Amway has settled allegations brought by the Federal Trade Commission and Washington state regulators. The agreement involves the company and two training providers: World Wide Group, LLC (WWG) and Leadership Team Development Inc. (LTD).
The settlement requires $225 million in monetary relief. Nearly all of this amount will go to consumers. It also strengthens rules on product resale, customer verification, field training, and earnings claims. Amway has not admitted any wrongdoing. The company states that the settlement allows it to move forward while keeping its core business model intact.
Andrew Schmidt, Amway’s Regional President for West Markets, said the company completely disagrees with how regulators described its business. “Resolving this through a settlement allows us to move forward,” he explained. “We have affirmed and preserved the business model through this settlement.”
Â
Schmidt noted that Amway’s line of sponsorship, independent contractor status, and multilevel compensation structure remain unchanged. Many requirements in the order already exist at Amway. Others are modest updates to current policies.
Â
Schmidt stressed that consumer protection has long been a priority. “We believe our consumer protection commitments and policies are best in class,” he said. Amway stands behind its products and the integrity of its business opportunity. The company remains fully committed to its Independent Business Owners (IBOs), the North American market, and the direct selling model for decades to come.
Dave Grimaldi, CEO of the Direct Selling Association, confirmed that Amway disagrees with the FTC’s characterization and has not admitted wrongdoing. The DSA continues to enforce its Code of Ethics for member companies and their sales forces.
The settlement formalizes additional oversight on product sales, training, and earnings claims while leaving Amway’s fundamental structure in place.
There are no reviews yet. Be the first one to write one.
