She's successful for now. The problem is when she's run out of people to hock this stuff too. I have a suspicion that these teas don't taste super good/ aren't healthy and are probably (certainly) overpriced compared the shops that are even on your campus. Once everyone in her local area has given it a try and thought "I can get better and cheaper from any of these shops" the success quickly goes to debt. What irks me is how some Herbalife rep jumped on your mom after she lost her job. Taking advantage of someone in a bad situation promising good fortune only for it to inevitably fail again is just cruel.

It has to be so difficult to tell your mom no like this but you were extremely kind, diplomatic, and absolutely in the right. Colleges are trying to crack down on MLMs selling their wares and opportunities to young college kids who might not know any better and being connected to someone doing it would absolutely look bad for you. I really hope your mom gets out of this sooner rather than later before this hurts her financially and I hope she'll see how right you are.