Amway and Affiliates Agree to $225 Million Settlement Over Earnings and Recruiting Claims

Amway and affiliates World Wide Group and Leadership Team Development have agreed to a $225 million settlement with the FTC and Washington state over allegations involving earnings representations, recruiting practices and product purchases by Independent Business Owners. Nearly all of the monetary recovery is expected to provide redress to IBOs recruited through WWG and LTD who lost money. Busurmanov/Shutterstock

Amway Corp. and two affiliated groups have agreed to pay $225 million to resolve allegations that people recruited into the multilevel marketing business were misled about potential earnings and pressured to buy products and training that could cost more than they earned.

The Federal Trade Commission and Washington state announced the action September 17 against Amway, World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD).