Amway $225 Million FTC Settlement, Who May Get Money and How to Claim
Amway and two affiliated organizations have agreed to a proposed $225 million settlement with the Federal Trade Commission and the State of Washington. The government alleged unfair and deceptive practices in recruiting people into Amway’s direct-selling program, including overstated earnings claims and pressure to buy products.
If you are looking for an Amway settlement claim form or deadline, there is nothing to file yet. The FTC says information about its redress program will be provided later. The order is still proposed and needs a federal judge’s approval.
The case is Federal Trade Commission and State of Washington v. Amway Corp., et al., No. 2:26-cv-03474, in the U.S. District Court for the Western District of Washington.
Amway $225 Million FTC Settlement: Quick Facts
| Detail | Information |
| Settlement amount | $225,000,000 |
| Defendants | Amway Corp.; World Wide Group, L.L.C. (WWG); Leadership Team Development, Inc. (LTD) |
| Government plaintiffs | Federal Trade Commission and State of Washington |
| Court and case number | U.S. District Court, W.D. Washington, No. 2:26-cv-03474 |
| Filed | September 17, 2026 |
| Who may receive money | Nearly all of the money is intended for Independent Business Owners (IBOs) recruited by WWG and LTD who lost money; final rules not yet announced |
| Claim form | Not available yet |
| Claim deadline | Not announced |
| Payment date | Not announced |
| Status | Proposed stipulated order; needs judge’s approval |
Why Did Amway Agree to the $225 Million FTC Settlement?
The FTC and Washington allege that Amway, WWG and LTD used unfair or deceptive practices to recruit people as IBOs. According to the complaint:
- Recruits were told they could earn $40,000 a year or more, replace a full-time income or retire early.
- The complaint says median total bonuses for IBOs in 2023 were $139 before expenses, and fewer than 1,600 of more than 241,000 IBOs received $40,000 or more in bonuses that year.
- Training programs encouraged IBOs to buy set amounts of product each month, whether or not they could resell it.
- Some IBOs were told to report customer sales that did not happen.
These are allegations in the government’s complaint. Under the stipulated order, the defendants neither admit nor deny them, except for facts stated in the order. Amway has said the settlement reaffirms the strength of its business model and that it required compromise.
How Is the $225 Million Amway Settlement Divided?
The proposed order contains separate monetary judgments:
| Judgment | Amount |
| Against Amway Corp. | $154,700,000 |
| Against World Wide Group and Amway, jointly and severally | $39,780,000 |
| Against Leadership Team Development and Amway, jointly and severally | $26,520,000 |
| Subtotal payable to the FTC | $221,000,000 |
| In favor of the State of Washington (costs, fees, monitoring and enforcement) | $4,000,000 |
Money received by the FTC may be used for nationwide consumer relief, including redress and administration costs. The FTC has not announced how much any eligible person could receive.
Who May Qualify for Money From the Amway FTC Settlement?
The FTC says nearly all of the money is for IBOs recruited by WWG and LTD who lost money. It has not published final eligibility rules, a claim process or a payment formula.
Separately, the proposed order requires Amway to send notice to people in the United States who participated in its Marketing Plan between January 1, 2021 and the date the court enters the order. That notice requirement is not the same as a payment eligibility rule.
Ordinary retail customers who never joined the program should not assume they qualify.
Is There an Amway Settlement Claim Form or Deadline?
No. There is no official claim form and no claim deadline. Be cautious of any website, social-media post or message offering an Amway settlement application before the FTC announces the official process.
Real redress programs announced through the FTC do not require you to pay a fee to receive money. Verify any website through the FTC before entering personal or financial information.
What Should Amway IBOs Do Now?
Nothing needs to be filed. Practical steps:
- Keep your records. That includes Amway account information, purchase records and receipts, bonus statements, payments for training, events or apps, and any messages about earnings or recruiting.
- Monitor the FTC’s Amway case page for the redress announcement.
- Don’t pay anyone to file a claim for you before an official process exists.
