{{Infobox Company
| company_name = Amway
| company_logo = [[Image:Cy183.jpg|185px]]
| company_type = [[Private company|Private]]
| foundation = 1959
| location = [[Ada, Michigan|Ada]], [[Michigan]]
| key_people = [[Steve Van Andel]]
[[Doug DeVos]]
[[Lynn Lyall]]
| industry = [[Multi-level marketing]]
| products =
| revenue =
| operating_income =
| net_income =
| num_employees =
| homepage = [http://www.amway.com/ www.amway.com]
}}
[[Image:Ada Michigan Amway HQ DSCN9720.JPG|thumb|right|200px|Headquarters in [[Ada Township, Michigan|Ada, Michigan]]]]
'''Amway''' is a [[multi-level marketing]], or [[network marketing]] company founded in 1959 by [[Jay Van Andel]] and [[Rich DeVos]]. The company's name is a contraction of "American Way."<ref>http://www.amway.com/en/History/history-10362.aspx</ref> Based in [[Ada, Michigan]], the company and family of companies under [[Alticor]] reported sales of $6.4 billion for the performance year ending [[August 31]], [[2005]], marking the company’s sixth straight year of growth. Its product lines include personal care products, jewelry, [[Nutrilite]] [[dietary supplements]], [[water purifier]]s, air purifiers, insurance and [[cosmetics]]. Amway conducts business through a number of affiliated companies in more than ninety countries and territories around the world.<ref>http://www.amway.com/en/History/global-growth-10106.aspx</ref> In the United States and Canada it now operates as [[Quixtar]].

The intent of Amway's founders was to create a business using a novel means of product distribution that facilitates entrepreneurship, understanding of economic management, and economic independence among its associates {{Fact|date=October 2007}} (i.e. distributors; the term currently in use is Independent Business Owners, or IBOs). Rich DeVos also wrote a book called ''Compassionate Capitalism'' while Jay Van Andel wrote a book entitled ''An Enterprising Life''.

==History==
===Founding and expansion===
'''Ja-Ri Corporation''' was the original [[multi-level marketing]] distributorship for [[Nutrilite]] nutritional products, founded by Jay Van Andel, Richard DeVos and Michael Pacetti in 1949.<ref>From www.alticor.com: ''[http://www.alticor.com/companies/pop_more_history.html The History of Amway]''</ref> Ja-Ri's name comes from the founders' first names, Jay and Richard. Friends since childhood, Van Andel and DeVos became business partners in endeavors such as a hamburger stand, air charter service, and a sailing business.

Ja-Ri was incorporated in 1959, and changed its name to "Amway" in 1963.<ref>Michigan Department of Consumer & Industry Services: ''[http://www.cis.state.mi.us/bcs_corp/image.asp?FILE_NAME=D0253%5C00300%5C00300524.TIF Restated Articles of Incorporation]''</ref> All Amway and Quixtar distributors are "downline" to the founders. Their first product was the cleaner L.O.C. Originally sold by its inventor under the name Frisk, it was noticed by [[Nutrilite]] distributor Fred Hansen who brought it to Rich DeVos and Jay Van Andel as a product that they could use to launch their own company. Van Andel and DeVos and some of their distributors including Hansen were getting frustrated by the seemingly inconsistent way Nutrilite founder Dr. Rehnborg wanted his products to be sold. DeVos and Van Andel bought the rights to make and distribute Frisk and changed the name to L.O.C. thereby beginning Amway. In 1964 the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation, merged to form a single company.<ref name="MLMLAW">From MLM Law Library: [http://www.mlmlaw.com/library/cases/mlm/ftc/amway.htm FTC Final Order from May 8, 1979 (93 F.T.C. 618)].</ref>

Amway bought the [[Mutual Broadcasting System]] radio network in 1977 and sold it in 1985.

Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974, to Japan in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, and to Russia in 2005. Amway India was established in 1995 and commenced commercial operations in 1998.<ref>[http://www.amway-in.com/ Amway India homepage]</ref>

The product line grew, with a new detergent [[SA8]] added in 1960, and later the hair care range Satinique (1965) and [[Artistry (cosmetics)|Artistry]](1968). Amway bought control of Nutrilite in 1972 and full ownership in 1994.

