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{{short description|American multi-level marketing company (1959– )}} {{protection padlock|small=yes}} {{Lead too short|date=July 2024}} {{Use mdy dates|date=July 2015}} {{Infobox company | name = Amway Corp. | logo = Amway (logo).svg | image = Ada Michigan Amway HQ DSCN9720.JPG | image_size = | image_caption = Headquarters in [[Ada Township, Michigan|Ada, Michigan]] | type = [[Privately held company|Private]] | founder = {{plainlist| * [[Richard DeVos]] * [[Jay Van Andel]] }} | area_served = Worldwide | key_people = {{plainlist| * Steve Van Andel (co-[[chairman]]) * [[Doug DeVos]] (co-chairman) * Milind Pant ([[Chief executive officer|CEO]]) }} | industry = [[Multi-level marketing]] | products = {{hlist |[[Cleaning agent]]s |[[skin care]] |[[personal care]] |[[cosmetics]] |[[dietary supplement]]s |[[protein supplement]]s |[[beverages]] |[[cookware]] | [[water purifier]]s |[[air purifiers]] }} | brands = Amway Home, Glister, G&H, [[Nutrilite]], [[Artistry (cosmetics)|Artistry]], AmwayQueen, eSpring, Atmosphere, XS Energy | revenue = [[US$]] 8.1 billion (2022)<ref name="sales">{{Cite web |url=https://www.forbes.com/companies/amway/?sh=3e36d67ec415 |title=Amway |website=[[Forbes]] |access-date=January 25, 2023 |archive-date=January 25, 2023 |archive-url=https://web.archive.org/web/20230125154502/https://www.forbes.com/companies/amway/?sh=3e36d67ec415 |url-status=live }}</ref> | operating_income = | net_income = | num_employees = 15,000+<ref name="sales" /> | parent = [[Alticor]] | foundation = {{Start date and age|1959|11|09}} | location = [[Ada Township, Michigan|Ada, Michigan]], United States | homepage = {{Official URL}} }} '''Amway Corp.''' (short for "American Way") is an American [[multi-level marketing]] (MLM) company that sells health, beauty, and [[home care]] products.<ref name="Xardel">{{Cite book|last= Xardel |first= Dominique |author-link= Dominique Xardel|title= The Direct Selling Revolution. Understanding the Growth of the Amway Corporation |publisher=[[Blackwell Publishing]] |year= 1993 |isbn= 978-0-631-19229-9|pages=1–4 }}</ref><ref>{{cite web|url=http://www.amway.com/en/General/About-Amway-10725.aspx |title=About Amway – Global Leader in Direct Selling |publisher=Amway.com |date=June 23, 2011 |access-date=July 9, 2011| archive-url= https://web.archive.org/web/20090418042628/http://www.amway.com/en/general/about-amway-10725.aspx| archive-date=April 18, 2009| url-status= live}}</ref><ref>{{cite web|url=http://www.thetimes100.co.uk/case-study--meeting-global-responsibilities-by-caring-for-communities--11-172-2.php |archive-url=https://web.archive.org/web/20071220203230/http://www.thetimes100.co.uk/case-study--meeting-global-responsibilities-by-caring-for-communities--11-172-2.php |url-status=dead |archive-date=December 20, 2007 |title=The Times 100 Business Case Studies: Amway – Direct selling and supply chain |date=February 22, 2008 |access-date=July 9, 2011 }}</ref> The company was founded in 1959 by [[Jay Van Andel]] and [[Richard DeVos]] and is based in [[Ada Township, Michigan|Ada, Michigan]].<ref>{{cite web|title=Amway Corp—Company Profile and News—Bloomberg Markets|website=Bloomberg|access-date=September 2, 2019|url=https://www.bloomberg.com/profile/company/6382Z:US|archive-date=September 2, 2019|archive-url=https://web.archive.org/web/20190902164523/https://www.bloomberg.com/profile/company/6382Z:US|url-status=live}}</ref> Amway and its sister companies under [[Alticor]] reported sales of $8.9 billion in 2019.<ref name="sales"/> It is the largest multi-level marketing company in the world by revenue.<ref>{{Cite web |url=https://www.investopedia.com/terms/m/multi-level-marketing.asp |title=What Is an MLM? How Multilevel Marketing Works |access-date=January 25, 2023 |archive-date=February 18, 2023 |archive-url=https://web.archive.org/web/20230218035338/https://www.investopedia.com/terms/m/multi-level-marketing.asp |url-status=live }}</ref> It conducts business through a number of affiliated companies in more than a hundred countries and territories. Amway has been investigated in various countries and by institutions such as the US [[Federal Trade Commission]] (FTC) for alleged [[pyramid scheme]] practices. The company has paid tens of millions of dollars to settle these suits.<ref>{{cite news |url=https://www.ftc.gov/public-statements/1998/05/pyramid-schemes |title=Pyramid Schemes |work=Federal Trade Commission |access-date=July 19, 2015 |date=May 13, 1998 |archive-date=December 16, 2013 |archive-url=https://web.archive.org/web/20131216053839/http://www.ftc.gov/public-statements/1998/05/pyramid-schemes |url-status=live }}</ref><ref name="classaction" /><ref name="ibtimes" /><ref name="Kerala raids" /><ref name="Sanandakumar">{{cite news|last=Sanandakumar|first=S|title=Amway India Chairman William S Pinckney, two Directors granted bail|url=http://economictimes.indiatimes.com/news/politics-and-nation/amway-india-chairman-william-s-pinckney-two-directors-granted-bail/articleshow/20314744.cms|access-date=May 28, 2014|work=[[The Economic Times]]|date=May 29, 2013|archive-date=December 17, 2016|archive-url=https://web.archive.org/web/20161217180913/http://economictimes.indiatimes.com/news/politics-and-nation/amway-india-chairman-william-s-pinckney-two-directors-granted-bail/articleshow/20314744.cms|url-status=live}}</ref><ref>{{cite news|first=Roger |last=Adler |url=https://www.law.com/almID/1202428760677/ |archive-url=https://archive.today/20110607231937/http://www.law.com/jsp/ihc/PubArticleIHC.jsp?id=1202428760677 |url-status=live |archive-date=June 7, 2011 |title=Amway GC Lives the Dream |publisher=Law.com |date=March 4, 2009 |access-date=December 29, 2018}}</ref> In 1983, Amway admitted to defrauding the Canadian government of customs duties and taxes by falsely undervaluing goods it imported into the country over a period of 15 years; it had to pay a fine.<ref>{{Cite news |last=Martin |first=Douglas |date=November 11, 1983 |title=Amway admits fraud |url=https://www.nytimes.com/1983/11/11/business/amway-admits-fraud.html |work=The New York Times}}</ref> Between 2007 and 2008, Amway was found guilty of illegal business practices in India, a ruling upheld by the [[Supreme Court of India]] and followed in 2021 by India's [[Enforcement Directorate]] attaching company and bank assets, identifying Amway's business model as a pyramid fraud and its product offerings a masquerade.<ref>{{Cite news |date=May 27, 2014 |title=Andhra Police arrest Amway India CEO, act evokes condemnation |work=Business Standard}}</ref><ref>{{Cite web |last=www.ETRetail.com |title=Amway guilty of misbranding, asked not to sell two products - ET Retail |url=https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/amway-guilty-of-misbranding-asked-not-to-sell-two-products/61563037 |access-date=2024-04-07 |website=ETRetail.com |language=en}}</ref><ref>{{Cite web |date=2022-04-21 |title=Here's how some of the other big countries deal with Amway |url=https://www.cnbctv18.com/business/companies/heres-how-some-of-the-other-big-countries-deal-with-amway-13226322.htm/ |access-date=2024-04-07 |website=CNBCTV18 |language=en}}</ref> ==History== ===Founding=== [[File:Amway Japan Head Office.jpg|thumb|upright|Amway Japan head office]] [[File:Honda- Amway アムウェイベトナム(AVCL)Hồ Chí Minh PB277728.jpg|thumb|upright|Amway Vietnam (Hồ Chí Minh City)]] Jay Van Andel and Richard DeVos had been friends since school days and business partners in various endeavors, including a hamburger stand, an air charter service, and a sailing business. In 1949, they were introduced to the Nutrilite Products Corporation<ref>A California-based direct sales company founded by Carl Rehnborg, the developer of the first [[multivitamin]] marketed in the United States</ref> by Van Andel's second cousin Neil Maaskant. DeVos and Van Andel signed up to become distributors for [[Nutrilite]] [[food supplement]]s in August.<ref name="Conn">{{cite book |last=Conn |first=Charles Paul |title=The Possible Dream: A Candid Look At Amway |author-link=Charles Paul Conn |publisher=[[Revell]] |year=1977 |isbn=0-8007-0857-1}}</ref>{{page needed|date=September 2010}} They sold their first box the next day for $19.50, but lost interest for the next two weeks. They traveled to Chicago to attend a Nutrilite seminar soon afterward, at the urging of Maaskant, who had become their sponsor. They watched promotional filmstrips and listened to talks by company representatives and successful distributors, then they decided to pursue the Nutrilite business. They sold their second box of supplements on their return trip to Michigan, and rapidly proceeded to develop the business further.<ref name="Conn" />{{Page needed|date=September 2010}} Earlier in 1949, DeVos and Van Andel had formed the Ja-Ri Corporation (abbreviated from their respective first names) to import wooden goods from South American countries. After the Chicago seminar, they turned Ja-Ri into a Nutrilite distributorship instead.<ref>{{cite book |last=Van Andel |first=Jay |title=An Enterprising Life |author-link=Jay Van Andel |publisher=[[HarperCollins]] |year=1998 |isbn=0-88730-997-6 |pages=37–39}}</ref> In addition to profits on each product sold, Nutrilite offered [[Commission (remuneration)|commissions]] on sales made by new distributors introduced to the company by existing distributors—a system known as [[multi-level marketing]] or network marketing. By 1958, DeVos and Van Andel had built an organization of more than 5,000 distributors. However, they and some of their top distributors formed the American Way Association, or Amway, in April 1959 in response to concerns about the stability of Nutrilite and in order to represent the distributors and look for additional products to market.<ref>{{cite book |last=Robinson |first=James W. |title=Empire of Freedom: The Amway Story and What It Means to You |publisher=[[Prima Publishing]] |year=1997 |isbn=0-7615-1088-5 |page=11}}</ref> Their first product was called Frisk, an organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner).<ref>{{cite video |title=Profiles of the American Dream: Rich DeVos and Jay Van Andel and the Remarkable Beginnings of Amway |medium=Documentary |publisher=Premiere Films |date=1997}}</ref> They subsequently formed the Amway Sales Corporation to procure and inventory products and to handle sales and marketing plans, and the Amway Services Corporation to handle insurance and other benefits for distributors.<ref>[[Bill Hybels]] interview with [[Rich DeVos]] at the {{ill|Willow Creek Association|lt=Willow Creek Association's|no|Willow Creek Norge}} [[Global Leadership Summit]] in 2000</ref> In 1960, they purchased a 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation.<ref>{{cite book |last=Van Andel|first=Jay |title=An Enterprising Life |author-link=Jay Van Andel |publisher=HarperCollins |year=1998 |isbn=0-88730-997-6 |pages=58–60}}</ref> In 1964, the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form the Amway Corporation.<ref name="MLMLAW">From MLM Law Library: [http://www.mlmlaw.com/library/cases/mlm/ftc/amway.htm FTC Final Order from May 8, 1979 (93 F.T.C. 618)] {{webarchive |url=https://web.archive.org/web/20081015182742/http://www.mlmlaw.com/library/cases/mlm/ftc/amway.htm |date=October 15, 2008}}.</ref> Amway bought a controlling interest in Nutrilite in 1972<ref>{{cite news|title=Ahead of Its Time Health Care: Nutrilite founder worked on the first food supplements in the 1920s; the company is now owned by Amway |first=Anne |last=Michaud |newspaper=Orange County Register |page=C01 |date=December 29, 1994}}</ref> and full ownership in 1994. ===International expansion=== Amway expanded to Australia in 1971, to parts of Europe in 1973, to parts of Asia in 1974, to Japan in 1979, to Latin America in 1985, to [[Thailand]] in 1987, to China in 1995,<ref>{{cite web|title=安利在华小心翼翼自我洗白 中国区业绩已连续3年下滑|url=http://finance.sina.com.cn/chanjing/gsnews/2018-01-26/doc-ifyqyesy2164667.shtml |website=finance.sina.com.cn |date=January 26, 2018 |access-date=2018-05-26 |archive-url=https://archive.today/20180526060610/http://finance.sina.com.cn/chanjing/gsnews/2018-01-26/doc-ifyqyesy2164667.shtml |archive-date=May 26, 2018 |language=zh-cn |url-status=live |df=mdy-all}}</ref> to Africa in 1997, to India and Scandinavia in 1998, to [[Ukraine]] in 2003, to Russia in 2005,<ref>{{cite news|author=<!--not stated-->|collaboration=Business Journal Staff|title=Alticor Opens 'Amway Russia'|newspaper=Grand Rapids Business Journal|location=Grand Rapids, MI|publisher=Gemini Media, LLC|agency=ADA|date=21 March 2005|url=https://grbj.com/uncategorized/alticor-opens-amway-russia/|access-date=January 17, 2023|archive-date=December 12, 2022|archive-url=https://web.archive.org/web/20221212092418/https://grbj.com/uncategorized/alticor-opens-amway-russia/|url-status=live}}</ref> and to [[Vietnam]] in 2008.<ref>{{cite news |url=https://www.grbj.com/articles/73124 |title=Amway Corp is World Trader of the Year again |first=Pete |last=Daly |date=April 29, 2011 |website=Grand Rapids Business Journal |access-date=September 16, 2019 |archive-url=https://web.archive.org/web/20140219114654/http://www.grbj.com/articles/73124 |archive-date=February 19, 2014 |url-status=dead |url-access=limited}}</ref> In 2014, a Russian loyalty card program called "Alfa-Amway" was created when Amway joined with [[Alfa-Bank]].<ref name=Filkins2018.10.15>{{cite magazine |url=https://www.newyorker.com/magazine/2018/10/15/was-there-a-connection-between-a-russian-bank-and-the-trump-campaign |url-access=subscription |archive-url=https://web.archive.org/web/20181012025116/https://www.newyorker.com/magazine/2018/10/15/was-there-a-connection-between-a-russian-bank-and-the-trump-campaign |archive-date=October 12, 2018 |title=Was There a Connection Between a Russian Bank and the Trump Campaign? A team of computer scientists sifted through records of unusual Web traffic in search of answers |first=Dexter |last=Filkins |author-link=Dexter Filkins |date=October 8, 2018 |magazine=[[The New Yorker]] |access-date=12 October 2018}}{{cbignore}}</ref> Amway was ranked by ''[[Forbes]]'' as the 42nd-largest [[privately held company]] in the United States in 2018,<ref>{{cite news |url=https://www.forbes.com/companies/amway/?list=largest-private-companies |title=Amway on the Forbes America's Largest Private Companies List |date=October 24, 2018 |work=[[Forbes]] |access-date=September 16, 2019 |archive-date=March 29, 2019 |archive-url=https://web.archive.org/web/20190329121717/https://www.forbes.com/companies/amway/?list=largest-private-companies |url-status=live }}</ref> and as the number one largest company on the ''Direct Selling News'' Global 100 list in 2018.