Amway

Amway generally refers to an international multi-level marketing (MLM)

Legal rulings

In a 1979 ruling, the FTC found that Amway does not qualify as an illegal pyramid scheme since the main aim of the enterprise is the sale of product. It did, however, order Amway to change several business practices and prohibited the company from misrepresenting the amount of profit, earnings or sales its distributors are likely to achieve. Amway was ordered to accompany any such statements with the actual averages per distributor, pointing out that more than half of the distributors do not make any money, with the average distributor making less than $100 per month. The order was violated with a 1986 ad campaign, resulting in a $100,000 fine.

Related Topics:
1979 - FTC - 1986

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In 1983, Amway pleaded guilty to tax evasion and customs fraud in Canada, resulting in a fine of CDN$25 million, the largest fine ever imposed in Canada.

Related Topics:
1983 - Tax evasion - Fraud

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In 2005, Amway/Quixtar orchestrated an attempt to drown out sites reporting deceptive practices and negative opinions. The "Web Initiative" was flagged as Google bombing, a violation of Google's Quality Guidelines.

Related Topics:
2005 - Google bombing

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