Wednesday 16 December 2009

Amway fraud, one of the biggest scandals

Shyam
I observe that your naive young friend, Trivedi, now wants to know from where in the world comes the conclusion that 'Amway' has insufficient external revenue to pay the majority of its contributing participants (a profit)? Although the poor boy still feels obliged to refer to the victims of the 'Amway' scam as 'IBOs (Independent Business Owners )' -, a reality-inverting term invented by skilled racketeers to hide their crime. (Remember, in 1920s Chicago the 'Mobs' referred to their protection rackets as 'Selling Insurance' and their victims as 'Policy Holders' )
Trivedi, not even 'Amway's' own lawyers dispute the simple fact that, for more than 50 years, there have been virtually no 'Amway' products retailed to persons who are not agents of 'Amway.' In order to maintain this situation, production distribution and exchange in the 'Amway' economic system has been centrally-controlled from Ada Michigan. This (effectively) hermetic system has had no real source of external revenue whatsoever and has been, therefore, completely unviable and illegal. Given half a century of damning evidence, coupled with the capacity to use one's critical and evaluative faculties, no other conclusion can be drawn. Tellingly, all the decades of impressive 'sales figures' issued by the 'Amway' Ministry of Truth, deliberately never made any distinction between economically-incestuous internal sales to the organization's own agents and economically-healthy external retail sales to non-agents. However, in the 1970s, US Federal Trade Commission economists finally established (after years of scratching their heads) that 70% is the necessary minimum level of genuine retail sales to non-agents which any direct selling scheme must consistently maintain, in order for it to be viable and legal. 'Amway' had long-since been investigated by FTC agents who found that the percentage of genuine 'Amway' retail sales to non-adherents in the USA hadn't even achieved double figures. In order to avoid immediate closure and criminal investigation, and prosecution under federal anti-pyramid schemes legislation, the 'Amway' bosses simply pretended affinity with US federal agents. In 1979, they put up their hands in court and drafted a 'rule' which appeared to make it (henceforth) mandatory for all American 'Amway' agents to retail 70% of there own purchases in order for them to receive commission payments from 'Amway,' but, laughably, this rule has never been enforced. The FTC has recently turned a blind eye to 'Amway' and to other copy-cat frauds, because huge amounts of stolen 'MLM' cash have found their way into the coffers of the Republican party.
Trivedi, an unviable closed-market can be reduced to the following simple explanation which even the average 10 year old child can understand, but apparently you still don't want to accept:
If 10 people each put 10 coins on a table, no matter how you divide up the resulting 100 coins there is no way (unless you are a superhuman who can suspend the laws of physics and who can create more coins miraculously), that a majority of the contributors can receive more coins than they started with.
The whole of the fiercely-complex, so-called 'Amway Compensation Plan' (in which contributing participants of the closed 'Amway' market are offered escalating payments depending on how many more contributing participants they recruit) is just mathematical hocus-pocus designed to shut down the critical and evaluative faculties of 'Amway' victims and casual observers. What the bosses of the 'Amway' mob have got away with for more than 50 years is essentially what Bernie Madoff got away with for two decades. They have peddled infinite shares in their victims' own finite money. Madoff called his closed-market victims, 'Investors', the 'Amway' bosses call them 'IBOs'. Unlike the Madoff scam, the 'Amway' scam has never collapsed, because more and more people have continued to be churned through it and because the accurate deconstructed explanation has remained beyond the understanding of the both victims and law enforcement agents.
The 'Amway' fraud remains (potentially) one of the biggest scandals in American history. Fortunately, there are far too many people now around the world who understand exactly how it works, for it to remain hidden for much longer.
So far Trivedi, your little role in all of this is nothing to be proud of.
David Brear

7 comments:

dtytrivedi said...

what makes u think that I have ghost writer. Legal scan!!!

dtytrivedi said...

well shyam its quite simple to say that ur statement

"The whole of the fiercely-complex, so-called 'Amway Compensation Plan' (in which contributing participants of the closed 'Amway' market are offered escalating payments depending on how many more contributing participants they recruit) is just mathematical hocus-pocus designed to shut down the critical and evaluative faculties of 'Amway' victims and casual observers"


is simply a judgement made without scrutiny

if i and my team recruit 1000 people in a month a may benefit for a month but not for the second month. Ultimately my income is dependent on the movement of the products and not totally on the number of distributors, number of distributors does matter only when they are active. If i have 5 distributors and who actively purchases and/or retails the product to the customers and showing the business plan then it would be lot meaningful. Actually those distributors are often called as 'active distributors' rather than distributors.

but u don't know the meaning of active distributors u think it as one of the way by distributors confuse people.

dtytrivedi said...

besides this when u say "10 year old child can understand, but apparently you still don't want to accept"

i just want to say that this business is for people above 18 yrs. Now I understand why u don't understand.

Did u know some thing shyam.

1.Ur finding that distributor who comes first will have highest income is wrong. I will show u plenty of people who earning more than their uplines not even these there are also couple of cases where downlines has surpassed the income of many of his uplines.

2. As it is based on that assumption that one has to follow 6-4-3 plan and the above thing which i said is impossible to happen if distributors follow 6-4-3 plan. so ur second assumption is wrong.

3. do u know what is qualification of silver, gold, platinum and founder platinum? Can u show me where they have mentioned how many people u have to recruit in order to achieve such pins.

My finding and i am confident that most of the anti-amway guys don't even know these three things and if they know they can't prove me wrong.

Now u can do two things in reply of what i said.
1. U would try to find it out or

2. that u will deviate from the topic. (which i am very sure u will do). Definitly u have tendency to not to focus on any of the topic i have mentioned because if u did u won't able to answer it.

IBOFB said...

The reality inverting - or rather reality ignoring - is coming from you, Brear. The primary one in this latest rant (and there's more than one) is your reliance on the whole false belief that simply signing an Amway application form miraculously changes you into a non-customer. The great majority of people (more than 87% in the US) who sign Amway application forms do not "participate in the scheme" in anyway - they are merely customers shopping at a 21% rather than a 51% markup.

To say nothing of your reality redefining trick of pretending, contrary to all scientific, mathemetic, and engineering thought, that a "closed system" can exist when there is input from outside that system.

When you're going to redefine terms to mean something other than there generally excepted use, Brear, you really should inform the reader.

dtytrivedi said...

ibofb get ready because now shyam will dedicate one whole post regarding ur traits and behavior and he may even conclude that amway adherents have such type of characteristics. however title will regarding amway scam.

Legal Scan said...

Trivedi, compare your latest comments to the comment in the earlier one. Anyway you know what happened still pretending you are not aware. Just tell me who is your ghost writer. Ask your ghost writer to imitate in committing grammatical mistakes like you. That way no one would suspect your credibility.

Tex said...

Brear,

You don't understand the 70% rule. IDIOT.