Information and Web Resources for Survivors of MLM Abuse and Deception

Select an MLM from the list below for more information.

Websites Aren't Free!

If the information on this site has been helpful to you, please consider making a small donation to help support the work of MLMSurvivor.com

	Amway/Quixtar Lawsuits Amway v Scheibeler Stewart v Gooch, Childers et al, Third Amended Complaint, January 2003 Hart v Gooch, Childers et al, First Amended Complaint, January, 2003 Netco v Dunn, Gooch, Childers et al, First Amended Complaint, January, 2003 Hart v Gooch, Childers et al, April 19, 2002 Stewart v Gooch, Childers et al, January 2002 Scheibeler v Harteis, November, 2001 $16 Million in Damages Sought in AMO "Tools" Squabble, August 3, 2000 Canadian Tax Authorities v Distributors, July 14, 2000 IRS v Distributors, June 2, 2000 Fish Deposition Team Resources v Fish and Andrews Morrison et al v. Wilson et al, June 22, 2000 Woods v Britt, August 1998 Musgrove v Amway, June 1998 Griffith v Amway, May 1998 Taylor v Duncan, March 1998 Hayden v DiSalvatore Touchton v Amway, Gooch et al Lavoie v Yager, January, 1998 Hart v Gooch et al, April 1997 Setzer v Amway, 1985
	-Affiliate Link-
	-Affiliate Link-
	-Affiliate Link-

The Postma Memo Surfaces Online

June, 2004

In January, 1983, an internal Amway Corp. memo was sent by Ed Postma to Patric Sullivan. Postma has held positions in Amway/Quixtar's Business Conduct division. The memo discusses the sale of motivational "tools" within the distributor organizations. It was entered into evidence in the Heckert v Amway lawsuit, and then suppressed.

Now, the Postma Memo is available on the internet, at http://www.cs.cmu.edu/~dst/Amway/postma-memo-1983.pdf

Why Has Amway/Quixtar Suppressed This Memo?

It is obvious why Amway has worked so hard to suppress this document over the last 21 years.

Mind Control

Under the subject heading "Analysis of the Britt/Yager System," the memo acknowledges that the motivational organizations create a "dependency" in their downline participants, and acknowledges that

"It is this aspect of their methodology, that has allowed for charges of 'mind control.'"

The memo discusses the way that participants are "isolated" from their line of sponsorship (LOS) if they try to get their information from any source other than their upline.

The memo acknowledges that

"the line of sponsorship does not allow communication between the distributor and the corporation. . . Historically this line of sponsorship has viewed the corporation as an impediment to their growth. . . The corporation serves to signal other success in other lines of sponsorship. This sytem does not allow that success can be built any differently than in the method that they use."

The Money Is In The Tools System

Clearly, Amway understands that the tools are the real business.

"If there are any discussions of any length with the Diamonds utilizing this system, it becomes clear that although they realize that they are Amway distributors, they consider their personal business to be the motivation (tool) business. I think there is little quetion that that is where the big money is made. The motivation business is also where their primary allegiance lies."

The memo describes "a major economic force at work with the tool business."

The Britt/Yager System Is Illegal and Will Fail

Postma then continues, predicting that:

"This business will crumble under its own weight for the following reasons."

The reasons he enumerates, are, that the Direct Distributors (now called "Platinums") will "take Rich's speeches seriously" (presumably, the Directly Speaking speeches) and will make it impossible for the Diamonds to move the tools business down into their groups.

Second, that greed will break up the system.

Third, and maybe most importantly, the memo states:

"The tool business (motivation) is illegal.. . . Although the Amway business is legal (no question), the tool business is not (my conclusion)." [Emphasis original]

Why is the tool business illegal, according to Mr. Postma?

1. "It is a pyramid. It sells only to those who are involved in its structure. "
2. It may violate tax laws.
3. There is no buyback rule, and there is a danger of inventory loading.
4. "It could be construed as an employer/employee relationship."
5. "It is not a free enterprise opportunity. A downline Direct is not to compete with an upline Diamond."

Postma's final conclusion:

"The motivation business is getting larger than expected. None of the major participants really wishes to deal with it in a detail sense. With proper prodding, this business will fail." [Emphasis mine]

So Why is the Britt/Yager System Still Around?

I have just one question. Given that the vast majority of complaints about fraud and deception relate to the Britt/Yager Motivational System; given that Amway was very aware of the problems in early 1983; and given the company's belief that "with proper prodding, this business will fail," why didn't Amway do the necessary prodding?

The answer to that question is also in the memo:

". . . It has been clearly stated. . . by more than one Diamond in this group that if anything is done that negatively affects the tool business, they would leave the business."

 Home Send E-Mail Read E-Mail Links Read Articles Visit Book Corner

---

-Affiliate Link-