What is the Amway FTC decision?
This is the landmark decision for the network marketing industry. In 1975 the Federal Trade Commission charged Amway with violating FTC rules. After four years of litigation, Amway prevailed when an FTC administrative law judge ruled that Amway was a legitimate direct selling company and not an illegal pyramid scheme. The basis of the decision is recognition of Amway s (1) ten retail customer rule, (2) 70 percent rule, and (3) buy-back policy. The industry owes Amway a debt of gratitude. The industry would not likely exist if Amway had not prevailed.
