Amway agrees $225 million settlement with FTC over alleged deceptive business practices

Amway and two affiliates have agreed to pay $225 million to settle allegations from the FTC and the state of Washington of using deceptive and unfair tactics, including misleading earnings claims and pressuring recruits to buy products unlikely to be resold. The settlement, the largest ever against a multilevel marketing company, will compensate affected Independent Business Owners (IBOs) and requires Amway to implement reforms such as stricter sales requirements, reduced recruiter compensation for unsold products, and independent audits. Amway denies the allegations but agreed to the settlement to move forward.