General

Scott Johnson Explains What’s Wrong With Amway

12/14/2019·

Correspondent

One of our leading commenters, Scott Johnson, often criticizes Amway, sometimes making comparisons of it with Nxivm’s pyramid style organization. But many people might wonder just what’s wrong with Amway, since at least it did not brand women. Scott, who had a long history with and against Amway, explains a little of why he thinks Amway is a fraud – and opens the door to those who want to learn more about it – in the following post:

By Scott Johnson

I didn’t expect Amway to treat the class action lawsuit well, as I already knew they and most other MLMs are scams.

Most people don’t understand the court system is intentionally antagonistic, which means the other side has to prove their point(s). Those lacking moral, ethical, or legal behavior have no responsibility to admit to anything improper.

Taken together, this is exactly how I expect Amway to treat the class.

Amway intentionally dragged things out to the point where the opposing lawyers were willing to give up justice to get paid. It’s a big game to the lawyers, and a very profitable one. Fairness has NOTHING to do with it.

I’m actually quite genial, but I’m not going to wear a “niceguy” mask while millions of others are still being scammed.

But the Amway class action lawsuit is over. I’m not crying over spilled milk. I can do nothing about the past, but I can change the future, by educating others about Amway and other MLM scams.

You can help, by forwarding and posting this statement everywhere you can think of:

Do your part and submit a complaint to the FTC at http://www.FTC.gov and forward the below John Oliver video link to everyone you know, except current Amway IBOs, and encourage them to do the same, and so on, à la network marketing/MLM.

If you don’t, then you’re part of the problem: https://www.youtube.com/watch?v=s6MwGeOm8iI

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

Advocare

Herbalife

Make a complaint on the FTC website: https://www.ftccomplaintassistant.gov/?utm_source=takeaction#crnt&panel1-1

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 which states, in part,

“Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s probably not. It could be a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money.”

Read about these and much more at these

websites: http://www.StopTheAmwayToolScam.wordpress.com and http://www.AllMLMFacts.org, and

email stoptheamwaytoolscam@yahoo.com to help shut down Amway and other MLM scams.

Watch this video about Amway and other MLM scams, then forward it to everyone you know, except for current Amway IBOs, and encourage them to do the same. When enough people know, these scams will collapse:

English version: https://www.youtube.com/watch?v=s6MwGeOm8iI

Spanish version: https://www.youtube.com/watch?v=Cy-O4myeUzg

Comments (158)

Add Your Comment

shadowstate195812/14/2019

Amway is an MLM scheme that peddles expensive soap by promising that if the buyer recruits new salespeople, one can ultimately become a millionaire. Amway is not really selling soap. Amway is selling a pot of gold at the end of the rainbow. Over the years, there have been numerous other MLM schemes like Shaklee that make the same outrageous promises. MLMs sprout like mushrooms on manure piles. The fact that Keith Alan Raniere started out in an MLM shows that Raniere is basically a stupid con artist. The only people dumber than Keith Raniere are the stupid gangsters who followed him. But the MLM scheme is the least egregious part of the Keith Raniere story. Raniere is a rapist, a slave master, a sex trafficker, a child molester, a kidnapper, and a possible murderer. Compared to all those crimes, the MLM aspects of NXIVM and Raniere pale into insignificance. To some degree, I doubt Scott Johnson's declared rejection of Amway. A few months ago, Scott told me that I lacked the “self-confidence” to be a successful Amway salesman. To be brutally honest, the Amway system is designed to fail for 99.99% of all Amway salesmen. NO SANE PERSON WOULD PAY FIFTY DOLLARS FOR A BOX OF AMWAY SOAP THAT COSTS TWENTY DOLLARS AT WAL-MART. All the self-confidence in the world will not help you become a successful Amway salesperson. Here is a description of MLM schemes and the economic and legal issues involved with MLMs:. https://en.wikipedia.org/wiki/Multi-level_marketing Here is a partial list of MLM schemes. List of multi-level marketing companies https://en.wikipedia.org/wiki/List_of_multi-level_marketing_companies The government can NOT protect you from every con artist. The government can NOT babysit you. You must educate and protect yourselves. You must follow the Rule of Caveat Emptor. (Let the Buyer Beware.) All that said, this 31-minute video by John Oliver sums up the insanity of MLMs far better than I can do and does so with humor. Watch it and you will never again need a lecture about MLMs from Scott Johnson.

