Amway Under World Wide Siege

The wolds most respected pyramid scheme is under world wide siege.  From the US to the United Kingdom to India, to China Amway's pyramid scheme is dealing with difficult times.

USA:
A group of former Diamonds and IBOAI board members file a class action suit alleging Quixtar is a pyramid scheme.

Former distributors file class action lawsuit against against Quixtar, WWDB, Britt Worldwide for being a pyramid scheme and RICO claims.   

Former tools business of Crown Kenny Stewart, and Double Diamond Brig Hart sue Quixtar for anti-trust violations. 

India: 
India's supreme Court Tuesday dismissed Amway's plea to stop an ongoing probe by the Andhra Pradesh Police into the legality of its business scheme.

The Andhra Pradesh Police is probing whether the Amway scheme of selling its products through an interlinked chain of over 450,000 individual agents is akin to luring individuals into betting or for making easy money in violation of Section 2(c) Prize Chits and Money Circulation Scheme (Banning) Act, 1978.

The police had taken up the probe after lodging a First Information Report (FIR) against the company in September 2006 on a complaint from one Sukumar Balaji of Hyderabad.

Following the FIR, the police had raided the premises of nine officials and the warehouses of Amway India.

Amway India, in turn, had moved the Andhra Pradesh High Court challenging the police raids and sought suspension of the probe into its business model.

But the high court dismissed its petition on July 7, saying that the company's scheme was merely to enroll members for earning quick money.   Link

UK:
The UK's Department of Industry and Trade is investigating Amway, Britt Worldwide and Network 21 for their business practices in the UK.

China:  China allows Amway to do direct marketing but disallows Amway pyramided compensation scheme linking bonuses to sales of others they recruit.  Link