Did Amway's affiliates tell recruits they could earn $40,000 a year when, the FTC alleges, most recent recruits spent more than they received?

On September 17, 2026, the Federal Trade Commission and the State of Washington filed a complaint in the U.S. District Court for the Western District of Washington against Amway Corp. and two affiliated Approved Providers, World Wide Group and Leadership Team Development.¹ They allege the companies told recruits, known as Independent Business Owners, that they were likely to earn more than $40,000 a year, or enough to replace a full-time job or retire early.⁷ They also allege that among IBOs who joined World Wide Group or Leadership Team Development between 2020 and 2023, average and median bonuses were lower than average and median spending on training. The FTC's release describes this as most of those recruits spending more on Amway products and training than they received from Amway.⁷ The same day, the FTC announced that the defendants would pay $225 million to resolve the allegations.⁶ Washington brought its claims under the state Consumer Protection Act.⁸

The complaint backs the claim with specific figures, but it remains a complaint. No court has tested it, and the defendants neither admit nor deny the allegations. The order is only proposed until a judge signs it. Once entered, Section IX.B says the complaint's facts would be taken as true in later FTC or Washington proceedings to enforce the order, including in bankruptcy.⁴ The allegation that recruits spent more than they received covers people who joined the two affiliates after 2020. It does not cover every Amway IBO.⁷

Where does the $40,000 figure come from?

Paragraph 47 of the complaint alleges that Amway authorized the Approved Providers to claim that IBOs can make more than $40,000 or more than $50,000 a year, depending on the year. According to the complaint, only about 1 percent of IBOs, fewer than 1,600 of more than 241,000, received $40,000 or more in bonuses from Amway in 2023.² The complaint says the authorized figures appeared in slides, and it alleges that leaders often stated higher amounts aloud.² The complaint names Amway as the company that authorized the figures. It names leaders of World Wide Group and Leadership Team Development as the people who presented them.¹

What did IBOs actually receive?

The complaint puts the median total bonus for IBOs in 2023 at $139, before expenses.¹ It says IBOs often spend more on training bought from the Approved Providers than they receive in bonuses.¹ The complaint looks at IBOs who joined World Wide Group and Leadership Team Development from 2020 to 2023, with results tracked through March 2024. For that group, it alleges that both the average and the median bonus were lower than the average and median spending on training.¹

The FTC's release goes further. It says most of those post-2020 recruits spent more on Amway products and training combined than they received from Amway.⁷ Washington's release makes the same statement.⁸ That comparison counts product purchases as spending. The documents examined here do not say how much of that product the IBOs used themselves or resold.

Who was buying the product?

The complaint alleges that in recent years Amway has sold more than three quarters of its U.S. products to its own IBOs.³ Paragraph 32 says Amway's data indicated IBOs purchased 77 percent of the products Amway sold in 2023.³ The complaint also alleges that group leaders told members to report fake customer sales or false resales.³ That describes alleged conduct by leaders. It is not an admitted or proven practice.³

What does the 70 percent rule say?

The filed version of the proposed order, Case No. 2:26-cv-3474, is dated October 15, 2026.⁴ It states: "The Marketing Plan requires that each Participant’s Eligible Customer Sales constitute at least seventy (70) percent of the Participant’s Monthly Product Volume."⁴ If a participant falls short, the participant's benefits are reduced. The reduction formula is in Appendix A, which was not examined here.⁴

The order does not say in those words that each IBO must resell 70 percent of purchases. It sets a threshold inside the compensation plan, and the stated consequence of missing it is smaller benefits.⁴ Sections I.A, I.B, I.D and I.E take effect nine months after the order is entered.⁴

Who checks the sales records?

Section VII of the order provides for an auditor. The FTC and Amway choose the auditor by agreement, and Amway pays.⁵ The auditor must collect data from Amway each year "sufficient to evaluate the accuracy and completeness of Eligible Customer Sales and Eligible Customer registrations."⁵ The order does not name the auditor.⁵

Where does the $225 million go?

Section VIII sets out the following judgments:⁵

• $154.7 million against Amway
• $39.78 million against World Wide Group
• $26.52 million against Leadership Team Development
• $4 million to Washington

Together these total $225 million.⁵ The FTC says details on refunds to affected IBOs will come later.⁷ As of the version examined, the FTC's case page lists the matter as pending and does not say whether the judge has entered the order.⁶ This piece relies on the October 15 filed order. It has not been compared with the version announced on September 17.⁴