FTC, Washington state secure $225 million Amway deceptive-recruiting settlement

The FTC and the Washington Attorney General announced a settlement in which Amway, along with its affiliated marketing groups World Wide Group and Leadership Team Development, agreed to pay $225 million to resolve allegations of unfair and deceptive recruiting and earnings claims. The complaint alleges recruits were told they could earn substantial income or quit their jobs, but that most people who joined after 2020 through the two affiliate groups spent more on products and training than they earned back. The settlement requires new sales verification and reporting measures and directs nearly all of the recovered funds to consumers who were allegedly harmed.

Why it matters. The recovery is one of the FTC's largest actions against a multi-level marketing company and could inform parallel private claims over deceptive earnings representations in similar MLM structures.