Tuesday, June 23, 2009
Amway Global Incorporates Fraud to Make Claim to be #1 Online Retailer of Health and Beauty Products
It has been reported that only 3 to 4 percent of Amway's sales are made to persons outside of Amway's 'distributor' networks. So, in other words, 96 to 97 percent of all of Amway's sales are made to the distributors themselves, who in the end sell and 'distribute' next to nothing to non-distributor true 'retail' customers. Therefore, these so called 'distributors' end up being the end 'retail' consumers themselves. These sales--which are contracted online--are not technically made at retail, but at 'distributor' discount; or if you prefer at the 'middleman' price.
Amway promotes a fraud of titanic proportions by claiming to be the '#1 online retailer of health and beauty products,' an incredible lie that even the IBO 'distributors' themselves seem to accept, although they are clearly not 'retail' customers, and they generally only manage to make token sales to actual retail customers.
Amway Global is selling 96 to 97% of their health and beauty products to their own 'supposed' distributors, clearly the middleman in Amway's failed distribution system. Only when any of these middlemen distributors make a sale at the suggested retail price, can these product sales be considered 'retail.'
Isn't Amway Global guilty of false advertising? Shouldn't an investigation be launched into these patently fraudulent claims? Claiming to be the #1 Online retailer in health and beauty is an ironic lie, and in my opinion deserves to have the federal regulators look into this matter.
What is amazing here is that Amway's prosperity dream duped 'defacto slaves' buy all the overpriced, mundane products and then accept being called 'retail' customers by Amway Global in many of their reality inverting online claims to be #1. These folks end up being the end consumer of hugely unsellable products in order to participate in Amway's 'closed market swindle' where they are the only customers of any significance that Amway has to brag about. Indeed, economists might accurately describe Amway products as being sold in a monopoly market. Those familiar with Amway know that IBO/ABO 'distributors' are taught to exclude 'negative' (brick and mortar) products from their homes and only buy through Amway. It has been reported reliably that Amway 'upline' distributors many times audit (inspect the homes of their downline 'distributors) to determine if these guidelines are being strictly followed.
It is this author's belief that Amway's Nutrilite and Artistry brands are not exclusive--unique--products, and can indeed be compared to hundreds of vitamin supplements and makeup products currently sold nationwide through traditional distribution methods. Avon, I believe actually sells more makeup, and as far as vitamin supplements are concerned, Nutrilite is well behind in market share compared to the well known 'One-a-Day' brand (to name just one competitor from amongst hundreds that market vitamin and health supplements).
Obviously the Federal Trade Commission seemingly has no problem with Amway representing their sales to Amway distributors as retail sales. They have done nothing to put a stop to this incredible consumer fraud. Could it be that they believe that all these IBO customers only sign up as distributors to receive the 'distributor' discount?
Allowing Amway to use blatent fraud of this type only serves to permit others to become victimized by Amway's incredible 'closed market swindle,' which is wide scale 'consumer' fraud!
The fact that Amway openly describes their distributor sales force as 'retail' should say it all! The fact that the dupes buying the overpriced mundane makeup and vitamins allow themselves to be called retail customers seems to signify exactly what kind of pyramid scheme Amway is operating. To Amway, all purchases made through their online order system are considered final 'retail' sales, even though those people doing the buying are technically not the retail customers Amway should be boasting about. The Amway products are priced so as to make further retail sales beyond the distributors nearly impossible. It is only Amway's monopolistic 'closed market' which makes these sales possible in the first place. Now you know!