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Pyramid Scheme Alert (PSA) provides current and historical news items that are of interest to our members and visitors. None of the reports or commentaries is intended to imply that any of the referenced companies have been charged or convicted as illegal pyramid schemes.


February, 2007

A Pennsylvania, court has denied Quixtar (Amway) its claim that former Amway Emerald distributor and whistle-blower, Eric Scheibeler, must submit to Quixtar’s infamous “binding arbitration” process.

Scheibeler has written a widely read book, Merchants of Deception that details deception in the Quixtar recruitment program run by Quixtar “kingpins.”

Pyramid Scheme Alert has facilitated a legal defense fund to help defray the huge legal costs that Scheibeler has had to bear in order to defend his rights. Consumers from throughout the USA, Canada, Australia, New Zealand, Germany, England and other countries have sent money to the fund. Each of those contributors has helped Eric Scheibeler stand up to the Amway/Quixtar campaign to silence him. Funds are still needed.

The court ruling is a major defeat for Amway/Quixtar. Quixtar tried to force a distributor into Amway’s own system of arbitration years after the distributor stopped working with the company. Quixtar appeared to believe it could prevent ex-distributors for the rest of their lives from ever speaking out. Binding arbitration would have prevented Scheibeler (all other distributors) from free speech, long after ending work as an Amway distributor. Amway/Quixtar claimed that Scheibeler had defamed the company. It wanted that charge decided within its own arbitration program, not in a regular court of law.

The Judge stated that Quixtar's arbitration process was “unconscionable.” Consumers are faced with a “take it or leave it” proposition to agree to the arbitration when they sign up. Few could possibly know its full effects on their lives.

The extreme efforts that Amway will go to silence Scheibeler raises the question of how many other former Amway distributors have borne their losses and “failure” in silence, fearing that Amway might legally harass them and financially ruin them with legal costs.

False Profits

This page last updated on 2/18/07