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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchAmway’s product-based compensation plan does not, by itself, prove that the business is legitimate, and an FTC complaint does not by itself prove that it is a pyramid scheme. The legal question depends on what the compensation system rewards and how the business operates in practice. Amway’s 2025 U.S. disclosure reports modest average earnings before expenses, while a pending 2026 FTC and Washington case alleges deceptive earnings claims and pressure to buy products. Those are different kinds of evidence: one is Amway’s own income disclosure; the other is a complaint, not a final court ruling.
What makes an MLM a pyramid scheme?
The FTC says there is no percentage-based test that settles whether a multilevel marketing business is a pyramid scheme. Its guidance explains the federal legal standard using the Koscot framework: the concern is a business in which people pay for the right to sell products and the right to receive rewards for recruiting others, when those rewards are unrelated to sales to ultimate users.
That requires looking beyond a company’s written policies to its compensation structure and how it operates in practice. A real product, product sales, or a company rule against inventory loading does not automatically resolve the question. The FTC’s business guidance on MLMs states: “An MLM can sell real, even high-quality, products or services and still be a pyramid scheme.” The source is the FTC’s MLM business guidance; no sales-share shortcut replaces the fact-specific analysis.
For Amway, the practical questions are whether participants can earn through genuine customer sales without recruiting, whether buyers outside the IBO network want the products at the offered prices, and whether bonuses or advancement depend on purchases that participants cannot resell. The answers must be assessed from actual incentives and activity, not from the labels “direct selling” or “pyramid scheme.”
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How much do Amway IBOs actually make?
Amway’s 2025 U.S. Income Disclosure reports the following annual earnings before expenses. The first two rows cover IBOs at Founders Platinum and below; the other rows describe only IBOs who received at least one Amway payment, a narrower population. These groups should not be compared as though they had the same denominator.
| 2025 U.S. group | Average annual earnings | Median annual earnings | What the figure includes |
|---|---|---|---|
| All IBOs at Founders Platinum and below | $750 | Not stated in Amway’s 2025 U.S. disclosure | Includes IBOs with no reported product sales; before expenses. |
| IBOs at Founders Platinum and below who reported product sales personally or by their team | $1,161 | Not stated in Amway’s 2025 U.S. disclosure | Before expenses; the sales condition includes personal or team sales. |
| Top 50% of IBOs who received at least one Amway payment | $3,598 | $551 | Recipient-only distribution; before expenses. |
| Top 10% of IBOs who received at least one Amway payment | $15,691 | $4,854 | Recipient-only distribution; before expenses. |
The disclosure also says that 59% of U.S. IBOs received a payment from Amway in at least one month for product sales during 2025. It reports that 38% had no reported product sales, did not sponsor another IBO, and received no Amway payment. These are company-reported figures for the United States in 2025, not a guarantee about what a new participant will earn.
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Average and median answer different questions. A small number of larger earnings can raise an average, while the median identifies the midpoint of a group. The top-50% and top-10% figures are specifically for payment recipients, not all IBOs; neither should be read as a typical net profit. Amway’s disclosure reports earnings before expenses.
What is the FTC case against Amway, and what is its status?
On September 17, 2026, the FTC and the State of Washington filed a complaint against Amway, World Wide Group, and Leadership Team Development, alongside a proposed $225 million settlement. The FTC docket listed the matter as pending on October 7, 2026. The proposed order is not a final court-approved order: the FTC says it takes legal effect when approved and signed by the district judge. The complaint’s claims remain allegations unless established through the legal process.
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The complaint alleges that the companies used deceptive earnings and recruiting claims, pressured IBOs to buy products they might not want or be able to resell, and encouraged false reporting of customer sales. It cites a May 2021 talk in which Brad Duncan, identified in the complaint as an IBO leader of the largest training group, promised listeners they would live in “the most beautiful homes in the world” if they treated the business like a business. That is an example quoted in the complaint, not an official Amway earnings guarantee.
| Complaint allegation | Period and qualification |
|---|---|
| Median total bonuses before expenses were $139. | For IBOs in 2023, according to the FTC and Washington complaint filed in 2026; an allegation, not a court finding. |
| Fewer than 1%—fewer than 1,600 of more than 241,000 IBOs—received at least $40,000 in Amway bonuses. | For 2023, according to the complaint; an allegation, not a court finding. |
| More than three-quarters of Amway’s U.S. products were sold to its own IBOs. | The complaint describes this as occurring in recent years and alleges that purchases were often associated with trying to qualify for bonuses; it does not establish a court finding. |
The proposed order would, among other things, require IBOs to sell at least 70% of products they purchase to others each month; reduce recruiter compensation when recruits buy products without reselling them; record customer sales at actual prices, provide receipts, and audit sales records; and provide first-year training and services through approved providers at no cost. These are proposed terms, not requirements to describe as already in force while the case is pending.
