Published by Vue Weekly, a news source in Edmonton, the Top 5 Scam Artists list included Amway (Quixtar):
Dick DeVos and Steve Van Andel are the inheritors of Quixtar, the company left to them by their billionaire fathers. Call it a pyramid scheme, call it multi-level marketing, or, better yet, call it by its original brand name: Amway. Quixtar created a pseudo-religion where God is money and its prophets are the success stories recorded in expensive tapes and books. Quixtar has convinced millions around the world that they too can make six figures simply by selling “the best” soap, vitamins and other amazing products, when the actual average annual income of a recruiter is $1400. Some even lose money at the cost of the recommended seminars and audio tapes.
Couldn’t happen to a nicer couple of boys. To be included with common scam artists like Kevin Trudeau and Sylvia Brown really must be a crowning achievement for their pyramid scam! News of this will be like a shot heard round the world. LMAO!
Hmm, I wonder what the corporation’s biggest defender will say to deflect this?
At least they’re not #1? The moon is green? Our group isn’t like that?
Amway is in the business of selling hope, not soap.
Without the “Tool Kingpins” Amway/Quixtar would not be what it is. The company is ruled by scamming “christian” tape hawkers. The Yager and Britts would be nothing without their tape, book, convention business. If they sold soap, they would be nowhere!
I have to dispute this very disparaging and erroneous report. Actually I believe that these scoundrels ought to have occupied the top spot on the list. Cult Defector, I agree with your comment, and I really like your handle! Kick the tires on my Cult topical Amway pages.
Oh, Robert Fitzpatrick has a very informative post up on his False Profits blog. He shines some light onto the possibility and regulation may be on the horizon under the Obama administration. May the regulation pendulum swing against these folk who deny the financial holocaust they’ve wrought on their own while committing intent to defraud by offering the plan as a ‘great opportunity’ and out and out lie! A good read indeed.
Who makes the most money where you work,you or your boss. Everything is a pyramid. When you go to work ask the owner of the company how he is doing. Chances are you don’t even know the name of the owner of your company and I will bet that he really doesn’t know who you are. 98% of people go to work and make just enough to stay broke and they are happy with that because they can say “nobody scammed me.” How many people spend thousands of dollars on college educations and as soon as they graduate they are unemployed. They spend money on books which are tools. With no guarantee of employment when they get of school, still bunches and bunches of people still go to college thinking when they get out they will have a great life. Working for the next 40 to 45 years and not even being able to pay their bills. Talk about a cult. Go to school, get good grades and you will live the good life. Now that is funny. How is that working out for you.
Eric – The distinct difference between an MLM and a real job is that in MLM you have to pay to play. 99% will actually lose money by participating. In a real job, the company pays you. They may not pay you as much as someone with a higher position than you, but they certainly don’t expect you to pay them just for the opportunity to work for them.
Amway global is by all means NOT a scam. we do sell soap. and i have never had to sell hope so whoever said that is an idiot. it’s an opportunity to do whatever you want. it’s not for losers, but for winners. so i can understand the losers who are getting down on it because you cannot succeed at something that can bring you in a 6 figure income. i don’t understand how you could get down on something that tells you… You can decide your own income, and work at your own time. It’s not a pyramid scheme. Those are top heavy. Amway Global is not top heavy, and is a balanced system.
I need some soap. Anyone?
This website is great! I’m going to tell three of my friends about it, and have them tell three of their friends about it, and have them tell three of thier friends about it, and soon this website will be more popular than Google!
Seriously, a colleague of mine (actually an Air Force Academty grad) invited me to meet with his “business associates” last night Of course, it turned out to be an Amway event. What a scam. The presenter actually drew a diagram that couldn’t have resembled the great pyramids of Cairo more if he tried. I had respected my colleage quite a bit before last night; he was always staying in his room on weekends to work on his “own business”, and constantly reading self-help books. I used to think that he was a self-motivated entreapreneaur, but now I realize that he’s been brainwashed by the Amway psuedo-cult.
I am deeply concerned that well educated people are still vulnerable to these sorts of scams in this day and age. I am a libertarian in general, but I would not hesitate to support legislation to stop scams like Amway.
Years ago I joined Amway. As much as I tried to sell what they were dishing out I couldn’t do it because 99% of the people I approached knew what I suspected, that it was a scam. I remember the Amway “executives” that I met. They actually had a video tape where they made fun of the people who knew they were scammers. I wonder what ever happened to those guys and that one girl that was with them? (Ivan or Irving I think. There was a guy who was a real jerk named Eugene and that skinny girl who looked like a skeleton when she wore that bikini at that pool party I was invited to by the Scamway, I mean Amway people. Corey her name was. Are they still in the business? I doubt it! I wish there were more legitimate ways to make money by starting your own business on-line. So many people are anxious to start their own business on the side in addition to their day job that they get desperate and join these pyramid scams like Amway. Victims of the economic crisis? Or just everyday, hard-working people who just want to feel like they’re one step ahead for once in their lives? Go out and search for a genuine opportunity and don’t get involved with the Amways and Primericas of the world.