=== FTC investigation ===
{{main|In re. Amway Corp.}}
In the 1979 in a court ruling,<ref>http://www.ftc.gov/speeches/other/dvimf16.htm#N_19_</ref> the [[Federal Trade Commission]] found that Amway does not qualify as an illegal pyramid scheme since the main aim of the enterprise is the sale of product and money is paid only for business volume, personal and group. It did, however, order Amway to change several business practices and prohibited the company from misrepresenting the amount of profit, earnings or sales its distributors are likely to achieve with the business. Amway was ordered to accompany any such statements with the actual averages per distributor, pointing out that more than half of the distributors do not make any money, with the average distributor making less than $100 per month. The order was violated with a 1986 ad campaign, resulting in a $100,000 fine.<ref>''Amway Corp. To Pay $100,000 Civil Penalty, Settling FTC Charges'' [http://www.casewatch.org/ftc/news/1986/amway.shtml]</ref>

Amway and its American online incarnation, [[Quixtar]] have had allegations that these companies are [[pyramid scheme]]s or [[cult]]s, despite the 1979 FTC ruling<ref name="MLMLAW"/> that legitimized the Amway business. The case revealed that, as of 1979, most of the products sold by Amway were to the Independent Business Owners (IBOs) themselves for personal consumption rather than to retail consumers who weren't enrolled as IBOs. Buying products or directing clients to buy from Amway or Quixtar gives IBOs points and they are paid back on the number of points that they generate from personal consumption or from client volume. An existing IBO can sponsor others to get an IBO number so that they can help others divert their buying habit from other stores to Amway or Quixtar. Thus, the business grows as a greater number of people join the group. The share of profit is based on the volume that an IBO is responsible for each month, therefore an IBO may actually make more money per month than the IBO who sponsored them into the Business.

===Other legal cases===
In 1983, Amway pleaded guilty to criminal [[tax evasion]] and [[Customs (tax)|customs]] [[fraud]] in Canada, resulting in a fine of $25 million CAD, the largest fine ever imposed in Canada. The company was fined another $45 million CAD in 1989 to settle a suit brought by Canada's trade office.<ref>http://www.corporations.org/amway/mollyivins.html</ref><ref>{{cite news
| title = Amway of Canada Drops Tax Appeal
| work = [[New York Times]]
| publisher = REUTERS
| date = [[February 7]], [[1984]]
| url = http://query.nytimes.com/gst/fullpage.html?res=9D04E3D81039F932A15750C0A962948260
| accessdate = 2007-07-05 }}</ref>

In a 1994 interview, Amway co-founder Rich DeVos stated that this incident had been his greatest "moral or spiritual challenge", first in "soul searching as to whether they had done anything wrong" and then for pleading guilty for technical reasons, despite believing they were innocent of the charges. DeVos stated he believed that the case had been motivated by "political reasons".<ref>[http://www.acton.org/publicat/randl/interview.php?id=128 Capitalism with Compassion, ''Religion and Liberty'',''Volume 4'',''Number 5'']</ref>

The [[Recording Industry Association of America]] (RIAA), as part of its anti-piracy efforts, sued Amway and several distributors in 1995. The RIAA alleged that copyrighted music was used on "highly profitable" training videotapes. Amway settled the case out of court for $9 million.{{Fact|date=July 2007}} In a related lawsuit initiated by the distributors involved, the Court established that Mahaleel Lee Luster, who had been contracted to make the videotapes, had violated copyright without the knowledge of three of the five of those distributors.<ref>[http://www.ca11.uscourts.gov/opinions/ops/199914123.OPN.pdf ''Foley v Luster'']</ref>

