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Amway Forever: The Amazing Story of a Global Business Phenomenon by Kathryn A. Jones

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More Litigation

Others were asking the same question. In 2007, the company got into a dispute with a group of Quixtar distributors who had wanted to make a break and operate on their own. Ironically, the group had come together after Alticor had ditched the Amway name in North America and adopted the Quixtar online business model and brand. High-level distributors Orrin Woodward and Chris Brady, who founded the group called TEAM, filed a class-action suit that claimed Quixtar operated as a pyramid scheme that sold products at such high prices that no one would buy them except distributors. TEAM, which stands for Together Everyone Achieves More, billed itself as a training system. It was one of the lines of affiliation providing professional development programs to support IBOs—meaning it purveyed motivational tools such as tapes, seminars, and books to Amway distributors, as well as conducted training sessions. One of the TEAM members was Randy Haugen, the distributor whom Procter & Gamble had gone after in the Satan worship rumor lawsuit detailed in Chapter 9. Haugen said that negative information on the Internet about Amway was becoming a real problem and that in the mid- to late 1990s he had been privy to several conversations with the company about the need for lower-priced products and combating “the negative” on the Internet.26 Then Quixtar was created. Haugen said:

None of us wanted to have a company associated with Amway in any way. We were told it was a sister company ...

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