<ref>{{cite web |url=https://www.directsellingnews.com/global-100/ |title=DSN Global 100 |website=Direct Selling News |access-date=December 29, 2018 |df=mdy-all |archive-date=December 5, 2018 |archive-url=https://web.archive.org/web/20181205193811/https://www.directsellingnews.com/global-100/ |url-status=live }}</ref> ===Quixtar=== {{main|Amway North America}} The founders of the Amway corporation established a new holding company in 1999, named [[Alticor]], and launched three new companies: a sister (and separate) Internet-focused company named [[Quixtar]], [[Access Business Group]], and Pyxis Innovations. Pyxis, later replaced by Fulton Innovation, pursued research and development and Access Business Group handled manufacturing and logistics for Amway, Quixtar, and third-party clients.<ref>{{cite news |url=http://www.detnews.com/apps/pbcs.dll/article?AID=2007706130458 |title=Amway marque to be revived; Quixtar label scrapped |newspaper=The Detroit News |access-date=July 9, 2011}}</ref> The main difference was that each "Independent Business Owner" (IBO) could order directly from Amway on the Internet, rather than from their [[upline]] "direct distributor", and have products shipped directly to their home. The Amway name continued being used in the rest of the world. Virtually all Amway distributors in North America switched to Quixtar, prompting Alticor to close Amway North America after 2001. In June 2007, it was announced that the Quixtar brand would be phased out over an eighteen– to twenty-four–month period in favor of a unified Amway brand ([[Amway Global]]) worldwide.<ref>{{cite web |url=https://www.forbes.com/2009/08/21/image-overhaul-rebranding-cmo-network-rebranding.html#d0f7b33788fa |title=Companies Seek A Fresh Start With New Names |last=Coster |first=Helen |date=21 August 2009 |website=Forbes |access-date=2020-02-20 |archive-date=March 9, 2021 |archive-url=https://web.archive.org/web/20210309210042/https://www.forbes.com/2009/08/21/image-overhaul-rebranding-cmo-network-rebranding.html#d0f7b33788fa |url-status=live }}</ref> ==Global markets== According to the Amway website, {{as of|2011|lc=y}} the company operated in over 100 countries and territories, organized into regional markets: the Americas, Europe, greater China, Japan and Korea, and SE Asia/Australia. Amway's top ten markets are China, Korea, the United States, Japan, Thailand, Taiwan, India, Russia, Malaysia and Italy.<ref name="sales"/> In 2008, Alticor announced that two-thirds of the company's 58 markets reported sales increases, including strong growth in the China, Russia, Ukraine and India markets.<ref>{{cite news |url=https://www.reuters.com/article/pressRelease/idUS173002+05-Feb-2009+PRN20090205 |title=Amway Parent hits 50th year running recording 15% sales growth |work=Reuters |access-date=July 9, 2011 |date=February 5, 2009 |archive-url=https://web.archive.org/web/20090511084835/http://www.reuters.com/article/pressRelease/idUS173002+05-Feb-2009+PRN20090205 |archive-date=May 11, 2009 |url-status=dead |df=mdy-all}}</ref> ===Amway Australia=== * See ''[[Amway Australia]]'' ===Amway China=== Amway China launched in 1995. In 1998, after abuses of illegal [[pyramid scheme]]s led to riots, the Chinese government enacted a ban on all [[direct selling]] companies, including Amway.<ref>"Chinese officials ban direct marketing", April 22, 1998 [[Associated Press]], The Associated Press</ref> After the negotiations, some companies like Amway, [[Avon Products, Inc.|Avon]], and [[Mary Kay]] continued to operate through a network of retail stores promoted by an independent sales force.<ref>{{cite news |title=Amway, Once Barred in China, Now Finds Business is Booming |first=Leslie |last=Chang |date=March 12, 2003 |work=[[The Wall Street Journal]] |url-access=subscription |url=https://www.wsj.com/articles/SB104743545419760000 |access-date=December 27, 2019 |archive-date=December 27, 2019 |archive-url=https://web.archive.org/web/20191227025239/https://www.wsj.com/articles/SB104743545419760000 |url-status=live }}</ref> China introduced new direct selling laws in December 2005, and in December 2006, Amway was one of the first companies to receive a license to resume direct sales. However, the law forbids teachers, doctors, and civil servants from becoming direct sales agents for the company and, unlike in the United States, salespeople in China are ineligible to receive commissions from sales made by the distributors they recruit. In 2006, Amway China had a reported 180,000 sales representatives, 140 stores, and $2 billion in annual sales.<ref>[http://www.mlive.com/business/kzgazette/index.ssf?/base/business-3/116693763565130.xml&coll=7 "Amway, Mary Kay get long-awaited direct-selling licenses in China"] {{Webarchive|url=https://web.archive.org/web/20070930154752/http://www.mlive.com/business/kzgazette/index.ssf?%2Fbase%2Fbusiness-3%2F116693763565130.xml&coll=7 |date=September 30, 2007 }} Rob Kirkbride, December 24, 2006, ''[[Kalamazoo Gazette]]''</ref> In 2007, Amway Greater China and South-east Asia Chief Executive Eva Cheng was ranked no. 88 by ''Forbes'' magazine in its list of the World's Most Powerful Women.<ref name="ForbesWomen">{{cite news |url=https://www.forbes.com/lists/2008/11/biz_powerwomen08_Eva-Cheng_34MT.html |title=Forbes' The 100 Most Powerful Women; No.88 Eva Cheng |work=Forbes |access-date=July 9, 2011 |date=August 27, 2008 |archive-date=August 5, 2011 |archive-url=https://web.archive.org/web/20110805010429/http://www.forbes.com/lists/2008/11/biz_powerwomen08_Eva-Cheng_34MT.html |url-status=live }}</ref> In 2008, China was Amway's largest market, reporting 28% growth and sales of 17 billion yuan (US$2.5 billion).<ref name=LevinD>{{cite news|last=Levin |first=Dan |title=Amway's China Redux |url=https://www.forbes.com/global/2009/0907/companies-sales-amway-china-redux.html |access-date=17 January 2023 |newspaper=Forbes |date=August 27, 2009 |url-status=live |archive-url=https://web.archive.org/web/20090829074138/http://www.forbes.com/global/2009/0907/companies-sales-amway-china-redux.html |archive-date=August 29, 2009}}</ref> According to a report in ''[[Bloomberg Businessweek]]'' in April 2010, Amway had 237 retail shops in China, 160,000 direct sales agents, and $3 billion in revenue.<ref name=EinhornB>{{cite news|last=Einhorn|first=Bruce|title=Why Amway and China are a Good Fit|url=http://www.businessweek.com/magazine/content/10_16/b4174064710167.htm|access-date=June 16, 2011|newspaper=[[Businessweek]]|date=April 8, 2010| archive-url=https://web.archive.org/web/20110606102312/http://www.businessweek.com/magazine/content/10_16/b4174064710167.htm| archive-date= June 6, 2011 | url-status= dead}}</ref> Since then, Amway has been continuing to expand in China, even as the government has been imposing greater restrictions on the company,<ref>{{Cite news|last1=Mcmorrow|first1=Ryan|last2=Myers|first2=Steven Lee|date=2018-01-08|title=Amway Made China a Billion-Dollar Market. Now It Faces a Crackdown.|language=en-US|work=The New York Times|url=https://www.nytimes.com/2018/01/08/business/amway-china.html |archive-url=https://ghostarchive.org/archive/20220101/https://www.nytimes.com/2018/01/08/business/amway-china.html |archive-date=2022-01-01 |url-access=limited|access-date=2021-10-26|issn=0362-4331}}{{cbignore}}</ref> and launched a [[WeChat]] mini-program in 2021.<ref>{{Cite web|title=Amway ramps up campaign to increase influence in China|url=https://www.shine.cn/biz/company/2110216723/|access-date=2021-10-26|website=SHINE|language=en|archive-date=October 26, 2021|archive-url=https://web.archive.org/web/20211026211238/https://www.shine.cn/biz/company/2110216723/|url-status=live}}</ref> ==Brands== Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later the hair care product Satinique (1965) and the cosmetics line [[Artistry (cosmetics)|Artistry]] (1968). In 2018, nutrition and wellness products were 52% of total sales, and beauty and personal care products were 26% of total sales.<ref name="sales"/> ===Household cleaners=== Amway is best known in North America for its original multi-purpose cleaning product LOC, SA8 laundry detergent, and Dish Drops dishwashing liquid.{{Citation needed|date=August 2023}} Consumer Reports conducted blind testing of detergents in 2010 and ranked versions of Amway's Legacy of Clean detergents 9th and 18th of 20 detergents tested. ''Consumer Reports'' program manager Pat Slaven recommended against buying the products because consumers can "go to the grocery store and get something that performs a whole lot better for a whole lot less money".<ref name=Odonnell2011>{{cite news |last=O'Donnell |first=Jayne|title=Multilevel marketing or 'pyramid?' Sales people find it hard to earn much |url=https://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_CV_N.htm |newspaper=[[USA Today]] |date=February 10, 2011 |access-date=November 17, 2015 |archive-date=February 13, 2011 |archive-url=https://web.archive.org/web/20110213043508/http://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_cv_n.htm|url-status=dead}}</ref><ref name=Odonnell2011B>{{cite news|last=O'Donnell|first= Jayne|title=Some Multilevel Salespeople Ask: What Profits?|url=https://www.usatoday.com/MONEY/usaedition/2011-02-07-multilevelmarketing03_CV_U.htm|access-date=May 17, 2011|newspaper=USA Today|date=February 7, 2011}}</ref> ===Health and beauty=== Amway's health and beauty brands include Artistry, Satinique, Hymm, Body Series, Glister, Moiskin (South America),<ref>{{cite web|url=http://www.amway.com.br/ |title=Amway do Brasil |publisher=Amway.com.br |access-date=July 9, 2011| archive-url= https://web.archive.org/web/20110706150728/http://www.amway.com.br/| archive-date= July 6, 2011 | url-status= live}}</ref> Nutrilite, Nutriway (Scandinavia and Australia/New Zealand), Attitude (India), eSpring, Atmosphere and iCook as well as XL and XS [[Energy drinks]]. Other Amway brands that were discontinued or replaced include Tolsom, Eddie Funkhouser New York, or beautycycle (Eastern Europe). ====Artistry==== {{Main|Artistry (cosmetics)}} Amway's Artistry products include skin care, cosmetics, and [[anti-aging cream]]s and serums. In 2011, Artistry brand reached sales of $2.8 billion.<ref name="grbj-20120227" /> ====Nutrilite==== {{Main|Nutrilite}} Amway's largest-selling brand is the Nutrilite range of health supplements (marketed as Nutriway in some countries), and in 2008 Nutrilite sales exceeded $3 billion globally.<ref>{{cite web|author=e-point SA |url=http://www.amway.ua/cms/visitor_news_new/Newsroom?news_id=10819 |title=Nutrilite passes $3 billion mark in annual sales |publisher=Amway.ua |access-date=July 9, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110903233610/http://www.amway.ua/cms/visitor_news_new/Newsroom?news_id=10819 |archive-date=September 3, 2011 |df=mdy }}</ref> In 2001, [[NSF International]] issued its first five dietary supplement certifications to Nutrilite.<ref>{{cite web|url=http://www.nsf.org/business/newsroom/soe01-3/dietary.html |title=NSF International Announces Dietary Supplements Certification Program |date=December 14, 2008 |access-date=July 9, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20081214123716/http://www.nsf.org/business/newsroom/soe01-3/dietary.html |archive-date=December 14, 2008 }}</ref> In 2011, Nutrilite brand of vitamins and dietary supplements led Amway's sales, totaling almost $4.7 billion.<ref name="grbj-20120227">{{cite news|last1=Daly|first1=Pete|title=Amway grew in almost all regions in 2011|url=http://www.grbj.com/articles/73925|access-date=25 March 2016|website=[[Grand Rapids Business Journal]]|date=27 February 2012|url-access=limited|archive-url=https://web.archive.org/web/20160404193530/http://www.grbj.com/articles/73925|archive-date=April 4, 2016|url-status=dead}}</ref> According to Euromonitor International, in 2014, Nutrilite was the world's No. 1 selling vitamins and dietary supplements brand.<ref name="euromonitor-amway-claims">{{cite web|title=Amway Claims|url=http://www.euromonitor.com/amway-claims|website=www.euromonitor.com|access-date=26 March 2016|archive-date=January 12, 2021|archive-url=https://web.archive.org/web/20210112010419/https://www.euromonitor.com/amway-claims|url-status=live}}</ref> In 2015, it was reported that according to Euromonitor International, Amway was the largest vitamin and dietary supplement vendor in China, with 11% of a market that generated 100 billion yuan ($15.6 billion) in annual sales.<ref name="twsj-20150818">{{cite news|last1=Loretta|first1=Chao|title=Amway's Made in America Strategy Scores with Asian Customers|url=https://www.wsj.com/articles/amways-made-in-america-strategy-scores-with-asian-customers-1439912608|access-date=25 March 2016|newspaper=The Wall Street Journal|date=18 August 2015|archive-date=March 9, 2021|archive-url=https://web.archive.org/web/20210309205129/https://www.wsj.com/articles/amways-made-in-america-strategy-scores-with-asian-customers-1439912608|url-status=live}}</ref> In 2015, it was reported that according to China Confidential consumer brands survey, Amway Nutrilite was the most popular vitamin and dietary supplement brand in China.