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This document continues and expands our effort to
show you the other side of the story, the dishonesty
by commission, omission, exaggeration and
understatement that is all too common on the
websites of those who have criticized IBOs and the
business opportunity they represent. As always, we
respect anyone’s right to express legitimate,
fact-based criticism – in fact, that’s essential to
healthy business development. But when critics claim
selfless motives while engaging in
misrepresentation, we’re going to poke holes in that
shield! And when we do, read what they wrote, read
what we wrote, and judge for yourselves.
INTRODUCTION
For many years the Internet has been a wonderful
source of information for the general public and
provided a new and unique vehicle for the free
exchange and sharing of ideas and opinions. The Web
has also been a valuable resource for businesses of
all varieties, and created opportunities for
individuals that were never economically available
in the past. Existing companies have taken advantage
of the expediency and a wealth of information to
improve existing methods and create new concepts for
growth.
Indeed, in September 1999 in cooperation with IBOAI,
Amway Global / Quixtar launched a new business concept allowing
IBOs the opportunity to leverage the value of the
Internet by engaging in Web-based businesses. Among
many other benefits, IBOs are now able to
communicate with one another faster and more
efficiently. By most accounts, it is clear IBOs are
using the Internet more than ever to communicate,
and prospective IBOs are using the Internet
regularly to search for new opportunities, such as
the Amway Global / Quixtar business opportunity.
The free exchange of ideas, open communication, and
the right to differ are values frequently advanced
in a positive manner by the Internet. These same
values have always been embraced by Amway Global / Quixtar and its
North American predecessor, Amway, and have been
hallmarks in the business from the beginning.
The Internet has also spawned a new avenue for
communication traditionally reserved for those in
print and electronic media. Now, anyone with access
to a computer can publish opinions and make unabated
representations of purported fact. The Internet is
largely unregulated and without ethical rules or a
code of professional responsibility such as those
subscribed to by the media and other
professions. Regrettably, the ability to publish
with free reign on the Internet has led to the
emergence of self-proclaimed experts and consumer
advocates who, for reasons mostly unknown to others,
have made it their mission to attack and denigrate
other individuals and businesses. Oftentimes, these
critics possess little or no first-hand knowledge or
experience in the subject matter about which they
assail, and frequently rely on anonymous sources
without making even a modicum of effort to
independently corroborate the information
published. Much of what they publish is specious,
misleading and, at times, completely false.
These Internet critics have victimized many
individuals and companies in the past ten years,
including Amway Global / Quixtar and certain IBOs. Various
strategies have been employed to thwart their
efforts, including litigation, sponsoring websites
responding to the misinformation, or simply ignoring
the critics. Because of the zeal of some of the
critics, most of the strategies used have generally
been ineffective.
Amway Global / Quixtar and some of its IBOs have been subjected to
a few, but very loud, Internet critics. Other than
taking legal action for interference with existing
and prospective business relations, Amway Global / Quixtar and IBOs
had generally ignored these critics, given their
obvious wayward and capricious conduct that reaches
far beyond the consumer advocacy they ostensibly
advance. It was generally thought that by responding
in any manner would merely energize the critics,
affording them the recognition for which they
clamor. However, once it became apparent these few
critics would not relent, Amway Global / Quixtar and the IBOAI
launched their own websites to dispel the false
rumors and innuendo.
Moreover, once the attacks became personal and
outrageously false, several IBOs decided to
communicate directly with one critic who took his
website to an unacceptable level by engaging in
what can only be characterized as a personal
vendetta. What follows is essentially a case study
demonstrating what most already knew – that negative
and disparaging content posted by the few critics is
unreliable, not based in fact, and at times
absolutely false.
CASE STUDIES
JODY
VICTOR
Of the few Amway Global / Quixtar critics on the Internet, Scott
Larsen has by far been the most active and vocal. For
more than five years, Mr. Larsen has seemingly devoted an
inexplicable amount of time and energy focusing on
Amway Global / Quixtar and certain IBOs. Tellingly, Mr. Larsen has
had almost no experience with the business about
which he obsesses – he became an Amway distributor
in 1993, and by his own admission was only active
for approximately two months. Mr. Larsen has never
been a Amway Global / Quixtar IBO.
On his website Mr. Larsen proclaims to be the
purveyor of truth to unsuspecting IBOs and
prospective IBOs, claiming that IBOs are fed
misinformation and taught that facts do not count. A
cursory review of his website, however,
demonstrates that it is Mr. Larsen who is publishing
false and erroneous information to further his own
quest. One of many glaring examples can be found on
Mr. Larsen’s site, where he has boldly stated that the
“IBOAI actually owns the exclusive merchandizing
rights for the Amway product lines.” Apart from the
IBOAI being a non-profit corporation generally
incapable of owning such rights, Amway and Amway Global / Quixtar
have always exclusively owned all merchandising
rights for product lines. This well known fact is
easily discoverable with little effort. Mr. Larsen
made absolutely no effort to verify his contention.
One fact learned by engaging Mr. Larsen directly is
his misplaced reliance on rumor and innuendo
provided by sources cloaked in anonymity. Even when
his sources are revealed and admit their information
is nothing more than malicious rumormongering, Mr.
