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Decoded: Amway's ED troubles turn focus on direct-seller vs pyramid model

The company maintains the action was related to a case in 2011 and it has been cooperating with the investigative agency

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Direct-sellers like Amway have from the beginning been asking for a monitoring law under which the differentiation between direct-sellers like them and fraudulent structures like pyramid and money circulation schemes is clearly established

Surajeet Das Gupta New Delhi

5 min read Last Updated : Apr 23 2022 | 6:05 AM IST

The Enforcement Directorate (ED) on Monday attached assets worth over Rs 757 crore belonging to Amway India Enterprises under the anti-money laundering law. Here’s a look at why the ED took this step and why the Amway model came under scrutiny.

Why did ED freeze Amway India’s assets worth Rs 757 crore?

The ED alleged that Amway was running a pyramid scheme fraud in the guise of direct-selling multi-level marketing. It also argued that prices of most products offered by the company were exorbitant compared to alternative popular products of reputed manufacturers available in the open market. The company maintains the action

Topics : Enforcement Directorate Amway India Amway Direct selling

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