<ref name="ft-20150514">{{cite news|last1=Plowright|first1=Matthew|title=China's vitamin market harder to crack for western companies|url=http://www.ft.com/cms/s/0/f1c82b58-fa2c-11e4-b432-00144feab7de.html#axzz42wLkveBF|access-date=25 March 2016|newspaper=[[Financial Times]]|date=14 May 2015|archive-date=August 8, 2016|archive-url=https://web.archive.org/web/20160808035042/http://www.ft.com/cms/s/0/f1c82b58-fa2c-11e4-b432-00144feab7de.html#axzz42wLkveBF|url-status=live}}</ref> In January 2009, Amway announced a voluntary [[Product recall|recall]] of Nutrilite and XS Energy Bars after learning that they had possibly been manufactured with [[Salmonella]]-contaminated ingredients from [[Peanut Corporation of America]]. The company indicated that it had not received any reports of illness in connection with the products.<ref name=Nutriliterecall1>{{cite web| title = Amway Global Announces Nationwide Recall Of XS® Energy Bar Chocolate Nut Roll And Expansion Of Nutrilite® Energy Bars Recall Because Of Possible Health Risk| publisher = [[US Food and Drug Administration]]| date = February 4, 2009| url = https://www.fda.gov/Safety/Recalls/ArchiveRecalls/2009/ucm128349.htm| access-date = May 13, 2011| archive-date = August 20, 2011| archive-url = https://web.archive.org/web/20110820101307/http://www.fda.gov/Safety/Recalls/ArchiveRecalls/2009/ucm128349.htm| url-status = dead}}</ref> In 2012, the [[Center for Science in the Public Interest]] (CSPI), accused Amway of making unsubstantiated and illegal claims about Nutrilite Fruits & Vegetables 2GO Twist Tubes and threatened to launch a class action lawsuit against the company unless it took remedial action.<ref name="CSPI_022812">{{cite web|title=Amway Makes Illegal Deceptive Claims for its Nutrilite Twist Tubes|url=http://www.cspinet.org/new/201202281.html|publisher=[[Center for Science in the Public Interest]]|access-date=March 25, 2016|date=February 28, 2012|archive-date=June 16, 2016|archive-url=https://web.archive.org/web/20160616095129/http://www.cspinet.org/new/201202281.html|url-status=dead}}</ref><ref name="UPI_022812">{{cite news|title=Group alleges Amway deception|url=http://www.upi.com/Health_News/2012/02/28/Group-alleges-Amway-deception/73941330487788/|access-date=March 25, 2016|publisher=[[United Press International]]|date=February 28, 2012|archive-date=February 25, 2021|archive-url=https://web.archive.org/web/20210225063405/https://www.upi.com/Health_News/2012/02/28/Group-alleges-Amway-deception/73941330487788/|url-status=live}}</ref> Amway responded that the claims made about the products were properly substantiated and that they did not plan to change the product's labeling but nevertheless would review the statements that CSPI has questioned.<ref>{{cite web|title=CSPI Threatens Amway with Lawsuit|url=http://www.nutraceuticalsworld.com/contents/view_online-exclusives/2012-04-05/cspi-threatens-amway-with-lawsuit|date=April 5, 2012|access-date=March 25, 2016|archive-date=February 26, 2021|archive-url=https://web.archive.org/web/20210226001035/https://www.nutraceuticalsworld.com/contents/view_online-exclusives/2012-04-05/cspi-threatens-amway-with-lawsuit|url-status=live}}</ref> CSPI later reported that Amway had agreed to changing product labels by the end of 2014.<ref>{{cite web|title=Litigation Project – Current Docket|url=https://www.cspinet.org/litigation/current.html|publisher=Center for Science in the Public Interest|access-date=26 March 2016|archive-date=June 21, 2016|archive-url=https://web.archive.org/web/20160621085543/http://www.cspinet.org/litigation/current.html|url-status=dead}}</ref> ===eSpring=== Amway's eSpring water filter was introduced in 2000. According to Amway, it was the first system to combine a [[Carbon filtering|carbon block filter]] and [[ultraviolet disinfection|ultraviolet light]] with electronic-monitoring technology in the filter cartridge and it became the first home system to achieve certification for [[ANSI]]/NSF Standards 42, 53, and 55.<ref name="espring-water-filtration-award">{{cite news|last1=Dewey|first1=Charlsie|title=Amway wins Asia-Pacific award for water filtration|url=http://www.grbj.com/articles/81224-amway-wins-asia-pacific-award-for-water-filtration|access-date=24 March 2016|website=Grand Rapids Business Journal|date=8 December 2014|url-access=limited|archive-url=https://web.archive.org/web/20160318055605/http://www.grbj.com/articles/81224-amway-wins-asia-pacific-award-for-water-filtration|archive-date=March 18, 2016|url-status=dead}}</ref><ref name="frost-and-sullivan-2011">{{cite web|title=Frost & Sullivan Names Amway 2011 Water Filtration Company of the Year For Promoting Water Quality Standards in the Asia Pacific Region|url=http://www.frost.com/prod/servlet/press-release.pag?docid=247398565|website=www.frost.com|access-date=24 March 2016|archive-date=April 9, 2016|archive-url=https://web.archive.org/web/20160409091919/http://www.frost.com/prod/servlet/press-release.pag?docid=247398565|url-status=live}}</ref> According to Amway, eSpring was the first water treatment system to receive certification for all fifteen NSF/ANSI 401 contaminants which include pharmaceuticals, pesticides and herbicides.<ref name="espring-water-filtration-award" /><ref name=espring-philippine-daily-inquirer>{{cite news|title=Amway's eSpring Receives Water Filtration Award|url=http://www.pressreader.com/philippines/philippine-daily-inquirer/20160105/282102045652591|access-date=March 23, 2016|newspaper=Philippine Daily Inquirer|date=January 5, 2016|archive-date=April 7, 2016|archive-url=https://web.archive.org/web/20160407035926/http://www.pressreader.com/philippines/philippine-daily-inquirer/20160105/282102045652591|url-status=live}}</ref> The company also claims that, in addition to these 15 contaminants, eSpring is certified for more than 145 potential contaminants, including lead and mercury.<ref name="espring-water-filtration-award" /> eSpring was the first commercial product which employed Fulton Innovation's [[eCoupled]] wireless power induction technology. Companies licensing this technology include [[Visteon]], Herman Miller, [[Motorola]] and Mobility Electronics.<ref name="fulton-partnerships">{{cite news|last1=Schoonmaker|first1=Daniel|title=Alticor Cuts Wires|url=http://www.grbj.com/articles/67017|access-date=24 March 2016|website=Grand Rapids Business Journal|date=8 January 2007|url-access=limited|archive-url=https://web.archive.org/web/20160404005601/http://www.grbj.com/articles/67017|archive-date=April 4, 2016|url-status=dead}}</ref> Fulton was a founding member of the Wireless Power Consortium which developed the [[Qi wireless charging standard|Qi (inductive power standard)]].<ref>{{cite web|last1=Stevens|first1=Tim|title=Fulton Innovation blows our minds with eCoupled wireless Tesla, inductive cereal boxes (video)|url=https://www.engadget.com/2011/01/06/fulton-innovation-blows-our-minds-with-ecoupled-wireless-tesla/|website=engadget|date=January 7, 2011 |publisher=Aol, inc|access-date=March 25, 2016|archive-date=April 26, 2016|archive-url=https://web.archive.org/web/20160426165549/http://www.engadget.com/2011/01/06/fulton-innovation-blows-our-minds-with-ecoupled-wireless-tesla/|url-status=live}}</ref> In 2007 eSpring was ranked fifth out of 27 brands in a comparison of water filters by ''Consumer Reports''.<ref name="CR_052707">{{cite web|title=Most (& Least) Reliable Brands|url=http://www.consumerreports.org/|publisher=[[Consumer Reports]]|date=May 27, 2007|access-date=February 24, 2009|archive-date=September 5, 2008|archive-url=https://web.archive.org/web/20080905122344/http://consumerreports.org/|url-status=live}}</ref> ===XS=== On January 14, 2015, Amway announced that it had acquired XS Energy, a California-based brand of [[energy drinks]] and snacks. The XS Energy brand has been sold as an Amway product since 2003. As of January 2015, it has been distributed in 38 countries, generating annual sales of $150 million.<ref name="amway-xs-acquisition-1">{{cite news|last1=Martinez|first1=Shandra|title=Amway buys California-based energy drink and snack company|url=http://www.mlive.com/business/west-michigan/index.ssf/2015/01/amway_buys_california-based_en.html|access-date=24 March 2016|publisher=mlive.com|date=14 January 2015|archive-date=April 4, 2016|archive-url=https://web.archive.org/web/20160404201546/http://www.mlive.com/business/west-michigan/index.ssf/2015/01/amway_buys_california-based_en.html|url-status=live}}</ref><ref name="amway-xs-acquisition-2">{{cite news|title=Amway acquires energy drink|url=http://mibiz.com/item/22139-amway-acquires-energy-drink|access-date=24 March 2016|publisher=mibiz.com|date=14 January 2015|archive-url=https://web.archive.org/web/20150709221637/http://mibiz.com/item/22139-amway-acquires-energy-drink|archive-date=July 9, 2015|url-status=dead}}</ref><ref name="amway-xs-acquisition-3">{{cite news|last1=Dewey|first1=Charlsie|title=Amway acquires energy drink maker|url=http://www.grbj.com/articles/81479-amway-acquires-energy-drink-maker|access-date=24 March 2016|website=Grand Rapids Business Journal|date=14 January 2015|url-access=limited|archive-url=https://web.archive.org/web/20160404011635/http://www.grbj.com/articles/81479-amway-acquires-energy-drink-maker|archive-date=April 4, 2016|url-status=dead}}</ref> According to Euromonitor International, the XS Energy was the first exclusively sugar-free energy drink brand sold globally.<ref name="euromonitor-amway-claims" /> ==Ditto Delivery== Ditto Delivery is Alticor's automatic monthly program that delivers more of the same items a customer has previously ordered. As of May 2001, Ditto Delivery accounted for 30% of Quixtar's North American sales.<ref name=forbes2001>{{cite news |last=Bannan |first=Karen J. |title=Amway.com |url=https://www.forbes.com/best/2001/0625/040.html |access-date=May 17, 2011 |work=Forbes |date=June 25, 2001 |archive-date=March 9, 2021 |archive-url=https://web.archive.org/web/20210309205447/https://www.forbes.com/best/2001/0625/040.html |url-status=live }}</ref> ==Business model== Amway combines direct selling with a [[multi-level marketing]] strategy. Amway distributors, referred to as "independent business owners" (IBOs), may market products directly to potential customers and may also sponsor and mentor other people to become IBOs. IBOs may earn income both from the retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline (IBOs they have sponsored) have generated.<ref name="Xardel"/> People may also register as IBOs to buy products at discounted prices. [[Harvard Business School]], which described Amway as "one of the most profitable direct selling companies in the world", noted that Amway founders Van Andel and DeVos "accomplished their success through the use of an elaborate pyramid-like distribution system in which independent distributors of Amway products received a percentage of the merchandise they sold and also a percentage of the merchandise sold by recruited distributors".<ref name="HarvardBS">{{cite news |title=American Business Leaders of the Twentieth Century – Richard M. DeVos, Amway Corporation |url=http://www.hbs.edu/leadership/database/leaders/richard_m_devos.html |access-date=May 17, 2011 |newspaper=[[Harvard Business School]] |year=2011 |archive-date=March 8, 2016 |archive-url=https://web.archive.org/web/20160308220607/http://www.hbs.edu/leadership/database/leaders/richard_m_devos.html |url-status=live }}</ref> ==Sports sponsorships== [[File:1987 Indianapolis 500 (50043384307).jpg|thumb|upright|Scott Brayton's Amway sponsored race car at the [[1987 Indianapolis 500]]]] In the late 1980s and early 1990s, Amway sponsored racing driver [[Scott Brayton]] in the [[Championship Auto Racing Teams|CART IndyCar championship]].<ref>{{cite web|url=https://www.orlandosentinel.com/1993/05/28/amway-still-rolling/|title=Amway Still Rolling|date=May 28, 1993|accessdate=February 11, 2024|website=orlandosentinel.com|publisher=[[Orlando Sentinel]]}}</ref> In December 2006, Alticor secured the [[naming rights]] for the [[Orlando Magic]]'s home basketball arena in [[Orlando, Florida|Orlando]], Florida. The Orlando Magic is owned by the DeVos family. The arena, formerly known as the TD Waterhouse Centre, was renamed the [[Amway Arena]]. Its successor, the [[Amway Center]], was opened in 2010, and the older arena was demolished in 2012 and held the naming rights until December 2023 when [[Kia]] bought the rights.<ref>[http://www.wesh.com/news/30141458/detail.html "Amway Arena To Be Imploded"] {{webarchive |url=https://web.archive.org/web/20120214094203/http://www.wesh.com/news/30141458/detail.html |date=February 14, 2012}} WESH.com Orlando</ref> In 2009, Amway Global signed a three-year deal with the [[San Jose Earthquakes]] [[Major League Soccer]] team to become the jersey sponsor.<ref>{{cite web |title=San Jose lands jersey sponsor deal with Amway |url=http://www.espnfc.us/story/613516/san-jose-lands-jersey-sponsor-deal-with-amway |website=ESPN FC |access-date=1 November 2016 |archive-date=April 7, 2020 |archive-url=https://web.archive.org/web/20200407173331/http://www.espnfc.us/story/613516/san-jose-lands-jersey-sponsor-deal-with-amway |url-status=live }}</ref> In March 2009, Amway Global signed a multi-year deal to become the presenting partner of the [[Los Angeles Sol]] of [[Women's Professional Soccer]].<ref>{{cite web |last=Los Angeles Sol |title=Amway Global becomes Los Angeles Sol presenting sponsor |url=http://www.womensprosoccer.com/la/news/press_releases/090305-amway-global |access-date=March 5, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090509085225/http://www.womensprosoccer.com/la/news/press_releases/090305-amway-global |archive-date=May 9, 2009}}</ref> The deal, however, would last only one year, as the Sol folded in 2010. In 2011, Amway signed a three-year deal to be the presenting sponsor of the [[National Hockey League]]'s [[Detroit Red Wings]].<ref>{{cite web |url=http://www.mlive.com/redwings/index.ssf/2011/09/red_wings_sign_multi-year_deal.html |title=Red Wings sign multi-year deal with Amway as its presenting sponsor |last=Khan |first=Ansar |date=September 2, 2011 |publisher=[[Booth Newspapers]] |access-date=September 2, 2011 |archive-date=November 16, 2018 |archive-url=https://web.archive.org/web/20181116173508/https://www.mlive.com/redwings/index.ssf/2011/09/red_wings_sign_multi-year_deal.html |url-status=live }}</ref> ==Politics and culture== ===Political contributions=== In the 1990s, the Amway organization was a major contributor to the [[Republican Party (United States)|Republican Party]] (GOP) and to the election campaigns of various GOP candidates. Amway and its sales force contributed a substantial amount (up to half) of the total funds ($669,525) for the [[United States House of Representatives elections, 1994|1994 political campaign]] of Republican congresswoman and Amway distributor [[Sue Myrick]] (N.C.).