Amway to Pay 225 Million to Settle FTC Claims

Multilevel marketing company Amway and two affiliates agreed to pay 225 million dollars to resolve allegations of deceptive recruitment claims. The FTC stated the funds will largely reimburse affected members while the company reforms practices.

Federal Trade Commission seal is seen at a news conference at FTC Headquarters in Washington, U.S., July 24, 2019. REUTERS/Yuri Gripas

Amway Corp and two affiliates will pay $225 million to settle claims by the Federal Trade Commission and United States authorities over recruitment deception. The settlement is the largest penalty in an FTC action against a multilevel marketing company. Most recruits joining after 2020 lost money on products and training rather than earning promised income.

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