Amway vs Pyramid (Movitation Organization?)

This so interesting topic to me. Let discuss it and look carefully and make you decision wisely. Why Amway Corporation is not illegal Pyramid Scheme and why the their supporting system organization may run illegal pyramid system (this is my opinion). If you read the US Faderal Commission statement is her "PYRAMID SCHEME" defination May 13, 1998 you can judge yourself. The statement like (some i added "may") this:

" Amway manufactured and sold cleaning supplies and household products. Under the Amway Plan, each distributor purchased household products at wholesale from the person who recruited or "sponsored" her. The top distributors purchased from Amway itself (Diamond?) . A distributor earn money from retail sales by pocketing the difference between the wholesale price at which she purchased the product (25%), and the retail price at which she "may" sold it. She also received a monthly bonus based on the total amount of Amway products that she purchased for resale to both consumers and to her sponsored distributors.

Since distributors were compensated both for selling products to consumers and to newly-recruited distributors, there was some question as to whether this was a legistimate mult-level marketing program or an illegal pyramid scheme. The Commission held that, although Amway had made false and misleading earnings claims when recruiting new distributors (I think this is done by their supporting system organization) , the company's sales plan was not an illegal pyramid scheme. Amway differed in several ways from pyramid schemes that the Commission had challenged. It did not charge an up-front "head hunting" or large investment fee for new recruits, nor did it promote "inventory loading" by requiring distributors to buy large volumes if nonreturnable inventory. Instead, Amway only required distributors to buy a relatively inexpensive sale kit (returnable) (RM85.00).

Moreover, Amway had three different policies to encourage distributors to actually sell the company's soap, cleaners, and household products to real end users.

(ALL OF THIS IS NOT SHOWS IN THE AMWAY PLAN FROM HER SUPPORTING ORGANIZATION)

First, Amway required distributors to buy back any unused and marketable products from their recruits upon request.

Second, Amway required each distributors to sell at wholesale or retail at least 70% of its purchased inventory each month (the Supporting Organization call it 100% consumer) -- a policy known as the 70% rule.

Finally, Amway required each sponsoring distributor to make at least one retail sale to each of 10 different customer each month, known as the 10 customer rule. (the Supporting Organization not mention at all).

The Commision found that these three policies prevented distributors from buying or forcing others to buy unneeded inventory just to earn bonuses.