1 Dec 2011 - This news article out of  India indicates that Amway is being hit hard by Monavie!

8 Apr 2011 – Amway, Alticor and Quixtar got caught with their hands in the cookie jar in this class action lawsuit.  They sold Gift Cards with short expiration dates.  There are many states that say Gift Cards have to be able to be redeemed in no less than 2 years.  Amway, Alticor and Quixtar sold them with 6-7 month expirations.  Whoops!  Jump in and get some money back!  $20 million in cards to be given away!!  WOW!


ADA TOWNSHIP  Feb 09 PR release — The global economic meltdown of 2008 apparently had more Amway Global representatives pounding the pavement for vitamins, cosmetics and other products.

The Ada Township-based direct-selling giant had a record $8.2 billion in sales in 2008, co-founder Rich DeVos told The Press on Friday after a topping-off ceremony at Helen DeVos Childrens Hospital.

The figure represents a 15 percent increase from the $7.1 billion in sales reported for 2007. The privately held company, which doesn’t release profitability figures, expects to make an official statement regarding its sales next week, a spokeswoman said.

The improved sales came after Amway launched a marketing spree reintroducing the brand to many consumers through partnerships with Tina Turner, John Tesh, soccer star Ronaldinho and others. The company retired the Quixtar brand, which it used for online sales in the United States and Canada.

News of the big gain followed an announcement Thursday that a Court of Appeals decision in Great Britain upheld the dismissal of government claims against Amway operations there. The company implemented major changes to its business model in the U.K. and other markets after being accused of misrepresenting earnings potential of its distributors and pushing sales of motivational tools over products.


10 June 2008 -- The Secretary of State for Business, Enterprise and Regulatory Reform for the U.K. has appealed the lawsuit Amway won in lower court to a higher court!  Rod Cook Ur Editor Note: This is nuts!  A Bureaucrat out of control?  Amway made draconian changes in the U.K. and remodeled their whole operation, plus initiated massive corporate training.  Now, John Hutton (Secretary of State for Business) can't let go - because of ego?

May 2008 - Rod Cook, Editor's Note:  Congratulations to Amway - Alticor for winning.  We published the great uproar over Amway banning the sale of motivation and training material in the U.K.  Now all that is approved for use is Amway Corporate training and materials.  That was a big step in winning this case.

The United Kingdom judge dismissed government claims against Amway operations in the U.K., saying major reforms in 2007 fixed Amway faults that favored selling training materials over products and misrepresented earnings.

The U.K. "Federal" judge in the Amway case started out by expressing his belief Amway allowed "misrepresentations" of its business by U.K. Distributors in years past and failed to take strong action about misrepresentations. He then wrote the new reformed Amway business model is, "fully formulated, comprehensive, open and transparent and capable of effective and ongoing implementation without supervision."

The U.K. Judge’s ruling clears Amway UK, a part of  Alticor Inc., of the threat of being shut down in Amway's oldest international market. Amway has a 100 employees in the UK and about 10,000 distributors on board. In a communiqué, Alticor President Doug DeVos and Chairman Steve Van Andel said the ruling was not a "pop-the-champagne victory."  "This is a reminder that the marketplace and regulators hold us to the highest standards. We have an obligation to meet those standards - and we intend to do so," they wrote.  Amway – Alticor spokesman Rob Zeiger said the ruling was a "solid validation" of reforms in the United States and abroad. "The company takes the action seriously and continues to review business practices around the world to avoid such regulatory threats in the future," Zeiger said from the U.K.

### Rod

Editors Note: This is a serious matter to all MLM Companies! The outcome could set standards for the entire European Common Market for all MLM – Network Marketing Companies (bad).  That would hurt your MLM - Network Marketing Company in Europe.  The Books and CD business ran by Diamonds is also under attack even though it is not part of Amway (good).  Also note that the UK Government’s position is all sales should come from end consumers (bad).  In all we had better be cheering for Amway in this case.

Amway, had 39,000 Distributors in Britain during 2005-06, is defending an attack by John Hutton, the Secretary of State for Business, Enterprise and Regulatory Reform for the U.K.  Amway in the UK is accused by the Government of being “inherently objectionable”, of operating as a "lottery" and of trading unlawfully. The UK Government claims that only 10 per cent of Amway’s distributors make a profit and only 6 per cent sell a single item of the group’s products. The government says, the company overstates potential earnings and that its main activity is recruiting not selling products.

