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Myrick supports multi-level marketing bill
The granddaddy of multi-level marketing, Amway, is largely responsible for first electing Sue Myrick to congress from Charlotte and now she is backing a bill which could benefit the company.
When Myrick first ran for mayor and congress, she spoke at Amway rallies.
“Amway is what made this country great,” she said back in 1991.
Myrick received hundreds of thousands of dollars in campaign contributions from Amway representatives. She even sold tapes produced by a leading Amway distributor.
“Some of them I know through the business. I’m in the Amway business,” Myrick said during a previous interview. “As I went to speak at different meetings they had around the country, if someone donated $10 to my campaign they could get a tape.”
Myrick has since moved on and so has Amway, changing its name to Quixtar. But critics say it’s the same old game.
A recent Dateline NBC hidden camera investigation found Quixtar reps preaching the gospel of wealth. What they don’t say is that most people like Eric Scheibeler never make money.
“Financially we have nothing specifically as a result of this,” he said.
Now Myrick has cosponsored a bill called the anti-pyramid scheme act.
“Any type of a pyramid promotion is not something that should happen and people should not take advantage of other people in doing that it’s not something anyone approves of,” she said.
Robert Fitzpatrick runs an organization called Pyramid Scheme Alert.
“It’s a very specific bill that protects a very certain kind of company, Amway being the greatest example of that,” Fitzpatrick said.
He said the anti-pyramid scheme act changes the legal definition of a pyramid scheme.
“It would legalize a company that sells virtually no products to the public,” Fitzpatrick said.
That means reps could just sell products to other reps and still avoid being called a pyramid.
Myrick said no one ever told her that.
“I had heard nothing about it until your phone call frankly so this is news to me,” Myrick said. “I can just tell you nobody has contacted me about it. Nobody encouraged me to sign the bill.”
6NEWS asked Myrick how long it’s been since she earned money through Amway or Quixtar.
“What does this have to do with the whole story? I’m kind of curious,” Myrick said. “It’s been many years quite frankly because as I told you I’ve been inactive in the business for a lot of years since I’ve been in congress actually.”
6NEWS also asked Myrick if she knows how much money she and her husband made through Amway or Quixtar.
“No I don’t and that’s private information,” she said. “Simply because we have a corporation and we don’t release that just like anyone else, but I can tell you it’s not a lot of money.”
In 1986 Amway paid a $100,000 civil penalty to the Federal Trade Commission and agreed not to make exaggerated claims about income. Myrick said the FTC never concluded Amway was a pyramid scheme.
Fitzpatrick said the FTC should take a second look in light of recent court rulings before the law changes to prevent it.
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