Review by Scott Johnson on Amway

Amway has 2 major problems, and most MLMs have at least one of these issues: 1. The products are overpriced, which makes them almost impossible to sell to customers and results in Amway being an illegal pyramid, according to the FTC and SEC websites and previous court decisions; and 2. The Tool Scam is hidden profit for the top level distributors only, and the vast majority of distributors operate at a net loss as a result. This is RICO fraud. For recent examples, google “FTC” along with the following companies, one at a time: FHTM, BurnLounge, Zeek, TelexFree, Vemma, and Herbalife. Although there is no federal law defining pyramid schemes, the FTC has a long and successful track record of using its Section 5 law prohibiting “unfair and deceptive” business practices to go after MLM scams: https://www.ftc.gov/tips-advice/business-center/guidance/multilevel-marketing.

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