1. Pyramid Scheme

The actual legal definition of a pyramid scheme is a  company encompassing members that are specifcally recruiters for the company. In addition, the members of the company are the only people that have access to purchase products made from the company. The only way to become a member is to be recruited by one of the members in the company, and sign up underneath them and be on their team. After becoming a member of the company, access is finally granted to purchase any products from the company. Along with that, if there is no outside party, member, & user that is not affilated with the company making purchases from the company; than the company is operating illegally as a pyramid scheme. A pyramid scheme is an ILLEGAL BUSINESS MODEL. 

Link to LTD BSM-(Business Support Materials) Website 👇

The only way to purchase anything from LTD is to agree to a membership subscription. The only way to have access to a membership subscription is to be directly recruited by an LTD member; and sign up underneath them (in regards to LTD specifically). Once recruited into LTD as a member, access is granted to purchase anything from LTD.

Non-members of LTD must be recruited by a member of LTD, and sign up underneath them. P.S. notice how an LTD number of an LTD member is needed and not an Amway IBO number. Every LTD member has a number, and it is completely different and separate from an Amway IBO number. The LTD number is used to track LTD purchases made by LTD members/distributers. The LTD number is traced to an Upline's LTD number to track LTD revenue from downline.  Larry Winters then ultimately decides what percentage-(%) each LTD member/distributer/contractor-(specifcally Amway Platinums & above) recieves off of the revenue they produce from having their downline/recruits subscribe to LTD & purchase LTD products. 

Rich Devos-(owner of Amway) Admits The Amway Tools Systems Are an Illegal Pyramid Scheme 👇

2. False Income Claims

Making false income claims is illegal in criminal and civil law. LTD distributers are guilty for making false income claims about the Amway Compensation Plan to prospects and downline. This is done in order to enitce prospects to join & to retain downline. One manner in which LTD distributers do this is through weekly LTD meetings held all over the U.S. At each of  these weekly LTD meetings-(called The Weekly LTD Info Sessions), LTD distributers present false income claims about the Amway Compensation plan to both prospects and downline. 

Amway Quality Assurance Standards 

Some interesting clauses from QAS (but not all) are:

- B.2.b: Some words and phrases are always prohibited, including but not limited to: “quit your job,” “be set for life,” “make more money than you ever have imagined or thought possible,” “unlimited income,” “full-time income,” “residual income,” “career-level income,” “financial freedom,” “financial independence,” and “passive income,” or any substantially similar statements or representations. APs and IBOs are also prohibited from representing that income is guaranteed or assured.

- B.6: Disclosures are required when making any express or implied earnings claim to any audience and when promoting the Plan or the Amway business to a Prospect for the first time

- B.6.b: The following disclosure must be used whenever an earnings claim is made – with the year and average amount being filled in based on the current Income Disclosure Statement.
-- US: For the calendar year [year], the average income from Amway for all U.S. registered IBOs at the Founders Platinum level and below was [$___] before expenses. 

Amway Business Reference Guide

Shown in the Amway Business Reference Guide 👇 section C7, clauses 5.1-5.4:

5.1. Presentation of the Plan: When inviting a Prospect to hear a presentation of the Plan, or when presenting the Plan to a Prospect, an IBO must make it clear that what is being described or offered is the Plan.

5.2. Describing the Plan: When describing the Plan to an IBO or Prospect, an IBO’s statements must be truthful, accurate and not misleading, and must convey realistic expectations about potential earnings related to the Amway business. All statements describing the Plan and the time and effort to build an IB must comply with the QAS Content Standards.

5.3. Positioning Amway and Approved Providers: IBOs must position the roles of Amway and Approved Providers in a manner that is truthful, accurate and not misleading, and must comply with the QAS Content Standards when doing so.

5.4. Earnings Claims: Earnings Claims must comply with the QAS Content Standards.

Amway Guiding Principles Document 

Amway Distributers are allowed to make annual income claims up to The Amway Founders Platinum Level ONLY. This is because The Amway Corporation REQUIRES EVERY Amway Distributer to NOT make annual income claims above The Amway Founders Platinum Level-(explicitly stated within The Amway Guiding Principles Document below 👇). However, LTD deliberately violates this rule. LTD makes annual income claims about Amway Ranks that are above The Amway Founders Platinum Level-(that includes The Amway Ruby Level, Amway Emerald Level, & Amway Diamond Level because these Levels are above The Amway Founders Platinum Level). This is committed weekly to prospects and downline members at LTD meetings throughout the U.S. That makes LTD guilty of making false income claims that are unsubstantiated and unsupported from the Amway Corporation. Amway as a Corporation makes ZERO annual income claims for Levels above The Amway Founders Platinum Level.

