Published • loading... • Updated
Amway, affiliates to pay $225 million to settle US claims they deceived recruits
The settlement is the FTC’s largest against an MLM and will largely repay affected Amway members, officials said.
- On Thursday, Amway Corp and two affiliates, World Wide Group and Leadership Team Development, agreed to pay $225 million to the Federal Trade Commission and Washington state to resolve deceptive recruitment allegations.
- The FTC alleged Amway misled prospective Independent Business Owners with false earnings claims, pressuring them to purchase inventory they struggled to sell rather than focusing on customer sales.
- Data showed only 1% of IBOs earned $40,000 or more in 2023, with fewer than 1,600 of more than 241,000 participants reaching that earnings target, according to the complaint.
- Attorney General Nick Brown stated the settlement will "deliver relief for the many Washingtonians who joined Amway seeking to provide for themselves and their families, only to lose time and money." Amway must overhaul training and sales practices.
- Despite the settlement, Amway "fundamentally disagrees" with the agencies' characterization of its business, while the FTC noted this is the largest monetary recovery obtained against a multilevel marketing company.
Insights by Ground AI
15 Articles
15 Articles
The Daily HodlReposted by 
Cryptocurrency News | Cryptocurrency Prices | Market Cap
Cryptocurrency News | Cryptocurrency Prices | Market CapAmway To Hand $225,000,000 After FTC Alleges Deceptive MLM Recruitment
Amway and two affiliates agreed to pay $225 million to settle FTC and Washington state claims they misled recruits with false earnings promises and pushed unsellable product buys.
Amway and affiliates to pay $225 million to settle lawsuit over alleged deception of workers
The Federal Trade Commission, Amway, and two Amway affiliates will settle a lawsuit alleging the companies misled people about how much money they could make buying and reselling Amway products.
·Ann Arbor, United States
Read Full Article
Amway, affiliates to pay $225M to settle deception claims | Honolulu Star-Advertiser
WASHINGTON >> Multilevel marketing company Amway Corp and two of its affiliates will pay the Federal Trade Commission and Washington State $225 million to resolve allegations it recruited new members with deceptive claims about how much money they could make, the agency said on Thursday.
·Honolulu, United States
Read Full Article
Coverage Details
Total News Sources15
Leaning Left3Leaning Right2Center7Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 25%
C 58%
R 17%
Factuality
To view factuality data please Upgrade to Premium
