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Thread: Analysis: Amway Accused of Fraud; Pays $150 Million

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    littleroundman is offline Administrator
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    Analysis: Amway Accused of Fraud; Pays $150 Million

    Pyramid Scheme Alert reports: Analysis: Amway Accused of Fraud; Pays $150 Million; Where’s the FTC and DOJ? | Pyramid Scheme Alert


    Amway is the largest, oldest and best known representative of “multi-level marketing” (MLM). It is the most prominent member of the Direct Selling Association.


    This icon of “direct selling” just announced that it has agreed to pay restitution to consumers and reform costs estimated at over $150 million. The payments are in response to consumer accusations that Amway/Quixtar is operating an illegal pyramid scheme. The settlement is the largest in MLM history.
    Three Directors and Advisory Board members of Pyramid Scheme Alert served individually as experts or consultants in this historic class action case against Amway. The suit was filed by the law firm of Boies, Schiller & Flexner.


    The size of the settlement astonished some observers and the news is spreading fast. It was reported on the front page of the USA Today 11/05/10. About $55 million of the total is in actual cash and products as restitution for victims and legal fees. Other elements of the settlement include substantial price reductions to make retail sales feasible, and major changes in the infamous “tools” business that will require Amway to take greater responsibility. These schemes are run by some of Amway’s top recruiters and have been allowed to function as arm’s length, rogue operations, though highly beneficial to Amway.


    The huge settlement throws open to question the validity of Direct Selling Association’s “Code of Ethics” and the legitimacy of all other multi-level marketing companies as viable “business opportunities.,” based on the Amway model.

    Read the full Pyramid Scheme Alert report here: Analysis: Amway Accused of Fraud; Pays $150 Million; Where’s the FTC and DOJ? | Pyramid Scheme Alert
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    littleroundman,

    Thank you for sharing that. Though Heiny and Doyle's spin would be hilarious, I would love to see our own little Clem Lemons aka Len Clements give his brilliant commentary on this industry changing development. Scamway obviously settled out because they knew they were likely to lose and face very high dollar judgments against them. This is going to really shake up the insutry and perhaps change the way enforcement agencies deal with these scams. Why don't we send Lenny an invitation to discuss this with us here.

    MarketWave@Cox.net

    Soapboxmom

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by SBM
    Why don't we send Lenny an invitation to discuss this with us here.
    Does the server have the capacity ????
    The only thing necessary for the triumph of evil is for good men to do nothing

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Clam must know all about it as I'm sure he was an expert witness for Amway.
    But it's a dry heat!

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    I'm sure he's still busy trying to debunk the Amega wand as he feels he's the only 'authority' to be able to do so.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by Soapboxmom View Post
    Why don't we send Lenny an invitation to discuss this with us here.
    For what it's worth, USANAWatchdog has this to say over on scam.com :

    If anyone is interested, The owner of Marketwave Inc. (owner of scam.com has banned the infamous name from appearing) has left Yoli and moved on to another company.
    Now I can't verify the truth in that statement, but USANAWatchdog has always been fairly close to the mark on what he writes.

    So if that is indeed correct, Clem will probably be too busy trying to move his downline (both of them) over to his new venture to discuss anything with us here.

    It should be interesting to see what sort of gimcracks Clem is flogging now, assuming that news bite is correct.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    If flames shot out of Len's ass, IamAWilly, Heiney and Chrissiewould call it Divine Intervention. They are all three so delusional, that they now think I am posting under another screen name over there in the AmWay and other threads. (some guy named Bodhi who recently joined) I haven't posted on that cesspool since all the crap went down with Tom and SBM nor do I ever intend to and if I did, why the hell would I use another screen name to begin with? The guy they are upset about is wiping the floor with them, so this is now what the poor pathetic shysters have resorted to. Whoever he is, he's doing a great job of nailing them and their continued b.s. If they had a half a brain, all they would have to do is contract DoubleWide and have her check the ISPs. She'd ban my little ass instantly for having two accounts. I swear, the three of them don't have the IQ of a common slug. Since they are getting their butts handed to them by this new guy, they resort to more lies and more deflections. It's pathetic but amusing to watch.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by A Life Aloft View Post
    If flames shot out of Len's ass, IamAWilly, Heiney and Chrissiewould call it Divine Intervention.
    You have to remember that Wil is a certified LIAR as is Kerry a registered and certified LIAR. Wil said he went to AU, he did not. Kerry said he wasn't involved with Yoli when he was and signed up under Lenny. Lest we forget that he paid Lenny for his program, some money he will never recoup. Of course Wil left here when he was called out many times. He's truly a coward.

