In 1979, the FTC ruled that multi-level marketing giant Amway is not a pyramid scheme, after years of controversy surrounding the company. While Amway still has a shady reputation in many circles, it's managed to avoid that level of government scrutiny in the United States since the FTC ruling.
But things are not going so well in England. The country's Department of Trade and Industry has filed a sealed complaint against the company, but has declined to specify any details. Amway responded by announcing that it is conducting a review of its business practices, and posted on its corporate blog some of the things its doing to shape up. The company is placing a 120-day moratorium on recruiting in Britain has banned sales of motivational tapes and literature not produced by the company. The sale of motivational materials has been a hot-button issue among Amway's critics, who charge that high-level Amway distributors get rich by selling motivational materials to naive recruits.
It will be interesting to see what happens here. An unfavorable outcome for the company in England could re-open the issue stateside.
Amway was also recently sued in California, with former distributors charging that the company is operating a pyramid scheme.
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Reader Comments (Page 1 of 1)
7-10-2007 @ 6:11AM
John said...
Amway tried to recruit me. It was obvious how much Amway is a scam. They showed me business models that made no sense and appeared to be deliberatley confusing-perhaps to make victims go look, there's a business plan i don't understand but it must be working. The speakers and "distributors" are smooth talkers who could make it in the legitimate business world instead of swindling money from others. If you are recruited by Amway, tell them you will not buy books, tapes, attend motivational seminars and you will see how fast your "sponsor" will drop you. It's a scam.
7-10-2007 @ 9:38AM
don said...
it is sad but true. I entered into the amway business and spent 9 years in it, going from raw recruit to profit sharing direct with directs in my organization.
I was going for the freedom aspect, a wonderful walk away income but alas that is impossible and it took me going thru a divorce and signing over my organization to an upline for me to figure it out.
I went thru a couple years of withdrawal. i did not know how to spend my spare time. I came to the realization that it was my life and i had no life.
since leaving the organization i have many people trying to get me into schemes similiar and i have tried to explain that there is no such thing as a walk away income, but failed.
to be totally honest i dont blame anyone for doing these types of business. it shows that they have drive and the want to better themselves. Maybe they want success so bad that they will do anything even amway to get it..........
9-04-2007 @ 10:06AM
Bob said...
Dear people,
The above two comments ARE a scam. I am in position to insist on it because I both know the people who succeeded in it and who continue to make a 'walk away income'... It's a wonderful opportunity for anyone, it teaches a lot and helps people not only earn more but also learn more. In fact, if you look around, you'll understand that working for somebody is more brainwashing than the 'scam' you try to slander.