Quixtar - Approved By The FTC?

This is untrue. However, this is what I was told as well. It is important to point out that the FTC does not approve companies in this industry. It regulates them. In fact, the 1979 decision basically stated that Amway was not illegal if it provided (among others) the following:

1. Have a Buy-back Rule
2. Maintain a 70% Rule

The '70 percent rule' provides that '[every] distributor must sell at wholesale and/or retail at least 70% of the total amount of products he bought during a given month in order to receive the Performance Bonus due on all products bought . . ..'  This rule prevents the accumulation of inventory at any level.

3. Enforce a 10 Customer Rule

The '10 customer' rule states that '[i]n order to obtain the right to earn Performance Bonuses on the volume of products sold by him to his sponsored distributors during a given month, a sponsoring distributor must make not less than one sale at retail to each of ten different customers that month and produce proof of such sales to his sponsor and Direct Distributor.' This rule makes retail selling an essential part of being a distributor.

 More complete information can be found in the following:

IN THE MATTER OF
AMWAY CORPORATION, INC., ET AL.

FINAL ORDER, OPINION, ETC., IN REGARD TO ALLEGED
VIOLATION OF THE FEDERAL TRADE COMMISSION ACT

Docket 9023.
Complaint, March 25, 1975

Final Order, May 8, 1979
93 F.T.C. 618

Comments

[michael thompson]

Quixtar is a legal business. Quixtar is a sister company of the Amway business. Amway has been around since 1959 and is a legal multilevel business.

[quixtarisacult]

michael thompson....

Yeah, right, and monkeys fly out of my butt.

[quixtarisacult]

Bo,

Obviously these selling rules are conveniently disregarded and distributors who are taught to be 'core' and be their own best customer (an insane business strategy to say the least) then are easily allowed to misrepresent that they have followed the FTC rules? Hasn't the FTC basically permitted the continuing fraud that they scrutinized so carefully?

Why then hasn't the FTC correctly stepped in and brought an end to Amway's swindle, all based on exorbitantly priced wares? Why indeed is Amway allowed to maintain their monopoly prices while selling nearly all of their products to those taught to be 100% loyal to Amway goods while excluding negative products from their homes? How can the FTC be so inept as to allow the very scheme they sought to close down to continue to operate outside of their own regulations, ones which if they took the time to investigate would provide the smoking gun?

Just as the FEC allowed Bernie Madoff to continue his Ponzi Scheme for years after they were straightforwardly informed by Harry Markopolis of the exact nature of his fraud? Why then is the FTC taking a page out of the FEC inept playbook and allowing Amway to continue fleecing the 'little guy investors' in Amway's Enron-like closed market swindle?

More importantly, does the Obama Administration care that this type of swindle is being carried to the Chinese, or the world's largest democracy: India?