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In a 1979 ruling, the US Federal Trade Commission showed that Amway was not in conformity with the definition of a pyramid model because (a) distributors were not paid to recruit people, (b ) the company does not require distributors to buy a large inventory (c) distributors are required to maintain retail sales (at least 10 per month) (d) Companies and all Distributors are required to accept excess inventory returns from subordinate distributors. The Rolling Stones It’s only rock ‘n’ roll but I like it shirt. However, the FTC has concluded that Amway "is guilty of making prices and making exaggerated statements about income"; [34] the company has been asked to terminate retail pricing and customer allocation. between distributors and prohibited from misrepresenting profits, distributors' sales may be achieved in business. Amway was asked to include any such statement with a real average on each distributor, stating that more than half of the distributors did not make money, with the average distributor earning less than 100 dollars every month. The 1986 campaign violated this provision, resulting in a court award of Amway $ 100,000. Studies by independent consumer monitoring agencies have shown that from 990 to 999 out of 1,000 multi-level business participants with Amway-style pay plans are losing money. According to The Skeptic's Dictionary, "In the United States, the Federal Trade Commission requires Amway to label its products with the message that 54% of Amway employees do not earn anything and the rest earns an average. 65 dollars a month
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