its stock gained almost 6 percent on the news, closing at $47.30 — its highest price since Sept. 9.