Amway and two affiliates have agreed to pay $225 million to settle a lawsuit brought by the Federal Trade Commission and Washington state over alleged deceptive recruiting practices.
The complaint says recruits were told they could make more than $40,000 a year or leave their jobs. Most people who joined Amway after 2020 through World Wide Group or Leadership Team Development spent more on products and training than Amway paid them, according to the complaint.
Regulators allege that recruits were urged to buy products each month even if they did not want them or could not resell them. The complaint also accuses the two affiliate groups of telling participants to record sales that had not occurred.
Announced in mid-September, the $225 million agreement marks the FTC’s biggest financial recovery in a case involving a multilevel marketing company. Almost all of it is intended for people harmed by Amway and the two groups.
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