See Joecool's blogpost dated 9/25/26. The link to the FTC website is there. I also summarized the important points. But today, I want to set up some of Joecool's commentary about what I believe is going to hurt Amway and the Diamonds where it hurt the most: In their pickets. When you think about it, Amway critics have been right all along about the deceptive practices of WWDB and other AMOs and diamonds. The defenders always used sleight of hand to defend or justify the actions of the diamonds.
But the FTC finally took decisive action that I believe is long overdue. Think about this. The AMOs like WWDB and LTD use deceptive practices to get IBOs to sign up. They diamonds teach product loyalty (100 PV minimum) which is beneficial to Amway. Then the diamonds teach IBOs and prospects that their tools and functions are vital to their success and that they "need" to sign up for standing orders, book of the month, functions and other support materials. The diamonds make a nice income from the sale of these materials as they are cheap to produce and have higher profit margins that Amway products. IMO, Amway then "looks the other way" at IBO abuse and you have a symbiotic relationship. The diamonds get to use deceptive practices to drain the resources from their downline and Amway benefits from the product loyalty teaching, plus the defacto PV "quotas". Of course, the diamonds are smart enough to avoid saying anything is "required". I was told that so and so diamond who is a multi-millionaire believes that tools are vital, but you can try to succeed without them. A new IBO is stuck when confronted with that statement.
But IMO, the most damaging part of the FTC settlement, is that new IBOs cannot be sold tools and functions in their first year in the business. The diamonds used to practically salivate at the thought that a roomful of new IBOs would be on standing order and attending functions. I am not sure now, but Amway rules used to state that IBOs are supposed to receive "free" training from their sponsor. Instead, the diamonds were exploiting new IBOs from the get go. I was one of them. And if I understood Amway's numbers previously, roughly 90% or more of new IBOs never lasted a full year before quitting.
Thus, not being able to sell tools and functions to new IBOs will destroy the diamond's "tool" business. And if I may, some or possibly many diamonds are not currently qualified as diamonds. That means they have a diamond pin on their suit, but they are not qualified, therefore, they aren't receiving diamond bonuses and free trips, etc. That means the tools and functions is their real business. Amway's rule is once a diamond, always a diamond. But that's only the diamond pin. You don't get diamond bonuses if you're no longer qualified.
So the rule that bans the sale of tools and functions effectively kills the lucrative "tools" business for the diamonds, unless they cheat and try to usurp the rule somehow. Now I'm not suggesting that they do this or are going to do this, but it's certainly possible they may try it since the tools business is likely a significant portion of a diamond's livelihood. I hope that FTC has safeguards in place or plans to follow up to make sure that their settlement is honored. I have reached out to other bloggers who are still active and sent them the link to the FTC settlement. I am hoping the word gets out so it will be hard for the diamonds to pretend this FTC order didn't exist and go back to exploiting IBOs.
I feel somewhat vindicated by the new FTC ruling and I hope that the terms of the new rules are adhered to. IMO, in the past, that's been the issue. A lack of enforcement of the rules. But let's see how this goes. :)
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