Sequence Inc. Fraud Files Blog

Robert FitzPatrick at Pyramid Scheme Alert reported in his recent newsletter on the class action suit that has been brought against Amway (Quixtar) by high-ranking distributors:

The lawsuit states:

* Quixtar’s (Amway and Quixtar are both part of the same company) products are so overpriced they cannot be profitably retailed.
* Only 3.4% of product sales are made to customers outside of the Quixtar distribution network.
* The sole way to make money is for a (distributor) to continually recruit new distributors who are also willing to buy and self-consume, or give away, the Quixtar products.
* Quixtar a classic recruitment pyramid scheme.

The distributors say they want to “extricate themselves from continued forced participation in Quixtar’s illegal pyramid scheme and pursue legitimate business opportunities instead.” They say Amway not only induces people to participate in an illegal scam but also locks them into the scheme with non-compete contracts that prevent them from contacting their downlines to work with them in other businesses.

In short, Amway/Quixtar, they say, is not a “direct selling” business at all. It is an “illegal pyramid scheme.”

Who is calling Amway “illegal”? A bunch of malcontent “losers” or “anti-MLM zealots”? Far from it. These are Amway’s most successful participants (If it is possible to call making money in a pyramid scheme being “successful”) These are long term distributors. No quitters here. Eight of the plaintiffs are among the largest Quixtar distributors, many of whom have had close relationships and private conversations with Quixtar/Amway founders and executive management for more than 30 years. These are the ultimate “insiders” and they are saying in plain English that Amway is a global fraud.

Amway is the oldest, largest and most politically connected MLM - the company that effectively created “multi-level marketing”. This lawsuit, brought by its “top guns”, is only one a series of blows in the last few years years and indicate a downward spiral and possibly a coming collapse. Amway has victimized tens of millions of people and now its very top leaders say they too are victims.

Are these lazy losers who didn’t work hard enough? No. They were high-ranking distributors so they probably did their fair share of work. Although it does seem curious that they profited year after year off the backs of those at the bottom of the pyramid and are just now complaining.