<ref name=burstein>{{cite web |title=She Did it Amway |author=Rachel Burstein |magazine=[[Mother Jones (magazine)|Mother Jones]] |date=September–October 1996 |url=http://motherjones.com/politics/1996/09/she-did-it-amway |access-date=May 11, 2011 |archive-date=February 11, 2021 |archive-url=https://web.archive.org/web/20210211054535/https://www.motherjones.com/politics/1996/09/she-did-it-amway/ |url-status=live }}</ref> According to two reports by ''[[Mother Jones (magazine)|Mother Jones]]'' magazine, Amway distributor Dexter Yager "used the company's extensive voice-mail system to rally hundreds of Amway distributors into giving a total of $295,871" to Myrick's campaign.<ref name=burstein/><ref name=zibrowski>{{cite web |title=Tough sell |author=John Zibrowski, Jenna Ziman |magazine=[[Mother Jones (magazine)|Mother Jones]] |date=November–December 1998 |url=http://motherjones.com/politics/1998/11/tough-sell |access-date=May 11, 2011 |archive-date=February 24, 2021 |archive-url=https://web.archive.org/web/20210224060459/https://www.motherjones.com/politics/1998/11/tough-sell/ |url-status=live }}</ref> According to a campaign staffer quoted by the magazine, Myrick had appeared regularly on the Amway circuit, speaking at hundreds of rallies and selling $5 and $10 audiotapes.<ref name=burstein/> Following the 1994 election, Myrick maintained "close ties to Amway and Yager", and raised $100,000 from Amway sources, "most notably through fundraisers at the homes of big distributors", in the 1997–98 election cycle.<ref name=zibrowski/> In October 1994, Amway gave the biggest corporate contribution recorded to that date to a political party for a single election, $2.5 million to the [[Republican National Committee]] (RNC), and was the number one corporate political donor in the United States.<ref name=burstein/> In the 2004 election cycle, the organization contributed a total of $4 million to a conservative [[527 group]], [[Progress for America]].<ref>From opensecrets.org: [http://www.opensecrets.org/527s/527cmtedetail.asp?ein=201170395&cycle=2004&format=&tname=Progress+for+America Progress for America – Top Contributors, 2004 Cycle] {{webarchive |url=https://web.archive.org/web/20060818110238/http://www.opensecrets.org/527s/527cmtedetail.asp?ein=201170395&cycle=2004&format=&tname=Progress+for+America |date=August 18, 2006}}</ref> In July 1996, Amway co-founder Richard DeVos was honored at a $3 million fundraiser for the Republican Party, and a week later, it was reported that Amway had tried to donate $1.3 million to pay for Republican "infomercials" and televising of the GOP convention on [[Pat Robertson]]'s [[History of Freeform (TV channel)#The Family Channel|Family Channel]], but backed off when Democrats criticized the donation as a ploy to avoid campaign-finance restrictions.<ref name=burstein/><ref name=vlasic>{{cite news |last=Vlasic |first=Bill |title=Amway II: The Kids Take Over |work=BusinessWeek |date=February 16, 1998 |url=https://www.bloomberg.com/news/articles/1998-02-15/amway-ii-the-kids-take-over |access-date=December 29, 2018 |archive-date=December 30, 2018 |archive-url=https://web.archive.org/web/20181230181029/https://www.bloomberg.com/news/articles/1998-02-15/amway-ii-the-kids-take-over |url-status=live }}</ref> In April 1997, Richard DeVos and his wife, Helen, gave $1 million to the RNC,<ref name=zibrowski/><ref name=vlasic/> which, at the time, was the second-largest [[Campaign finance in the United States|soft-money]] donation ever, behind Amway's 1994 gift of $2.5 million to the RNC.<ref name=zibrowski/> In July 1997, [[Senate Majority Leader]] [[Trent Lott]] and [[Speaker of the United States House of Representatives|House Speaker]] [[Newt Gingrich]] slipped a last-minute provision into a hotly contested compromise tax bill that granted Amway and four other companies a tax break on their Asian branches that totaled $19 million.<ref name=zibrowski/> In a column published in the ''[[Fort Worth Star-Telegram]]'' newspaper in August 1997,<ref name=Ivins>{{cite news|last=Ivins|first=Molly|title=Congress distributes a tax break to Amway|newspaper=[[Fort Worth Star-Telegram]]|date=August 7, 1997}}</ref> reporter [[Molly Ivins]] wrote that Amway had "its own [[Congressional caucus|caucus]] in Congress...Five Republican House members are also Amway distributors: Reps. Sue Myrick of North Carolina, [[Jon Lynn Christensen|Jon Christensen]] of Nebraska, [[Dick Chrysler]] of Michigan, [[Richard Pombo]] of California, and [[John Ensign]] of Nevada. Their informal caucus meets several times a year with Amway bigwigs to discuss policy matters affecting the company, including China's trade status."<ref name=MediaTransparency1>{{cite web|last=Berkowitz|first=Bill|title=Amway's GOPyramid Scheme|url=http://old.mediatransparency.org/story.php?storyID=4|archive-url=https://web.archive.org/web/20110311210455/http://old.mediatransparency.org/story.php?storyID=4|url-status=dead|archive-date=March 11, 2011|date=February 16, 1998|publisher=[[Media Transparency]]|access-date=May 17, 2011}}</ref> A 1998 analysis of campaign contributions conducted by ''[[Businessweek]]'' found that Amway, along with the founding families and some top distributors, had donated at least $7 million to GOP causes in the preceding decade.<ref name=vlasic/> Political candidates who received campaign funding from Amway in 1998 included Representatives [[Bill Redmond]] (R–N.M.), [[Heather Wilson]] (R–N.M.), and Jon Christensen (R–Neb).<ref name=zibrowski/> According to a report by the [[Center for Public Integrity]], in the 2004 election cycle, members of the Van Andel and DeVos families were the second, third and fifth largest donors to the Republican party.<ref name=MediaTransparency2>{{cite web |last=Houle |first=Dana |title=Bush Authoritarianism: Blackwater+Amway=GOP, Pt. 3 |url=http://www.dailykos.com/story/2007/10/21/400840/-Bush-Authoritarianism:-Blackwater+AmwayGOP,-Pt-3 |date=October 21, 2007 |publisher=[[Daily Kos]] |access-date=May 17, 2011 |archive-date=January 19, 2017 |archive-url=https://web.archive.org/web/20170119042303/http://www.dailykos.com/story/2007/10/21/400840/-Bush-Authoritarianism:-Blackwater+AmwayGOP,-Pt-3 |url-status=live }}</ref> [[Dick DeVos]], son of Amway founder Richard DeVos and past president of the company, served as Finance Chairman of the Republican National Committee,<ref name="Richard and Helen DeVos Foundation">{{cite web |url=http://old.mediatransparency.org/funderprofile.php?funderID=17 |archive-url=https://web.archive.org/web/20110311210315/http://old.mediatransparency.org/funderprofile.php?funderID=17 |url-status=dead |archive-date=March 11, 2011 |title=Richard and Helen DeVos Foundation |publisher=Old.mediatransparency.org |access-date=July 9, 2011}}</ref> and his wife [[Betsy DeVos]] served as chair of the [[Michigan Republican Party]] from 1996 to 2000 and 2003 to 2005.<ref name=Scahill>{{cite book |last=[[Jeremy Scahill]] |title=Blackwater: The Rise of the World's Most Powerful Mercenary Army |year=2007 |publisher=Nation Books |isbn=978-1-56858-394-5 |page=[https://archive.org/details/blackwater00scah/page/72 72] |title-link=Blackwater: The Rise of the World's Most Powerful Mercenary Army}}</ref> In May 2005, Dick DeVos ran against incumbent Governor [[Jennifer Granholm]] in [[Michigan gubernatorial election, 2006|Michigan's 2006 gubernatorial election]]. DeVos was defeated by Granholm, who won 56% of the popular vote to his 42%.<ref name="Michigan Department of State">{{cite news |last=State of Michigan |first=Department of State |author2=Terry Lynn Land |author3=Secretary of State |title=2006 Michigan Gubernatorial General Election |work=Governor 4 Year Term (1) Position |date=May 10, 2007 |url=http://miboecfr.nictusa.com/election/results/06GEN/02000000.html |access-date=November 9, 2007 |archive-url=https://web.archive.org/web/20071111144945/http://miboecfr.nictusa.com/election/results/06GEN/02000000.html |archive-date=November 11, 2007 |url-status=dead}}</ref> In August 2012, gay rights activist [[Fred Karger]] began a movement to boycott Amway in protest of the contribution from a private foundation of Amway President [[Doug DeVos]] to the [[National Organization for Marriage]], a political organization which opposes legalization of [[same-sex marriage]] in the United States.<ref>{{cite web |url=http://www.rawstory.com/rs/2012/08/02/amway-faces-boycott-over-donation-to-anti-gay-group/ |title=Amway faces boycott over donation to anti-gay group |access-date=August 3, 2012 |archive-date=November 5, 2013 |archive-url=https://web.archive.org/web/20131105211641/http://www.rawstory.com/rs/2012/08/02/amway-faces-boycott-over-donation-to-anti-gay-group/ |url-status=dead }}</ref> Betsy DeVos was [[United States Secretary of Education]] from 2017 to 2021 under the [[First presidency of Donald Trump|first Trump administration]].<ref>{{cite news|title=How Education Secretary Betsy DeVos Will Be Remembered|last=Turner|first=Corey|work=NPR|date=November 19, 2020|accessdate=November 7, 2024|url=https://www.npr.org/2020/11/19/936225974/the-legacy-of-education-secretary-betsy-devos}}</ref> ===Religion=== Several sources have commented on the promotion of [[Christian right|Christian conservative]] ideology within the Amway organization.<ref name=zibrowski/><ref name= butterfield>{{cite book |title=Amway: The Cult of Free Enterprise |author=Stephen Butterfield |publisher=[[South End Press]] |year=1985 |url=https://archive.org/details/amwaycultoffreee00butt |url-access=registration |at=[https://archive.org/details/amwaycultoffreee00butt/page/185 185] pages |isbn=9780896082533}}</ref><ref name=henein>{{cite web |title=The Revenge of the Amdroids |author=Maryam Henein |newspaper=[[Philadelphia City Paper]] |date=November 28 – December 5, 1997 |url=http://archives.citypaper.net/articles/112896/article009.shtml |access-date=May 11, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20130414080932/http://archives.citypaper.net/articles/112896/article009.shtml |archive-date=April 14, 2013 |df=mdy-all}}</ref><ref>{{cite web |title=Do You know these godfathers? You should |author=Zina Klapper |work=[[Mother Jones (magazine)|Mother Jones]] |date=February–March 1981 |page=33–M |url=http://motherjones.com/ |access-date=May 10, 2011 |archive-date=March 12, 2021 |archive-url=https://web.archive.org/web/20210312000510/https://www.motherjones.com/ |url-status=live }}</ref> ''[[Mother Jones (magazine)|Mother Jones]]'' magazine described the Amway distributor force as "heavily influenced by the company's dual themes of Christian morality and free enterprise" and operating "like a private political army".<ref name=zibrowski/> In ''The Cult of Free Enterprise'', Stephen Butterfield, who spent time in the Yager group within Amway, wrote "[Amway] sells a marketing and motivational system, a cause, a way of life, in a fervid emotional atmosphere of rallies and political religious revivalism."<ref name=butterfield/> ''[[Philadelphia City Paper]]'' correspondent Maryam Henein stated that "The language used in motivational tools for Amway frequently echoes or directly quotes the Bible, with the unstated assumption of a shared Christian perspective."<ref name=henein/> ''[[Businessweek]]'' correspondents Bill Vlasic and Beth Regan characterized the founding families of Amway as "fervently conservative, fervently Christian, and hugely influential in the Republican Party", noting that "Rich DeVos charged up the troops with a message of Christian beliefs and rock-ribbed conservatism."<ref name=vlasic/> High-ranking Amway leaders such as Richard DeVos and Dexter Yager were owners and members of the board of [[Gospel Films]], a producer of movies and books geared toward conservative Christians, as well as co-owners (along with [[Salem Communications]]) of a right-wing, Christian nonprofit called Gospel Communications International.<ref name=zibrowski/><ref name=henein/><ref name= williams>{{cite book | title = How to Be Like Rich DeVos: Succeeding with Integrity in Business and Life | publisher = HCI | year = 2004 | url = https://books.google.com/books?id=4-ggPcMN-skC | isbn = 9780757301582 }}{{Dead link|date=February 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref name= hkdsa>{{cite web| title = Asian Symposium on Direct Selling 2007: Speakers Bios—Doug DeVos| publisher = Direct Selling Association of Hong Kong| url = http://www.hkdsa.org.hk/symposium/2007/speakerbio/DougDeVos.htm| access-date = May 11, 2011| archive-date = March 24, 2012| archive-url = https://web.archive.org/web/20120324121455/http://www.hkdsa.org.hk/symposium/2007/speakerbio/DougDeVos.htm| url-status = dead}}</ref><ref name= calvin>{{cite web| title = Gospel Communications International/Billy Zeoli Scholarship in Christian Media and Communication| author = Calvin College| year = 2011| url = http://www.calvin.edu/academic/cas/scholarships/| access-date = May 11, 2011| author-link = Calvin College| archive-date = July 5, 2011| archive-url = https://web.archive.org/web/20110705202946/http://www.calvin.edu/academic/cas/scholarships/| url-status = dead}}</ref> Yager, interviewed on ''[[60 Minutes]]'' in 1983, admitted that he promotes Christianity through his Amway group, but stated that this might not be the case in other Amway groups.<ref name="60 minutes">{{cite episode |title=Soap and Hope |series=[[60 Minutes]] |credits=Presenter:[[Mike Wallace (journalist)|Mike Wallace]] |network=[[CBS]]. Year 1983 }}</ref>{{request quotation|date=March 2016}} ''[[Rolling Stone]]'s'' Bob Moser reported that former Amway CEO and co-founder Richard DeVos is connected with the [[Dominionist]] political movement in the United States. Moser states that DeVos was a supporter of the late [[D. James Kennedy]], giving more than $5 million to Kennedy's [[Coral Ridge Ministries]].