As the short thesis on Herbalife ( HLF ) is coming to fruition, Usana ( NYSE: USNA ) could very much be next. Like Herbalife, Usana sells commodity-like products at premium prices without any convincing reasons other than their recruiting activities. But unlike Herbalife where retail sales are elusive and the company assumes an arbitrary 50% suggested retail price (SRP), Usana's price list insists on a 20% SRP (aka recommended retail price) which makes it impossible for distributors to earn more income from retail sales than commission from their downlines ( credit to LongShort 101 ). Honorable mentions to the short-thesis includes: However, regulatory action is forecasted to take as long as at least a year as significant new rules or fines could set a new precedence for the industry. The below analysis attempts establish Usana as an illegitimate company through the lens of Bill Ackman on Herbalife. We will conclude that Usana should be included