[kach22i]

Straight up guy?


http://www.answers.com/topic/amway

Legal rulings

In the 1979 In re. Amway Corp. (93 F.T.C. 618) ruling [7], the Federal Trade Commission 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. [8]

In 1983, Amway, headed by Richard DeVos, pled guilty to tax evasion and customs fraud in Canada, resulting in a fine of $25 million CAD, the largest fine ever imposed in that country.

Other violations

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.