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Can you make money with Amway without recruiting?
Amway describes its U.S. IBO business as based on product sales, retail markup, and sales commissions on product volume. That description does not establish how much a participant can earn from retailing to customers without recruiting, or whether that activity can cover costs. The 2025 disclosure’s $1,161 average applies to IBOs whose personal or team activity included reported product sales; it does not isolate earnings from unaffiliated retail customers or identify net profit from sales alone.
Before joining, ask for a written explanation of how customer sales, team volume, and recruiting each affect compensation. Then test the sales-only case: identify customers who are not IBOs, confirm they will buy repeatedly at the actual price, and calculate profit after product and delivery costs. If the explanation depends on recruiting, recurring personal purchases, or optimistic earnings claims rather than verifiable customer demand, treat that as a material risk.
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- PREMIUM QUALITY, SMART PRICE - Experience unmatched craftsmanship with our shaker bottle pack. Top-tier shaker bottles and shaker cups for protein mixes without the hefty price tag!
- CLEAN IN A JIFFY - Our bottle shaker protein design is for the on-the-move individual. A swift rinse and you're set for another round! More time savoring, less time scrubbing.
- BUILT TO LAST - Crafted for the active souls and everyday hustlers. From workouts to daily routines, our shakers for protein shakes stand undefeated. Reliability you can trust.
- VARIETY IN EVERY PACK - Dive into our spectrum of colors and sizes. Whether hitting the gym or the office, our shaker bottles for protein mixes have you covered. Tailored for every style!
What does it cost to join, and what expenses reduce profit?
Amway’s 2025 U.S. disclosure states that first-year registration costs $0 and annual renewal is $55, plus an optional $16 IBOAI fee. Those are company-stated registration and renewal terms; confirm the current written terms before relying on them.
The same disclosure identifies possible expenses including shipping, taxes, samples, travel, and optional training or support from approved providers after the first contract year. Add any product purchases, event or business expenses, and other costs you actually incur when working out net profit. An earnings figure before expenses is not take-home income, and a positive gross payment does not show that a participant made a profit.
Amway says U.S. registration can be canceled at any time and unused, currently marketable products may be eligible for a refund, subject to limitations. Read the applicable cancellation and product-return rules, including any conditions or deductions, before purchasing products or counting on a refund.
How to evaluate Amway before signing up
Use the same checks for Amway as for any MLM. The FTC’s consumer guidance recommends researching the business, reviewing its disclosures and agreements, understanding costs and refund policies, and asking current and former participants about their actual experience.
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- Get the current documents. Ask for the written compensation plan, current income disclosure, registration terms, and cancellation and refund rules. Do not rely on a presentation or verbal promise as a substitute.
- Calculate net profit. Estimate realistic revenue, then subtract products, shipping, taxes, samples, travel, renewal, training, and other expenses. Keep one-time costs separate from recurring costs.
- Verify outside customer demand. Ask who will buy repeatedly without becoming an IBO, at what price, and how you will document each sale. Distinguish customer orders from purchases by people in the participant network.
- Test the no-recruiting scenario. Ask what happens to earnings and bonuses if you stop recruiting or stop making purchases. Find out whether a bonus requires purchases or volume that cannot be supported by customer demand.
- Ask participants specific questions. Ask current and former IBOs how much they earned after expenses, how much they spent, how much inventory they bought and resold, whether recruiting was necessary to earn, and how many recruits left.
- Check legal status precisely. Separate company policies from allegations, proposed settlement terms, and final court orders. For the 2026 FTC and Washington matter, consult the FTC docket for its current status rather than treating the complaint or proposed order as a final ruling.
Amway’s figures and stated terms here concern its U.S. business; they should not be generalized to other countries. The FTC and Washington case likewise concerns the U.S. entities and allegations described in the complaint.
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