The Muskegon Chronicle reports that Amway may be shut down and expelled from the United Kingdom as a result of a lawsuit filed by the government against the company and two of its distributors. That lawsuit was completed on Dec. 8 and a ruling is expected in the next few weeks.
Charges in the UK lawsuit include allegations that the company misrepresents the true financial rewards of being a distributor, that the Amway business focuses primarily on profiting from what they call Business Support Materials (mostly motivational tapes, books and pamphlets) and that they misrepresent their products as cheaper than their competitors’ when they are actually more expensive.
While Amway only does a small percentage of its business in the UK, this would be a serious blow to the company’s international image. It could also lead to a domino effect, as there are other nations, including China and India, that have similar on-going investigations.