Back in July, I wrote about network marketing giant Amway/Quixtar's self-imposed 120-day moratorium on recruiting in the United Kingdom, a response to a Department of Trade and Industry complaint against the company. Many critics charge that Amway is operating a thinly-veiled pyramid scheme, based on the same principles as the chain letter.
Well earlier in November, Amway blogged about its plans to return to the region, posting a memo that had been sent to directors and employees, and also forwarded to many of the company's United Kingdom distributors.
Here's where it gets interesting. Many people, myself included, have charged that the FTC is not doing enough to crack down on multi-level marketing companies using false and misleading recruiting tactics. based on the text of the memo, Amway seems to agree:
"The fact is, in the wake of this sobering experience, every one of us -- employees, IBOs, and others -- should renew our commitment to hold ourselves to the highest standards of behavior. The marketplace -- and in the UK, the government -- has made it clear that they expect no less. And when falling short of those standards exposes our company to such grave risk, there can no longer be any such thing as 'business as usual.'" (emphasis added)
In other words, the government of United Kingdom has made it clear that it will hold Amway to the highest standards of behavior -- but the United States has not followed the lead.
Perhaps Amway's massive political contributions have had something to do with that. it's a shame that our elected officials are putting the interests of special interest groups ahead of those of consumers. That's just business as usual in the land of the free, home of the brave.











Reader Comments (Page 1 of 1)
12-02-2007 @ 3:21PM
Tex said...
It's clear A/Q got lazy with prices, especially considering the rise of the discount megastores.
The upline didn't complain of this because they were making far more money via the tool scam, and had a clear incentive to not rock the boat.
In the end, IBO's got ripped off by both A/Q and the upline.
12-02-2007 @ 4:49PM
Ronin said...
I have made a similar post on another blog however I think its worth re-stating.
In light of the statements made in this case, isn't there a concern about misrepresentation from impact statements at business previews and BDS' by higher level pins that are not actually qualified at those levels?
I know in my market this is quite common. Both my upline Emerald and downline Platinum haven't re-qualified in over 2 years yet they both give impact statements as their pin and teach at various functions. Clearly this is misleading both to prospects/new people as well as IBOs that look to their guidance and input based on their level of achievement.
given the increased scrutiny from the public, the media and the law, isn't this something that needs to be seriously dealt with internally BEFORE it is exposed publicly?