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, the company is operating illegally a pyramid scheme.

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 of downline.  Larry Winters then ultimately decides what percentage-(%) each LTD member/distributer/contractor-(specifcally Platinums & above) recieve off their downline's LTD revenue. 

Rich Devos-(owner of Amway) admits the Tools System is 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 & retain 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 Prospecting Guidelines Document 

Amway distributers are allowed to make annual income claims up to Founders Platinum level ONLY. This is because Amway as a corporation makes ZERO annual  claims for levels above Founders Platinum. 

The reality is Amway Platinums make less than $20k annually before expenses in the U.S. Amway Founders Platinums make less than $45K annually before expenses in the U.S. Also, the average Amway IBO/Distributer makes less than $1000 annually before expenses in the U.S. 

P.S. Project 1 in the recording above refers to the Amway Rank Platinum Level. Project 2 in the recording above refers to the Amway Rank Ruby level. 

The reality is, Platinums earn less than $20K annually before expenses in the U.S. Founders Platinums earn less than $45K annually before expenses in the U.S. In addition, Amway makes ZERO annual income claims for Ranks above the Founders Platinum Rank-(that includes the Ruby Rank).

P.S. Project 1 in the recording above refers to the Amway Rank Platinum Level. Project 2 in the recording above refers to the Amway Rank Ruby level. 

Amway is not an opportunity to create financial independence and become financially wealthy. Amway distributers throughout the U.S. claim to individuals that Amway is an opportunity to "build assets", "time and money", "financial independence/freedom", "replace your income",  "financial wealth", & a "financial legacy". However, the Amway Corporation doesn't make any of those claims. In fact, Amway as a corporation specifically instructs their Amway distributers-(within their Amway contracts) to NEVER describe the Amway opportunity this way and to instead describe the Amway opportunity as a secondary/supplemental income. Specifically, it is stated within their Amway distributer contracts-(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.

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. In the past, Amway has claimed what individuals can earn at founders Platinum but that was $53,400. No where, will Amway claim you can earn 75K at Platinum or Founders Platinum. Amway doesn't made any statements about what Amway distributers can earn for annual income above Founders Platinum.  They only mention bonuses, trips, & rewards people can earn at levels above Founders Platinum, but not annual income. They only talk about Annual income from Founders Platinum and below. 

3. Deceptive Trade Practice 

LTD is a Deceptive Trade Practice. LTD uses Amway as a disguise for the LTD Tools business which is 80% of an Amway Diamond's profit. The Amway business is 20% of an Amway Diamond's profit. The Deceptive Trade Practice is having everyone believe they can generate financial wealth through the Amway Comp. Plan. However, the true purpose is to recruit the masses into the LTD tool system, all the meanwhile receiving ZERO LTD Tools Compensation-(if you are below Platinum); & not legally being disclosed the LTD Tools Compensation Plan. 

The Amway High Level pins deliberately sell dreams that revolve around the Amway Comp. Plan. In reality, the lifestyle of the Amway High Level Pins comes from the LTD Comp. Plan. Amway High Level Distributers purposefully don't show their downline/recruits how the LTD tools Compensation structure works.

Every Amway IBO has the right to know the total revenue of LTD tools system and as well as the Amway Compensation Plan which is specifically used as a distraction model of the LTD Tool revenue. This is becuase the Amway High Level pins are profiting from their downline subscribing to LTD. Also, every LTD member is a distributer for LTD, & they produce revenue for LTD as distributers-(NOT END-USERS). As LTD distributers, members have the right to know how they can be compensated from LTD. Also, LTD revenue ONLY comes from LTD distributers. This is because LTD distributers recruit for LTD, and they bring new members to join LTD. LTD distributers are also the only individuals purchasing products-(subscriptions, & etc) from LTD. Therefore, not disclosing the LTD Compensation Plan is illegal. 

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

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