Amway
October 3, 2026
ADA, Mich. -- October 3, 2026
Amway Corp. and two major affiliates have agreed to pay 225 million dollars under a proposed settlement with the Federal Trade Commission and the state of Washington over allegations of unfair and deceptive recruiting tactics, but former Independent Business Owners still have no claim form, website or deadline for seeking redress.
The FTC and Washington filed the complaint and proposed final order in the U.S. District Court for the Western District of Washington. Defendants named are Amway Corp., World Wide Group, L.L.C. and Leadership Team Development Inc. Nearly all of the money is earmarked as redress for people the agencies say were harmed. The Commission voted 2-0 to file the case. The order still requires a federal judge's approval, and the FTC has said details of its redress program will come later.
Regulators allege that Amway and its affiliates told prospective Independent Business Owners they were likely to earn more than 40,000 dollars a year or replace a full-time job, then pressured recruits to buy products they were unlikely to resell. The complaint also claims affiliates instructed IBOs to report sales that never occurred. Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the companies "misled prospective workers with false earnings claims and then pressured them to buy Amway products they were unlikely to be able to sell."
Amway reported global sales of 7.3 billion dollars in 2025 and says it has more than 290,000 IBOs. WWG and LTD are among its largest approved provider groups and sell training materials and services to IBOs. Washington Attorney General Nick Brown said the companies "profited by taking advantage of regular people's hopes and ambitions," and that many Washingtonians who joined lost time and money.
Under the proposed order, IBOs would have to sell to others at least 70 percent of the products they buy from Amway each month; recruiter compensation would fall when recruits buy products but do not resell them; IBOs would have to report customer sales at the actual price with receipts; IBOs who fake sales would be terminated; independent audits would review sales records; and approved providers including WWG and LTD would be barred from charging new IBOs for training or services in their first year.
Amway and its affiliates did not admit wrongdoing. The Michigan-based company said it disagrees with how regulators characterized its business and rejects assertions that its sales data is inaccurate, calling the settlement a compromise.
As of early October, the FTC's public list of active refund programs still showed no Amway entry. Until the court enters the order and the agency announces how it will find and pay people it says were harmed, former IBOs have no official path to file. Claiming an FTC refund is free, and the agency does not demand money or fund transfers to process a claim. Anyone who bought into the Amway opportunity is being advised to keep receipts and bank statements showing spending on products and training.