Amway has 2 major problems, and most MLMs have at least one of these issues:
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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
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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, and 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.”