    They are all three so delusional, that they now think I am posting under another screen name over there in the AmWay and other threads. (some guy named Bodhi who recently joined) I haven't posted on that cesspool since all the crap went down with Tom and SBM nor do I ever intend to and if I did, why the hell would I use another screen name to begin with? The guy they are upset about is wiping the floor with them, so this is now what the poor pathetic shysters have resorted to. Whoever he is, he's doing a great job of nailing them and their continued b.s. If they had a half a brain, all they would have to do is contract DoubleWide and have her check the ISPs. She'd ban my little ass instantly for having two accounts.
    But that would make the annoying and all knowing Lady Mod actually do some work which is not going to happen. She probably doesn't even remember how to check a person for having multiple IPs (seriously). In the famous words of LM, "I'm not the spam patrol. I never was, I never will be."* She lets the grunts do it.

    I swear, the three of them don't have the IQ of a common slug. Since they are getting their butts handed to them by this new guy, they resort to more lies and more deflections. It's pathetic but amusing to watch.
    It was always amusing to watch the Three Stooges over there, too bad I gave it up. However, it would be really nice to find out what Lenny is up to these days. When I asked him specifically on a thread (deleted) if he ever felt guilty about abandoning his downline and moving on, he deflected and got quite angry. I wonder why?

    Lenny, please come back and show us that you grew some nads. We'd love to hear from you.

    *Email dated July 10, 2010.
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by Unsaved Trash View Post
    You have to remember that Wil is a certified LIAR as is Kerry a registered and certified LIAR. Wil said he went to AU, he did not. Kerry said he wasn't involved with Yoli when he was and signed up under Lenny. Lest we forget that he paid Lenny for his program, some money he will never recoup. Of course Wil left here when he was called out many times. He's truly a coward.



    But that would make the annoying and all knowing Lady Mod actually do some work which is not going to happen. She probably doesn't even remember how to check a person for having multiple IPs (seriously). In the famous words of LM, "I'm not the spam patrol. I never was, I never will be."* She lets the grunts do it.



    It was always amusing to watch the Three Stooges over there, too bad I gave it up. However, it would be really nice to find out what Lenny is up to these days. When I asked him specifically on a thread (deleted) if he ever felt guilty about abandoning his downline and moving on, he deflected and got quite angry. I wonder why?

    Lenny, please come back and show us that you grew some nads. We'd love to hear from you.

    *Email dated July 10, 2010.
    Well, it goes to show the collective IQ of IamAWilly, Chrissie and Heiney is around maybe 5. lmao First off, I cannot post on Scam even if I wanted to. After the crap went down with you and SBM and Lenny the turd started threatening people and I knew he was going to start using his Modship to get the email addys of people, even though I used a junk email for Scam, I changed my email addy asap to a totally false made up addy: dogshit@hotmail.com ROTFL. Now sometime back, you used to be able to change your email addy and that was fine. What I found out when I changed mine many many months ago (in fact the last post I made over there is dated 04-26-2010) is that you now need a real email addy because Scam sends you a confirming email with a link that you have to click on to be able to confirm your new addy and post there. I found that out when I changed mine to the made up fake addy and went to post and got a message that said that I need to confirm my email addy since I had changed it and could not post until I did that. So, I decided screw it, I am done over there anyways. Since this addy of mine is fake, I cannot confirm anything obviously. I can get and send pms if I log on which I never ever do (until today to see what fake email I had used and to see when I last posted) and that's it. I cannot even post over there, nor have I had the desire to since all the decent Mods left and most of the decent posters and the place has turned into a total piece of crap. Every forum is garbage, and full of psychos. I actually have better things to do with my time and I have a life. Why these bone heads think I would waste ten seconds of my time on their worthless asses over there, is just beyond me. I'd rather pick up the dog logs in my side yard. Much more rewarding. lol

