FTC investigates Herbalife Ltd.

LOS ANGELES – Herbalife Ltd. says that it is facing an inquiry from the Federal Trade Commission.

The nutrition and supplement company’s shares plunged more than 12 percent following a brief halt in trading pending the announcement.

Herbalife said that it received the civil investigative demand from the FTC on Wednesday. A representative from the FTC was not immediately available to elaborate. The FTC’s website says that these are used to investigate possible “unfair or deceptive acts or practices.”

The company, which has faced accusations of operating a pyramid scheme, said that it welcomes the inquiry given “tremendous amount of misinformation in the marketplace” about its business.

Herbalife says it believes it is in compliance with all laws and regulations and plans to cooperate fully.

– The Associated Press