FTC Takes Historic Action Against Multilevel Marketing Operator Amway for Unfair and Deceptive Business Practices

Amway Corp., one of the largest multilevel marketing companies in the U.S., and two of its affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—will pay $225 million to resolve allegations from the Federal Trade Commission and the state of Washington that the companies use unfair and deceptive tactics to recruit members to its direct selling and multilevel marketing opportunity. The monetary relief to be paid by Amway and its affiliates under the proposed order marks the largest monetary recovery obtained in an FTC action against a multilevel marketing c...