    Again, it's funny as hell that Chrissie and IAmAWilly keep acussing this new poster of being me, yet not one of the lying, chicken shit bastards will simply PM Doublewide and have her check the ISP and the email accounts or whatever. That would prove what complete and total morons, liars and delusional idiots that they really are, so they will of course not ever do that. They will just continue to carry on like the half wits that they are. It's amazing that the three of them have nothing better to do than to make complete fools of themselves over there 24/7. But that is what happens when you have failed at MLMs, have no jobs, no careers, no friends and no lives, I guess.

    You may be right though, Doublewide may not have the brain power to know how to actually check the ISPs. ROTFL! She's about as bright as a rock. She's totally usless as a Mod or anything else over there, for that matter. Her major contribution there is to throw out a few "cupcakes" and "pumpkins" every few months to anyone who challenges her and speaks the truth. lol
    Last edited by A Life Aloft; 12-01-2010 at 08:54 PM.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    From the cesspool:

    ohein56
    Senior Member Join Date: Jul 2005
    Location: Santa Rosa, Ca.
    Posts: 7,532

    Re: MonaVie-- What are your experiences?

    Quote:
    "It's nice to know that (Bodhi/PIOTB/ALifeAloft) scours this forum so thoroughly that he's brought the subject up over there.

    I knew he couldn't resist flinging some more of his hate-filled smelly, runny shit, "anonymously" that is."

    AND:


    Originally Posted by ChrisDoyle
    "Hey Mr. Angry (Bodhi/PIOTB/ALifeAloft), I see you making a long post protesting your innocence at the other forum, stating you are not Bodhi over here!
    You protesteth too much mate!
    You are dishonest and a liar!"

    Then why don't one of the three pussies from the cesspool get Doublewide to
    simply compare the two ISP addys and their locations and settle the mater? Oh wait, that doesn't fit with their agendas of lies, deflection and bullshit does it? ROTFL! Now tell us again boys, who is the liar, dishonest and the coward??? Whoever this Bodhi person is, he really has their little scamming asses in a frazzle. lol Most entertaining crap that has happened there in years.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Ya gotta feel for the Three Stooges, though.

    I mean, back at the beginning of their MLM experience, they probably really DID really believe there was at least SOME legitimacy in what they were promoting.

    Imagine how the poor bastards feel now, though.

    Their stance is forcing them to defend such unbelievably fraudulent products as "Livevantage Protandim" and Vitamarks' fake meat strips which purportedly reduce alcohol cravings.

    C'mon now, ALA, even a hardened old cynic like you must have at least a tiny bit of sympathy for someone whose poor life choices have backed them into a corner so that they have to spend their days defending mushroom infused instant coffee, highly overpriced fruit juice, "magic" recycled tap water and fake meat or trying to pretend an MLM paying an out of court settlement of $150 MILLION is a good thing.

    AND, what's more, they really do provide some comic relief in an ever increasingly pressured world.

    There's no better way to overcome feelings of despair engendered by the latest gloomy headlines than to visualize one or all of the Stooges earnestly discussing career opportunities and potential income with a prospective client while simultaneously suggesting he or she cure whatever ails them by simply purchasing carton lots of overpriced fruit juice or mushroom infused instant coffee at 4X supermarket prices.
    Last edited by littleroundman; 12-02-2010 at 07:51 PM.
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by A Life Aloft View Post
    Whoever this Bodhi person is, he really has their little scamming asses in a frazzle. lol Most entertaining crap that has happened there in years.
    Sherlock's feeble brain must be smoking working overtime trying to figure out who this Bodhi character is.

    Oh wait! It's obvious who this Bodhi person is - at least in Doyle's little world.

    Quote Originally Posted by ChrisDoyle View Post
    By the way ''Bodhi'', Kerry was right, I was wrong....you are so obviously Put It Out There Baby.
    Welcome back! Was it getting boring over on the other forum? Noone to argue with and swear at? :cwm2:
    Lenny trained them well - those nasty, anonymous posters must be outed at any cost, no matter how long it takes.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by Doc Bunkum
    Sherlock's feeble brain must be smoking working overtime trying to figure out who this Bodhi character is.