Amway grew quickly in China starting from 1995. In 1998, after abuses of illegal pyramid schemes led to riots, the Chinese Government enacted a ban on all [[direct selling]] companies, including Amway.<ref>"Chinese officials ban direct marketing", [[April 22]] [[1998]] ''[[Associated Press]]'', The Associated Press</ref>
After negotiations, some companies like Amway, [[Avon Products, Inc.|Avon]], and [[Mary Kay]] continued to operate through a network of retail stores promoted by an independent sales force.
Although multi-level payments were still banned, it is alleged that Amway didn't significantly alter its pay scheme, and justified them as payments for services.<ref>"Once-barred Amway becomes booming business in China", Leslie Chang, [[March 12]] [[2003]], ''[[Wall Street Journal]]''</ref> China introduced new direct selling laws in December 2005, and in December 2006 Amway was one of the first companies to receive a license to resume direct sales. At the time they had a reported 180,000 sales representatives, 140 stores, and $2 billion in annual sales.<ref>[http://www.mlive.com/business/kzgazette/index.ssf?/base/business-3/116693763565130.xml&coll=7 "Amway, Mary Kay get long-awaited direct-selling licenses in China"] Rob Kirkbride, [[December 24]] [[2006]], ''[[Kalamazoo Gazette]]''</ref> Multi-level marketing (commissions on sales of new sales persons recruited) is still forbidden under the new laws.

On [[August 14]] [[2007]] the Supreme Court of India has ordered the [[Andhra]] state police to complete the investigate against Amway in 6 months. The public interest petition alleges that the activities of the company violated laws related to drugs, income tax and sales tax.
The state high court had declared that Amway's business scheme was an offence under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978.<ref>[http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=26541 SC asks Andhra to finish Amway probe in 6mths]</ref>

=== Corporate restructuring ===

In 1999 the founders of the Amway corporation established a new holding company, named Alticor, and launched three new companies, 1) a sister (and separate) [[Internet]]-based company named [[Quixtar]], 2) Access Business Group, and 3) Pyxis Innovations. Quixtar replaced the North American business of Amway in 2001, with Amway operating in the rest of the world; however, in June 2007 it was announced that the Quixtar brand would be phased out over an 18 to 24 month period in favor of a unified Amway brand worldwide. The other two companies, Pyxis Innovations (since dissolved) and Access Business Group, were established to help take Alticor into new strategic directions. <ref> [http://www.detnews.com/apps/pbcs.dll/article?AID=2007706130458 Amway marque to be revived; Quixtar label scrapped]</ref> Amway's internet sales in Europe are conducted via their Amivo website.

Later additions to the core product range included water filters and cookware.<ref>http://www.alticor.com/pdf/alticor_timeline_05.pdf Alticor Timeline (PDF)</ref> The eSpring water filter, introduced in 2000 and developed by Alticor, includes [[eCoupled]] wireless power induction technology. Alticor subsidiary Fulton Innovation introduced the technology in other consumer electronic products at the 2007 International Consumer Electronics Show. Companies licensing the technology include [[General Motors]], [[Motorola]] and Visteon.<ref>[http://www.telematicsjournal.com/content/topstories/1727.html In-Vehicle Wireless Power Transfer Unveiled]</ref><ref>http://www.pcmag.com/article2/0,1895,2079605,00.asp Startup Jump-Starts Wireless Power]</ref>

=== Orlando Arena naming rights ===

In December 2006, Alticor secured the naming rights for the 17,000-seat basketball arena in [[Orlando, Florida]] - home of the [[Orlando Magic]] which are owned by the family of [[Rich DeVos]]. The arena, formerly known as the TD Waterhouse Centre, is now called [[Amway Arena]].

=== DTI complaints in UK ===

In 2007, following investigations that lasted more than a year, the [[Department of Trade and Industry]] (DTI) in UK issued petitions against Amway as well as two IBO organizations [[Britt World Wide]] and [[Network 21]], and initiated civil court proceedings. According to Amway, DTI's objections include misrepresentation of the financial rewards expected from the Amway business, excessive promotion of BSMs (Business Support Materials like books, tapes, CDs, meetings, websites) and Amway's failure to prevent these abuses.

