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:
“I haven’t eaten in three days. I didn’t eat yesterday, I didn’t eat today and I’m not going to eat tomorrow. That makes it three days!”
—S.J. Perelman, U.S. screenwriter, Arthur Sheekman, Will Johnstone, and Norman Z. McLeod. Chico Marx, Monkey Business, a complaint shipboard stowaway Chico makes to fellow stowaway Groucho Marx (1931)
“In this part of the world it is considered a ground for complaint if a man’s writings admit of more than one interpretation.”
—Henry David Thoreau (1817–1862)
“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)