Amway
July 23, 2007

Why didn't the Texas AG charge Mannatech with violations of its anti-pyramid scheme statute? One obvious reason is that the multi-level marketing industry's lobbying organization, the Direct Selling Association - Mannatech is a member of the DSA! - lobbied to change the law in Texas in 2000 so that MLMs are now generally exempt. The law says that if payments and rewards are included in the price of products, the scheme is excluded from the law's definition of a pyramid scheme.

Amway recruiting stopped in the UK? Amway's operations have been halted in the United Kingdom and Ireland. The government of England is prosecuting Amway for deceptive marketing. Some of the claims involve Amway's infamous 'tools' business in which distributors are lured into buying bogus 'motivation and training' books, tapes and seminars in addition to large amount of Amway inventory. The promoters claim these tools help the distributor to be "successful". Much less than 1% of Amway's distributors ever earn a profit. Millions of consumers worldwide lose money and quit the Amway scheme each year.

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