Subsequently, Amway imposed a ban on sale of BSM in UK that are not authorized and distributed by Amway. It further announced a 120 day moratorium on registration of new IBOs in UK, and a thorough review of its business practices globally.<ref>''OK, let’s talk UK'', on Amway Media Blog [http://amwaynews.alticorblogs.com/2007/05/07/ok-lets-talk-uk/]</ref><ref>''You asked for it'', on Amway Media Blog [http://amwaynews.alticorblogs.com/2007/05/24/you-asked-for-it/]</ref>

== Politics and culture ==
Commentators have identified Amway as supporting the [[United States Republican Party|U.S. Republican Party]],<ref>{{cite news
| last = Vlasic
| first = Bill
| coauthors = Mary Beth Regan
| title = Amway II: The Kids take over
| work = [[BusinessWeek]]
| date = [[February 16]], [[1998]]
| url = http://www.businessweek.com/archives/1998/b3565099.arc.htm?chan=search
| accessdate = 2007-07-05 }}</ref> and its founders contributed $4,000,000 to a conservative [[527 group|527]] in the 2004 election cycle.<ref>From opensecrets.org: [http://www.opensecrets.org/527s/527cmtedetail.asp?ein=201170395&cycle=2004&format=&tname=Progress+for+America Progress for America - Top Contributors, 2004 Cycle]</ref>
Amway states that its business opportunity is open to people regardless of their religious and political beliefs [http://www.amway.com/en/General/faqs-10229.aspx#10213].

Former Amway CEO [[Richard DeVos]] has been connected with the [[Dominionism|dominionist]] political movement in the U.S.<ref>[http://www.rollingstone.com/politics/story/7235393/the_crusaders/ "The Crusaders"] Bob Moser, [[April 7]] [[2005]], '' [[Rolling Stone]]''</ref>

Multiple high-ranking Amway leaders, including [[Richard DeVos]], Dexter Yager, and others are also owners and members of the board of [[Gospel Films]], a producer of movies and books geared towards conservative Christians as well as co-owner (along with [[Salem Communications]]) of Gospel Communications.<ref>[http://www.gospelcom.net Gospel Communications homepage]</ref>{{Fact|date=April 2007}}

One of Amway's most successful distributors, [[Dexter Yager]], has attacked Democratic President [[Bill Clinton]].<ref name="Berkowitz">{{cite news
| last =Burstein
| first = Rachel
| coauthors = Kerry Lauerman
| title = She Did It Amway
| work = [[Mother Jones (magazine)|Mother Jones]]
|date=September/October 1996
| url = http://www.motherjones.com/news/special_reports/1996/09/myrick.html
| accessdate = 2007-07-05 }}</ref> and allowed Republican [[George W. Bush]] to send messages to thousands of downline distributors using Yager's voicemail system.<ref>{{cite web
| last = Berkowitz
| first = Bill
| title = Amway's GOPyramid Scheme
| work = mediatransparency.org
| date = [[April 24]], [[2005]]
| url = http://www.mediatransparency.org/pdastory.php?storyID=4
| accessdate = 2007-07-05 }}</ref>

[[Doug Wead]], who was a Special Assistant to former U.S. President [[George H. W. Bush]], is a successful IBO who is a regular speaker at group rallies.{{Fact|date=April 2007}}

Amway cofounder, the late [[Jay Van Andel]] (in 1980), and later his son Steve Van Andel (in 2001) were elected by the board of directors of the [[United States Chamber of Commerce]] as chairman of that organization. {{Fact|date=April 2007}}

In May 2005, former Amway President [[Dick DeVos]], one of the wealthiest and largest charitable givers in Michigan, announced that he would run against Governor [[Jennifer Granholm]] in [[Michigan gubernatorial election, 2006|Michigan's 2006 gubernatorial election]]. DeVos, running as a Republican, won 42% of the popular vote, while Granholm won 56%.<ref name="Michigan Department of State">{{cite news
| last = State of Michigan
| first = Department of State
| coauthors = Terry Lynn Land, Secretary of State
| title = 2006 Michigan Gubenatorial General Election
| work = Governor 4 Year Term (1) Position
|date=10 May 2007
| url = http://miboecfr.nictusa.com/election/results/06GEN/02000000.html
| accessdate = 2007-11-09}}</ref>