Amway’s solicitor (lawyer) David Chivers, QC, told the court that Amway is a legitimate multilevel marketing company and not an illegal “money circulation scam. Chivers said before the court, “In a multilevel marketing scheme, the promoter provides goods for sale and no money is generated until someone sells something.  Amway told the court that Amway would not recruit any further agents until its distributors average earnings data are published.  Amway also stated that spending on training material should be reasonable (Death of Books and Tapes sideline business by Diamonds?).  Subject: Amway - Alticor - Quixtar

Full Article

5 October 2007 – The Federal District court in Los Angeles, California dismissed charges by ex-Quixtar distributors that Amway, Quixtar,  and Alticor were a pyramid scheme.  It appears that the tactics by the plaintiffs that the corporate Amway - Quixtar conglomerate  were a pyramid scheme backfired on them when the real issue in the case was to free the plaintiff distributors from non-compete clauses of their leadership contract.  The case was filed in August after last minute negotiations at Amway headquarters in Michigan failed.

The suit was started by distributor Orin Woodward and 15 other top leaders (known as Independent Business Owners – IBO’s). As we reported below, several of the 15 top leaders suing had voted for the non-compete clauses when they were on the Amway – Quixtar corporate advisory council.

The news above was followed by public release by Amway – Alticor – Quixtar adamantly denied the pyramid charges and noted that a Michigan court had already ordered the plaintiffs to arbitrate their claims. Alticor – Amway - Quixtar called the Federal Court dismissal a major victory.

A more biting report and atribution quote Amway - Quixtar - Alticor

Also TRO's on Non-compete thrown out in Texas, six other states - 10 states to go?
Amway - Quixtar - Alticor PRESS RELEASE

Woodward v. Quixtar In Chronological Order

Night of Aug 8 2007 – Amway - Quixtar dismissed a group of distributors called “TEAM” after they refused to abide by Quixtar's business practices. Amway - Quixtar also claimed people were lured into the IBO business without it being disclosed that they would be buying and selling Amway - Quixtar products.

August 9, 2007 -- The  “TEAM” group of  Quixtar distributors filed a lawsuit in federal district court, central district of California, western division seeking to enjoin Quixtar – Amway from enforcing its distributor contracts, including the non-competition (3 years) and non-solicitation clauses. The plaintiffs alleged that Alticor - Amway - Quixtar knowingly operates as a pyramid scheme, and prevents its distributors from leaving the Amway - Quixtar through overly restrictive MLM - network marketing distributor contract clauses.

Editors Note: Interestingly 2 different sources have reported some of the folks that helped file the California lawsuit were on the Amway - Quixtar IBO advisory board when the board voted for the non-compete and non - solicitation rights!

August 10, 2007 --  The “TEAM” group of distributors sought a preliminary and permanent injunction to restrain Quixtar – Amway  from enforcing or attempting to enforce the non-competition (3 years) and non-solicitation clauses in Amway distributor contracts. Later they have also filed in other jurisdictions to prevent enforcement. (see below).

August 10, 2007 -- In response to the distributor's lawsuit, on August 10, Quixtar - Amway filed a temporary restraining order (TRO) in the Kent County, Michigan Circuit Court pending an arbitration proceeding.  A hearing on this matter was held before Judge Paul Sullivan on August 22.

August 22, 2007 -- In another issue, Judge Sullivan also sided with the Quixtar - Amway Independent Business Owners Association International (IBOAI) another group loyal to Amway - Quixtar, also requesting an injunction against the former IBOs to prevent the "TEAM" IBOs from disclosing information gathered at association functions. The IBOAI sought the injunction because they claim former “TEAM” IBOs were using the Internet and legal filings to distribute confidential information.

August 24, 2007 -- In both of the last two seperate but similiar actions Judge Sullivan issued a preliminary injunction against Quixtar's "TEAM" IBOs, preventing them from using their former Quixtar - Amway networks for any business-related purpose.  The injunction states that the former high-level distributors must abide by the confidentiality and non-compete clauses in their contracts until their disagreements with the company can be arbitrated.  Judge Sullivan also ruled that Amway - Quixtar can forbid the former IBOs from disseminating business sales materials that they created. 

