Taking legal action against Amway or IBS

TPAOY · 12 January 2006 at 1:24AM

Hope I'm in the right board (or that mods will quickly put me in the correct place).

Was foolish enough to believe the hype and fantasy world shown to me by Amway and IBS (International Business Systems based in Frome). Became an Amway distributor in 1995 and followed the IBS training system (books, tapes, seminars and meetings with mentors) until the end of 2001. In total, I've spent over £20,000 chasing a system that now turns out to be about building empires for the few leaders who sell the training system.

I'd like to know if anyone else is in the same boat and if they have managed to recover costs from IBS or Amway. I believe that we were deliberatley misled over several years and that this was deliberate fraud as has now been shown by the number of 'leaders' who have been caught up in tax scams etc.

I'm in Scotland, so the law may be slightly different, but if any legal experts can advise me if it looks like there may be a case to pursue I'll happily provide all the details I can.

Finally decided to face my stupidity and hopefully prevent some other people from getting caught in the same 'brainwashing' 'cult' that tok place.

Any advice from any quarter gratefully recieved and you can PM me as weel.

Thanks,

MLM victim :mad:

nej · 12 January 2006 at 11:41AM

Might be tricky. Technically, MLM works and is perfectly legal. I'm sure they would argue that just because you were unsuccessful that is down to your failure to recruit, and that they provided (ok, sold!) you all the information you needed.

They'd also be able to drag out many successful people to prove it does work (although I'm sure you could find a lot that say it doesn't!).

At the end of the day, it's David vs Goliath. Amway are huge, and have plenty of cash to fight anything with.

Might be worth a bit of Googling, as I'm sure there are some "anti-Amway" sites out there!

TPAOY · 12 January 2006 at 12:26PM

Thanks for the reply. I've looked on google, but IBS seem to be very elusive and one of the few to actually refer to IBS (International Business Systems) is another post under the scams headings on these forums.

Beef is not so much with Amway who provide the products as with IBS who are the people conning others with their "training system".

MLM is legal as you state, it seems to be some of the offshoots that are around to "support" you that are out to make as much money as they can. Have a look at https://www.formerdiamond.com to find out more about the practices they get up to based on a very experienced American former distributor.

As before - any advice (good news or bad) gratefully received.

Thanks,

MLM victim

BFG_2 · 13 January 2006 at 7:38PM

If you pai anything to them on credit card you may be able to reclaim it under Section 75 protection - but be warned the card provider will do their damdest to avoid paying out....it's just that you're more likely to get a result from them than Amway.etc.

I speak from bitter experience (card provider and section 75, not Amway, that is)

TPAOY · 14 January 2006 at 12:11PM

Unfortunately "Business Tools" all paid to IBS with cash. Amway products have been paid by both, but Amway aren't really the ones at fault I've got to admit.

Don't know if anyone has ever taken IBS on and got money back from them.

MickKnipfler · 14 January 2006 at 12:31PM

Did you not get the training? What's wrong with it?

TPAOY · 14 January 2006 at 1:39PM

At the time IBS (International Business Systems) seemed genuine and they certainly do "train" you. What was not apparent to me was that it is a form of "brainwashing" where they get you totally sucked in to their system and you are taught to ignore everything else as their system will get the results.

See https://www.formerdiamond.com to see how they perpetuaute the systems as started in the US. The whole point is to make money out of these training systems knowing full well that only 0.067% of people will actually make it.

Amway themselves are not a complete con, just overpriced for quite a lot of items and quite high delivery charges if you aren't retailing enough.

If you have not been sucked in to one of these then it is hard to envisage how much it takes over your life. If I could recover anything from IBS I'd be very happy.

MickKnipfler · 14 January 2006 at 1:42PM

I guess, if the facts are big enough, the dream don't count....

TPAOY · 14 January 2006 at 1:46PM

Sounds like you know a bit about the way they work! Have you had personal experience of this type of "training".

MickKnipfler · 17 January 2006 at 2:55AM

yes I have. A lot of what they teach is actually useful in life. I think the principles behind "the business" are sound. I do have some issues though over whether they actually practice what they teach in "the plan"

TPAOY · 17 January 2006 at 10:18PM

I agree that they do teach a lot of general principles that are good in life. They don't seem to follow them themselves as the number of UK Emeralds and Diamonds in IBS and other organisations who have fallen foul of various authorities has shown.

I was never comfortable with the way the system was pushed on people and the costs they were being asked to bear regardless of their circumstances.

I was fully in to it and travelled all over the UK for seminars, showing the plan whilst at the same time personally buying products to keep the 200 points going. Reckon I spent over £20,000 which has basically landed me in my current position as well as losing vast amounts of overtime money as I was told not to do it, but concentrate on building the business.

Still in Amway (only as I feel it may give me some more leverage with my upline) but escaped the IBS money making machine in 2001 after six years.

Haven't actually approached IBS to see if I can get anything back (boxes of tapes etc all stored in the loft) or if there are any other distributors who would buy tools from me at a reduced price to save them some of the money IBS would take.

Taking legal action against Amway or IBS

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