Tag Archives: Quixtar

Missing: Amway victims – if found please report to Boies, Schiller & Flexner

As regular readers would know, a few years back some disgruntled former Quixtar IBOs, Pokorny & Blenn, launched a class action lawsuit in California against Quixtar (now Amway) and Britt World Wide. In my view the case was clearly bogus, but Amway decided to avoid the cost of a long court case, and also take the opportunity to clear the decks of any issues from the past. What they did was to not only offer a settlement, but to bring all the other major Amway business support groups in to the case as well, so that any IBOs who felt they’d been exploited could get some restitution and agree not to launch any future legal actions. Everyone could just move on.

Well, today I received an email from the “Class Counsel” handling the settlement that began like this –

Records show that you are a current or former Amway/Quixtar distributor (“IBO”). Former IBOs can get benefits from a Settlement providing $34 million in cash and $21 million (retail value) in free products from Quixtar. Initially, eligible claimants had until August 17, 2012 to file a claim to receive cash or free products. However, after accounting for the claims that have already been filed, there is excess cash and products in the Settlement Funds.

Critics of multilevel marketing claim there are literally hundreds of millions of “victims” of MLM companies that have lost thousands, even tens and hundreds of thousands of dollars. When asked where all these “victims” are, and why they haven’t requested refunds, or complained to authorities or groups like the Better Business Bureau (there are very, very few complaints against legitimate MLM companies), critics claim that these “victims” are too ashamed to complain.

Right now, hedge fund short seller Bill Ackman has been making similar claims against Herbalife, another large MLM company. He has made various accusations against them, including that it is an illegal pyramid scheme, and is betting it will be closed down, in which case he will make hundreds of millions of dollars from shorting the stock. (In reality he stands to make a lot of money just by driving the stock price down, which he successfully did just by making the accusations). Another investor, Daniel Loeb, made the following comment about Ackman’s accusations –

“The short thesis rests on the notion that the FTC has been asleep at the switch, missed a massive fraud for over three decades, and will shortly awaken (at the behest of hedge fund short seller) to shut down the company,” Mr. Loeb wrote. “We find this thesis to be preposterous.”

We find this thesis to be preposterous. Loeb has stated well the reality of  many of the claims of critics of the multilevel marketing industry. We find this thesis to be preposterous.

Well, following Amway’s settlement in the Pokorny Class Action, the administrators endeavoured to contact every single Amway/Quixtar IBO over the last decade in the United States. They contacted them and offered them money.

The result? To clear the settlement money they’ve had to extend the time to submit a claim by seven months and expand the benefit dramatically. The value of the product packs available has doubled, and if you spent money on BSM, you can just write a letter and claim you spent money, and how much, and get some of the cash.

So c’mon, don’t be ashamed! Get your free wag now at www.quixtarclass.com

Quixtar class action settlement – a brief analysis

Regular follows of this blog will be aware of the settlement in a class action case against Quixtar by Pokorny, Blenn, and Busiere. Today most IBOs and former IBOs covered by the class action have received their second notice about the settlement, so I’ve been receiving a few inquiries about it.

The case was originally against Quixtar, the Puryears and World Wide Group and the Britts and BWW, Amway (formally Quixtar) . Through the process of negotiating the settlement, Amway extended it to include a whole range of BSM (business support material) companies. The second amended complaint lists the following as defendants –

This was a smart move by Amway, as the settlement essentially immunizes both Amway and all the BSM companies against any lawsuits by anyone who was an IBO in the past decade. Amway has made a lot of significant changes in the last few years to better control the activities of the field and BSM companies, as well as make for a better, potentially more profitable business for all. An ongoing lawsuit of this nature, no matter it’s lack of merit, is a costly distraction. Following on from Woodward and TEAM settling their case, the settlement of the Morrison case, the Ribbon gift card settlement, and the Canadian class action being thrown out, Amway has pretty much cleared the deck and can move forward with a clean slate. Continue reading

Amway settles class action, and apologises

I’m still wrapped in various time consuming issues in my personal life so been unable to write much here, but some things just have to be commented on. In the last couple of days has come the quite stunning decision by Amway to reach a settlement in the Pokorny & Blenn vs Quixtar et.al Class Action case.