<ref>[https://www.rollingstone.com/politics/story/7235393/the_crusaders/ "The Crusaders"] {{Webarchive|url=https://web.archive.org/web/20080318185336/http://www.rollingstone.com/politics/story/7235393/the_crusaders/ |date=March 18, 2008 }} Bob Moser, April 7, 2005, '' [[Rolling Stone]]''</ref><ref name=ReligionDispatches>{{cite news |last=Berkowitz|first=Bill |title=Worse Than Madoff: Amway Launches Domestic Revival |url=https://religiondispatches.org/worse-than-madoff-amway-launches-domestic-revival/ |url-status=live |archive-url=https://web.archive.org/web/20160304060953/http://religiondispatches.org/worse-than-madoff-amway-launches-domestic-revival/ |archive-date=March 4, 2016 |access-date=November 29, 2024 |newspaper=[[Religion Dispatches]] |date=June 18, 2009}}{{cbignore}}</ref><ref name=AlbionMonitor>{{cite news|last=Berkowitz|first=Bill|title=Amway Shoots For Comeback, Despite Right-Wing Ties of Founders|url=http://www.albionmonitor.com/0901a/copyright/amwaycomeback.html|access-date=May 17, 2011|newspaper=Albion Monitor|date=January 30, 2009|archive-date=April 13, 2012|archive-url=https://web.archive.org/web/20120413042613/http://www.albionmonitor.com/0901a/copyright/amwaycomeback.html|url-status=live}}</ref> DeVos was also a founding member and two-time president of the [[Council for National Policy]], a right-wing Christian organization.<ref name=Zirin>{{cite book|last=[[Dave Zirin]]|title=Bad Sports: How Owners Are Ruining the Games We Love|year=2010|publisher=[[Simon & Schuster]]|isbn=978-1-4165-5475-2|page=[https://archive.org/details/badsportshowowne0000ziri/page/91 91]|url=https://archive.org/details/badsportshowowne0000ziri/page/91}}</ref> Sociologist [[David G. Bromley]] calls Amway a "quasi-religious corporation" having [[sectarian]] characteristics.<ref name="bromley-quasi-religious"/><ref>''Transformative movements and quasi-religious corporations: the case of Amway'', by [[David G. Bromley]]. In ''Sacred Companies: Organizational Aspects of Religion and Religious Aspects of Organizations'', edited by Nicholas Jay Demerath, [[Peter Dobkin Hall]], Terry Schmitt and [[Rhys H. Williams (sociologist)|Rhys H. Williams]], pages 349–363. [[Oxford University Press]], 1998</ref> Bromley and [[Anson Shupe]] view Amway as preaching the [[Prosperity theology|gospel of prosperity]].<ref>''Rebottling the Elixir: The Gospel of Prosperity in America's Religioeconomic Corporations'', by [[David G. Bromley]] and [[Anson Shupe]]. In ''In Gods we trust: new patterns of religious pluralism in America'', edited by [[Thomas Robbins (sociologist)|Thomas Robbins]] and Dick Anthony, pages 233–254. [[Transaction Publishers]], 1990</ref> Patralekha Bhattacharya and Krishna Kumar Mehta, reasoned that although some critics have referred to organizations such as Amway as "cults" and have speculated that they engage in "mind control", there are other explanations that could account for the behavior of distributors. Namely, continued involvement of distributors despite minimal economic return may result from social satisfaction compensating for diminished economic satisfaction.<ref name="bhattacharye-mehta">''Socialization in network marketing organizations: is it cult behavior?'' by Patralekha Bhattacharya and Krishna Kumar Mehta, Journal of Socio-Economics. 29(4):361–374.</ref> ===Chamber of commerce=== Amway co-founder [[Jay Van Andel]] (in 1980), and later his son Steve Van Andel (in 2001), were elected by the board of directors of the [[United States Chamber of Commerce]] to be the chairman of the private [[lobbying|American lobbying]] organization.<ref>{{cite web|url=http://www.uschamber.com/about/board/steve-van-andel |title=Steve Van Andel |publisher=U.S. Chamber of Commerce |access-date=July 9, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20131208080305/http://www.uschamber.com/about/board/steve-van-andel |archive-date=December 8, 2013 |df=mdy }}</ref> ===Accreditation program=== In 2006, Amway (then Quixtar in North America) introduced its ''Professional Development Accreditation Program'' in response to concerns surrounding business support materials (BSM), including books, tapes and meetings.<ref>{{cite web|title=Quixtar Professional Development Accreditation Program |url=http://www.quixtaraccreditation.com/ |website=Quixtar Accreditation |publisher=Quixtar, Inc. |access-date=26 March 2016 |url-status=dead |archive-url=https://web.archive.org/web/20060821223815/http://www.quixtaraccreditation.com/ |archive-date=August 21, 2006 }}</ref><ref>{{cite web|last1=Dornan|first1=Beth|title=A short history of BSMs (business support materials)|url=http://www.amwayinsider.com/2006/09/01/a-short-history-of-bsms-business-support-materials/|website=Amway Insider|publisher=Amway|access-date=26 March 2016|archive-url=https://web.archive.org/web/20160406235333/http://www.amwayinsider.com/2006/09/01/a-short-history-of-bsms-business-support-materials/|archive-date=April 6, 2016|url-status=dead}}</ref> In 2010 this was superseded by its ''Accreditation Plus'' program to ensure that all BSM content is consistent with Amway's quality assurance standards, which approved providers of BSM must abide by.<ref>{{cite web|last1=Droog|first1=Cindy|title=A+|url=http://www.amwayinsider.com/2011/02/15/a/|website=Amway Insider|publisher=Amway|access-date=26 March 2016|archive-url=https://web.archive.org/web/20160407041111/http://www.amwayinsider.com/2011/02/15/a/|archive-date=April 7, 2016|url-status=dead}}</ref><ref>{{cite web|title=IBOAI Milestones|url=http://www.iboai.com/your-iboai-board/iboai-history/iboai-milestones|website=IBOAI – Your Voice|publisher=IBOAI|access-date=26 March 2016|archive-date=March 25, 2016|archive-url=https://web.archive.org/web/20160325034650/http://iboai.com/your-iboai-board/iboai-history/iboai-milestones|url-status=live}}</ref> The quality assurance standards state that<ref>{{cite web|title=Quality Assurance Standards for Business Support Materials (BSM)|url=http://www.amway.in/store/amway/en/INR/static-pages/amwayPdfLink/QAS|website=Amway india|publisher=Amway|access-date=26 March 2016|archive-date=April 23, 2016|archive-url=https://web.archive.org/web/20160423065109/http://www.amway.in/store/amway/en/INR/static-pages/amwayPdfLink/QAS|url-status=dead}}</ref><ref>{{cite web|title=UKRAINIAN BSM (BUSINESS SUPPORT MATERIAL) QUALITY ASSURANCE STANDARDS|url=https://www.amway.ua/_fileserver/item/11768/BSM_QAS_EN.pdf|website=Amway|access-date=26 March 2016|archive-date=April 7, 2016|archive-url=https://web.archive.org/web/20160407204146/https://www.amway.ua/_fileserver/item/11768/BSM_QAS_EN.pdf|url-status=dead}}</ref><ref>{{cite web|title=Quality Assurance Standards|url=http://www.amway.com/lcl/en/ResourceCenterDocuments/Distributor/ops-amw-fact-d-en--QualityAssuranceStandards.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://www.amway.com/lcl/en/ResourceCenterDocuments/Distributor/ops-amw-fact-d-en--QualityAssuranceStandards.pdf |archive-date=2022-10-09 |url-status=live|website=Amway|access-date=26 March 2016}}{{subscription required}}</ref> * Promoting political causes or other issues of a personal nature in the Amway Business environment is not permitted * Spiritual references are not allowed as the message or focus and presenters may not use the stage as a platform to promote religious and/or personal social beliefs * Endorsement or denouncement of specific candidates, political parties, and/or issues, unless specifically related to the operation of an Amway Business is not allowed. ==Pyramid scheme allegations== [[Robert Todd Carroll|Robert Carroll]], of the ''[[Skeptic's Dictionary]]'', has described Amway as a "legal pyramid scheme", and has said that the quasi-religious devotion of its affiliates is used by the company to conceal poor performance rates by distributors.<ref>{{cite web|last1=Carroll|first1=Robert Todd|author-link1=Robert Todd Carroll|title=Amway|url=http://skepdic.com/amway.html|website=Skeptic's Dictionary|access-date=February 24, 2015|date=July 9, 2014|archive-date=February 11, 2021|archive-url=https://web.archive.org/web/20210211045440/http://www.skepdic.com/amway.html|url-status=live}}</ref> ===FTC investigation=== {{Main|In re Amway Corp.}} In a 1979 ruling,<ref name="MLMLAW"/><ref>{{cite web |url=http://www.ftc.gov/speeches/other/dvimf16.htm#N_19_ |title=Pyramid Schemes |publisher=Ftc.gov |date=June 25, 2007 |access-date=July 9, 2011 |archive-url=https://web.archive.org/web/20090108201509/http://www1.ftc.gov/speeches/other/dvimf16.htm#N_19_ |archive-date=January 8, 2009 |url-status=dead }}</ref> the [[Federal Trade Commission]] found that Amway did not fit the definition of a pyramid scheme because (a) distributors were not paid to recruit people, (b) it did not require distributors to buy a large stock of unmoving inventory, (c) distributors were required to maintain retail sales (at least 10 per month), and (d) the company and all distributors were required to accept returns of excess inventory from down-level distributors.<ref name=Eisenberg>{{cite news|last=Eisenberg|first=Richard|title=The Mess Called Multi-Level Marketing With celebrities setting the bait, hundreds of pyramid-style sales companies are raking in millions, often taking in the gullible|url=http://knowledge.wharton.upenn.edu/article.cfm?articleid=2767|access-date=May 17, 2011|newspaper=[[CNN Money]] |date= June 1, 1987| archive-url= https://web.archive.org/web/20110605140212/http://knowledge.wharton.upenn.edu/article.cfm?articleid=2767| archive-date= June 5, 2011 | url-status= live}}</ref><ref>{{Cite web|url=https://www.ftc.gov/public-statements/1998/05/pyramid-schemes|title=Pyramid Schemes|last=Valentine|first=Debra A.|date=May 13, 1998|website=www.ftc.gov|publisher=Federal Trade Commission|access-date=2016-03-15|archive-date=December 16, 2013|archive-url=https://web.archive.org/web/20131216053839/http://www.ftc.gov/public-statements/1998/05/pyramid-schemes|url-status=live}}</ref> The FTC did, however, find Amway "guilty of [[price-fixing]] and making exaggerated income claims";<ref name=Wharton>{{cite news|title=Amway: Selling the Dream of Financial Freedom|url=http://knowledge.wharton.upenn.edu/article.cfm?articleid=2767|access-date=May 17, 2011|newspaper=[[Wharton School]] of the [[University of Pennsylvania]]|date= May 5, 2011| archive-url= https://web.archive.org/web/20110605140212/http://knowledge.wharton.upenn.edu/article.cfm?articleid=2767| archive-date= June 5, 2011 | url-status= live}}</ref> the company was ordered to stop retail price fixing and allocating customers among distributors and was prohibited from misrepresenting the amount of profit, earnings or sales its distributors are likely to achieve with the business. 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.<ref>{{cite web|url=https://www.casewatch.net/ftc/news/1986/amway.shtml |title=''Amway Corp. To Pay $100,000 Civil Penalty, Settling FTC Charges'' |date=August 27, 2006 |publisher=Casewatch.net |access-date=July 9, 2011| archive-url= https://web.archive.org/web/20200220184559/https://www.casewatch.net/ftc/news/1986/amway.shtml| archive-date= February 20, 2020 | url-status= live}}</ref><ref name=Manes>{{cite news|last=Manes|first=Billy|title=Look Who's Knockin|url=http://www2.orlandoweekly.com/news/story.asp?id=11267|access-date=May 17, 2011|newspaper=[[Orlando Weekly]]|date=January 18, 2007|archive-date=July 25, 2011|archive-url=https://web.archive.org/web/20110725163501/http://www2.orlandoweekly.com/news/story.asp?id=11267|url-status=dead}}</ref> Studies of independent consumer watchdog agencies have shown that between 990 and 999 of 1000 participants in MLMs that use Amway-type pay plans in fact lose money.<ref>{{cite web|url=http://www.mlm-thetruth.com/mlms-evaluated-4-red-flags-product-based-pyramid-scheme/mlms-4-red-flags-product-based-pyramid-scheme-d/|archive-url=https://web.archive.org/web/20170214183654/http://www.mlm-thetruth.com/mlms-evaluated-4-red-flags-product-based-pyramid-scheme/mlms-4-red-flags-product-based-pyramid-scheme-d/|url-status=dead|archive-date=2017-02-14|title=MLMs with 4 red flags: A-D|website=www.mlm-thetruth.com}}</ref><ref name=forever>[https://books.google.com/books?id=00bkiZGR8zkC Amway Forever: The Amazing Story of a Global Business Phenomenon] {{Webarchive|url=https://web.archive.org/web/20221112100552/https://books.google.com/books?id=00bkiZGR8zkC&source=gbs_navlinks_s |date=November 12, 2022 }}, p. 178</ref> According to The Skeptic's Dictionary, "In the United States, the Federal Trade Commission requires Amway to label its products with the message that 54% of Amway recruits make nothing and the rest earn on average $65 a month."<ref>{{cite web|url=http://skepdic.com/amway.html|title=Amway. Quiztar, TEAM, Team of Destiny, Network 21 - The Skeptic's Dictionary - Skepdic.com|website=skepdic.com|access-date=February 24, 2015|archive-date=February 11, 2021|archive-url=https://web.archive.org/web/20210211045440/http://www.skepdic.com/amway.html|url-status=live}}</ref> ===Amway India=== In September 2006, following a public complaint, [[Andhra Pradesh]] and [[Telangana]] state police (CID) initiated raids and seizures against Amway distributors in the state, and submitted a petition against them, claiming the company violated the Prize Chits and Money Circulation Schemes (Banning) Act.<ref name="Ban on Amway Chits, Schemes">{{cite news|url=http://www.hindu.com/2008/09/17/stories/2008091754250400.htm |archive-url=https://web.archive.org/web/20080919154837/http://www.hindu.com/2008/09/17/stories/2008091754250400.htm |url-status=dead |archive-date=September 19, 2008 |title=Ban on Amway Chits, Schemes |location=India |date=September 17, 2008 |work=[[The Hindu]] |access-date=July 9, 2011}}</ref> They shut down all corporate offices associated with the Amway organization including the offices of some Amway distributors. The enforcement said that the business model of the company is illegal.