At a glance
Amway and affiliates will pay $225 million to settle U.S. claims they deceived recruits about earnings and business opportunities. The settlement is one of the largest against the multilevel marketing company.
Amway and affiliated entities are paying $225 million to settle U.S. government claims that they deceived recruits about earning potential and business opportunities. The settlement is one of the largest ever imposed on the multilevel marketing company.
Amway's business model depends on recruitment—people making money primarily by signing up other sellers rather than by selling actual products. When the FTC successfully argues that earnings claims were fraudulent, it's attacking the core mechanism that keeps the company running. The settlement requires Amway to change how it represents income potential to new recruits. This is one of the rare instances where the government won a major case against an MLM company.
Citation trail
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