review,Lawsuits,against,Amway, business, insurance A review of Lawsuits against Amway/Quixtar
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A court of appealsupheld an order by a trial court, denying a motion to dismiss a lawsuit againstAmway. Amway is being sued by two ofits reps or IBOs (Independent business owners) as they call them. These tworeps are alleging that Amway is operating an illegal pyramid scheme.Amway tried to havethe lawsuit dismissed and tried to force their reps into private arbitration,where of course they would have a huge advantage. Amways contention is thatthis is what the reps agreed to when they signed up, but the court agreed thatthe agreement was unconscionable. Inother words, it was just wrong!The court pointed out that this was not like a mutualagreement. It was more like a giantcorporation taking advantage of a bunch of individuals. Basically they weresaying if you want a chance at riches by selling our products, do what we sayor take a hike because we dont need you. Amway was in charge of the disputeresolution process, which gave it another unfair advantage.They even went so faras to prevent the reps from talking about their claims, why they made theclaim, the evidence that they had against the company and the outcome of theclaim. They really had these reps handstied. Now Amway has to go to court it has a problem with a rep instead of usinga private arbitrator. It might also be a good idea for them to change theiragreement to prevent future problems.
review,Lawsuits,against,Amway,