<ref name="ibtimes">{{Cite news|url=https://www.ibtimes.co.in/articles/20061213/amway-mlm-business-model.htm |title=Amway in hot water in Hyderabad over "business model" controversy |last=Saha |first=Arijit |date=December 13, 2006 |publisher=IB Times |access-date=January 17, 2010 }}{{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref><ref>{{cite web |url=http://www.moneycontrol.com/news/business/hyderabad-police-shuts-down-amway-offices_242899.html |title=Hyderabad Police shuts down Amway offices |publisher=Moneycontrol.com |access-date=July 9, 2011 |archive-date=January 21, 2016 |archive-url=https://web.archive.org/web/20160121011254/http://www.moneycontrol.com/news/business/hyderabad-police-shuts-down-amway-offices_242899.html |url-status=live }}</ref> The Reserve Bank of India (RBI) had notified the police that Amway in India may be violating certain laws regarding a "money circulation scheme" and the [[International Business Times|''IB Times'']] article writes that "some say ... Amway is really more about making money from recruiting people to become distributors, as opposed to selling products".<ref name="ibtimes"/> In 2008, the state government of Andhra Pradesh enacted a ban on Amway media advertisements.<ref name="Ban on Amway Chits, Schemes"/> On August 6, 2011, [[Kerala Police]] sealed the offices of Amway at [[Kozhikode]], [[Kannur]], [[Kochi]], [[Kottayam]], [[Thrissur]], [[Kollam]] and [[Thiruvananthapuram]] following complaints.<ref name="Kerala raids">{{cite news|url=http://www.hindustantimes.com/Amway-offices-raided-at-nine-places/Article1-730172.aspx |title=Amway offices raided at nine places |work=Hindustan Times |location=India |date=August 6, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110929144059/http://www.hindustantimes.com/Amway-offices-raided-at-nine-places/Article1-730172.aspx |archive-date=September 29, 2011 }}</ref><ref>{{cite web|url=http://www.mathrubhumi.com/english/story.php?id=112554 |title=Police raid at Amway offices |publisher=Mathrubhumi English |date=2011-08-06 |access-date=2013-05-27 |url-status=dead |archive-url=https://web.archive.org/web/20131105211544/http://www.mathrubhumi.com/english/story.php?id=112554 |archive-date=November 5, 2013 }}</ref><ref>{{cite web |url=http://newindianexpress.com/cities/kochi/article481246.ece |title=Statewide raids on Amway offices |work=The New Indian Express |date=2011-08-07 |access-date=2013-05-27 |archive-date=April 20, 2016 |archive-url=https://web.archive.org/web/20160420230724/http://www.newindianexpress.com/cities/kochi/article481246.ece |url-status=dead }}</ref> In November 2012, the Economic Offences Wing of Kerala Police conducted searches at the offices of Amway at Kozhikode, Thrissur and Kannur as part of its crackdown on money chain activities and closed down the firm's warehouses at these centres. Products valued at 21.4 million rupees (about US$400,000 at the time) were also seized.<ref>{{cite news |url=http://www.thehindu.com/todays-paper/tp-national/tp-kerala/searches-conducted-on-amway-offices/article4084066.ece |title=Searches conducted on Amway offices |newspaper=The Hindu |date=2012-11-10 |access-date=2013-05-27 |archive-date=March 5, 2021 |archive-url=https://web.archive.org/web/20210305163049/https://www.thehindu.com/todays-paper/tp-national/tp-kerala/searches-conducted-on-amway-offices/article4084066.ece |url-status=live }}</ref> Later, Area manager of Amway, P. M. Rajkumar, who was arrested following searches was remanded in judicial custody for 14 days.<ref>{{cite news |url=http://www.thehindu.com/todays-paper/tp-national/tp-kerala/amway-accused-in-judicial-custody/article4087090.ece |title=Amway: accused in judicial custody |newspaper=The Hindu |date=2012-11-11 |access-date=2013-05-27 |archive-date=February 26, 2021 |archive-url=https://web.archive.org/web/20210226222410/https://www.thehindu.com/todays-paper/tp-national/tp-kerala/amway-accused-in-judicial-custody/article4087090.ece |url-status=live }}</ref> On May 27, 2013, Crime Branch officials of Kerala Police arrested William S. Pinckney, Managing Director & CEO of Amway India Enterprises along with two other directors of the company from Kozhikode. The three were arrested on charges of running a pyramid scheme.<ref name="Sanandakumar"/><ref>{{cite news|url=http://www.mathrubhumi.com/business/news_articles/amway-ceo-pinkni-scott-and-two-directors-arrested-363981.html |title=Amway India CEO William Scott Pinckney arrested Mathrubhumi Business |newspaper=Mathrubhumi |access-date=2013-05-27 |url-status=dead |archive-url=https://web.archive.org/web/20130607182618/http://www.mathrubhumi.com/business/news_articles/amway-ceo-pinkni-scott-and-two-directors-arrested-363981.html |archive-date=June 7, 2013 |df=mdy }}</ref> They were granted bail the next day and the business was unaffected. On June 8, 2013, Kozhikode Court lifted the freeze on Amway offices in Kerala.<ref>{{cite web|url=http://www.deccanchronicle.com/130608/news-current-affairs/article/kozhikode-court-lifts-freeze-amway-offices |title=Kozhikode Court lifts freeze on Amway offices Deccan Chronicle |newspaper=Deccan Chronicle |access-date=2013-06-08 |url-status=dead |archive-url=https://web.archive.org/web/20130613141113/http://www.deccanchronicle.com/130608/news-current-affairs/article/kozhikode-court-lifts-freeze-amway-offices |archive-date=June 13, 2013 }}</ref> On May 26, 2014, Pinckney was arrested by Andhra Pradesh police on the basis of a consumer complaint that alleged unethical circulation of money by Amway. He was subsequently arrested in other criminal cases registered against him in the state on allegations of financial irregularities by the company.<ref name="HT_072816"/> Pinckney was jailed for two months until being released on bail.<ref name="HT_072816">{{cite news|title=Amway India CEO William Pinckney released on bail|url=http://www.livemint.com/Companies/ljtM8Ram1OJQsudUebpfsI/Amway-India-MD-CEO-Pinckney-released-on-bail.html|access-date=March 23, 2016|work=[[Hindustan Times]]|date=July 28, 2014|archive-date=March 12, 2016|archive-url=https://web.archive.org/web/20160312092547/http://www.livemint.com/Companies/ljtM8Ram1OJQsudUebpfsI/Amway-India-MD-CEO-Pinckney-released-on-bail.html|url-status=live}}</ref><ref name="ET_072916">{{cite news|title=Amway India MD & CEO William Pinckney released on bail|url=http://articles.economictimes.indiatimes.com/2014-07-29/news/52186688_1_two-company-directors-prize-chits-amway|access-date=March 23, 2016|work=[[The Economic Times]]|date=Jul 29, 2014|archive-date=April 4, 2016|archive-url=https://web.archive.org/web/20160404233051/http://articles.economictimes.indiatimes.com/2014-07-29/news/52186688_1_two-company-directors-prize-chits-amway|url-status=dead}}</ref><ref name="HBL_072814">{{cite news|title=Amway India MD & CEO William Pinckney released on bail|url=http://www.thehindubusinessline.com/companies/amway-india-ceo-william-s-pinckney-released-on-bail/article6257866.ece|access-date=March 23, 2016|work=[[The Hindu Business Line]]|date=Jul 28, 2014}}</ref> In 2017, a [[Chandigarh]] court framed charges, under [[Section 420 of the Indian Penal Code]] and the Prize Chits and Money Circulation Scheme (Banning) Act, against two directors of Amway India, William Scot Pinckney and Prithvai Raj Bijlani. This was based on a cheating case filed by eight complainants in 2002, following which the Economic Offences Wing had filed chargesheet in 2012. A revision plea moved by the two Amway officials against the framed charges was dismissed in 2018.<ref>{{cite news | title = Charges framed against two Amway directors | newspaper = The Tribune | url = https://www.tribuneindia.com/news/archive/features/charges-framed-against-two-amway-directors-349309 | access-date=August 20, 2024 | location = India }}{{void|Fabrickator|comment|original url: http://www.tribuneindia.com/mobi/news/chandigarh/courts/charges-framed-against-two-amway-directors/349309.html }}</ref><ref>{{cite news | title = Chandigarh Court junks revision plea of two Amway officials in 2002 cheating case | newspaper = The Indian Express | url = http://indianexpress.com/article/cities/chandigarh/2002-cheating-case-chandigarh-court-junks-revision-plea-of-two-amway-officials-5259012 | access-date = July 24, 2018 | archive-date = July 24, 2018 | archive-url = https://web.archive.org/web/20180724153903/https://indianexpress.com/article/cities/chandigarh/2002-cheating-case-chandigarh-court-junks-revision-plea-of-two-amway-officials-5259012/ | url-status = live }}</ref> In April 2022, the [[Enforcement Directorate]] attached both movable and immovable assets of Amway India worth {{INRconvert|757|c|0|lk}} including the firm's factory in [[Dindigul]] along with bank accounts under the [[Prevention of Money Laundering Act]] (PMLA).<ref>{{cite news |title=ED attaches Amway India's assets worth Rs 757 crore in alleged MLM scam |url=https://www.moneycontrol.com/news/business/ed-attaches-amway-indias-assets-worth-rs-757-crore-in-alleged-money-laundering-case-8373671.html |access-date=18 April 2022 |work=Moneycontrol |date=18 April 2022 |language=en |archive-date=April 18, 2022 |archive-url=https://web.archive.org/web/20220418115659/https://www.moneycontrol.com/news/business/ed-attaches-amway-indias-assets-worth-rs-757-crore-in-alleged-money-laundering-case-8373671.html |url-status=live }}</ref> ===U.S. class action settlement=== On November 3, 2010, Amway announced that it had agreed to pay $56 million—$34 million in cash and $22 million in products—to settle a [[class action]] that had been filed in Federal District Court in California in 2007.<ref name=classaction>{{cite news |first=Chris |last=Knape |url=http://www.mlive.com/business/west-michigan/index.ssf/2010/11/amway_agrees_to_pay_56_million.html |title=Amway agrees to pay $56 million, settle case alleging it operates a 'pyramid scheme' |date=November 3, 2010 |website=MLive |access-date=September 2, 2019 |archive-date=February 1, 2019 |archive-url=https://web.archive.org/web/20190201131018/https://www.mlive.com/business/west-michigan/index.ssf/2010/11/amway_agrees_to_pay_56_million.html |url-status=live }}</ref> The class action, which had been brought against Quixtar and several of its top-level distributors, alleged fraud, [[racketeering]], and that the defendants operated as an illegal pyramid scheme. Amway, while noting that the settlement is not an admission of wrongdoing or liability, acknowledged that it had made changes to its business operations as a result of the lawsuit. The settlement is subject to approval by the court, which was expected in early 2011.<ref name=classaction/> The economic value of the settlement, including the changes Amway made to its business model, totals $100 million.<ref>{{cite web |url=http://www.mlive.com/business/west-michigan/index.ssf/2010/11/lawyers_say_their_20_million_p.html |title="Lawyers say their $20 million payment is fair for $100 million settlement in Amway pyramid scheme lawsuit", ''Grand Rapids Press'' (November 4, 2010) |publisher=Mlive.com |access-date=July 9, 2011 |date=November 4, 2010 |archive-date=June 17, 2018 |archive-url=https://web.archive.org/web/20180617043359/http://www.mlive.com/business/west-michigan/index.ssf/2010/11/lawyers_say_their_20_million_p.html |url-status=live }}</ref> ===Lobbying for deregulation=== The DeVoses supported an amendment to the US House of Representatives' omnibus Financial Services and General Government Appropriations bill for fiscal year 2018 by US Representative [[John Moolenaar]] that would have limited the ability of the FTC to investigate whether MLMs are pyramid schemes.<ref name="Kosman2017">{{cite news|last1=Kosman|first1=John|title=DeVos' family seeks deregulation of Amway so it can beat Herbalife|url=https://nypost.com/2017/09/18/devos-family-seeks-deregulation-of-amway-so-it-can-beat-herbalife/|access-date=6 May 2018|work=[[New York Post]]|date=18 September 2017|archive-date=May 7, 2018|archive-url=https://web.archive.org/web/20180507085838/https://nypost.com/2017/09/18/devos-family-seeks-deregulation-of-amway-so-it-can-beat-herbalife/|url-status=live}}</ref> The amendment would have barred the Treasury Department, the Justice Department, the Small Business Administration, the Securities and Exchange Commission, the FTC, or any other agencies from using any monies to take enforcement actions against pyramid operations for the fiscal year.<ref name="Gingerich2017">{{cite news|last1=Gingerich|first1=Jon|title=Pyramid Scheme Protection Law Pits Legal Group Against Multilevel Marketers|url=http://www.odwyerpr.com/story/public/9601/2017-10-20/pyramid-scheme-protection-law-pits-legal-group-against-multilevel-marketers.html|access-date=6 May 2018|work=O'Dwyer's: The Inside News of PR & Marketing Communications|date=20 October 2017|archive-date=May 7, 2018|archive-url=https://web.archive.org/web/20180507085633/http://www.odwyerpr.com/story/public/9601/2017-10-20/pyramid-scheme-protection-law-pits-legal-group-against-multilevel-marketers.html|url-status=live}}</ref> It also adopted provisions from H.R. 3409, the so-called "Anti-Pyramid Scheme Promotion Act of 2016",<ref name="NCL2018">{{cite news|last1=NCL Communications|title=Public interest groups' letter to Congress in opposition of Moolenaar pyramid scheme rider|url=http://www.nclnet.org/congress_moolenaar_letter|access-date=6 May 2018|publisher=[[National Consumers League]]|date=March 2018|archive-date=May 7, 2018|archive-url=https://web.archive.org/web/20180507153302/http://www.nclnet.org/congress_moolenaar_letter|url-status=live}}</ref> which would blur the lines between legitimate MLM activity and pyramid schemes established under the original 1979 FTC case by deeming sales made to people inside the company as sales to an "ultimate user," thus erasing the key distinction made in the ruling between sales to actual consumers of a product and sales made to members of the MLM network as part of recruitment of members or to qualify for commissions.