    Oh wait! It's obvious who this Bodhi person is - at least in Doyle's little world.

    Quote Originally Posted by Chris Doyle
    By the way ''Bodhi'', Kerry was right, I was wrong....you are so obviously Put It Out There Baby.
    Welcome back! Was it getting boring over on the other forum? Noone to argue with and swear at?
    Lenny trained them well - those nasty, anonymous posters must be outed at any cost, no matter how long it takes.
    Maybe Chris and Kerry are the same poster. (They are not using those two screen names anyway.) They're the only two I know of that use the term "noone" which is nonexistent. I assume they mean "no one." Genus of the same mold....totally stupid and clueless. And both unemployed in the sense of the real workforce. This accusation of Bodhi being PIOTB almost makes me want to go over to that cesspool but I'm still holding strong.

    The simple resolution to this is to contact a mod (if they can find one) and have them verify. That would be too difficult for those feeble minded making the accusations.
    GEORGE DRANICHAK - OWNER OF SCAM.COM, PORN MOGUL AND KING OF THE PORN SPAMMERS

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Sometimes you have to wonder if it's just an act those two put on to entertain us.

    Heiney yelling at James yesterday:

    Quote Originally Posted by ohein56 View Post
    Look at your friggin Avatar, you obnoxious little jerk!
    Fact is, James doesn't have an avatar - never did.

    At his stage of life, and with the amount of time he spends on forums, you would think Heiney would at least know what the heck an avatar was by now.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by Doc Bunkum View Post
    At his stage of life, and with the amount of time he spends on forums, you would think Heiney would at least know what the heck an avatar was by now.
    Why? At this stage of his life, he still doesn't know what a job is.
    GEORGE DRANICHAK - OWNER OF SCAM.COM, PORN MOGUL AND KING OF THE PORN SPAMMERS

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by littleroundman View Post
    Ya gotta feel for the Three Stooges, though.

    I mean, back at the beginning of their MLM experience, they probably really DID really believe there was at least SOME legitimacy in what they were promoting.

    Imagine how the poor bastards feel now, though.

    Their stance is forcing them to defend such unbelievably fraudulent products as "Livevantage Protandim" and Vitamarks' fake meat strips which purportedly reduce alcohol cravings.

    C'mon now, ALA, even a hardened old cynic like you must have at least a tiny bit of sympathy for someone whose poor life choices have backed them into a corner so that they have to spend their days defending mushroom infused instant coffee, highly overpriced fruit juice, "magic" recycled tap water and fake meat or trying to pretend an MLM paying an out of court settlement of $150 MILLION is a good thing.

    AND, what's more, they really do provide some comic relief in an ever increasingly pressured world.

    There's no better way to overcome feelings of despair engendered by the latest gloomy headlines than to visualize one or all of the Stooges earnestly discussing career opportunities and potential income with a prospective client while simultaneously suggesting he or she cure whatever ails them by simply purchasing carton lots of overpriced fruit juice or mushroom infused instant coffee at 4X supermarket prices.
    To say nothing about the profit you could make by selling this junk to your friend's wife who is suffering from lung cancer. So it didn't work? Hey man, at least you made a buck and you can give him a hug at the funeral.

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by ChrisDoyle View Post
    As usual Kerry, you are absolutely correct. Its very easy to hide IPs, use multiple IDs etc these days. Its a trolls paradise!

    No way is there two posters like PIOTB. That excessive cursing, swearing and abuse stands out a mile.
    The love fest between those two continues.

    (What's all this got to do with the subject of this thread anyhow?)

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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by Doc Bunkum View Post
    (What's all this got to do with the subject of this thread anyhow?)
    Amen.


