Amway


Amway Center

Amway Center (Photo credit: Wikipedia)

The Amyway Tool Scam coming to America. Is it true or is Mr. Scott Johnson set on revenge for being dumped on by Amyway…? I would say lets let America judge for them self the truth of this. Mr. Johnson admitted he was a part of the scam, but because he got hurt and could not return to work for a while they dumped on him. The story information is complex, to figure out but in a way it looks like a new Formatted Pyramid Scam where items are used and sold.

Scot stated, ” I sent the following information to all 50 State Attorneys General offices. The intent was to condense and distill the ATS onto a single page: The Amway Tool Scam To whom it may concern, This information is being sent to the Attorneys General in all the states.”

as of yet no response back. I have myself eve called, and they will not take the call or return my call. So I am forced to take Scott’s word on this as a insider player at one time.

http://toptentogosocialnetwork.ning.com/profiles/blogs/amway-tool-scam?xg_source=activity

Scott also stated,” The Amway Tool Scam, which isn’t so much an illegal pyramid, it is THE major source of profit for the upper level IBOs, but it is not promoted in this manner. All of the focus is on the Amway products providing profit, not the tools.”

So America, do we have another Company Scam within our country…?

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5 thoughts on “Amway

  1. Just to be clear, the Amway Tool Scam (ATS) has been in America for about 40 years.

    Also, I’m not out for revenge, I am out to eduate others so they don’t get scammed as I was, and to get the attention of the regulatory authorities, especially the FTC, to shut down this and similar MLM scams.

    The truth is on my blog, see for yourself, and challenge it by posting comments/questions. However, and I don’t say this to boast, but because it is true – I know more about this scam than any other humanoid on this planet, with the exception of the actual scammers themselves: http://www.stoptheamwaytoolscam.wordpress.com

    I never admitted I was a part of the scam, from the perspective that I knowingly supported ripping off others via the hidden Amway Tool Scam. However, I did promote the tool system to others BEFORE I was aware much more money was being made by the upline from the tools than from Amway.

    I have no idea what this means, “…but because he got hurt and could not return to work for a while they dumped on him.” I never stated anything remotely related to this statement. However, various health and life events probably did extend the time I was ripped off by Amway and the ATS, as I bought the line that I had to “follow the system, consistently, continuously” for a period of months to years, to allow for personal growth and development of the “success” character traits. In reality, this garbage line is clearly intended to maximize the time and corresponding profit scammed from people.

    The story isn’t very complex at all: There is a hidden business, which I call the ATS, that is the source of most of the profit for the upline, and it has to do with the massive tool profits (various meetings, CDs, books, voice mail, web sites, etc.) that are supposedly primarily for education/motivation, and NOT with Amway’s products. However, the upline and Amway pretend (lie) most/all of the upline profit comes from Amway.

    As far as the state Attorneys General, I have heard from some of them and continue to be in discussions with some of them. Here is the actual complaint sent to the 50 state AGs:

    The Amway Tool Scam
    To whom it may concern,

    This information is being sent to the Attorneys General in all 50 states and U.S. territories. Hopefully, all or some of the states/territories can band together as was recently done between the states of Illinois, Kentucky, and North Carolina, along with the FTC, to shut down another scam, FHTM (Fortune High Tech Marketing): http://www.ftc.gov/opa/2013/01/fhtm.shtm

    The Amway Tool Scam (ATS) refers to the hidden business behind the Amway business. When a prospect is shown the Amway business, they are NOT shown the much more lucrative ATS business. The ATS consists of various meetings, CDs, books, web site access, voice mail, etc., commonly referred to as “tools,” or more formally as BSM (Business Support Materials) sold by the upline IBOs (Independent Business Owners, e.g., distributors) to the downline within the Amway MLM, at huge profit margins. Only the top 1-2% of the upper level Amway IBOs make a profit from the ATS. The Amway business puts money in the IBOs’ pockets; the ATS extracts this money, and more. For the past 4 decades, literally millions of IBOs have been ripped off for 10s to 100s of billions of dollars. Well over 99% of IBOs are known to operate at a net loss, thanks to the ATS and other practices which dramatically increase overhead costs. The upper level IBOs make 2 to 9+ TIMES more from the ATS than from Amway.

