# Washington State and FTC Settle with Amway

The Federal Trade Commission (FTC) and Washington State Attorney General's Office have reached a **$225 million settlement** with Amway Corp. and its affiliates over allegations of unfair and deceptive business practices in multi-level marketing operations. The settlement mandates significant reforms to Amway's sales and recruitment practices and includes consumer relief funds aimed at preventing future deceptive conduct. This development highlights increased regulatory scrutiny on business practices within multi-level marketing firms, which may influence compliance requirements and risk assessments for contractors and vendors operating in similar sectors.

- **Why this matters:** Procurement professionals should be aware of heightened enforcement actions targeting deceptive marketing and sales practices, which could affect vendor eligibility and contract compliance.
- The settlement underscores the importance of due diligence and ethical standards in vendor selection, especially for firms involved in direct sales or multi-level marketing.
- Organizations contracting with or evaluating multi-level marketing affiliates should consider the potential reputational and legal risks associated with such partnerships.
- Agencies may need to review contract clauses related to business conduct and compliance to mitigate exposure to similar regulatory actions.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 18, 2026

### Government Entities
- Federal Trade Commission (FTC)
- Washington State Attorney General's Office

### Vendors
- Amway Corp. (Defendant)
- World Wide Group (Affiliate)
- Leadership Team Development (Affiliate)

### Key Quotes
> Amway and its affiliates profited by taking advantage of regular people’s hopes and ambitions.
> — Nick Brown, Attorney General

### Sources
- [WA, FTC reach $225M settlement with Amway for unfair and deceptive business practices | Washington State](https://www.atg.wa.gov/news/news-releases/wa-ftc-reach-225m-settlement-amway-unfair-and-deceptive-business-practices) - WA