Something that has been overlooked in most of the criticisms of Amway/Quixtar is the Registration Contract itself. Unless you are an attorney, you have no idea just how restrictive, one-sided, and dangerous it is to sign an Amway Independent Distributor Registration Agreement.
First, if you never achieve any success with Amway, you don’t risk much by signing the contract. But if you reach a level that the corporation considers successful and then try to leave, watch out!!
On the back of this form, Item 6 describes Amway Global’s Proprietary Information and Trade Secrets. This paragraph states that any information in the Line of Sponsorship is the proprietary, trade secret information owned exclusively by Amway. This means that even though you will spend time, gas money, and money for other sales materials; you convince a friend or family member to join Amway; you collect their personal information; and you enter that information into Amway’s system—now that information is owned exclusively by Amway and you cannot use it without their express permission and ONLY to build your Amway business. Why does this matter? See Item 8.
Item 8 is the Non-Solicitation Agreement. Any normal person would define “solicitation” as the act of urging, persuading, petitioning, or requesting. For example, you resign from Amway, and twelve months later join another network marketing company. You and I would define solicitation as actively calling other associates in Amway and encouraging them to quit and join you in your new venture. You are I are wrong!!
A former associate in your Line of Sponsorship from Amway calls you one day, asks what you are doing, and asks if he can join you. The Amway Global attorney says that unless you say “no,” you are guilty of soliciting and have violated this clause!
On the front of the Registration Agreement is the Agreement to Mediate and Arbitrate any disputes. Seems harmless enough, until you realize the truth. If Amway decides you have violated any of it’s Rules, it can haul you in to arbitration. The arbitrator is selected from a company that relies on large corporations like Amway for business, so they are automatically biased. (In other words, if they rule against Amway, Amway won’t bring them any more business!) Arbitration is binding—you have no recourse when you are ruled against. And Arbitration is secret, so you and I have no way of knowing how many other existing and former IBOs have been sued in Arbritration and lost.
Further, you must pay one-half of all the Arbitration costs, currently running about $6,000 per day. And any arbitration judgement will be upheld in court, so once the ruling is made, you are stuck.
Don’t believe me? I achieved the Emerald level in Quixtar. The most I ever made was $75,000 one year from Quixtar. In 2007 there was a big upheaval and Quixtar issued a statement saying “Just Go, Team.” As a result, most of the IBOs in my group quit. Many more did not renew in 2008. So I quit also—what’s the point of building a business if the company will not protect it?
Seven months later I joined another network marketing company. A few of the people who were formerly in my Quixtar group contacted me and asked to join my new business. I made sure they had completed their six-month non-compete in Quixtar’s rules, and then registered them with my new business.
Quixtar has sued me in Arbitration saying that I violated the Non-Solicitation clause. They are asking for millions of dollars in damages because of the lost business I caused them. (Remember, these are people who had already quit Quixtar before I quit!!!) I have to take this seriously because I will be held to any judgement the arbitrator decides on. And the last guy that I know of who was sued by Quixtar in arbitration was ordered to pay Quixtar $12 million.
Don’t believe me? Buyer, beware.
Guys. Amway is celebrating its 50th year into business. Can anyone of you list a scam company that is in to business for at least 10 years. Amway is not a scam. It requires that extra smartness and hardwork to succeed in this business. Those who are incapable in making it calls it a scam. It requires some intelligence to understand this business.
Good that you guys said no to Amway. Coz if everyone joins Amway who will be there to build houses for us, who will drive for us, who will sell grocerry for us, who will manufacture luxury cars for us….
Gagarin you don’t need to smart and hardworking to succeed in amway all you need to do is be a cheater fraud and a liar. If yu are smart and work hard then there is a lot of stuff you can do to make the world a better place and even make your own life better. All amway does is promise you that with a little time each week you will earn lots of money. I’ve seen the business platform and I’ve seen someone alienated from their own family and living from paycheck to paycheck. That person was in Amway for 3 years and got nothing. After hearing this if you still think that amway is not a scam then may God help you you poor fool. Also, Quincy your wrong amway is for losers who have to much time on their hands and are too lazy to look for a real job.
