Amway and affiliates agree to pay $225 million to settle lawsuit over alleged deception of workers

Amway and affiliates agree to pay $225 million to settle lawsuit over alleged deception of workers

This story was originally published by Michigan Public. Personal product giant Amway, which is headquartered near Grand Rapids, and two of its affiliates have entered into a settlement agreement with the Federal Trade Commission to resolve claims they deceived workers and instructed workers to report inflated product sales numbers. The FTC said nearly all of […]

Amway agrees $225 million settlement with FTC over alleged deceptive business practices

Amway and two affiliates have agreed to pay $225 million to settle allegations from the FTC and the state of Washington of using deceptive and unfair tactics, including misleading earnings claims and pressuring recruits to buy products unlikely to be resold. The settlement, the largest ever against a multilevel marketing company, will compensate affected Independent Business Owners (IBOs) and requires Amway to implement reforms such as stricter sales requirements, reduced recruiter compensation for unsold products, and independent audits. Amway denies the allegations but agreed to the settlement to move forward.

WA, FTC reach $225M settlement with Amway for unfair and deceptive business practices

Amway Corp., one of the country’s largest multi-level marketing (MLM) companies, and two of its affiliates will pay $225 million to resolve allegations by the Federal Trade Commission (FTC) and the state of Washington that the companies use unfair and deceptive tactics to recruit members to Amway’s direct selling and MLM program.This is the largest monetary recovery obtained in an FTC action against an MLM, nearly all of which will be used to pr…

Amway and Affiliates to Pay $225M to Resolve Claims They Deceived Workers and Instructed Them to Report Inflated Product Sales Numbers

Personal product giant Amway, which is headquartered near Grand Rapids, and two of its affiliates have entered into a settlement agreement with the Federal Trade Commission to resolve claims they deceived workers and instructed workers to report inflated product sales numbers. The FTC said nearly all of the $225 million of the proposed settlement would …

Amway, Affiliates Face $225 Million FTC Settlement

WASHINGTON, D.C. — Amway Corp. and two affiliated multilevel-marketing groups would pay $225 million and overhaul recruiting, compensation, and sales practices under a proposed settlement with the Federal Trade Commission …