Legal status

Legal status XX In 1979, the Federal Trade Commission USA. UU. stated that Amway did not have an illegal pyramid scheme (as the company’s goal was the sale of a product and the money was paid according to the volume of personal and group business). However, Amway was ordered change several business practices (in the U.S.. UU.) and banned him from altering the statistics about the amount of money that a dealer could earn.He also ordered that clearly indicated the new “entrepreneurs” that more than half of the dealers never obtained any benefit, and the rest generated an average of less than 100 a month. Citation needed In a propaganda campaign 1986, the company returned to exaggerate the benefits, and paid a fine of 100 000 (0.1 of their earnings that year). citation needed In 1983, Amway had to pay the Canadian government 20.2 million (the largest fine in that country) for tax evasion and customs fraud. In 1989 he had to pay another 105 million to settle a lawsuit by the trade office in Canada. On 25 March 1985, in an interview with Forbes Magazine, Don Gregory, former head of the speeches written by Jay Van Andel (co-founder of Amway) – said: “For the recruits are brainwashed to to spend a fortune on products and peripherals to consume all of Amway products.They lose their own shirts or begin making money by having enough people below them to do the same. ” A company official said vendors themselves consume about 35 of the products. But Charlie Marsh, one of the ten largest distributors of Amway, said the Amway sales force consumes approximately 60 of its turnover. gain business as a distributor of Amway / Quixtar is 286 times more difficult than winning at roulette in Las Vegas. The percentage of persons who act as distributors of Amway / Quixtar and lose money (ie spending more than they earn) amounts to 99.99 , while the percentage of sellers Herbalife (another network marketing company, also accused of partisanship) that lose money amounts to 99.42 . According to Forbes Magazine, “one must get out of the business world and into the religion to find people who work so hard for so little monetary reward, as most Amway people.” 16