<ref name="Gingerich2017" /><ref name="NCL2018" /><ref name="VanderNatTINA">{{cite web|last1=Vander Nat|first1=Peter|title=Why This Anti-Pyramid Scheme Bill is Outrageously Wrong for Consumers|url=https://www.truthinadvertising.org/why-hr-5230-is-wrong/|publisher=[[Truth in Advertising (organization)|Truth in Advertising (TINA.org)]]|access-date=6 May 2018|date=May 23, 2016|archive-date=May 7, 2018|archive-url=https://web.archive.org/web/20180507091118/https://www.truthinadvertising.org/why-hr-5230-is-wrong/|url-status=live}}</ref> The amendment was opposed by a coalition of consumer interest groups including [[Consumer Action]], the [[Consumer Federation of America]], [[Consumers Union]] (the publisher of ''[[Consumer Reports]]'' magazine), [[Consumer Watchdog]], the [[National Consumers League]], and the [[Public Interest Research Group|United States Public Interest Research Group]] (US PIRG),<ref name="NCL2018" /> as well as [[Truth in Advertising (organization)|Truth in Advertising (TINA.org)]] in its original incarnation.<ref name="VanderNatTINA" /> ==Other legal actions== ===Canadian tax fraud case=== In 1982, Amway co-founders, Richard M. DeVos and Jay Van Andel, along with Amway's executive vice president for corporate services, William J. Discher Jr., were indicted in Canada on several criminal charges, including allegations that they underreported the value of goods brought into the country and had defrauded the Canadian government of more than $28 million from 1965 to 1980.<ref name="NYT_111183">{{cite news|last1=Martin|first1=Douglas|title=Amway admits fraud|url=https://www.nytimes.com/1983/11/11/business/amway-admits-fraud.html|access-date=March 12, 2016|work=[[The New York Times]]|date=November 11, 1983|archive-date=March 13, 2016|archive-url=https://web.archive.org/web/20160313035555/http://www.nytimes.com/1983/11/11/business/amway-admits-fraud.html|url-status=live}}</ref><ref name="Ledger_031216">{{cite news|title=Amway Pleads Guilty to Fraud|url=https://news.google.com/newspapers?id=wSUVAAAAIBAJ&sjid=mvsDAAAAIBAJ&pg=4697,3984825&hl=en|newspaper=[[Lakeland Ledger]]|date=November 11, 1983}}{{cbignore}}</ref><ref name=CanadaTax>{{Cite news | title = Amway of Canada Drops Tax Appeal | work = The New York Times | agency = Reuters | date = February 7, 1984 | url = https://query.nytimes.com/gst/fullpage.html?res=9D04E3D81039F932A15750C0A962948260 | access-date = July 5, 2007 | archive-date = October 13, 2007 | archive-url = https://web.archive.org/web/20071013174529/http://query.nytimes.com/gst/fullpage.html?res=9D04E3D81039F932A15750C0A962948260 | url-status = live }}</ref><ref>{{Cite news | title = Amway, Canada Reach Settlement In Customs Dispute | work = The Wall Street Journal | date = September 25, 1989 | url = https://pqasb.pqarchiver.com/wsj/access/860493942.html?dids=860493942:860493942&FMT=ABS&FMTS=ABS:AI&date=Sep+25%2C+1989&author=JOHN+URQUHART+Staff+Reporter+of+THE+WALL+STREET+JOURNAL&pub=Wall+Street+Journal++(1889-Current+file)&edition=&startpage=C17&type=historic&desc=Amway%2C+Canada+Reach+Settlement+In+Customs+Dispute | access-date = June 4, 2008 | archive-date = November 19, 2010 | archive-url = https://web.archive.org/web/20101119205207/http://pqasb.pqarchiver.com/wsj/access/860493942.html?dids=860493942:860493942&FMT=ABS&FMTS=ABS:AI&date=Sep+25%2C+1989&author=JOHN+URQUHART+Staff+Reporter+of+THE+WALL+STREET+JOURNAL&pub=Wall+Street+Journal++(1889-Current+file)&edition=&startpage=C17&type=historic&desc=Amway%2C+Canada+Reach+Settlement+In+Customs+Dispute | url-status = dead }}</ref> The charges were dropped in 1983 after Amway and its Canadian subsidiary pleaded guilty to criminal customs fraud charges.<ref name="The New York Times 1983 v854">{{cite web | title=BUSINESS PEOPLE; Haig to Advise Amway On Foreign Operations | website=The New York Times | date=December 12, 1983 | url=https://www.nytimes.com/1983/12/12/business/business-people-haig-to-advise-amway-on-foreign-operations.html | access-date=April 2, 2024}}</ref> The companies paid a fine of $25 million CAD, the largest fine ever imposed in Canada at the time.<ref name="NYT_111183" /> In 1989, the company settled the outstanding customs duties for $45 million CAD.<ref name="LATimes_1989">{{cite web | author=Times Wire Services | title=P. M. BRIEFING : Amway Pays $38-Million to Canada | website=Los Angeles Times | date=September 22, 1989 | url=https://www.latimes.com/archives/la-xpm-1989-09-22-fi-888-story.html | access-date=April 2, 2024}}</ref> ===RIAA lawsuit=== The [[Recording Industry Association of America]] (RIAA), as part of its anti-piracy efforts, sued Amway and several distributors in 1996, alleging that copyrighted music was used on "highly profitable" training videotapes.<ref>{{cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9D06E4D61339F932A15751C0A960958260 |title=Record Labels Sue Amway over its videos |work=The New York Times |date=February 21, 1996 |access-date=July 9, 2011}}</ref> Amway denied wrongdoing, blaming the case on a misunderstanding by distributors, and settled the case out of court for $9 million.<ref>{{cite web|url=http://www.highbeam.com/doc/1P1-19783607.html |archive-url=https://web.archive.org/web/20131208073245/http://www.highbeam.com/doc/1P1-19783607.html |url-status=dead |archive-date=December 8, 2013 |title=Amway pays $9 million to settle copyright infringement suit |publisher=Highbeam.com |access-date=July 9, 2011}}</ref> ===Amway UK=== In 2007, Amway's operations were halted in the United Kingdom and Ireland following a yearlong investigation by the UK Department of Trade and Industry, which moved to have Amway banned on the basis that the company had employed deceptive marketing, presented inflated earnings estimates, and lured distributors into buying bogus "motivation and training" tools.<ref name="FT_031116">{{cite news|title=Pyramid scam alert|volume=42|url=http://www.sundaytimes.lk/070722/FinancialTimes/ft319.html|access-date=March 11, 2016|issue=8|newspaper=[[Financial Times]]|date=July 22, 2007|archive-date=March 3, 2016|archive-url=https://web.archive.org/web/20160303220545/http://www.sundaytimes.lk/070722/FinancialTimes/ft319.html|url-status=live}}</ref><ref>{{Cite news|title=UK threatens to ban Amway|first=Lee|last=Lupo|work=The Muskegon Chronicle|location=Grand Rapids|date=July 1, 2007|url=http://blog.mlive.com/chronicle/2007/07/united_kingdom_investigates_am.html|access-date=April 2, 2010|archive-date=December 25, 2011|archive-url=https://web.archive.org/web/20111225102446/http://blog.mlive.com/chronicle/2007/07/united_kingdom_investigates_am.html|url-status=live}}</ref> In 2008, a UK judge dismissed government claims against Amway's operations, saying major reforms in the prior year (which included banning non-Amway-approved motivational events and materials) had fixed company faults that favoured selling training materials over products and misrepresented earnings. However, the judge also expressed his belief that Amway allowed "misrepresentations" of its business by independent sellers in years past and failed to act decisively against the misrepresentations.<ref name="MLive_031116">{{cite news|last1=Knape|first1=Chris|title=U.K. judge dismisses claims against Amway|url=http://blog.mlive.com/grpress/2008/05/uk_dismisses_claims_against_am.html|access-date=March 11, 2016|publisher=MLive Media Group|date=May 14, 2008|archive-date=March 12, 2016|archive-url=https://web.archive.org/web/20160312070752/http://blog.mlive.com/grpress/2008/05/uk_dismisses_claims_against_am.html|url-status=live}}</ref> ===''Welcome to Life'' (Poland)=== In 1997, Amway Poland and [[Network TwentyOne]] separately sued the makers of a Polish film, ''Welcome to Life'' ({{langx|pl|Witajcie w życiu}}), for defamation and copyright violations. Henryk Dederko (the director) and producer were later acquitted on the charge of disseminating false information.<ref name="wiadomosci.wp.pl">{{cite web |url=http://wiadomosci.wp.pl/kat,1345,title,Przerazajacy-film-o-praniu-mozgow-nie-w-Warszawie,wid,11589486,wiadomosc.html |title="Przerażający film o praniu mózgów" – nie w Warszawie – Wiadomości – WP.PL |publisher=Wiadomosci.wp.pl |access-date=July 9, 2011 |archive-url=https://web.archive.org/web/20150705164006/http://wiadomosci.wp.pl/kat,1345,title,Przerazajacy-film-o-praniu-mozgow-nie-w-Warszawie,wid,11589486,wiadomosc.html |archive-date=July 5, 2015 |url-status=dead |df=mdy-all }}</ref><ref>{{Cite news|title=Ban on Film Has Poland Debating Censorship|first=Jane|last=Perlez|work=The New York Times|location=Warsaw|date=June 14, 1998|url=https://www.nytimes.com/1998/06/14/world/ban-on-film-has-poland-debating-censorship.html?pagewanted=1|access-date=February 5, 2017|archive-date=February 18, 2017|archive-url=https://web.archive.org/web/20170218075014/http://www.nytimes.com/1998/06/14/world/ban-on-film-has-poland-debating-censorship.html?pagewanted=1|url-status=live}}</ref> The film, banned for 12 years, was one of the highly anticipated movies of 2009's Warsaw Film Festival and was dubbed by the promoters as a "scary movie about brainwashing"<ref name="wiadomosci.wp.pl"/> It was said to depict hard-sell "[[pep rallies]]", and to include statements from distributors that meetings had a similar tone to meetings of the [[Polish United Workers' Party|Communist Party]] before it lost power in Poland. Methods of recruitment that confusingly resembled those of a sect were also described.<ref>{{cite web|url=http://www.plejada.pl/2,24876,news,1,1,witajcie-w-zyciu-film-o-amwayu-wycofany-z-wff,artykul.html |title="Witajcie w życiu", film o Amwayu wycofany z WFF – Film – Plejada – Sprawdź, co słychać w show-biznesie |publisher=Plejada.pl |date=October 13, 2009 |access-date=July 9, 2011 |archive-url=https://web.archive.org/web/20110722134910/http://www.plejada.pl/2%2C24876%2Cnews%2C1%2C1%2Cwitajcie-w-zyciu-film-o-amwayu-wycofany-z-wff%2Cartykul.html |archive-date=July 22, 2011 |url-status=dead |df=mdy }}</ref> A bestseller on the local video [[black market]], the film was banned while the suit proceeded.<ref>{{cite news|title=Ban on Film Has Poland Debating Censorship|first=Jane|last=Perlez|work=The New York Times|location=Warsaw|date=June 14, 1998|url=https://www.nytimes.com/1998/06/14/world/ban-on-film-has-poland-debating-censorship.html?pagewanted=1|access-date=February 5, 2017|archive-date=February 18, 2017|archive-url=https://web.archive.org/web/20170218075014/http://www.nytimes.com/1998/06/14/world/ban-on-film-has-poland-debating-censorship.html?pagewanted=1|url-status=live}}</ref> In 2001 a regional court ruled in favor of Network 21; however, in 2004 the Warsaw Regional Court dismissed Amway's civil lawsuit. On appeal Amway won the case and the producers were ordered to pay a fine to a children's charity and publish a public apology.<ref name="AmwayWins">{{Cite news|title=Amway wygrał z Dederką (Amway wins against Dederko)|work=Money.pl|date=December 10, 2001|url=http://www.money.pl/gospodarka/wiadomosci/artykul/quot;amwayquot;;wygral;z;dederka,244,0,50676.html|access-date=April 2, 2010|archive-date=November 11, 2010|archive-url=https://web.archive.org/web/20101111190737/http://www.money.pl/gospodarka/wiadomosci/artykul/quot;amwayquot;;wygral;z;dederka,244,0,50676.html|url-status=live}}</ref><ref>{{Cite news|title=Witajcie w życiu wciąż półkownikiem |work=WProst |url=http://www.wprost.pl/ar/?O=82534&C=71 |location=Warsaw |date=October 10, 2005 |url-status=dead |archive-url=https://web.archive.org/web/20090618134824/http://www.wprost.pl/ar/?O=82534&C=71 |archive-date=June 18, 2009 |df=mdy }}</ref> {{as of|2009}} the film was still banned due to an ongoing case brought by "private individuals" ridiculed in the film.<ref>{{cite web|author=e-point SA |url=http://www.amway.pl/news?news_id=11226&back_uri=/ |title=Amway (pl) – OŚWIADCZENIE |publisher=Amway.pl |date=October 13, 2009 |access-date=July 9, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110903233612/http://www.amway.pl/news?news_id=11226&back_uri=%2F |archive-date=September 3, 2011 |df=mdy }}</ref> On December 18, 2012, the court ruled that film can be screened, but the makers have to remove "untrue information", as the screen near the end of the movie stated that 30% of company income is generated by sales of training materials and that the vast majority of its profits are shared only by the tiny fraction of top distributors.<ref>{{cite web |author=Andrzej Biernat, poseł PO o zachowaniu Jarosława Gowina |url=http://wiadomosci.gazeta.pl/wiadomosci/1,114871,13073248,Koniec_procesu_ws__Amway__TVP_moze_pokazac_film__ale.html#BoxWiadTxt?lokale=wroclaw |title=Wiadomości – Gazeta.pl |language=pl |publisher=Wiadomosci.gazeta.pl |access-date=2013-05-27 |archive-url=https://web.archive.org/web/20121221084513/http://wiadomosci.gazeta.pl/wiadomosci/1,114871,13073248,Koniec_procesu_ws__Amway__TVP_moze_pokazac_film__ale.html#BoxWiadTxt?lokale=wroclaw |archive-date=December 21, 2012 |url-status=dead |df=mdy-all }}</ref> This is not the only court case, so the film is still banned on other grounds.<ref>{{cite web|url=http://wiadomosci.gazeta.pl/wiadomosci/1,114883,13074755,Rezyser_filmu_o_Amwayu_szczerze_o_wyroku__Nikt_nic.html|title=Reżyser filmu o Amwayu szczerze o wyroku: Nikt nic nie rozumie, czyli 'Witajcie w życiu' [WYWIAD]|language=pl|publisher=Wiadomosci.gazeta.pl|date=2012-12-18|access-date=2013-05-27|archive-date=December 21, 2012|archive-url=https://web.archive.org/web/20121221093235/http://wiadomosci.gazeta.pl/wiadomosci/1,114883,13074755,Rezyser_filmu_o_Amwayu_szczerze_o_wyroku__Nikt_nic.html|url-status=live}}</ref> ===Dr. Phil and Shape Up=== In March 2004, TV personality [[Phil McGraw]] (a.k.a. Dr. Phil) pulled his "Shape Up" line of supplements off the market in the face of an investigation by the [[U.S. Federal Trade Commission]] (FTC). The supplements were manufactured by CSA Nutraceuticals, a [[subsidiary]] of [[Alticor]]'s Access Business Group.<ref name=Dembling>{{cite book|author= Sophia Dembling|author2= Lisa Gutierrez|title=The Making of Dr. Phil: The Straight-Talking True Story of Everyone's Favorite Therapist|year=2003|publisher=John Wiley and Sons|isbn=0471696595|page=181}}</ref> The FTC later dropped the probe, but in October 2005 a [[class-action lawsuit]] was filed against McGraw by several people who used the products and claimed that the supplements, which cost $120 per month, did not stimulate weight loss.