Distributors' lawsuit alleging Amway is pyramid scheme heads back to trial

[Robbien]

SAN FRANCISCO -- A lawsuit alleging Amway and its upper level distributors operate an illegal pyramid scheme is headed back to court after an appeals court struck down company efforts to force plaintiffs into arbitration.

. . .

The suit by plaintiffs Jeff Pokorny, Larry Blenn, and Kenneth Busiere alleges Amway, which at the time operated under the Quixtar brand name, operated a two-tiered pyramid scheme that resulted in junior level distributors being "scammed" out of millions of dollars.

The suit alleged Amway's products are priced too high for distributors to resell at a reasonable profit and its system emphasizes recruiting new "downline" distributors over retail sales.

It also says the company and senior level distributors fraudulently induce the junior level to buy business-support materials or "tools" that are supposed to help build a sales business but are almost entirely geared toward recruiting additional distributors.

With the ruling, the suit will be referred back to the U.S. Circuit Court for trial.

http://www.mlive.com/business/west-michigan/index.ssf/2010/04/distributors_lawsuit_alleging.html



The real question is, why was Amway allowed to come back and operate in the US when it has already been determined to be a fraud.

[DURHAM D]

1. Why are they still operating?

Because it is a fundie Christian organization.

[Recursion]

2. God I hate MLM scams

Shut them down and throw some prison terms at the people on top.

[Walk away]

3. I thought they changed their name to Quixtar and were selling on the web....

and making billions in China.

p.s. One of my old clients married the guy who invented the "healing magnets" that Amway sold. It was a major product for them and he had invented other products as well. She used to go to the homes of the top Amway people. Not the worker bees. She met the top of the pyramid. Apparently they are all super christian, white and weird. They give to the republican party big time.

[safeinOhio]

4. Besides the family connection to Blackwater,

Amyway is not Myway.

[customerserviceguy]

5. In a related story

a lawsuit was filed alleging water at room temperature is "wet".

Anyone who gets within ten feet of a Scamway operation deserves whatever happens to them. It's not like the old days when you didn't have the Internet to tell you what to avoid.

Oh, and lay off on slamming the magnets. My refrigerator feels perfectly fine.