I don’t know why people argue so much on trying to convince someone that this bussiness is not a scam. I, for one, am a Amway Global Independent Bussiness Owner (IBO), I have bearly started this oppurtunity of a better life. I Deffinately agree with Gagarin, specially with the last part because I was thinking the ecxact same thing, I dont know how some people want to try this bussiness and look at it as a get rich quick plan, that is ridiculous. This business is not guaranteed for you to make money for just being in it and it also does not guarantee that you will be making good money in 3 to 5 years, it guarantees that YOU will see a nice check coming in the mail if YOU work hard on this business. I am definately seeing results, my mom started 8 months ago and she is making more money than some doctors do, so you can get me out of doubt that this business does not work, because it definately does.
AmwayhaterVP, I can not believe this guy, his name says it all, AmwayHATERvp, can you read that word I just capitalized. I will give you a definition of a hater for those of you who don’t know what it really means. A “hater” is someone that hates someone because of envy of what that other person has, in this case it may be, lets go for the ovous, money. I really don’t know what is bothering this guy’s or girl’s mind so much, but I just know he has a slave mentality, he rather go for the 40-40-40 plan that the government offers him, and since 95% of the people do it, why not him. He will work for 40 years of his life, for 40 hours a day, to recieve 40% of his income for his retirement plan like those other people do.
I did not post this to try to convince anybody that this is a gret business, but it definately is, what I will tell you is to look at the people who tell you that this business is a scam and to forget about it and go for the 40-40-40 plan, and look at the people who are telling you to do this business and compare their lifestyle, who’s do you likr better??
Amway / Quixtar, whatever, it is a scam, a cult and a pyramid. My parents were brainwashed into this mess for years and years. At one point they actually made money by ‘selling’ MCI when Amway partnered with MCI. Because there was no Amway product being bought or sold, just MCI long distance service, my parents and brother made tens of thousand of dollars, each month.
Not to let the jackpot go unspoiled, their up-line, Angleo Penque (part of the Britt organization), conned and connived them to begin to sponsor every person they could, buy his and Britt’s never ending supply of books and tapes, stockpile said books and tapes for people yet to be sponsored, they were told to attend 4 -6 functions a year, stockpile product to ‘meet production’ so they could ‘move up’ to the next pin level. They actually made Ruby and Pearl (3 offspring Direct Distributors) when the MCI volume was at it’s peak.
My parents were teased and baited by their up-line into retiring early from their paycheck earning jobs so they could pursue the Amway Dream of ‘working only they wanted to work’.
When the MCI volume began to wane they were pressured to stockpile Amway products to maintain their status of Direct Distributor and were continued to be pressured to buy the books and tapes and attend Britt and Penque sponsored functions.
Ultimately they filed for bankruptcy, and as they were already retired from their jobs they never recovered financially and today my widowed mother is filing bankruptcy, again.
Is this entirely Amway’s or Quixtar’s fault? Mostly yes, it is. My parents could have said ‘no’ to most of the financial demands their up-line put on them but anyone who has ever been roped into a cult can attest to the mental and emotional manipulation tactics that are used to keep people under the thumb of the up-line. They were manipulated for more than 15 years by these heinous people and they lust for money.
I am thrilled to see that someone has finally been able to make a case against this scam of a business. I just wonder if there is anyway my mom can benefit from this class action suit.
Yes, it is a scam, I was one of the suckers. This company is evil, supports the republicans, and pretends to be christian and care about people.
It’s so refreshing to read all the negative comments about Amway/Quixtar. I always had a bad feeling about it. Since my early 20’s, I’ve been approached by Amway reps at least on 7 different occasions. I worked as a Leasing Consultant, renting apartments, so you imagine what a jackpot it would have been to pursuade me to join their cult! Plus I’m BILINGUAL. But no matter how many meetings I attended, and the more I learned about the company, the more it screamed SCAM to me.
I even had a roommate who sold it and was a struggling, single mother, determined to reach the “Diamond” status, and was relentless in trying to get me to join. So 15 years later, she’s still struggling financially and STILL has to have a roommate and doesn’t own her own home at 55. Very sad.
Also, one of my best friends got suckered into it, and she’s a Dr. and one of the smartest people I know! However, she is way too trusting, a good Christian, and a bit on the naive side. And as I expected, after trying to become successful at it for 6 years, she finally gave up when she realized she wasn’t getting any richer.
So sometimes it pays to have a suspicious and distrustful nature. I’m one of those “wait and see what happens” before I dive in kind of gals. It always amazes me how the smartest and most educated people can be so easily brain-washed. Kind of like a very intelligent and educated woman staying with an abusive male. I just don’t get it. And b.t.w, I never went to college. I’m just very street-smart.