Scott Johnson Explains What’s Wrong With Amway
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 [email protected] 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
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.