<ref name="ctv">{{cite web|url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20051007/drphil_classaction_051007/20051007/ |archive-url=https://web.archive.org/web/20051013055352/http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20051007/drphil_classaction_051007/20051007 |url-status=dead |archive-date=October 13, 2005 |title=Class-action status sought in Dr. Phil diet suit |access-date=October 21, 2007 |publisher=CTV Globe Media |year=2005 |author=<!-- CTV.ca News Staff --> }}</ref> In September 2006, a $10.5 million settlement was reached, in which Alticor agreed to provide $4.5 million in cash and $6 million in Nutrilite products to disgruntled users of Shape Up.<ref name="usaap">{{cite news|url=https://www.usatoday.com/life/people/2006-09-26-dr-phil-diet_x.htm|title=Settlement reached on Dr. Phil diet plan|access-date=October 21, 2007|work=USA Today|agency=Associated Press|date=September 26, 2006|archive-date=May 24, 2010|archive-url=https://web.archive.org/web/20100524052857/http://www.usatoday.com/life/people/2006-09-26-dr-phil-diet_x.htm|url-status=live}}</ref><ref>{{Cite web |title=SETTLEMENT AGREEMENT AND RELEASE |url=https://www.casewatch.net/civil/drphil/settlement.pdf |access-date=11 October 2022 |website=Casewatch |archive-date=August 5, 2018 |archive-url=https://web.archive.org/web/20180805234056/https://casewatch.net/civil/drphil/settlement.pdf |url-status=live }}</ref><ref>{{cite web|url=http://www2.metrotimes.com/editorial/story.asp?id=9791 |title=News+Views: Slimming the Amway |newspaper=Metro Times Detroit|archive-url=https://web.archive.org/web/20071010082818/http://www2.metrotimes.com/editorial/story.asp?id=9791|archive-date=10 October 2007|access-date=5 August 2018}}</ref><ref>{{cite news | url=http://articles.cnn.com/2005-10-04/justice/dr.phil_1_low-calorie-diet-dieters-class-action?_s=PM:LAW | archive-url=https://archive.today/20120707234202/http://articles.cnn.com/2005-10-04/justice/dr.phil_1_low-calorie-diet-dieters-class-action?_s=PM:LAW | url-status=dead | archive-date=July 7, 2012 | publisher=CNN | title=California judge gives tentative OK to Toyota class-action suit | date=November 19, 2010 }}</ref> ===Procter & Gamble=== Some Amway distributors spread an [[urban legend]] that the old [[Procter & Gamble#Logo myth|Procter & Gamble service mark]] was a [[Satanism|Satanic]] symbol or that the CEO of Procter & Gamble is a practicing [[Satanist]]. (In some variants of the story, it is also claimed that the CEO of Procter & Gamble donated "satanic tithes" to the [[Church of Satan]].)<ref>{{cite web|url=http://www.snopes.com/business/alliance/procter.asp |title=Urban Legends Reference Pages: Procter and Gamble and Satanism Rumor |website=Snopes.com |date=August 12, 1999 |access-date=July 9, 2011}}</ref> Procter & Gamble alleged that several Amway distributors were behind a resurgence of the story in the 1990s and sued several independent Amway distributors and the company for [[defamation]] and slander.<ref>{{cite court |litigants=[[Procter & Gamble]] v. Amway |vol=280 |reporter=F.3d |opinion=519 |court=Fifth Circuit Court of Appeals |date=July 19, 2004 |url=https://caselaw.findlaw.com/data2/circs/5th/0320202pv2.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://caselaw.findlaw.com/data2/circs/5th/0320202pv2.pdf |archive-date=2022-10-09 |url-status=live |access-date=December 29, 2008}}</ref> The distributors had used Amway's Amvox voice messaging service to send the rumor to their downline distributors in April 1995.<ref name="DN031907">{{cite news |last1=Geoffrey |first1=Fattah |title=Amway distributors face $19 million judgment in suit |url=https://www.deseret.com/2007/3/20/20008309/amway-distributors-face-19-million-judgment-in-suit |access-date=December 5, 2019 |publisher=[[Deseret News]] |date=March 19, 2007 |archive-date=December 6, 2019 |archive-url=https://web.archive.org/web/20191206005802/https://www.deseret.com/2007/3/20/20008309/amway-distributors-face-19-million-judgment-in-suit |url-status=live }}</ref> By 2003, after more than a decade of lawsuits in multiple states, all allegations against Amway and Amway distributors had been dismissed. In October 2005, a Utah appeals court reversed part of the decision dismissing the case against the four Amway distributors, and remanded it to the lower court for further proceedings.<ref>[http://www.kscourts.org/CA10/cases/2005/10/03-4234.htm 03-4234 – Procter & Gamble Co. V. Haugen – October 19, 2005<!-- Bot generated title -->] {{webarchive |url=https://web.archive.org/web/20080704193135/http://www.kscourts.org/CA10/cases/2005/10/03-4234.htm |date=July 4, 2008 }}</ref> In the lawsuit against the four former Amway distributors, Procter & Gamble was awarded $19.25 million by a U.S. District Court jury in Salt Lake City on March 20, 2007.<ref>{{Cite news |title = Procter & Gamble Awarded $19.25 Million in Satanism Lawsuit |work = [[Fox News]] |date = March 20, 2007 |url = https://www.foxnews.com/story/procter-gamble-awarded-19-25-million-in-satanism-lawsuit |access-date = December 29, 2018 |archive-url = https://web.archive.org/web/20181230182621/https://www.foxnews.com/story/procter-gamble-awarded-19-25-million-in-satanism-lawsuit |archive-date = 2018-12-30 |url-status = dead |df = mdy-all }}</ref><ref>{{Cite news | last = Kirdahy | first = Matthew | title = The Devil Didn't Make Them Do It | work=Forbes.com | date = March 22, 2007 | url = https://www.forbes.com/facesinthenews/2007/03/22/procter-gamble-faces-markets-equity-cx_mk_0320autofacescan02.html | access-date =July 5, 2007 | archive-url= https://web.archive.org/web/20070703004639/http://www.forbes.com/facesinthenews/2007/03/22/procter-gamble-faces-markets-equity-cx_mk_0320autofacescan02.html| archive-date= July 3, 2007 | url-status= dead}}</ref> On November 24, 2008, the case was officially settled.<ref>{{Cite news |title = P&G Satanic Rumors Case Settles After Marathon Battle |work = onpointnews.com |date = December 16, 2008 |url = http://www.onpointnews.com/081216.asp |access-date = December 18, 2008 |archive-url = https://web.archive.org/web/20081221214945/http://www.onpointnews.com/081216.asp |archive-date = December 21, 2008 |url-status = dead |df = mdy-all }}</ref> "It's hard to imagine they'd pursue it this long, especially after all the retractions we put out," said distributor Randy Haugen, a 53-year-old Ogden, Utah, businessman who maintained P&G was never able to show how it was harmed by the rumors. "We are stunned. All of us."<ref>{{Cite web|url=https://www.cbsnews.com/news/procter-gamble-wins-satanic-civil-suit/|title=Procter & Gamble Wins Satanic Civil Suit|website=www.cbsnews.com|date=March 20, 2007 |language=en-US|access-date=2019-04-09|archive-date=February 28, 2020|archive-url=https://web.archive.org/web/20200228220724/https://www.cbsnews.com/news/procter-gamble-wins-satanic-civil-suit/|url-status=live}}</ref> ===Regulatory violations in Vietnam=== In January 2017, the Vietnam Ministry of Industry and Trade determined that Amway Vietnam had violated federal regulations by engaging in unauthorized multi-level marketing.<ref name="VNN_011716">{{cite news|title=Amway found violating multiple regulations on multi-level marketing|url=http://english.vietnamnet.vn/fms/business/171344/amway-found-violating-multiple-regulations-on-multi-level-marketing.html|access-date=January 19, 2017|publisher=VietnamNet Bridge|date=January 17, 2017|ref=VNN_011716|archive-date=January 18, 2017|archive-url=https://web.archive.org/web/20170118163124/http://english.vietnamnet.vn/fms/business/171344/amway-found-violating-multiple-regulations-on-multi-level-marketing.html|url-status=dead}}</ref> ==Other issues== ===Cultism=== Some Amway distributor groups have been accused of using "[[cult]]-like" tactics to attract new distributors and keep them involved and committed.<ref name=butterfield/><ref name="samways">{{cite book |last=Samways |first=Louise |date=1994 |title=Dangerous Persuaders |location=Ringwood, Vic., Australia |publisher=Penguin |isbn=9780140235531 |ol=1159413M |oclc=31288848 |lccn=94137444}}</ref><ref name="hidden-persuaders">"Hidden persuaders", by Tony Thompson. ''[[Time Out (magazine)|Time Out]]'', June 22–29, 1994</ref><ref name="forbes-positive-inspiration">''The power of positive inspiration'' by [[Paul Klebnikov]]. [[Forbes]], December 9, 1991</ref> Allegations include resemblance to a [[Big Brother (Nineteen Eighty-Four)|Big Brother]] organization with a paranoid attitude toward insiders critical of the organization,<ref name="forbes-positive-inspiration"/> seminars and rallies resembling religious [[revival meeting]]s,<ref name="butterfield"/><ref name="forbes-positive-inspiration"/> and enormous involvement of distributors despite minimal incomes.<ref name="butterfield"/><ref name="hidden-persuaders"/><ref name="forbes-positive-inspiration"/> An examination of the 1979–1980 tax records in the state of [[Wisconsin]] showed that the Direct Distributors reported a net loss of $918 on average.<ref name="bromley-quasi-religious">''Quasi religious corporations: A new integration of religion and capitalism?'' by [[David G. Bromley]]. In ''Religion and the Transformations of Capitalism: Comparative Approaches'', edited by Richard H. Roberts, pages 135–160. Routledge, 1995</ref><ref name="hidden-persuaders"/> ===''Dateline NBC''=== In 2004, ''[[Dateline NBC]]'' featured a critical report based on a yearlong undercover investigation of business practices of Quixtar.<ref name="DATELINE">{{Cite news | last = Hansen | first = Chris | author-link = Chris Hansen | title = In pursuit of the almighty dollar | work = [[Dateline NBC]] | publisher = [[NBC News]] | date = May 7, 2004 | url = http://www.nbcnews.com/id/4375477 | access-date = July 5, 2007 | archive-date = February 6, 2013 | archive-url = https://web.archive.org/web/20130206084807/http://www.nbcnews.com/id/4375477 | url-status = dead }}</ref> The report noted that the average distributor makes only about $1,400 per year and that many of the "high level distributors singing the praises of Quixtar" are actually "making most of their money by selling motivational books, tapes and seminars; not Quixtar's cosmetics, soaps, and electronics": <blockquote>In fact, about twenty high level distributors are part of an exclusive club; one that those hundreds of thousands of other distributors don't get to join. For years only a privileged few, including Bill Britt, have run hugely profitable businesses selling all those books, tapes and seminars; things the rank and file distributors can't sell themselves but, are told over and over again, they need to buy in order to succeed.</blockquote> The program said that a Quixtar recruiter featured in the report made misleading and inconsistent statements about Quixtar earnings during a recruitment meeting and had an outstanding [[arrest warrant]] for cocaine possession from the mid-90s.<ref name=DATELINE/> ==See also== {{Portal|Companies}} * [[List of multi-level marketing companies]] * ''[[Morrison v. Amway Corp.]]'' ==References== {{Reflist|30em}} ==Books== {{Refbegin|40em}} * ''American Victory: The Real Story of Today's Amway'', published April 1997 by Chapel & Croft Publishing; {{ISBN|0-9645171-6-7}} * ''Amway: The Cult of Free Enterprise'', published December 1, 1985, by [[South End Press]]; {{ISBN|0-9648795-1-4}} * ''[https://books.google.com/books?id=00bkiZGR8zkC Amway Forever: The Amazing Story of a Global Business Phenomenon]'' ({{Webarchive|url=https://web.archive.org/web/20221112100552/https://books.google.com/books?id=00bkiZGR8zkC&source=gbs_navlinks_s |date=November 12, 2022 }}), published August 2011 by John Wiley & Sons; {{ISBN|978-0-470-48821-8}} * ''Amway: The True Story of the Company That Transformed the Lives of Millions'', published September 1, 1999, by Berkley Publishing Group; {{ISBN|0-425-17040-3}} * ''An Enterprising Life'', published 1998 by HarperCollins; {{ISBN|0-88730-997-6}} * ''An Uncommon Freedom: The Amway Experience and Why It Grows'', published 1982 by Revell; {{ISBN|978-0800713058}} * ''Commitment to excellence: The Remarkable Amway Story'', published 1986 by Benjamin; {{ISBN|0-87502-136-0}} * ''Compassionate Capitalism: People Helping People Help Themselves'', published September 1994 by Penguin Books; {{ISBN|0-452-27051-0}} * ''Empire of Freedom: The Amway Story and What It Means to You'', published September 3, 1997, by Prima Lifestyles; {{ISBN|0-7615-1088-5}} * ''How to Be Like Rich DeVos: Succeeding with Integrity in Business and Life'', published 2004 by Health Communications, Inc; {{ISBN|0-7573-0158-4}} * [https://ipfs.io/ipfs/bafykbzaceca4s6qyrpaa7gc5pnyz7bkp4nv4nrjveio3hwpffzlelc76qskxy?filename=merchants-of-deception-eric-scheibeler-2004--annas-archive--libgenrs-nf-2791991.pdf ''Merchants of Deception: An Insider's Chilling Look at the Worldwide, Multi-Billion Dollar Conspiracy of Lies That Is Amway and Its Motivational Organizations''], published 2009 by BookSurge Publishing; {{ISBN|978-1-4392-4715-0}} * [https://archive.org/details/firstelevengrowt0000litt/mode/2up ''The First Eleven: The Growth of Amway in Britain Through the Lives of Its Local Heroes''], published 1984 by AM Publishing; {{ISBN|0-9509593-0-8}} * ''Promises to Keep: The Amway Phenomenon and How It Works'', published 1986 by Berkley Books; {{ISBN|0-425-09856-7}} * ''The Direct Selling Revolution: Understanding the Growth of the Amway Corporation'', published 1993 by WileyBlackwell; {{ISBN|978-0-631-19229-9}} * ''The Possible Dream: A Candid Look At Amway'', published 1977 by Revell; {{ISBN|0-8007-0857-1}} * ''Profiles of the American Dream: Rich DeVos and Jay Van Andel and the Remarkable Beginnings of Amway'', 1997 by Premiere Films {{Refend}} ==External links== {{Commons category|Amway Corporate}} * {{Official website}} {{Multi-level marketing}} {{Authority control}} [[Category:Amway| ]] [[Category:1959 establishments in Michigan]] [[Category:Companies based in Kent County, Michigan]] [[Category:Multi-level marketing companies]] [[Category:Privately held companies based in Michigan]] [[Category:Privately held companies of the United States]] [[Category:Retail companies established in 1959]]
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