Amway touts the [[Natural environment|environmental]] benefits of many of its products, and in June 1989 the [[United Nations Environmental Program]]'s Regional Office for North America recognized it for its contributions to the cause of the environment.<ref>{{cite news
| last = Motavalli
| first = Jim
| coauthors = Leslie Pardue
| title = 'Multilevel' marketing goes green - Amway Corp. and Shaklee see profits from environmentally safe products - includes related article on 'green' networking
| work = The Environmental Magazine
|date=April 1994
| url = http://findarticles.com/p/articles/mi_m1594/is_n2_v5/ai_14896030
| accessdate = 2007-07-05 }}</ref>

== Controversy ==
Several groups including those associated with the [[anti-cult movement]] have expressed concern that tactics of some of the organizations that support Amway IBOs may constitute cult-like activity. [[Steven Hassan|Steven Hassan's]] Freedom of Mind Center lists the practices of some of these groups as potentially abusive according to his [[Mind control#Steven Hassan.27s BITE model|"BITE" Model of mind control]].<ref>[http://www.freedomofmind.com/resourcecenter/groups/a/amway/amway-bite-analysis-behavior.htm Amway analysis] by Steven Hassan</ref> Other similar organizations that have expressed concern with the activities of AMOs in practice include FACTnet,<ref>http://www.factnet.org/coerlink.htm#1</ref> Cult Awareness and Information Centre (Australia),<ref>{{cite web
| title = Cult Help and Information - Amway
| publisher = Cult Awareness & Information Centre
| url = http://www.caic.org.au/index.php?option=com_content&task=category&sectionid=5&id=48&Itemid=9
| accessdate = 2007-07-05 }}</ref> and others. The [[Rick Ross (consultant)|Rick Ross Institute]] keeps a collection of related material in its website.<ref>[http://www.rickross.com/groups/amway.html Amway] Rick Ross Institute</ref>

A [[Dateline NBC]] report from 2004 picked up the criticism against Amway's successor Quixtar and explicitly linked the two companies as being effectively one and the same.<ref name="DATELINE">{{cite news
| last = Hansen
| first = Chris
| authorlink = Chris Hansen
| title = In pursuit of the almighty dollar
| work = [[Dateline NBC]]
| publisher = [[NBC News]]
| date = [[May 7]], [[2004]]
| url = http://www.msnbc.msn.com/id/4375477/
| accessdate = 2007-07-05 }}</ref>

One controversy that Amway was involved with was an [[urban legend]] that the (old) [[Procter & Gamble]] service mark is in fact a [[Satanism|Satanic]] symbol or that the CEO of P&G is himself a practicing [[Satanist]] (in some variants of the urban legend, it is also claimed that the CEO of Procter & Gamble donated "satanic tithes" to the [[Church of Satan]]<ref>http://www.snopes.com/business/alliance/procter.asp</ref>). Procter & Gamble alleged that several Amway distributors were behind a resurgence of the urban legend in the 1990s and sued several independent Amway distributors and the parent company for defamation and slander. After more than a decade of lawsuits in multiple states, by 2003 all allegations against Amway and Amway distributors had been dismissed. However, in October 2005 a Utah appeals court reversed part of the decision dismissing the case against four Amway distributors, and remanded it to the earlier court for further proceedings.<ref>http://www.kscourts.org/CA10/cases/2005/10/03-4234.htm</ref> On [[20 March]] [[2007]], Procter & Gamble was awarded 19.25 million dollars by a U.S. District Court jury in Salt Lake City, in the lawsuit filed against four Amway distributors in 1995.<ref>{{cite news
| title = Procter & Gamble Awarded $19.25 Million in Satanism Lawsuit
| work = [[Fox News]].com/[[Associated Press|AP]]
| date = [[March 20]], [[2007]]
| url = http://www.foxnews.com/story/0,2933,259877,00.html
| accessdate = 2007-07-05 }}</ref><ref>{{cite news
| last = Kirdahy
| first = Matthew
| title = The Devil Didn't Make Them Do It
| work = [[Forbes]].com
| date = [[March 22]], [[2007]]
| url = http://www.forbes.com/facesinthenews/2007/03/22/procter-gamble-faces-markets-equity-cx_mk_0320autofacescan02.html
| accessdate = 2007-07-05 }}</ref>