    I believe this is a copy of the final settlement agreement. Please forgive length and any format issues:


    Case3:07-cv-00201-SC Document143 Filed11/03/10 Page11 of 22
    CASE NO. C 07-0201 SC PLAINTIFFS MEMORANDUM IN SUPPORT OF JOINT MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT AGREEMENT AND FINDING OF GOOD FAITH SETTLEMENT BOIES , SCHILLER & FLEXNER LLP OAKLAND , CALIFORNIA

    The Settlement Agreement

    The Settlement Agreement provides economic relief for the Settlement Class through cash and free products, and it provides injunctive relief directed at ensuring the continuation and extension of changes in Quixtars business model that already had commenced and that, indeed, were prompted in significant part by this litigation. The economic value of those aspects of the Settlement that can be quantified is an estimated to be $155 million, consisting of $34 million in a cash fund, $21 million in free products, and injunctive relief that Quixtar has estimated to be valued at $100 million. Taken together, virtually every aspect of the problems identified in the Complaint is addressed by the Settlement Agreement.

    1. Economic Relief

    There are three ways in which Settlement Class Members are eligible to receive economic relief, two of which are directed at former Quixtar IBOs. First, up to $5 million will be available to refund the registration fees paid by any IBO who left the Quixtar program by the end of their first year. This part of the economic relief is intended to compensate individuals who entered the program and, upon determining that it was not what they expected, quickly exited. These former IBOs will be able to receive a cash refund of their registration fee, which usually was in the amount of approximately $50. Up to 10,000 refunds may be provided to Settlement Class Members before any pro-ration of the refund amount.

    Second, former IBOs who verify that they spent at least $100 on books, tapes and promotional meetings will be entitled, without additional documentation, to receive $100 in free Quixtar products. This part of the economic relief is intended to compensate IBOs who spent money on motivational tools from which they are not receiving any benefit since they no longer are part of the Quixtar program. Claimants will be able to choose from a variety of product bundles, ranging from skin care products to vitamins and nutritional supplements. The total value of the free products will be $21 million, which would be sufficient to provide over 20,000 qualified claimants with free product benefits. If more qualified claimants apply, the product value per package will be adjusted; if fewer qualified claimants apply for free products, a procedure is established in the Settlement Agreement so that the balance is distributed to benefit the class, or distributed cy pres

    Third, Settlement Class Members (both former and current IBOs) who can establish that they suffered special hardship in the form of financial loss resulting from their participation in the Quixtar IBO program will be eligible for a cash payment of not more than $15,000. This provision is intended to compensate Settlement Class Members who participated in the program for a substantial period and who suffered financial losses from that participation. Those losses include purchasing a large amount of Quixtar products that were not sold or returned, spending a substantial amount of money on BSM, or suffering other demonstrable financial loss of at least $2,500. The Settlement Agreement provides for a streamlined claims process to be handled by a Special Master, to be appointed by the Court, who will review and determine (with finality) whether and how much should be paid to a Claimant from the fund. If the total of accepted Claims exceeds the available cash funds for these payments, a pro-ration of awards will be made.

    2. Injunctive Relief

    The Settlement Agreement provides for substantial injunctive relief to benefit both current and future IBOs. These elements of injunctive relief are intended to extend and perpetuate changes that Quixtar instituted, in large part as a result of this litigation, to transform the focus of its U.S. business from recruitment of additional distributors to merchandising products. Quixtar has estimated that the refund, training, and price reduction provisions will result in $100 million in future benefits to the Class. These provisions will be in the form of a Consent Judgment which will remain in place for 4 years (except where otherwise noted). The Consent Judgment will contain several features:

    (a) Disclosure and Refund Requirements. The Settlement Agreement provides that Quixtar must disclose to new IBOs that income figures reflect gross income, not net income after expenses; provide access to a price lists so that prospects can see the prices at which products are being offered; and inform IBOs of the availability of training in merchandising offered by Quixtar and the availability of refunds. Quixtar also is required to provide a period of at least 90 days (an increase from the current 60 days) during which new IBOs may seek an unconditional refund of their registration fee, currently set at $50. These provisions will ensure that new IBOs can correctly understand the program they are entering and have the ability, if they choose, to obtain a refund of their registration fee.

