The Federal Trade Commission and the state of Washington have sued Amway and its affiliates for using unfair and deceptive tactics in their multilevel marketing business, resulting in a $225 million settlement.
The proposed order settling the FTC and Washington’s allegations imposes a $225 million judgment
Amway Corp., one of the largest multilevel marketing companies in the U.S., and two of its affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—will pay $225 million to resolve allegations from the Federal Trade Commission and the state of Washington that the companies use unfair and deceptive tactics to recruit members to its direct selling and multilevel marketin…
The monetary relief to be paid by Amway and its affiliates under the proposed order marks the largest monetary recovery obtained in an FTC action against a multilevel marketing company, nearly all of which will be used as redress to consumers harmed by Amway and its affiliates’ allegedly deceptive tactics.
