With a $100 billion global market, Amway is a juggernaut.
As such, many Amway affiliates have come under fire for not disclosing that they offer the products and services they claim to offer, according to a Reuters investigation.
In 2017, a U.S. District Court judge ruled that Amway distributors must reveal their marketing practices, citing a 2011 case in which Amway agreed to pay a $300 million fine for failing to disclose its deceptive advertising practices.
But the FTC says Amway’s marketing practices may be too vague, and it wants the company to disclose more.
“The FTC is pleased to bring its full resources to the Amway investigation,” FTC Chairwoman Edith Ramirez said in a statement on Tuesday.
“Amway has a lot to answer for.
The FTC is committed to ensuring Amway products are safe, effective, and ethical.
We have a number of resources in place to help Amway companies address any concerns the FTC may have with their marketing, including the Consumer Protection Division’s Consumer Advertising Fraud Unit and the Office of Public Information for Amway.”
The FTC has been investigating Amway since 2015, when it launched a consumer fraud investigation into its marketing practices.
In the wake of the 2016 FTC settlement, Ampath’s sales dropped by more than $3 billion, according a recent study by the consulting firm IHS.
In January, Amways stock closed down 7 percent, a drop of more than 40 percent since the beginning of the year.
“As the Amways share price continues to decline, the FTC’s investigation has been ongoing and continues to produce significant and unprecedented results,” said Amway spokesperson John DeLuca.
“We are confident that Amways compliance with the FTC is satisfactory and our customers are well served by its actions.”
Amway was not immediately available for comment.