Recording of False Income Claims Made Weekly at LTD Info Sessions 👇

Amway is not an opportunity to create financial independence and have financially freedom. Amway distributers-(that are in LTD) throughout the U.S. claim to individuals that Amway is an opportunity to develop "financial independence", "financial freedom", "unlimited income", "passive income", & etc. However, the Amway Corporation doesn't make any of these claims. In fact, Amway as a corporation specifically instructs their Amway distributers-(within The Amway Quality Assurance Content Standards) to NEVER describe the Amway opportunity this way and to instead describe the Amway opportunity as a secondary/supplemental income. This rule is also stated within their Amway distributer contracts-(The Amway business reference guide) in Section C7 clauses 5.1 to 5.4. If Amway distributers make any of these claims to you they are in violation of their Amway contracts.

Recording of False Income Claims Made Weekly at LTD Info Sessions 👇

No one-(prospects and Amway distributers) is actually shown the true Amway Compensation plan. Before expenses, the average annual U.S. income for Platinum is less than $20,000, and for Founders Platinum it is less than $50,000 for annual U.S. income-(this can all be evidently found in The Amway U.S. Income Disclosure). In the past, Amway has claimed what individuals can earn annually at The  Founders Platinum Level but that was $53,400-(explicitly stated in The Amway Guiding Principles Document found above 👆). No where, will Amway claim you can earn $75K annually at The Platinum Level or The Founders Platinum Level. However, at weekly LTD meetings-(held throughout The U.S.), LTD claims individuals can earn $75K annually at The Amway Platinum Level. This is a false income claim that is unsubstantiated and unsupported by the Amway Corporation.

In addition, Amway makes ZERO income claims about what Amway distributers can earn for annual income above The Amway Founders Platinum Level-(that includes The Amway Ruby Level, The Amway Emerald Level, & The Amway Diamond Level because these Levels are above The Amway Founders Platinum Level). Amway only mentions bonuses, trips, & rewards people can earn at levels above The Amway Founders Platinum Level, but not annual income. Amway only makes income claims about what Amway distributers can earn for Annual income from The Amway Founders Platinum Level and below-(this is all explicitly stated within the Amway Guiding Principles Document found above 👆).  Every week, LTD makes false annual income claims about The Amway Platinum Level, Amway Founders Platinum Level, & Amway Ranks that are above The Amway Founders Platinum Level. This is commited weekly at LTD meetings-(called The Weekly LTD Info Sessions) throughout the U.S. 

Larry & Pam Winters Confess to Making False Income Claims & False advertising at The LTD Summit Conference In 2025 👇

In October 2025, every LTD member at the Summit Conference-(a conference meant for ALL LTD members to attend) was exposed to false income claims, & false advertising that violated Amway's QAS Content Standards-(Quality Assurance Standards). 

What LTD members were never told is that immediately after Summit, Larry & Pam Winters-(the owners of LTD) recorded a private video admitting these violations but this video was never shared with ALL of the LTD downline members who actually heard the illegal claims. 

Instead, LTD Leadership restricted the video to select higher ups, quietly changed the curriculum, & left thousands of active members in the dark. 

LTD members who attended Summit in October 2025 were impacted by the false/unsubstantiated claims, & they were legally entitled to be disclosed the video. However, LTD made sure to never show the video to many active LTD members, & keep them from knowing about Larry & Pam's violations. 

3. Deceptive Trade Practice 

LTD ISN'T JUST "SECRETIVE." THE FAILURE TO DISCLOSE THE LTD COMPENSATION STRUCTURE VIOLATES MULTIPLE AREAS OF FEDERAL AND STATE LAW.

 

Amway higher-ups in LTD promote the Amway Compensation Plan as the pathway to financial success while simultaneously operating a second money system behind the scenes: the LTD tools business.

 

The low level Amway ranks in LTD pay into that second system through monthly LTD subscriptions-($90 or $250), weekly LTD Group Evaluation Sessions/Info Sessions-($5), monthly LTD Team Meetings-($10), quarterly LTD Conferences-($135), annual Fall Leadership-($55), Night Owls-($20), Freedom Parties-($20), Attitude Sessions-($20), Jam Sessions-($20), books, recordings, and other LTD tools and events.

 

And LTD's own BSM Compensation Contract establishes the critical fact:

 

AMWAY HIGHER UPS IN LTD RECEIVE A SOURCE OF INCOME FROM ALL LTD EVENTS & FROM THE LTD BSM SYSTEM-(MONTHLY SUBSCRIPTIONS, PRODUCT PURCHASES, ETC).