Scott Johnson12/14/2019

Amway is an MLM scheme that peddles expensive soap by promising that if the buyer recruits new salespeople. one can ultimately become a millionaire. — WRONG. The recruits are NOT salespeople, they are recruiters. Here's a recent video that records how Amway cheats, I was taught the same thing over two decades ago: https://youtu.be/bYruRwYWgtU?t=1140 The mantra from my upline was “buy from yourself [Amway, but since you get a bonus/rebate, the term “yourself” is used] and teach others to do the same. It's pure recruitment, with little to no retail sales to non-distributors. This is what makes MLMs illegal pyramids. Try getting that through your thick skull. Amway is not really selling soap. — That's right, but not for the reason you are offering. Amway is selling a pot of gold at the end of the rainbow. — Amway sells an illegal pyramid, see above for the definition of an illegal pyramid. Grind the definition into your thick skull. Over the years there have been numerous other MLM schemes like Shaklee that make the same outrageous promises. — The outrageous promises aren't the issue. The illegal pyramid is the issue. For a definition of an illegal pyramid, see above, and force it through your thick skull. MLMs sprout like mushrooms on manure piles. — Yes, they do. The answer is educating others, including your friends, neighbors, relatives, coworkers, the government, the media, etc. The fact that Keith Alan Raniere started out in an MLM shows that Raniere is basically a stupid con artist. — No, it doesn't. Most people who join MLMs believe they are joining a legitimate business model. They are wrong, but that does NOT make them stupid con artists. Raniere used the techniques he learned in Amway to start Consumers' Buyline and NXIVM. The only people dumber than Keith Raniere are the stupid gangsters who followed him. — I know how you like to think you're so smart, but many of the people who followed Raniere were more influenced by his downline edifying him than Raniere himself. It's how it works in MLM, and Raniere learned it well. Evil, yes. Stupid, no. But the MLM scheme is the least egregious part of the Keith Raniere story. — MLM may be the least egregious part of Raniere's story, but it is what enabled everything else. You can't get that through your thick skull. Raniere is a rapist, a slave master, a sex trafficker, a child molester, a kidnapper and a possible murderer. — Yes, all enabled by the MLM techniques he learned while in Amway. Compared to all those crimes the MLM aspects of NXIVM and Raniere pale into insignificance. — Not even close. See above. To some degree I doubt Scott Johnson’s declared rejection of Amway. — Why do you doubt this? I've spent at least some time every single day since 2005 educating people about Amway and other MLM scams. I even endured a lawsuit from Amway, got a very favorable settlement, and continued. The lawsuit didn't slow me down, it energized me even more. This lawsuit was completely separate from the Pokorny class action lawsuit against Amway, and the settlement can be found on my websites. A few months ago Scott told me that I lacked the “self-confidence” to be a successful Amway salesman. — No, I said many people don't join Amway and other MLM scams because they lack self-confidence, and NOT because they realize that the MLM is a scam. Also, I addressed your erroneous use of the “salesman” term above. To be brutally honest the Amway system is designed to fail for 99.99% of all Amway salesmen. — This is true, yet most people don't know WHY it is true. It has much more to do with the ATS (Amway Tool Scam) than the lack of retail sales, another concept you can't get through your thick skull. NO SANE PERSON WOULD PAY FIFTY DOLLARS FOR A BOX OF AMWAY SOAP THAT COSTS TWENTY DOLLARS AT WAL-MART. — No sane or insane person can buy a box of Amway soap that costs $50 on Amway's website. It doesn't exist. All the self-confidence in the world will not help you become a successful Amway sales person. — That was not my point, my point was related to why most people don't join Amway in the first place. Here is a description of MLM schemes and the economic and legal issues involved with ML:Ms. https://en.wikipedia.org/wiki/Multi-level_marketing — That is a weak article. Here is a partial list of MLM schemes. List of multi-level marketing companies https://en.wikipedia.org/wiki/List_of_multi-level_marketing_companies — That is a very partial list, there are literally hundreds of them in the U.S., and thousands around the world. The government can NOT protect you from every con artist. — Duh. But I expect them to use MY tax dollars to do their assigned job, regulate “unfair and deceptive” business practices. The government can NOT babysit you. — Duh. I'm not advocating the government babysit anybody, but they need to do their job. You must educate and protect yourselves. — I have always advocated that, but the government should still do its job. You must follow the Rule of Caveat Emptor. (Let the Buyer Beware.) — Yes, but the government should still do its job. All that said this 31 minute video by John Oliver sums up the insanity of MLMs far better than I can do and does so with humor. — I agree, that's why I reference it when I educate people. However, even that video does not address the ATS, which is the much larger problem with many MLM scams. Watch it and you will never again need a lecture about MLMs from Scott Johnson. — I don't lecture anybody, I educate them. Part of that education is for them to educate others. Most people don't learn that lesson. You can't get that through your thick skull.

Anonymous12/16/2019

We’re talking if Amway is legal in the court of law and your citing Wikipedia as your resource ?