What Happened to Amway?

Oleksandr Honcharov, CEO at FlawlessMLM 

Updated: October 2026

What happened to Amway in 2026 can be stated in one line: on September 17, 2026 the FTC and the State of Washington announced a $225 million proposed settlement with the company and two affiliates.

In short: the FTC alleges that Amway and affiliates World Wide Group and Leadership Team Development made false earnings claims and pushed fake sales reports. The order is proposed and takes legal effect only after a federal judge approves it. Amway reported $7.3 billion in global sales for 2025, down about 1%.

The FTC says IBOs were told they would likely earn over $40,000 a year or replace a full-time job. According to the agency, most IBOs who joined the two affiliates after 2020 spent more on Amway products and training than they earned. The complaint also alleges that IBOs were told to buy set monthly amounts whether or not they could resell them, and to report sales they never made.

The proposed order is the largest monetary recovery the FTC has obtained against a multilevel marketing company. It requires IBOs to resell at least 70% of what they buy each month, cuts recruiter pay when recruits buy but do not resell, and requires verified customer sales with receipts. Amway must also terminate IBOs who fake sales, and an outside auditor will review its sales records. Details of the redress program have not been announced yet. For the wider rule set, read our US MLM regulations guide.

The business itself is large but shrinking. Amway reported $7.3 billion in 2025, $7.4 billion in 2024, $7.7 billion in 2023 and $9.5 billion in 2015, with more than 1 million IBOs. In our client work, the recurring weak spot is a plan that rewards purchase volume nobody can trace back to a real customer. That is exactly the gap this order targets, and our existing FAQ on whether Amway is a pyramid scheme gives the background.

Main terms of the proposed 2026 order:

Common mistakes to avoid

1. The order is not final. It is a proposal until the district court approves and signs it.
2. Amway Corp. is not alone in the complaint. World Wide Group and Leadership Team Development are named too.
3. The banned myth. Amway still sells in the United States, and many banned lists online carry no citations.
4. $225 million is not the whole story. How the money reaches IBOs has not been announced.
5. Read the income disclosure. Amway's 2024 disclosure reported average annual earnings before expenses of $1,199 for members with at least one sale.

Conclusion: watch the court docket for approval and for the redress announcement, since both change what the order means in practice. If you run an MLM, test your plan against the three controls in the order now: resale ratio, recruiter pay on unsold product, and verified customer sales.

Is Amway banned?

Not in the United States. China banned direct selling in 1998 and later licensed companies under new rules, but most banned lists online give no sources.

Is Amway still in business?

Yes. It reported $7.3 billion in global sales for 2025 and more than 1 million IBOs.

Is Amway a pyramid scheme?

The FTC ruled in 1979 that Amway was not, citing safeguards such as a 70% sales rule. The 2026 matter concerns alleged deceptive claims and practices, not a new pyramid ruling.

Who else is in the Amway case?

World Wide Group and Leadership Team Development, two affiliates, along with the State of Washington as a joining party.