I’ve obtained copies of the settlement and will post further comments shortly, as well as post the relevant court documents to AmwayWiki.

Bye, bye Amway Global ….

…. Hello Amway! It’s been more than 3 years since I revealed (or at least hinted!) that Amway was going to be retiring the Quixtar name and more than 2 years since the transition to Amway Global became public. It seemed clear to me at the time that the “Global” suffix had been added to help placate IBOs who weren’t happy with the transition – to try to make them feel part of something “new” and “bigger” rather than stepping back into the bad old days. It seemed obvious to me the company would later transition to the simpler (and global!) “Amway” name. Still, there were IBOs who vehemently denied this and claimed Amway Global (which, ironically, was only ever Amway North America, not global) would never be called just “Amway”.

Well, they were wrong. In a message out to all IBOs this week, they’ve announced the transition from Amway Global to Amway.

Amway Global transitioning to Amway name in North America

Starting September 1, our name becomes Amway

Earlier this year, we let you know that our market research findings indicate our national advertising campaign has been successful, and the awareness and favorability of the Amway name continues to grow steadily in North America. Now is the right time to transition from Amway Global to Amway since:

• Net favorability for Amway has increased significantly since 2008.

• When consumers visit our website, 80% type www.amway.com

• Consumers who view our television advertising remember the name Amway.

Moving forward with the Amway name aligns us with all other affiliates. This will allow us to leverage the strong advantages of a single global brand.

Bye, bye Amway Global, hello Amway.

PS. My apologies for the dearth of posts lately, I’ve had a string of challenges in the offline world consuming my time.

Amway IBOs get all their products free plus extra cash!

Amway critics just love to quote various government mandated statistics that Amway publishes. For example, for some years now Amway in North America has published the statistic, based on a 2005 survey, that the average “active” IBO makes $115/mth. $115/mth doesn’t exactly sound like it will lead you to the land of your dreams does it?

So, of course, Amway critics cite that as “proof” that it’s a bad business opportunity and most people make little or no money. Indeed they’ll often go on to mention “expenses” and claim it means most IBOs lose money.

Well, there’s a saying you’ve probably heard – lies, damn lies, and statistics. Continue reading

ABOs – Please stop selling Amway as a way to save money

Tuesday night I was at an Open Plan, the presenter did a great job, but he did one thing that irritates the heck out of me and in my opinion is problematic and potentially dishonest. What did he do? Well, as is unfortunately not uncommon, when explaining the various benefits of becoming an Amway Business Owner (ABO), one he promoted was the idea that “you’ll save 30% on stuff you’re already buying”. Leaving aside the issue of whether saving money is a sensible way to promote starting a business or not, this is a problem, because for many people sitting in the audience it is at best misleading, and indeed usually completely false. Continue reading

Britt WorldWide, Team-One, Vision Global achieve Accreditation

September 1, 2008 was the deadline for North American Amway Global business owners to either be personally accredited or to be part of an accredited organisation. Accreditation requires the organisation or individual to pass a range of “quality control” criteria to ensure they are teaching and implementing “Best Practices”.

IBOs and IBO organizations who have achieved accreditation have satisfied all program criteria, including providing a professional development curriculum that includes product training and business-building components. They engage in communications that comply with the IBO Communications Platform, which can be summed up as: focus on business and “treat others as you would like to be treated.” They demonstrate a commitment to best practices and ongoing education. They offer professional development compensation plans that are transparent, written, and contractual. And, IBOs who achieve accreditation are in good standing and in compliance with Amway Global’s Rules of Conduct.

Failure to achieve accreditation may result in loss of discretionary SIP bonuses (Sales Incentive Program, formally Quixtar Business Incentives). eFinity, MarkerMan, ProSystemOne, WIN, P5, and Network TwentyOne have been accredited for some time now. As of today, the old Quixtar Accreditation website now points to quixtar.com, and some new organisations are now listed as having achieved accreditation. Continue reading