Complaint
The FTC filed a complaint on March 25, 1975, alleging five counts of violating Section 5 of the Federal Trade Commission Act:
- Count I of the complaint alleged that Amway engaged in resale price maintenance.
- Count II alleged that Amway allocated customers among distributors and restricted the distributors' source of supply as well as the retail outlets through which they may resell;
- Count III alleged that Amway restricted the distributors' advertising.
- Count IV alleged that Amway misrepresented that substantial income may be obtained from geometrical increases in the number of distributors in the chain recruiting operation of the Amway distribution plan.
- Count V alleged that Amway misrepresented the profitability of a distributorship and the potential for recruiting new distributors and failed to disclose the substantial business expense involved and the high turnover of distributors.
Oral arguments were heard on June 6, 1978.
Read more about this topic: In Re Amway Corp.
Famous quotes containing the word complaint:
“Of all things in life, Mrs. Lee held this kind of court-service in contempt, for she was something more than republicana little communistic at heart, and her only serious complaint of the President and his wife was that they undertook to have a court and to ape monarchy. She had no notion of admitting social superiority in any one, President or Prince, and to be suddenly converted into a lady-in-waiting to a small German Grand-Duchess, was a terrible blow.”
—Henry Brooks Adams (18381918)
“The complaint ... about modern steel furniture, modern glass houses, modern red bars and modern streamlined trains and cars is that all these objets modernes, while adequate and amusing in themselves, tend to make the people who use them look dated. It is an honest criticism. The human race has done nothing much about changing its own appearance to conform to the form and texture of its appurtenances.”
—E.B. (Elwyn Brooks)
“A few years ago, the liberal churches complained that the Calvinistic church denied to them the name of Christian. I think the complaint was confession; a religious church would not complain.”
—Ralph Waldo Emerson (18031882)