Penalty Amount
$225,000,000
The FTC and the state of Washington filed a joint complaint and proposed stipulated order requiring Amway Corp. and two affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—to pay a $225 million judgment, the largest monetary recovery ever obtained from an MLM in an FTC action, over allegations that they used deceptive earnings claims and unfair tactics to recruit Independent Business Owners. The complaint alleges the companies falsely promised substantial income and recruitment success, pressured IBOs to buy products they could not resell, and instructed IBOs to falsely report sales. Nearly all of the judgment will be used as redress for IBOs who lost money, and the proposed order imposes structural reforms including a 70% resale requirement, independent audits of sales records, and a ban on approved providers charging new IBOs for first-year training.
A $225 million judgment, nearly all of which will be paid as redress to IBOs recruited by WWG and LTD who lost money. The proposed order further requires: IBOs to resell at least 70% of products purchased from Amway each month; substantially reduced recruiter compensation when recruits buy products without reselling them; prompt reporting of all customer sales at actual prices with receipts sent to customers; termination of IBOs who fake sales or teach others to do so; regular independent outside audits of Amway's sales records; mandatory training for IBOs before they may recruit; and a prohibition on approved providers, including WWG and LTD, charging new IBOs for any training or services during their first year.
This is a consumer protection action targeting deceptive earnings claims and multilevel marketing practices rather than a data privacy matter, but it carries significant contract implications for any company operating direct selling, affiliate, or 'approved provider' networks. In-house teams should review approved provider, affiliate, and training-vendor agreements for clauses governing: representations about earnings or income potential and substantiation requirements; approval and content-control rights over third-party training materials and marketing; sales-reporting and record-keeping obligations paired with audit rights (the order mandates regular independent outside audits); compensation structures tied to verified retail resale rather than internal or recruit purchases; termination rights for participants who falsify sales or induce others to do so; and restrictions on fees that providers may charge new recruits. Recruit- and customer-facing terms should include clear income disclaimers, and indemnification provisions should ensure channel partners bear liability for their own deceptive representations and any resulting regulatory penalties.
Entity
Amway Corp.
Industry
RetailOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/09/ftc-takes-historic-action-against-multilevel-marketing-operator-amway-unfair-deceptive-business
Amway Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/Amway-Complaint.pdf
Amway StipulatedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/Amway-StipulatedOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Amway Corp., one of the largest multilevel marketing companies in the U.S., and two of its affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—will pay $225 million"
"Proposed order will require Amway and two of its affiliates to pay $225 million, the largest monetary recovery ever collected from an MLM in an FTC action"
"imposes a $225 million judgment, nearly all of which will go to IBOs recruited by WWG and LTD who lost money."
"use unfair and deceptive tactics to recruit members to its direct selling and multilevel marketing opportunity"
"deceptive and unfair tactics, including misrepresentations about likely earnings, to incentivize and pressure IBOs to buy Amway products they don't want"
"Falsely telling IBOs that they are likely to earn substantial income, exceeding $40,000 a year"
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.
The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.
$1.9M
The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.
The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.