4 Sept 2007 -- The District Court of Collin County Texas granted TEAM’s request for a Temporary Restraining Order (TRO) against Amway-Quixtar and all of their employees from interfering with all TEAM business operations. This also restrains Amway - Quixtar from taking action or interfering with TEAM customers and affiliates doing business with TEAM. Therefore, Amway - Quixtar is prevented from issuing threatening emails and phone calls and they are not allowed to suspend, terminate, or refuse bonus payments to IBOs due to their business dealings with TEAM.  Ed. Note: No news on the last Texas, hearing on this matter which should be out now - EXCEPT the California Court hearing the big pyramid lawsuit above has put a gag order on all parties involved.

End Sept 2007 -- Now TEAM has TRO’s (about the 3 year waiting period) against Amway – Quixtar corporations in at  4 -6 other states preventing implementation of the restrictive MLM - Network marketing distributor contracts.  In the California court case a move has been made to go directly from a TRO to a preliminary injunction and this should be heard before the court 13 October 2007.

Sept 2007 -- A former Amway (Quixtar) Corp. Distributor Eric N. Scheibeler admitted that he lied when he said he'd uncovered billions of dollars in consumer fraud with the company.  This shocking information was made in a federal court filing to settle a defamation suit bought by Amway (Quixtar). Scheibeler wrote a book, "Merchants of Deception," slamming Amway.  In addition Eric Scheibeler in a written document to Attorneys for Alticor – Amway – Quixtar that he falsely said: (1) He and his family were threatened (2) He was offered money to be “silent” (3) Quixtar attacked his web site.  In exchange for Eric Scheibeler’s  written apology Amway and Quixtar  agreed not to continue their defamation suit in U.S. Middle District Court and not to seek legal fees from Scheibeler. The Defamation suit against Eric Scheibeler quoted letters to the Cleveland Free Times and a statement in as Swedish newspaper.  Editor's note: NBC Dateline did cover themselves, they reported in the segment that Scheibeler was starting his own MLM Company (which later failed)

Watchdog Reporter MS -  In his book and on NBC Scheibeler goes out of his way to only report net income. Scheibeler, as a former federal auditor, you can be sure that he was claiming every deduction in the book, so his gross income was likely much higher. Quixtar reports actual average incomes for qualified Emeralds, and it's around $72,000 so the promoted incomes are roughly correct.  He deflated the numbers for his book.

Watchdog Reporter JL – Eric Scheibeler is starting his own company and writes a book to help him raid downlines.  With that kind of ethics does Eric Scheibeler have?  Doubt if his new MLM company blooms!

Watchdog Editor – Eric Scheibeler letter to Amway – Quixtar...... note that it is not about the book, just claims he made against Amway – Quixtar.  However it does hurt Eric Scheibeler’s creditability in writing “Merchants Of Deception.”  Here is a link to the letter ... Decide yourselves!

Rod Cook, Your Editor - July 16, 2007

If the U.K. Department of Trade and Industry wins its case, it could shutdown (ed. note: doubtful - see below) Alticor – Amway.  The U.K. is now looking at top distributors Britt WorldWide (North Carolina) and Network TwentyOne (Georgia U.S.). This is similar to the charges we are seeing with BurnLounge in South Carolina and Y T B (Your Travel Business) distributors in Florida.

Sales in the U.K. for Amway – Alticor are tiny for the $6.3 billion dollar company (the U.K. is not a hot MLM market for 98% of MLM companies there).  The WatchDog predicts the chance of court ordered shutdown is rare.  Why?  Amway – Alticor already stopped all training rallies, book and tape sales... plus as you read below... stopped all recruiting for a 120 day period of time.  That is pretty drastic and the MLM WatchDog thinks that that will curb the court appearance.

The big thing worldwide for Amway – Alticor is a planned reorganization, a major review of its practices (we suppose the “sore thumb” motivational tools).   The MLM WatchDog supports the “motivational tools,” just not the prices charged for them which in most cases are outrageous.  The fees that the “King Pin” Diamonds,  as they are called, charge for training, books and CD’s are nuts.  As I say, partially joking, Amway made me millions... but not in Amway!  This was in the early 70’s when the “King Pin Diamonds” were just getting into the tools business.

