Explained: Amway and Its ‘Get-Rich’ Schemes!

Remember the time when everybody was obsessed and saw profits in Amway products? The same brand is now recognised as a scam by the Enforcement Directorate. Read up as Teji Mandi looks into Amway India's business model and why the ED tags it as a 'marketing scam'.
Explained: Amway and Its ‘Get-Rich’ Schemes

What’s Happening?

Amway sells a range of hygiene, beauty and personal care products. Every Indian middle-class household knows or might’ve been a part of Amway. It was portrayed as a premium brand, but it seems that it was just a recruitment program. According to reports, over the years, consumers have been duped by ‘direct sellers’ hawking defective products and services in the name of direct selling. They promised people it would be a lifetime opportunity, but it was just another large pyramid scheme.

The ED has provisionally attached 750 crores worth of assets belonging to Amway India. The ED claimed that most Amway products are exorbitantly priced. It said that between FY2003 and FY2022, Amway collected Rs 27,562 crore, of which it paid commissions worth Rs 7,588 crore to affiliate members and distributors.

What’s Next In-Line?

Amway has denied allegations and has said it will help with the investigation. This is not the first time Amway has been in troubled waters. It was alleged of financial fraud earlier when the company’s CEO was arrested. Until ED finds something illegal, Amway will not be held guilty. However, the flak against the brand has done the damage.

What Lies Ahead?

ED is continuing with its investigation. If any traces of money laundering are found in the company, it will be quite the end for Amway. A lot depends on the ED now. Will it stick to its investigation, or will the case take a different turn? Well, only time will tell.

Teji Mandi Multiplier Portfolio of high quality companies that blends shorter term tactical bets with long term winners Subscription Fee
CAGR
Min. Investment
Teji Mandi Multiplier Portfolio

Teji Mandi Multiplier

A basket of stocks of small and mid-sized public companies. This portfolio holds the potential to secure larger returns in the future as the companies grow.

1Y CAGR

Min. Investment

Subscription Fee

Teji Mandi Flagship A basket of 15-20 long-term and tactical stocks that we regularly rebalance to adjust to the market conditions. Subscription Fee
CAGR
Min. Investment
Teji mandi Flagship portfolio

Teji Mandi Flagship

A basket of 15-20 long-term and tactical stocks that are rebalanced regularly to adjust to the market changes.

1Y CAGR

Min. Investment

Subscription Fee

Recommended Articles

"Register Your Interest"

Already a member ? Log In