Category Archives: Robert FitzPatrick

Class action against Amway Canada thrown out

Well, “thrown out” is probably not a technically correct legal term, but the result is the same. Back in 2009 a pair of disgruntled IBOs, husband and wife Kerry Murphy and Cheryl Rhodes, of Cloverdale, British Columbia, filed a class action lawsuit against Amway Canada. This  of course made news with the anti-Amway brigade, but funnily [...]

Len Clements launches a podcast

One of my favourite commentators on the Network Marketing industry is Len Clements of MarketWave Inc. Len has been very much at the forefront of defending the industry against anti-mlm zealots like Robert FitzPatrick and Jon Taylor. He unfortunately has had a tendency to repeat some of the unfair generalizations about Amway that are based [...]

Pokorny and Blenn vs Quixtar et.al update – Arbitration denied

In a California case two former IBOs, Jeff Porkony and Larry Blenn, are attempting a class action lawsuit against Quixtar, Britt WorldWide, World Wide DreamBuilders and associated parties, alleging Quixtar is an illegal pyramid scheme in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO). As per most previous litigation, Quixtar’s first step was [...]

Great News for all Network Marketers

As many North American readers would know, in 2006 the US Federal Trade Commission (FTC) proposed a new Business Opportunity Rule which, as written, would require multi-level marketing opportunity promoters to provide prospects with a whole range of new information, such as names of other local participants, lawsuits, etc etc etc. It also imposed a [...]

Amway UK & Ireland – Is this the problem?

As you probably know, Amway , Britt WorldWide , and Network 21 are currently involved in a dispute with the Department of Trade and Industry in the United Kingdom (see other posts on the situation here) In order to gain more understanding of the issues, I’ve been studying the United Kingdom law about what they [...]

MYTH: It’s a pyramid if most products are bought by IBOs

Many critics like to claim that Amway and other MLMs are a “product based illegal pyramid scheme”. The claim is that they are illegal pyramid schemes because the majority of products are consumed by “members of the scheme” and not retail customers. It’s quite common for them to also claim that in the FTC vs [...]

MYTH: 70% Retail Sales Rule

Is it dishonesty or just ignorance? If you search around the posts of critics of Amway and Quixtar on the internet, something you’ll see regularly is reference to something like “The 70% Retail Sales Rule”. Here for example, on Pyramid Scheme Alert, the claim is made – A 70% retail requirement level has been applied [...]

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