SECOND THOUGHTS: The biggest impact of the all above is the Civil Class Action Pyramid Lawsuit against Amway – Alticor in the U.S.  The U.K. case provides great evidence to the U.S. lawsuit.  Ouch!
The other second thought is that the Grand Rapids Press wasn’t more defensive of the town’s largest industry.  Evidently the reporter had been in Amway – Alticor and paid through the nose for motivational tools?   :>)

Rod Cook, Your Editor - May 2007

Your WatchDog editor has had over 40 calls in the past few weeks about Amway-Alticor-Quixtar's decision to do away with motivational book, tape & training meetings in the UK.  I had talks with over 10 Amway-Alticor Diamonds and an ex-member of the Amway staff.  Diamonds in the U.S. are not happy!

The May 4th, 2007 message that Amway – Alticor put out in the UK was terrible, but the email was a panic reaction to a threatened move by the United Kingdom (U.K.) Department of Trade and Industry (DTI) which is 50% like the U.S. Federal Trade Commission (FTC).  The DTI evidently threatened to shut down all Amway activity! The DTI action person was The Director & Deputy Inspector of Companies Investigation Branch, Mr. Cliff Callaghan, to whom I spoke to over a year ago.

The U.K. DTI had received a number of complaints about the motivational book, tape & training meetings part of the Alticor – Amway system.  This training system is run by Diamond rank distributors in Amway.  Evidently the Diamonds in the U.K. used their book/tape & training meetings resources to  suck money out of  lower level distributors. Enough complaints rolled in, and the DTI threatened to shut down all of Amway – Alticor – Quixtar in the U.K.

Editors Note: See the letter below. No sponsoring for 60 days is pretty drastic.  Being allowed only to sell and use products is pretty sad.  I bet Amway sales for the U.K. dropped like a rock! 


UK IBO Communication
May 10th, 2007

To: Rodger XX UK/XX IBO Leader
From: Ben Woodward, Branch Manager, Amway UK/RoI

RE: Further information on announced changes

Amway would like to take this opportunity to share more information with you regarding some of the points referenced in the recent announcement of changes made effective May 4th 2007.

Firstly, in reference to meetings scheduled by IBOs; please understand that ALL meetings that have a ticket charge associated will need to be cancelled until further notice, and all ticket fees for cancelled meetings must be refunded. As any activity associated with recruitment (for example showing the plan) is currently suspended, there should be no need for open meetings at present. There can be no redefining of meetings to circumvent these requirements. Please appreciate that this action is necessary. No recruitment also includes no registering of Members. Amway will notify you when this decision is reviewed and what criteria will be applied to the authorisation by Amway of future ticketed meetings and activities in connection with signing up new IBOs.

The sale and distribution of Amway products continues and bonuses will continue to be paid as all bonuses are paid out based upon the sale of products.

Please be assured that during the course of this sponsoring moratorium Amway is looking at ways to ensure that everyone is treated fairly in respect of qualifications and rewards to ensure that people do not miss out due to the difficulties associated with our current mode of operation.

The reference to training IBOs to re-qualify them is in relation to Amway ensuring all IBOs understand and will deliver only appropriate messages in their Amway business. Hence sponsoring is suspended for 60 days to allow Amway the opportunity to develop this training. Amway will meet first with its leadership. Leadership being defined as IBOs qualified as Platinum and above. Following this meeting Amway will host a series of meetings or roadshows around the UK and Ireland where all IBOs will be required to participate should they wish to be qualified to sponsor new IBOs. Details of this process will be made available shortly.

Please understand that these decisions have been taken by Amway in the interests of and its commitment to the long term life and well being of the UK and Irish markets. The Amway business opportunity is a wonderful one and we have many, many committed and loyal IBOs across these two markets that are sincere, hard working, trustworthy and dependable. Difficult times or times of change reveal our true leadership abilities. I have been most grateful for and am heartened by the messages of understanding, support and cooperation that I have received from IBOs. Thank you to each of you. To others that are not so sure I give you Amway’s assurance that such change is well thought out, that IBOs long term interests are at the heart of these decisions and that the principles and values that founded this company continue to flow through the decisions made recently.


Ben Woodward
Branch Manager, Amway UK

Click Here: Amway Quixtar History of  MLM Training

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