Abusive MLM Practices Create Abusive Job Behavior
 

It's becoming an all-too familiar story. A Louisville, KY couple -- Amway distributors -- abuse their high positions within the public school system to systematically bilk the school district and parents of students. Several social workers in Lanarkshire, UK, are fired when they abuse their supervisory positions to push Amway on coworkers. In Canada, at least one union has fought attempts at MLM recruiting in the workplace. Recently, a South Carolina state trooper has been reprimanded for soliciting the subjects of traffic stops to pitches for Primerica Financial Services.

South Africa, March 26, 2000

"Selling Soap While the Poor Starve" read the headline over the article detailing how a welfare department official, neglected her job while recruiting for Amway in Pretoria, South Africa. Dr. Fido Maforah, who was chief director in the Department of Welfare, left destitute clients without help while she attempted to build her Amway empire. She was suspended from her job.

According to the article in the Sunday Times,

"The Auditor-General disclosed in February that the Welfare Department had spent less than 1% of the R204-million it was allocated for poverty relief in the 1998/99 financial year."

A distributor since September, 1997, she had used office hours to sell product, and to recruit. Staff members she attempted to recruit complained about her.

She has resigned her Amway distributorship, which has been taken over by her husband -- a meaningless gesture, as anyone familiar with the organization would know.

Additionally, some of the funds actually disbursed from the Welfare Department were allocated to an organization that Maforah's husband worked for. This is also under investigation.

United Kingdom, Nov. 10, 1999

"Mr Matthew Monahan, Ms Frances Morgan, and Mr Samuel McKie, all managers involved in the care and provision of services to elderly people, were suspended last Wednesday, following allegations that they had placed undue pressure on junior staff to join what was referred to as a "multi-level marketing" (MLM) operation, run by US giant Amway International."

A fourth social worker was later added to the investigations and suspended, then brought back in a lesser position. According to the Lanarkshire Home, on December 17, 1999:

"A three-week disciplinary tribunal found that Frances Morgan and Matthew Monahan, who both worked in the social work unit dealing with older people's services, had been guilty of gross misconduct. The tribunal. . . decided that the two managers "harassed other members of staff, creating distrust within the workforce and a conflict of interest".

Columbia, SC, December 23, 1999

According to an AP article:

"The State Ethics Commission said Wednesday that during traffic stops Lance Cpl. Bruce A Temple Jr. solicited people to participate in programs run by Primerica Financial Services, where he also worked part-time."

Temple resigned when the investigation began. Later he admitted that he broke state laws in attempting to use his position for financial gain.

Louisville, KY, Summer, 1999

The story of Jim and Patti Hearns of Louisville, KY developed over the summer of 1999. After stealing over $300,000 from the school district which employed them, the former Amway distributors are now serving jail time.

Ft. Benning, GA

According to information received, several officers on post worked their Amway businesses so aggressively, and blatantly violated military regulations, to the point that military officials have redrafted the rules. New rules, to be effective in March, 2000, would not allow any business relationships between members of the military or between members of their families.

This issue is not new: In 1994, English minister Rev Tom Logan resigned when Dumbarton Presbytery received "a number of complaints from parishioners" and ordered him to end his involvement in the Amway organisation. At least one judge, who used the bench as a recruiting venue, has been disciplined.

What is it that makes these MLM distributors so greedy, or so desperate for the illusory "success" that their upline keeps promising, that makes them behave abusively to coworkers or clients?


 

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This page updated Sep-08-00