 

But low level Amway ranked members in LTD are not shown the LTD Compensation Plan. They are not clearly told who gets paid from these charges, how compensation through the LTD system works, or how the people recommending these recurring expenditures can financially benefit from the system.

 

THE DOWNLINE IS SHOWN ONLY ONE COMPENSATION PLAN-(THE AMWAY COMPENSATION) WHILE PAYING INTO TWO MONEY SYSTEMS.

 

That isn't a minor detail.

 

That financial relationship goes directly to understanding the true economics of the opportunity.

 

FIRST: FTC ACT SECTION 5

 

Section 5 of the Federal Trade Commission Act prohibits unfair or deceptive acts or practices.

 

When an income opportunity is promoted, the financial picture presented to participants matters.

 

The FTC's MLM guidance specifically addresses participant expenses when discussing earnings representations, including tools, services, training, and conferences.

 

That goes directly to LTD. LTD is guilty of violating The FTC Act Section 5. 

 

Amway higher-ups in LTD promote that low level Amway ranks in LTD can "supposedly" build a significant amount of income through the Amway compensation plan while simultaneously encouraging low level Amway ranks in LTD to repeatedly spend money on LTD tools, meetings, subscriptions, and conferences.

 

But LTD's own BSM Compensation Contract establishes that Amway higher ups in LTD recieve compensation from the LTD BSM system.

 

THAT MEANS THE PEOPLE RECOMMENDING THE EXPENSE ALSO HAVE A DIRECT FINANCIAL INTEREST IN THE EXPENSE.

 

SECOND: STATE CONSUMER PROTECTION / DECEPTIVE TRADE PRACTICE LAWS

 

State Consumer-Protection laws provide another layer of protection against deception, misrepresentation, and material omissions.

 

Iowa law-(as well as other states), for example, expressly addresses deception, fraud, false pretenses, false promises, misrepresentation, concealment, suppression, and omission of material facts in covered consumer transactions.

 

Now put that directly next to LTD's practices.

 

Low level Amway ranks in LTD are told that LTD tools, LTD meetings, and LTD events are "training" and that event admission charges are ONLY for rental costs and equipment costs.

 

But LTD's own BSM Compensation Contract establishes that Amway higher ups in LTD receive a source of income from the LTD BSM system.

 

WHAT LOW LEVEL AMWAY RANKED MEMBERS IN LTD ARE TOLD:

 

The money pays ONLY for rental and equipment costs.

 

WHAT THE LTD BSM CONTRACT ACTUALLY REVEALS:

 

Amway higher ups in LTD receive a source of income from the LTD BSM system.

 

Those two facts belong side by side.

 

Because if the person encouraging you to spend money can financially benefit when you spend that money, that financial relationship matters.

 

The issue isn't that LTD charges for training.

 

The issue is what the people paying for that LTD training are told, and what they aren't told; & about who financially benefits from their payments.

This makes LTD guilty of violating State Consumer Protection Laws/Deceptive Trade Practice Laws. 

 

THIRD: STATE BUSINESS OPPORTUNITY DISCLOSURE LAWS

 

State Business-Opportunity law can create another set of disclosure and antifraud requirements when a particular transaction falls within the state's statutory definition of a business opportunity.

 

Iowa, for example, regulates covered Business Opportunity Promotions under Chapter 551A and requires specified disclosures while prohibiting certain material misrepresentations and omissions.

 

Now look at the LTD system itself.

 

LTD charges participants for:

 

Monthly LTD subscriptions-($90 or $250).

 

Weekly LTD meetings-($5).

 

Monthly LTD meetings-($10).

 

Quarterly LTD conferences-($135).

 

Annual LTD events-($55).

 

Books and recordings.

 

Training materials.

 

Additional paid LTD events.

 

This isn't simply someone recommending a free motivational podcast.

 

IT IS A RECURRING PAID SYSTEM OPERATING ALONGSIDE THE AMWAY BUSINESS.

 

And LTD's own BSM Compensation Contract establishes that Amway higher ups in LTD receive a source of income from the LTD BSM system.

 

So the question becomes unavoidable:

 

WHY ARE PARTICIPANTS SHOWN THE AMWAY COMPENSATION PLAN BUT NOT THE LTD COMPENSATION STRUCTURE THEY ARE ALSO PAYING INTO?

 

THIS ISN'T ONE PAYMENT. IT IS A SYSTEM.

