Headlines

Who Leaked the Blakey Report?

February 20, 2004

Earlier this month, the Quixtar Blog site reported on a document which was entered as expert testimony in one of the P&G v Amway lawsuits. The author of the report, Robert Blakey, is an expert on organized crime, and helped to draft the current RICO (Racketeer Influenced and Corrupt Organization) statute. Now, according to the site owner, Amway's lawyers are frantically trying to find out who leaked. They assert the report is confidential, and covered by a protective order. However, nothing on the document shows it to be confidential. . . Awaiting further developments. . .

Dateline NBC Segment on Amway/Quixtar

January 25, 2004

On Again, Off Again. After scheduling a segment on Amway/Quixtar to air on Jan. 27, Dateline NBC has pulled it from the schedule. We hope it will be re-scheduled very soon, and will keep you posted here.

January 20, 2004

Amway/Quixtar is the subject of a Dateline NBC segment scheduled to air on January 27, 2004 at 9:00 PM Eastern Time. While MLMSurvivor doesn't know what the show will cover, we do know that at least one former diamond and one former emerald were interviewed at length. Don't miss this in-depth look at the self-styled "granddaddy of MLM," Amway/Quixtar on Tuesday, January 27.

Diamond and Crown Businesses Sue Amway

Judge Rules Amway/Quixtar's BSMAA "Unconscionable"

November, 2003

In a case brought by Nitro Distributing v Alticor (see below), a judge has ruled strongly in favor of the plaintiffs on the issue of compulsory arbitration. Describing JAMS/Endispute, Inc., Alticor/Quixtar/Amway's chosen arbitration company, as "a little-known, for profit corporation," the judge ruled that "Defendants' arbitration program under JAMS is unconscionable." More. . .

August 20, 2003

Businesses owned by Amway Diamonds Schmitz and Hart, and Crown Ken Stewart, have filed a new lawsuit, this time naming Alticor, Inc., Quixtar, and Amway as defendants. Businesses owned by the three had previously filed suit against other high-level distributors and their businesses, but had not named Amway itself. More. . .

Temporary Injunction Against Trek Alliance Granted

$20 Million in Consumer Redress from Skybiz

June 4, 2003

In an international pyramid scheme where 96% of recruits lost money, according to the Federal Trade Commission, Skybiz will shortly begin repayment of about $20 million to consumers. More. . .

"Business Opportunity Financing" Company Settles with FTC and States

May 29, 2003

Leasecomm, a wholly-owned operating subsidiary of MicroFinancial Incorporated, based in suburban Boston, Massachusetts, has just reached a settlement with the Federal Trade Commission over predatory practices which victimized consumers in MLMs, internet mall and other schemes. More. . .

Direct Selling Association Attempts to Legalize Product-Based Pyramid Schemes

The Direct Selling Association (DSA) is the trade group of the MLM industry. Past DSA members have included a number of MLMs, including Equinox International, which was shut down after the FTC and eight states sued it for operating as a pyramid scheme. Now the DSA has submitted a proposed piece of legislation which would effectively legalize any product-based pyramid scheme. Under its provisions, Omnitrition, Equinox International, Heritage International, and many other product-based schemes would have continued harming consumers, and it would all have been legal. More. . .

Class Action Suit Filed Against Nikken, Team Diamond

A class action lawsuit has been filed in California Suprior Court on behalf of Nikken and Advanced Wellness distributors. Plaintiff alleges that defendants Nikken, Inc. and Team Diamond, Inc. operate an unlawful pyramid sales scheme. More. . .

Amended Complaints Filed in Three Amway Lawsuits

January, 2003

Amended complaints have been filed in three significant distributor lawsuits involving Amway/Quixtar motivational organizations. Netco, a company owned by former Diamonds Charlie and Kim Schmitz, is suing upline companies owned by Jimmy Dunn, Hal Gooch, Bill Childers and others. Read the Amended Complaint.

Brig and Lita Hart and companies owned by them are also suing Gooch, Childers, et al in a very similar case. Read the Amended Complaint.

Last, but by no means least, companies owned by Crown Ken Stewart are suing the same line of sponsorship, including Dunn, Gooch, and Childers. Read the Amended Complaint.

Besides the allegations we've come to expect in these cases -- illegal pyramid scheme, tortious interference, deceptive practices and the like -- the Stewart case alleges anti-monopoly violations. It also deals very directly with the one-sided Arbitration Agreements mandated since 1997 by Amway, and many of the motivational organizations. More. . .

Plaintiffs File Amended Complaint Against Herbalife, NWTW

January, 2003

Plaintiffs in the lawsuit against Herbalife and its "lead generation system" (LGS), Newest Way to Wealth (NWTW) have filed a First Amended Complaint. This complaint sets forth more clearly the connection between Herbalife, Inc. and NWTW and its distributors. More. . .

India Investigating Amway, Other MLMs

January, 2003

According to articles in the Indian news recently, Amway and other MLMs are under investigation in that country. The Reserve Bank of India claims that Amway violates the Prize Chits and Money Circulation Schemes. More. . .

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