Why are Amway products banned in the US?

Ashwani aalok

blogger | Posted on 1-Oct-2020

In 1979, the Federal Trade Commission found that Amway isn't unlawful in light of the fact that it offers items notwithstanding paying for enlistment.

Anushka Maity

Student | Posted on 11-Sep-2021

The question is a myth and it’s not true. Amway products are not totally banned in the US. Amway is one of the largest direct-selling companies that took a multi-level marketing model. Amway provides a variety of products and also it helps people to start their own business through it. There are many ways to make money or profit from Amway. By buying products at a low price and selling it at a higher price making a definite amount of profit on a particular product one can make money. Also, by convincing others from your friend’s circle, family members or relatives to become an Amway distributor you can also make money from it as after each sale you will get a commission. And also, Amway products are of very good quality and there is no harm in using them. So, no government has any cause to ban it.

Letsdiskuss

Amway is carrying out its business worldwide including the US, UK, India and more. This company has indeed got involved in many scam-related controversies. Though the question is not wrong. It has come to the notice from several officials that Amway has violated the “Prize Chits and Money Circulation Schemes (Banning) Act of 1979”. So, the distributor offices were shut down for a week. Later, the court announced that the company didn’t violate any such Act. Then the offices were allowed to reopen and the company is carrying out its business till now.

Preeti Taneja

Entrepreneur | Posted on 28-Sep-2020

Amway is not banned in the US.

Of course, if you know anything about this company, you would know the controversies that this company is riddled with. Very often you would see the words “Amway” and “scam” brought up together.

But, in case, if you don’t know – Amway is a direct selling company that takes a Multi-Level Marketing model. A pyramid scheme if you will…

(Although note that some people like to make distinctions between multi-level marketing and pyramid scheme. But that’s a whole different conversation!)

Basically, Amway offers a wide range of products.

(Courtesy: Pinterest)

And it provides people to start their own Amway business.

One way to make money is to buy from Amway and sell it to your friends, family members, and others. [Simple approach: buy at a low price and sell at a high price.]

Another way to make money is by encouraging others to become Amway distributors. So, recruit people and get them to sell Amway products. Whatever sales they make, you would get a small commission from that.

Now whether Amway scam is a real thing or not, whether it has a good business model or not – that’s based on personal experience and subjective opinion. Neither have I purchased Amway products, nor did any business with them.

(Courtesy: Free Press Journal)

You will find all sorts of people: Some saying great things about the company, others calling it a scam. Some will tell you they have made big money with Amway, others will call them – well, again – a scam.

You need to do more research on Amway, as well as the Multi-Level Marketing model and regulations of different countries, to make any conclusive remarks.

The company has been involved in many controversies and legal battles in several countries. (This shouldn’t be much of a surprise for a company that has lasted for more than 60 years. Notably, Amway has never been found guilty of running a pyramid scheme.)