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January 12, 2004
Bitter Amway Loser
By QBlog in
Here's a petition to the FTC addressing some concerns about Amway.
I decided to submit this petition for enforcement review because it seems that most distributors, after failing in what they thought was a valid business enterprise, are not motivated to complain or seek redress. They have, in many instances, been conditioned to believe that any failure was their fault. Many such distributors have lost life savings, stable jobs and their marriages. After having spent most of my career dealing with these companies from an enforcement standpoint, and witnessing the damage first-hand, I feel some obligation to these victims to make this effort on their behalf.Be warned. This petition is authored by a Bitter Amway Loser who is only trying to steal the dreams of those... oh... wait a second. It's actually submitted by Bruce A. Craig, the former Asst. Attorney General for the State of Wisconsin. And, apparently Bruce has over 30 years experience prosecuting pyramid schemes. But how can that be? I thought the only people who had concerns about Amway were Bitter Amway Losers? What's going on here? I'm confused.
Comments
This is getting a litttle closer to a question I have had for a long time but nobody can or wants to answer...Is there any organizatin out there FTC, BBB, IRS or who ever that can pin every MLM business down as an illegal pyrmid or scam as they are so often referred too in many negative opionions? (Sorry about bad spelling and grammer)
I know there are many...but are they all?
It is not the BBB. The BBB is a voluntary organization that acts as a clearinghouse for consumer complaints. Contacting the BBB is best if you have a complaint and want others to hear about it, or you are checking on a company to see what others have said about it. So no, the BBB has no power.
The IRS can only get after Quixtar/Alticor if they commit some sort of tax fraud. The Canadian version of the IRS went after Amway about 25 years ago and made Amway pay millions. Since then, the corporation has an outstanding tax record. Now, Independant Business Owners are exactly that, independant, and if they commit a tax fraud, the IRS can go after the individual, but not the corporation. So no, the IRS is not the answer.
Ah, but the FTC has power, and has already investigated Amway once, in 1979. The FTC also nearly shut Amway down, but it was because of the member/client and buy-back rules that kept Amway alive. But if the FTC investigates again and sees that those rules are not being enforced, they can step in and shut the whole enchilada down. Just ask the fine folks at Equinox, or 5-Star Auto Club!
The problem is, however, Quixtar has lots of money and lots of lawyers ready to fight. The FTC would be in for a long, and very expensive battle, and one that many believe they already fought in 1979. Plus many leaders in Quixtar are heavily politically connected, and the people who work at the FTC understand they are government employees. In the end, if the FTC investigates, they will most likely rule the lines like TOD to be illegal pyramids. But the problem is getting them to investigate.
The Securities and Exchange Commission also has some power, but in general, the FTC has more jurisdiction.
Ok...good answers, Thank you. I wiill take all that information as saying that the FTC would be the folks to tag a business as an illigal pyramid.
I am still unclear though on why everybody with a negative comment about MLM seems to think all MLM's are illegal pyramids...so far there is nothing to show that they are so why keep generalizing?
This will probably be one of my last postings on this blog as I have decided to use my time a little more productiveley so thank you to all who have responded to my opionions.
Lisa...such bad language from such a pretty name? Good luck with whatever you do.
Dwighty...Go Diamond and take Qblog out for lunch in your Limo.
Camac...if you ever see this posting I'm praying for ya..;o)
MLMblog...you know where to find me.
Qblog....keep up the good work. I guess people do need to know because the facts do count even when the dream is big!
One slightly aloof observation:
The meetings conducted under the auspices of Amway/Quixtar are quite reminiscent of the spiritual gatherings of, say, Jehovahs Witnesses, or, the Churches of Christ.
Personally, when the spirit of a meeting begins to devolve into fanatism, my skeptical side takes preeminence.
Anyhow, enough of my ramblings. My point is that the whole Quixtar deal reeks of something akin to religious fanatism, and...
...I stand at odds with any kind of fanatism.
Who told you that?
Posted by: Dwighty | January 12, 2004 2:03 PM