    (b) Legal Compliance. Under the Settlement Agreement, Quixtar is required to comply with state and federal law by the following: (1) not compensating any IBO primarily for the act of recruiting or registering other IBOs; and (2) not requiring any IBO to purchase or maintain any specified amount of inventory. In addition, Quixtar agrees that it will emphasize consumer sales by conditioning bonus payments and other incentives, as appropriate, on IBOs achieving reported levels of sales to end-user consumers. The Settlement Agreement also requires Quixtar to maintain and enforce quality control over Business Support Materials, such as books, tapes and meetings that are: (1) sold or distributed by Quixtar IBOs and Quixtar IBO affiliated BSM Companies; and (2) sold or distributed in a manner suggesting sponsorship, affiliation, or approval by Quixtar. This Quality control shall provide that the content of such BSM complies with state and federal law. These provisions of the Consent Order create accountability by Quixtar and by Identified BSM companies (those that are obtaining a release) that the financial incentives and authorized messages they provide are consistent with both state and federal laws, which include laws that regulate multi-level marketing systems as well as various state deceptive and unfair trade practice laws.

    (c) Price Reductions. Plaintiffs Complaints identified the uncompetitive pricing of Quixtar products as a reason that IBOs focused on recruitment rather than sales. Quixtar began reducing its pricing levels following the initiation of this lawsuit. The Settlement Agreement requires that Quixtar will maintain for twenty-four months from the Effective Date of the Settlement or from June 30, 2011, whichever occurs first, a price reduction that averages at least 5% from January 2007 pricing levels to distributors across Quixtar-branded products.

    (d) Training. In the Settlement Agreement, Quixtar agrees to increase its annual IBO training budget for product, product merchandising, and business skills by an average of $7 million or more over 2007 levels for twenty-four months from the Effective Date or from June 30, 2011, whichever occurs first, with such training to be provided free to IBOs. This training will further the ability of IBOs to focus on merchandising rather than recruitment of additional distributors.

    3. Enforcement and Releases

    The Settlement Agreement provides that the above elements of injunctive relief shall be subject to monitoring through annual meetings between Quixtar and Plaintiffs Counsel throughout the term of the Consent Judgment. The injunctive relief aspects of the settlement are binding on the parties, including BSM Companies receiving releases or who are served with the Consent Judgment, pursuant to Rule 65. Further, it should be noted that while the Consent Judgment provides for dismissal of the complaint with prejudice, it expressly does not affect the prior ruling of this Court, affirmed by the Ninth Circuit, with respect to Quixtars alternative dispute resolution procedures, which were substantially revised by Quixtar in response to that ruling.
    In return for the economic and injunctive relief provided in the Settlement Agreement, the settlement class will agree to fully release Quixtar and related parties, and those BSM Companies who sign the Settlement Agreement from all claims that were or could have been raised in the complaints in this action.

    4. Fees and Costs

    The Settlement Agreement provides that, in connection with final approval of the settlement, class counsel may seek an award of attorneys fees and costs from the Cash Fund based on the value of the economic and injunctive relief obtained for the Class and Defendant agrees not to object to a request that does not exceed $20 million. The Settlement Agreement also provides that the costs of the Claims Administrator in providing notice and handling claims, as well as the costs of the special Master in connection with the special hardship payments, and the costs of shipping and handling the free products shall be paid from the Cash Fund.
    Perhaps someone with better access (or more interest) can find a more complete document. But reading what I found left me with the distinct impression that the larger issues are still not going to be addressed. I mean it's all well and good to tell Amway to " not compensat(e) any IBO primarily for the act of recruiting or registering other IBOs;" but how many ways are there to play with the numbers? Wouldn't it have been more prudent to have Amway submit a new compensation model for approval as part of the settlement instead of telling them you must stop braking all the laws you were breaking that led to this suit?

    The Settlement Agreement also requires Quixtar to maintain and enforce quality control over Business Support Materials, such as books, tapes and meetings that are: (1) sold or distributed by Quixtar IBOs and Quixtar IBO affiliated BSM Companies; and (2) sold or distributed in a manner suggesting sponsorship, affiliation, or approval by Quixtar.
    The court doesn't really understand the tool scam, do they? Yes, it's good that they are starting to hold Amway responsible for some of the parasitic relationships their "independent" representatives foist on their downlines but what's to keep a few triple teflon super recruiters from encouraging their vast networks to buy unaffiliated and unapproved (by Amway, wink wink) "success materials"?