== References ==
{{reflist|2}}

== Books ==
* ''Ain't It Great: A Look Inside Amway'' published [[September 1]], [[2001]] by Authorhouse; ISBN 0-75962503-4
* ''An Uncommon Freedom, the Amway Experience and Why It Grows'' published 1982 by Revell; ASIN B000HFJE1Y
* ''American Victory: The Real Story of Today's Amway'' published April, [[1997]] by Chapel & Croft Publishing; ISBN 0-96451716-7
* ''Amway: The Cult of Free Enterprise'' published [[December 1]], [[1985]] by South End Press; ISBN 0-96487951-4
* ''Amway: The True Story of the Company That Transformed the Lives of Millions'' published [[September 1]], [[1999]] by Berkley Publishing Group; ISBN 0-42517040-3
* ''Behind the Smoke and Mirrors: Amway Motivational Organizations'' published [[September 1]], [[1999]] by Backstreet; ISBN 0-96710702-4
* ''Commitment to excellence: The remarkable Amway story'' published 1986 by Benjamin; ISBN 0-875021360
* ''Empire of Freedom: The Amway Story and What It Means to You'' published [[September 3]],[[1997]] by Prima Lifestyles; ISBN 0761510885
* ''The Possible Dream: A Candid Look At Amway'' published 1977 by Revell; ISBN 0800708571
* ''Promises to Keep: The Amway Phenomenon and How It Works'' published 1986 by Berkley Books; ISBN 0425098567
== Documentaries ==
* ''Profiles of the American Dream: Rich DeVos and Jay Van Andel and the Remarkable Beginnings of Amway'' [[1997]] by PREMIERE FILMS; ASIN: B000OK0YRA

== External links ==
* [http://www.amway.com/ Amway Corporation]
* [http://www.alticor.com/companies/quixtar.html Alticor Inc. (Amway & Quixtar Parent Company)]
* [http://www.amway.co.jp/ Amway Japan Limited]
* [http://www.amwayindia.com/ Amway India]
* [http://www.amway-europe.com/ Amway Europe]
* [http://www.latinamway.com/ Amway Latin America]
* [http://www.iboai.com/default.asp Independent Business Owners Association International]

===Government documents===
* [http://www.ftc.gov/speeches/other/dvimf16.htm Prepared Statement of Debra A. Valentine, General Counsel for the U.S. FTC, on "Pyramid Schemes"]

===Profiles===
* [http://www.answers.com/topic/alticor-inc Alticor Inc.]
* [http://biz.yahoo.com/ic/103/103441.html Yahoo! - Amway Corporation Company Profile]

===Media articles===
* [http://business.timesonline.co.uk/tol/business/industry_sectors/media/article2951266.ece "British Government seeks to close Amway"], November 27, 2007
* [http://news.webindia123.com/news/Articles/Business/20070814/742114.html "Apex court clears deck for probe into Amway's direct sale scheme"], August 2007
* [http://www.motherjones.com/news/special_reports/1996/09/burstein.html "She Did It Amway"] ''[[Mother Jones (magazine)|Mother Jones]]'', September 1996
* [http://www.augustafreepress.com/stories/storyReader$31336 "No Amway Christian"] ''Augusta Free Press'', [[February 4]], [[2005]]
* [http://www.domain-b.com/companies/companies_a/amway_india/20020430_hope.html "With soap in their hands and hope in their hearts" ''Bangalore Magazine'']
* [http://www.forbes.com/best/2001/0625/040.html "Amway.com"] ''[[Forbes]]'', [[June 25]], [[2001]]
* [http://www.msnbc.msn.com/id/4375477/ "In pursuit of the almighty dollar"] [[MSNBC]] ''[[Dateline]]'', [[May 7]], [[2004]]
* [http://www.quixtarresponse.com Quixtar's response to the Dateline report]
*[http://www.businessweek.com/archives/1998/b3565099.arc.htm?chan=search "Amway II: The Kids Take Over"], ''[[BusinessWeek]]'', [[February 16]], [[1998]]

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[[Category:Companies established in 1959]]
[[Category:Amway]]
[[Category:Multi-level marketing]]
[[Category:Personal selling]]
[[Category:Companies based in Kent County, Michigan]]