Quixtar North America and Amway Global, operated by Alticor, claim they operate a legal business based upon the Federal Trade Commission requirements. They fend off criticism that they are an illegal pyramid like a duck sheds water off its back. The elements that the Federal Trade Commission require for Quixtar to be considered a legitimate business are:
(1) Have a Buy-back Rule
(2) Maintain a 70% Rule
The '70 percent rule' provides that '[every] distributor must sell at wholesale and/or retail at least 70% of the total amount of products he bought during a given month in order to receive the Performance Bonus due on all products bought . . ..' This rule prevents the accumulation of inventory at any level.
(3) Enforce a 10 Customer Rule
The '10 customer' rule states that '[i]n order to obtain the right to earn Performance Bonuses on the volume of products sold by him to his sponsored distributors during a given month, a sponsoring distributor must make not less than one sale at retail to each of ten different customers that month and produce proof of such sales to his sponsor and Direct Distributor.' This rule makes retail selling an essential part of being a distributor.
(Source: IN THE MATTER OF AMWAY CORPORATION, INC., ET AL; FINAL ORDER, OPINION, ETC., IN REGARDS TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT; Docket 9023. Complaint, March 25, 1975; Final Order, May 8, 1979 93 F.T.C. 618)
The fine print of your Quixtar contract describes your responsibility to abide by these rules. This is a CYA for Quixtar. They are passing the responsibility for enforcement of FTC rules onto each IBO. Quixtar therefore can maintain that they (the corporation) are operating legally.
Mr. and Ms. IBO, are you operating legally or illegally? Are you operating your business as a inventory loading, mostly self consuming fraud? Is your performance bonus based upon fraud? Do you actually sell 70% of your product purchases to outside customers? Are you making your required one sale to at least ten different customers? If your honest answer to these questions is no, then the next paragraphs apply directly to you.
While Quixtar so far has managed to fight back FTC investigations by hiding behind fine print and legal babble, this does not mean you are operating within the legal requirements of the FTC rules. From the standpoint of business and legal ethics, are you not operating a fraudulent business?
My Quixtar/Amway Global friend. If you believe it is okay to "cheat" the system in hopes of obtaining future jewel-pin level income, then isn't your dream based upon personal and business fraud? If you defraud the system and by some miracle, make it big in Amway Global, wouldn't all your gain be "ill-gotten?". You will have fraud-ed your way to wealth with self consumption and recruit and dupe tactics. Isn't your business making you a morally corrupt person regardless of all the "doing God's will" rhetoric bantered about at your Quixtar/Amway business conventions?
From a religious standpoint, are you not participating in sin? Nothing at present is going to stop you from lying your way toward your dream of success in the Biz. Amway is not enforcing its own rules, and you are not operating truthfully by disregarding the FTC requirements and taking receipt of your performance bonus each month. These monies are received under false pretense.
After taking a moral inventory, can you righteously affirm before God and man that you are operating a legit Biz? Or will you feel that certain tug from on high to come forward at your next alter call? My Quixtar friend. The time has arrived to come to grips with your moral depravity. Quixtar Cult Intervention is the way to shake off the subtle deceptions of the deceiver. Your Quixtar Cult Intervention comes with the acceptance of truth and the rejection of cult business practices which are soul destroying!.
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6 comments:
Fake it till you make it!!!! Amquix allows self reporting with out ever confirming if the information is correct because they know, the IBO's know, in fact EVERYONE knows that there are practically no retail sales. IBO's do nothing but self consume. They don't even try to retail. They are focused solely on recruiting. The corp has themselves covered for sure and will think nothing about letting the IBO's who are lying on their reports of sales, go down without a second thought. As long as there are people willing to look the other way, Amquix will continue.
anna...
This is the achiles heel of the Quxtar/Amway Global Business. Alticor knows this. Since the Great Britain fiasco began, reports have come to light that Quixtar is attempting to doctor its books to make it appear that Quixtar retail sales meet the FTC requirements. Of course, this is sham manipulation and outright fraud.
These fraud facts will become widely known upon the ultimate collapse of Amway just as they did in Enron. It will not come as any big surprise to Pyramid watchers.
Much like the Enron fiasco, folk will scratch their heads and say, why didn't someone say or do something about this before now?
Local Area Watch out of Grand Rapids Michigan has been questioning the solvency of the Devos Van Andel empire for some years now. Might they be right? They have been saying the Emperor has no clothes.
The Devos and Van Andel Dons have been socking cash as they must see the eventual collapse of the pyramid at some time in the near future.
You may notice that I use mafia termionlogy to describe the people behind the scenes at Alticor. The Biz is operated exactly like the mafia, and for support of this claim, I offer G. Robert Blakey's report, which was ordered never to be revealed to the public but was thankfully leaked. Once the worms are out of the can, they do not go back in.
The Blakey report is difficult to shrug off, because Professor Blakey is one of the most highly respected and renowned experts on the structure and operation of mafia organizations.
It's not just a 10 customer rule. You can also meet the retail sales rule by selling 50PV worth or $100 worth of products to customers. And yes, my wife and I meet this rule every month. Ron Puryear's WWDB system teaches us to do retail and gives us the tools to do it. Also, Amway is restricting self reporting to make it more difficult to cheat. They are tightening the rules associated with meeting the retail sales requirement. So what are you going to gripe about now?!
anonymous...
Again you are always right! I really appreciate what you add to our discussion. I just wonder? Has WWDB also rewritten the court's decision and FTC requirements?
I would be very skeptical of an organization with "Dream Builders" in its name. They should call it "Dream Sellers".
I believe retail selling was originally Amway's intention. Rich and Jay wanted to move product and wanted to give good folk a chance to benefit by it.
The greed of the tool kingpins to move their tapes, functions and dreams have given the business the black eye it carries now.
I am aware that the "company" is intent on changing the way things are done by reigning in tool kingpin problems although they have benefited monetarily from the excesses. Maybe this is a little too little, too late.
The selling of mostly empty dreams is the problem, and it is the distributors which appear to succeed who become the biggest victims.
I don't really see the dream selling coming to an end any time soon unless, of course, the pyramid does finally collapse.
The fiasco in Great Britain has to worry Alticor execs. Their arse is exposed here just the same way it is in the old country.
Influence peddling in the States has helped fend off regulators. Evidently it doesn't work well in the powdered wig set across the pond.
When the proverbial "shoe fell" in Great Britain, Alticor launched the latest shakeup in the Biz. They changed the name, shook some of the tool kingpins out of the IBOAI. (I don't know why they just don't call it the Board of Tool Kingpins?). They've made some efforts (at least on paper) to promote retail sales. (Which I view as positive, although a move designed to keep their teat out of the wringer). The problem with retail sales is the pricing strategy is unrealistic (no matter what propaganda Quixtar releases saying it is not). The problem is with the marketing strategy itself, which requires commissions to be paid out in a tiered system. I'll say it plainly: There are just too many middle men (to include the Rich and Jay's family who operate their positions through their front company Ja-Ri) that have to be paid.
IBO folk: are you fired Up! Well get out there and sell something, instead of just showing the plan. The Devos and Van Andel Dons will appreciate it either way.
Oh, by the way, Anonymous, didn't you tell me you weren't in Quixtar? Oh, it is just your wife. Give her a hand. Maybe you can sell some perfect water to the mail man?
Anon...you NEED tools to reatil your products??? Seriously???? Am I the only one that sees the issue with that?
anna...
anonymous may seem confused at times, but it is just the effects of "system failure" and "cognitive conflict" experienced by "insight" from exposure to "truth".
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