    I understand settling out of court, you had a certified class of former IBOs fighting a corporation who's lifetime of litigation paperwork has killed more trees than several large forest fires. You get the best deal you can. But if what I posted above is representative of the final settlement (and I believe it is) then Amway cut a Very good deal for themselves.
    Last edited by GlimDropper; 12-04-2010 at 11:57 PM.
    So your prophets of finance have fallen on their collective proverbial face, and you hear muffled voices calling: Welcome to the human race.
    You made a killing dealing real estate at NASA selling cemetery plots in outer space til some falling coffins crashed upon your doorstep: Welcome to the human race.

    Open up your heart...

    Welcome to RealScam.com.

  19. #19
    littleroundman is offline Administrator
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    The class action, although held in the United States DISTRICT COURT, was instituted as a civil action by and against CALIFORNIAN residents, under the CALIFORNIA Business and Professions Code §§ 17200 et seq and §§ 17500 et seq as well as the RICO Act 18 USC § 1961 et sec (et seq = "and the following")

    There is no provision for the court to impose "punishment' other than to approve of the relief/s and injunction/s sought in the original complaint.

    In simple terms, the plaintiffs alleged Amway/Quixtar did (this and (this) and (this) illegally and we, therefore deserve compensation in the form of (this) and (this) and (this) and Amway/Quixtar need to agree to do (this) and (this) and no longer do (this) and (this)

    The court agreed, as did Amway/Quixtar by coughing up and changing the specific behaviours.

    The case was NOT a generalized comment on the Amway/Quixtar business model and behaviour/s, only on the specific breaches in California.
    The only thing necessary for the triumph of evil is for good men to do nothing

  20. #20
    Luzer is offline Senior Member
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Quote Originally Posted by A Life Aloft View Post
    If flames shot out of Len's ass, IamAWilly, Heiney and Chrissiewould call it Divine Intervention. They are all three so delusional, that they now think I am posting under another screen name over there in the AmWay and other threads. (some guy named Bodhi who recently joined) I haven't posted on that cesspool since all the crap went down with Tom and SBM nor do I ever intend to and if I did, why the hell would I use another screen name to begin with? The guy they are upset about is wiping the floor with them, so this is now what the poor pathetic shysters have resorted to. Whoever he is, he's doing a great job of nailing them and their continued b.s. If they had a half a brain, all they would have to do is contract DoubleWide and have her check the ISPs. She'd ban my little ass instantly for having two accounts. I swear, the three of them don't have the IQ of a common slug. Since they are getting their butts handed to them by this new guy, they resort to more lies and more deflections. It's pathetic but amusing to watch.
    I was on scam.com recently and those guys are still going at it. Another wacko under the handle of IBOFightback as joined the fray and is trying to convince the forum that Amway merely settled to avoid hassles and reduce costs. It's quite entertaining really.

  21. #21
    JustTooMuchTime is offline Senior Scambuster
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    This appears to be the site set up to adminster claims:
    https://quixtarclass.com/Home.aspx

    There's an Amended Settlement Agreement dated 4/29/2011 here:
    https://quixtarclass.com/Portals/0/D...ixtar%20SA.pdf

    Notice to allow new claims:
    https://quixtarclass.com/Portals/0/D...3%20LFN_v4.pdf

    "Claims Deadline: Initially, claimants had until Friday, August 17, 2012 to file a claim. Eligible claimants (former Quixtar IBOs) who have not already filed a claim may now do so until March 15, 2013."
    https://quixtarclass.com/ImportantDates.aspx

  22. #22
    JustTooMuchTime is offline Senior Scambuster
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Anybody know about the status of this case:
    http://www.mlmlegal.com/legal-cases/..._Complaint.pdf

    It appears to be a separate complaint with separate issues.

  23. #23
    tex234 is offline Junior Member
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    Re: Analysis: Amway Accused of Fraud; Pays $150 Million

    Did the lawsuit require Amway to change some of it's practices? Did those changes make the company better or worse? I'm new to this site, and the post is kind of old. Sometime lawsuits are legit, sometimes they are BS. Sometimes they are in the middle. Some companies respond well, others, not so much.

    So, really, it would be nice for someone who knows a lot about this to say what the results have been 4 years later.

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