GRAND RAPIDS, MI — Amway and two affiliates face a $225 million federal and state payout under a proposed settlement resolving allegations they misled recruits about earnings, pressured them to buy unwanted products and encouraged false sales reports.
The settlement, announced Thursday by the Federal Trade Commission, is the largest the agency says it has reached with a multilevel marketing company. The FTC brought the case jointly with Washington state.
The affiliates are World Wide Group, LLC, based in Spokane Valley, Washington, and Leadership Team Development, Inc., based in Raleigh, North Carolina. The groups recruit people to distribute Amway products and sell those recruits recordings, app subscriptions and other training allegedly presented as necessary to succeed in the business, according to the FTC…