    Amway’s cofounder Rich DeVos spoke out against the ATS in 1983, but little has been done in the U.S. about this issue. In 2002, Amway instructed the upper level IBOs that only a maximum of 2% of high level IBOs should make ATS profit, and the remaining 98% IBOs should not even be aware there is an opportunity to make money from the ATS, which is clearly a RICO fraud. The UK government ruled in 2008 that zero profit is to be made from the tools, and India’s Amway rules since 2005 have price limits on the tools that make tools a small fraction of the U.S. prices, virtually eliminating tool profit. No similar action has been taken in the U.S.
    The benefit for Amway with this arrangement is Amway can keep their product prices inflated and bonus payout low, both of which increase their profit. The upline IBOs don’t want to “rock the boat” over these issues, as they are cleaning up via the ATS. This results in a win-win-lose scenario, with Amway winning by maximizing their profit, the top 1-2% of IBOs winning by double dipping Amway and ATS profits, and the 99+% losing money to both the Amway higher prices/lower bonus and high tool costs. The high Amway product prices results in little to no sales to non-IBOs; required by Amway rules but in North America is much less than 3.4% of the total volume, according to a 2006 3rd party confidential study disclosed through one of many lawsuits Amway has earned.
    Amway relies on written policies that the tools are optional, the upline must support IBOs whether or not they buy the tools, and a generic statement that some IBOs make money from the tools. However, the same rules require any information shown to prospects to be approved by Amway, and any conflict with Amway or an ATS owner be taken to Amway’s arbitration process, which has been called “unconscionable” and “illusory” by at least 7 U.S. judges across the country. In practice the tools are promoted VERY strongly, with the upline making statements such as, “The tools are optional, but so is success,” which means an IBO will not succeed without the tools. It is my personal experience the upline ignores IBOs who don’t buy the tools. Most new IBOs don’t have the knowledge, ability, or time to develop their own tools, nor do they have the ability to decipher the complex Amway rules, so they naturally use the upline ATS system.

    Numerous lawsuits among the high level IBOs have occurred over the years, mostly related to one individual or group stopping tool payments to other high level IBOs. This results in these groups experiencing rapid upheaval and destruction. The recent Pokorny class action lawsuit, one of very few that represented the “other 99%,” ended with a whimper, with no changes to the ATS, despite repeated requests to the court to take action against the ATS.

    I was an IBO from January 1993 until I was terminated in September 2009, and have studied the ATS since early 2005. I KNOW what I am talking about. I do not exaggerate or make things up. I deal only in facts. The facts are I lost well over $100,000 and more importantly, a dozen years of my life chasing an illusion which not only clearly violates FTC Section 5 rules that prohibit unfair and deceptive business practices, but are obviously RICO fraudulent activity as well.

    Details of much of the above, and much more, can be found at stoptheamwaytoolscam.wordpress.com. For more information, contact me at stoptheamwaytoolscam@yahoo.com, or call me at 123-456-7890 (obviously not my real number, for obvious reasons – there are a lot of nuts out there!).

    Regards,
    Scott Johnson

    I consider myself to be an “inside player” from the perspective of knowing what is going on, but I never made, and would never make, profit from the ATS, as it is one of the most disgusting perversions of the free enterprise, capistalist system, this side of Bernie Madoff.

    The answer to the final question in the original post is a resounding YES!!!

    • As stated before by me to you, You will find yourself most welcome at the Toptentogo Network, our work is honest, and the work hard….
      So Scott, welcome to a new and upcoming adventure……it up to you…

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