Amway Scam, Canadas’ Biggest Spam. Guilty or Not?

What is the Amway Scam?

Amway is one of the biggest and oldest companies in America, which are American based. The history of this company dates back to 1959 and has its headquarters in Ada, Michigan. It is a big marketing company that deals in products regarding health, care, and beauty. It is one of the biggest and most grossing companies in America and is loved by people over there.

However, in 1982 this country has to face criminal charges. The co-founders and executive vice president were charged on not reporting the actual value of goods that were brought into Canada along with other charges. These allegations forced the Canadian government to take action. However, the owners pled guilty to the charges, and the charges were dropped, but they had to pay huge sums of money. This is known as the Amway Scam. This scam was very popular in the times and created big unrest in the company’s reputation as well as their financials.

How was it solved?

After pleading guilty, they had to pay a huge sum of 25 million Canadian Dollars. This was the highest fine imposed at that time and still is one of the highest. They paid the fine, and Amway was cleared of all charges after they paid another 46 million Canadian Dollars to the customs. When the matter settled, the co-founders were interview by the press, and they told the press that they were innocent, but they only accepted the charges because they wanted to settle things and make this matter go away before it ruined the company’s image. Furthermore, the co-founders cleared that the allegations were a strategy and a political move to cause an imbalance in the company’s economics as well as their reputation.

Despite all this, the company is now stable and doing well. The people still prefer Amway over other companies and love their products, but they will always remember the AmwayScam, guilty or not.