Don’t send records to anyone unless the FTC or its authorized administrator asks for them.
What Changes Does the Proposed Amway Order Require?
Beyond the payment, the proposed order would change how the program operates:
- At least 70% of each participant’s monthly product volume must come from eligible customer sales, with reduced benefits if they fall short.
- Customer sales must be recorded with the customer’s identity, purchase date, products and amount paid, and customers must receive receipts.
- Amway must not allow fake sales and must terminate participants who fake sales or teach others to.
- Sales records will be audited by an independent outside auditor.
- Participants must complete training before recruiting others.
- Approved providers may not charge new IBOs for training or services during their first year.
Has a Judge Approved the Amway $225 Million Settlement?
Not yet, as far as the FTC’s materials show. The stipulated order was filed September 17, 2026, and the FTC says such orders have the force of law when approved and signed by the district court judge. The time between filing and approval has ranged from weeks to months in past FTC cases, so check the docket before treating the order as final.
Did Amway Admit Wrongdoing in the FTC Settlement?
No. The order states the defendants neither admit nor deny the allegations, except as specifically stated in the order.
Will Every Former Amway IBO Receive Money?
No. The FTC still has to set up the redress program and decide who qualifies. No individual payment amount has been announced, so there is no reliable way to estimate one.
Key Dates in the Amway FTC Settlement
| Date | Event |
| September 17, 2026 | FTC and Washington filed the complaint and proposed stipulated order |
| September 17, 2026 | FTC announced the proposed $225 million resolution |
| To be announced | Court approval of the order |
| To be announced | FTC redress program, claim process and deadline |
| To be announced | Payment date |
Frequently Asked Questions About the Amway $225 Million FTC Settlement
Is the Amway $225 million settlement real?
Yes. The FTC announced the proposed resolution on September 17, 2026. It still needs court approval.
Is this a class action?
No. It is a government enforcement action by the FTC and the State of Washington. For general background on how settlement claims work, see How to Claim a Lawsuit Settlement Money? Step-by-Step Guide (2026). To avoid scams while waiting for an official FTC process, see How to Spot Fake Class Action Settlement Notices? Complete Consumer Guide.
Who may receive money?
The FTC says nearly all of the money is intended for IBOs recruited by WWG and LTD who lost money. Final rules are not yet announced.
Do I need to file a claim now?
No. Keep your records and wait for official FTC instructions.
Are refunds from the Amway settlement taxable?
The tax treatment of any refund will depend on the payment terms and your own tax history, including whether you previously deducted related business expenses. Confirm with a tax professional once payments are announced.
Where was the Amway case filed?
The U.S. District Court for the Western District of Washington, Case No. 2:26-cv-03474.
Sources and Court Records
- FTC, “FTC Takes Historic Action Against Multilevel Marketing Operator Amway for Unfair and Deceptive Business Practices,” September 17, 2026: https://www.ftc.gov/news-events/news/press-releases/2026/09/ftc-takes-historic-action-against-multilevel-marketing-operator-amway-unfair-deceptive-business
- Washington State Attorney General, “WA, FTC reach $225M settlement with Amway for unfair and deceptive business practices,” September 17, 2026: https://www.atg.wa.gov/news/news-releases/wa-ftc-reach-225m-settlement-amway-unfair-and-deceptive-business-practices
- FTC complaint and stipulated order, FTC and State of Washington v. Amway Corp., et al., No. 2:26-cv-03474 (W.D. Wash., filed September 17, 2026).
- FTC case page for FTC v. Amway (lists the matter as pending).
This article does not treat the complaint’s allegations as established facts.
About the Author
Israr Ahmad is a legal content researcher covering U.S. consumer settlements, government enforcement actions and public court records.
This article is for information only and is not legal advice.
About the Author
Israr Ahmad is a legal content researcher with 4+ years of experience covering class action settlements and consumer rights cases. He has researched and published coverage of 2,500+ settlements using verified court records, settlement administrator filings, and government sources. Learn more about Israr.