 

Weekly LTD Info Sessions/Group Evaluation Sessions-($5) 

 

Monthly LTD Team Meetings-($10)

 

Monthly LTD subscriptions-($90 or $250)

 

Quarterly LTD Conferences-($135)

 

Annual LTD Fall Leadership-($55)

 

LTD Night Owls-($20)

 

LTD Freedom Parties-($20)

 

LTD Attitude Sessions-($20)

 

LTD Jam Sessions-($20)

 

Books.

 

Recordings.

 

Training materials.

 

WEEK AFTER WEEK.

 

MONTH AFTER MONTH.

 

YEAR AFTER YEAR.

 

Every payment creates the same basic questions:

 

Who collected the money?

 

What was the participant told the money was for?

 

Who financially benefited from the transaction?

 

What did LTD's compensation contract provide?

 

Was that financial relationship disclosed before the participant paid?

 

AND THEN THERE IS THE RICO QUESTION.

 

Repeated wrongdoing by itself does not automatically establish RICO.

 

Federal RICO requires an enterprise and a pattern of qualifying racketeering activity. Federal mail fraud and wire fraud are among the offenses that can qualify as RICO predicate acts when their statutory elements are established.

 

That is why the evidence matters.

 

THE LTD BSM CONTRACTS.

 

THE MONEY.

 

THE LTD SUBSCRIPTIONS.

 

THE LTD TICKETS.

 

THE LTD MEETINGS.

 

THE LTD CONFERENCES.

 

THE REPRESENTATIONS.

 

THE EMAILS AND ELECTRONIC COMMUNICATIONS.

 

THE ACCOUNTING RECORDS.

 

THE PEOPLE PAYING THE MONEY.

 

THE PEOPLE RECEIVING THE MONEY.

 

This isn't simply a matter of whether LTD is "secretive."

 

It is a matter of a recurring financial system in which low level Amway ranked members in LTD pay money while Amway higher ups in LTD receive a source of income from the LTD system being recommended to them.

 

THE AMWAY COMPENSATION PLAN SHOWS HOW MONEY CAN FLOW THROUGH AMWAY.

 

THE LTD BSM COMPENSATION CONTRACT SHOWS THAT ANOTHER COMPENSATION STRUCTURE EXISTS.

 

If low level Amway ranked members in LTD are expected to continuously pay into both systems, they legally have the right to know the financial reality of both systems.

 

DON'T JUST FOLLOW THE AMWAY COMPENSATION PLAN.

 

FOLLOW THE LTD MONEY.

 

Since the LTD system is not disclosed to low level Amway ranks in LTD, this makes LTD guilty of violating State Business Opportunity Disclosure Laws. 

 

 

Robert Micheal-(Former Amway & LTD Distributer Sponsored by Larry Winter's Son) on Chrystal Singleton

Snippet from the video above 👆

Robert Micheal was a former Amway distributer, and a former LTD distributer. He was sponsored/recruited by a man named Stephen Winters. Stephen Winters is the son of the owners of LTD named Larry & Pam Winters. Since Robert Micheal was sponsored/recruited by Stephen Winters, he witnessed close hand the lifestyle of Larry Winters. From his own experience, he realized Larry & Pam-(as well as some of the other Amway High Level pins) make most of their income from LTD and not Amway. This is illegal because Larry & Pam promote a lifestyle of financial wealth from Amway to both prospects and downline. However, the reality is Larry & Pam Winters make most of their income from the LTD Tools System. 

Hugh Zhang's Podcast

Snippet from the video above 👆

Hugh Zhang was an Amway Ranked Emerald, & he was apart of the Britt World Wide-(BWW) Tools System. Hugh was An Emerald, and he had two downline-(recruits) members at the Emerald Level as well. He witnessed the amount of revenue that can be earned through the BWW Tools System. Hugh realized the Amway High Level pins make 80% of their income from BWW, & 20% from the Amway Compensation Plan. 

Hugh Zhang on Michelle Garabito's show called Authentk TV

4. Theft By Deception 

Low level Amway ranked members in LTD are told that the money they pay to attend all LTD events is ONLY for rental costs and equipment costs.

 

This includes money collected for:

 

• Weekly LTD Group Evaluation Sessions/Info Sessions - ($5)

• Monthly LTD Team Meetings - ($10)

• Quarterly LTD Conferences - ($135)

• Annual LTD Fall Leadership - ($55)

• LTD Night Owls - ($20)

• LTD Freedom Parties - ($20)

• LTD Attitude Sessions - ($20)

• LTD Jam Sessions - ($20)

• Other LTD events

 

But the LTD BSM contract tells a different story.

