A money-laundering investigation by the ED revealed that Amway is running a pyramid fraud in the guise of direct selling multi-level marketing ( MLM) network. “The entire focus of the company is about propagating how members can become rich by becoming members. There is no focus on the products.Products are used to masquerade this MLM pyramid fraud as a direct-selling company,” the ED alleged.
What has the
ED has alleged that prices of most of the products offered by the company are exorbitant as compared to the alternative popular products of reputed manufacturers available in the open market.
The agency revealed that Amway collected Rs 27,562 crore from its business operations between 2002-03 and 2021-22. Of this, it paid commission of Rs 7,588 crore to its distributors and members in India and in the US during this period.
Britt Worldwide India Pvt Lts and Network Twenty One Pvt Ltd, that provide training services and products of Amway, have also come under the agency’s lens.
“They played a major role in promoting the pyramid scheme of Amway by conducting seminars for joining members under the guise of sale of goods by enrolment of members in the chain system. The promoters are conducting mega conventions and flaunted their lavish…