 

⭕ THE LTD BSM CONTRACT EXPLICITLY STATES AMWAY HIGHER-UPS IN LTD RECEIVE COMPENSATION-(A SOURCE OF INCOME) FROM ALL LTD EVENTS & FROM THROUGH THE LTD BUSINESS SUPPORT MATERIALS-(MONTHLY SUBSCRIPTIONS, PRODUCT PURCHASES & ETC). 

 

That distinction matters.

 

LTD members are induced to hand over money based on false representations about what that money is being collected for, while material information about who financially benefits is concealed. Iowa's theft and fraud laws are directly relevant-(including other states). 

 

WHEN THE AMOUNT EXCEEDS $1,500, THE FELONY THRESHOLD IS REACHED IF THE CONDUCT CONSTITUTES THEFT UNDER IOWA LAW.

 

Under Iowa Code §714.2:

 

More than $1,500 through $10,000 = Second-Degree Theft — Class D Felony

 

More than $10,000 = First-Degree Theft — Class C Felony

 

And this is not about one isolated LTD event.

 

LTD Group Evaluation Sessions/Info Sessions happen weekly.

 

LTD Team Meetings happen monthly.

 

LTD Conferences happen quarterly.

 

LTD Fall Leadership happens annually.

 

LTD Night Owls, LTD Freedom Parties, LTD Attitude Sessions, and LTD Jam Sessions occur at additional times throughout the year.

 

That means the same representation accompanies money collected repeatedly from low level ranked Amway members in LTD throughout an entire year.

 

WHAT IS THEFT BY DECEPTION?

 

Under Iowa Code §714.1(3), Theft By Deception involves  obtaining another person's property, or a transfer of possession, control, or ownership of that property, by deception.

 

Put simply: Theft By Deception involves obtaining another person's money or property through deception.

 

That definition matters when looking at what low level Amway ranked members in LTD are told about where their LTD event admission money actually goes compared with the compensation structure contained in LTD's own BSM contract.

 

This makes LTD guilty of committing theft by deception through LTD's event-money practices. Low level Amway ranked members in LTD are induced to pay money based on representations about what their payments are for while the financial benefit available to Amway higher ups in LTD leaders is not disclosed.

 

5. Deceptive Business Practices

WHAT ARE DECEPTIVE BUSINESS PRACTICES?

 

Under Iowa law-(& other states), a Deceptive Business Practice involves using fraud, false promises, misrepresentations, or intentionally concealing material facts in connection with selling or advertising goods or services in a way intended to cause others to rely on the deception. Under Iowa Code §714.16, deception is an act or practice that has the tendency or capacity to mislead a substantial number of consumers about a material fact. In Iowa, deceptive business practices can constitute a Felony when it satisfies the elements of a criminal offense such as the value involved-(the amount of money obtained through deception) reaches the applicable felony threshold under Iowa Code §§ 714.1 and 714.2. Other states have their own statutes addressing deceptive or fraudulent business practices, and depending on the specific conduct, intent, amount of money involved, and applicable state law, certain forms of fraud or may also constitute Felony offenses under different statutes and offense thresholds.

Iowa law-(as well as other states) prohibits the use of deception, fraud, false pretenses, false promises, misrepresentation, or the concealment, suppression, or omission of a material fact in connection with covered sales or advertising. 

 

HOW DOES THIS RELATE TO LTD?

 

LTD members below the Amway Platinum level are told that the money they pay for ALL LTD events is ONLY for rental costs and equipment costs.

 

However, the LTD BSM contract explicitly states Amway higher ups in LTD receive a source of income from ALL LTD events, & the LTD Business Support Materials-(monthly subscriptions, product purchases, & etc). 

 

Those two things directly raise the issue of deception: What low level Amway ranked members in LTD are actually told, where their money goes, what financial information is withheld from them, and what do the people making those representations know about the LTD compensation structure?

 

Low level Amway ranked members in LTD are induced to pay for weekly LTD Group Evaluation Sessions/Info Sessions-($5), monthly LTD Team Meetings-($10), quarterly LTD conferences-($135), annual LTD Fall Leadership-($55), LTD Night Owls-($20), LTD Freedom Parties-($20), LTD Attitude Sessions-($20), LTD Jam Sessions-($20), and other LTD events while material information concerning who financially benefited from those payments are intentionally concealed or omitted. That is the type of conduct addressed by Iowa's consumer-fraud and deceptive-practices statutes-(as well as other states). 

This makes LTD guilty of committing deceptive business practices though LTD's event-system.

Avoid Getting Scammed By These FRAUDS Below 👇👇👇👇👇