Larsen presses forward posting the information as
though it were true. In fact, one of Mr.
Larsen’s principal sources has been discovered to
have a record of convictions for felony perjury and
misdemeanor obstruction of justice for lying to
authorities. Basically, Mr. Larsen makes no effort
to check his sources or verify the accuracy of the
information they provide before he publishes it on
his website.
Mr. Larsen’s relatively recent Web posts and related
communications have become personal and bordering on
the bizarre. In November 2005, Mr. Larsen posted
information he received from an anonymous source
concerning IBO leader Jody Victor, his family, and
their business. The matter posted was completely
false and malicious and published without Mr. Larsen
even attempting to contact Mr. Victor about its
veracity. Mr. Victor felt compelled to demand a
retraction from Mr. Larsen.
Specifically, on his website Mr. Larsen falsely
represented that:
-
Jody and Kathy Victor are only periodically
qualifying Emeralds;
-
Jody never had a business as large as Crown;
-
Jody caused the family Crown portrait displayed
at company headquarters to be retouched by
having his former wife removed from the
portrait;
-
Jody’s Father, Joe Victor, relinquished any
claim to the American Way Association before he
died so Jody could not meddle in the business.
Of course, none of these malicious allegations made
by Mr. Larsen are true. On December 13, 2005
Jody
forwarded a
letter to Mr. Larsen demanding a
retraction and that he correct the record. Several days later, in response to
Jody’s letter, Mr. Larsen posted what he
characterized as “Jody Victor Statement
Retractions.” Although represented as a retraction,
Mr. Larsen
refused to accept Jody’s representations
and pressed forward with more questions addressed to
Jody.
On the same day he posted the so-called retractions,
Mr. Larsen
wrote to Jody promising to issue public
apologies if Jody would “give his word” (which Jody
had already done with his first letter to Mr.
Larsen) regarding the four issues mentioned
above. For the first time, Mr. Larsen revealed he
was relying on an anonymous source, who turned out
to be a disgruntled IBO. As discussed in more detail
below, it became evident that before publishing the
false and malicious statements about the Victors,
Mr. Larsen made no effort to verify or corroborate
the dubious information provided by his anonymous
source.
In an exceedingly reasonable
effort to conclude the matter, on January 9, 2006 Jody once again clearly and unequivocally advised
Mr. Larsen of the true facts. Although Jody answered the questions for a
second time, Mr. Larsen did not act as
promised. Jody’s word was not accepted and public
apologies from Mr. Larsen were not forthcoming. In
fact, on January 11,
Mr. Larsen for a third time
questioned Jody about his pin level qualification. On January 19 and 23, Jody
answered this same question again for Mr. Larsen. It
became patently clear that Jody’s word, as requested
by Mr. Larsen, would never be sufficient.
Moreover, at the same time he was corresponding with
Jody and promising to accept Jody’s word, Mr. Larsen
was communicating with a disgruntled IBO from whom
he obtained the false information. Contrary to
taking Jody’s word, Mr. Larsen was hoping the
anonymous IBO
(name withheld to honor the IBOs right to privacy)
could prove Jody wrong. The false and malicious
information provided by the anonymous source fed Mr.
Larsen’s appetite for publishing tabloid-like posts
on his website.
Once the identity of Mr. Larsen’s anonymous IBO was
discovered, the IBO admitted to Jody and others,
including Mr. Larsen, that his information was
nothing more than malicious, unsubstantiated rumor.
The IBO contacted Mr. Larsen advising him that the
information previously provided was not factual or
credible and that he could not be considered a
reliable source.
Undaunted by this revelation, Mr. Larsen contacted
Ken McDonald, former Amway Global / Quixtar Sr. Vice President and
Managing Director, again inquiring about the
Victors’ pin level. Naturally, Mr. McDonald
verified exactly what Jody had conveyed to Larsen
multiple times.
Mr. Larsen even contacted William Halliday,
long-standing attorney for IBOAI, questioning Mr.
Halliday about whether Joe Victor (Jody’s Father)
relinquished his ownership rights in the American
Way Association before he died. This was a question
Jody had already answered for Mr. Larsen on three
separate occasions.
Finally, to maintain even a modicum of credibility
and dignity,
Mr. Larsen posted the
belated public
apologies he previously promised Mr. Victor in the
first instance. These public
apologies were posted on February 7, 2006, nearly
two months after Mr. Larsen promised to do so if
only Jody would give his word. By signing his first
letter dated December 13, 2005, and all subsequent
correspondence delivered to Mr. Larsen, Jody gave
his word and more.
We are left to wonder why Mr. Larsen did not invest
the small amount of time it took to contact Mr.
McDonald and Mr. Halliday before he launched his
malicious and disparaging Web campaign against Jody
and his family. Instead, Mr. Larsen conveniently
chose to rely on an unreliable, anonymous source
without ever attempting to independently verify the
truth of the information. Mr. Larsen then had the
temerity to use this and other misinformation in
support of his claim, as described on his website,
that he is the voice of honesty and reason when it
comes to Amway Global / Quixtar and its IBOs.
While his motives may be unclear, Mr. Larsen’s
intent is really not difficult to discern. The smear
campaign against the Victors using false and
malicious information is not an isolated
incident. In fact, a simple review of Mr. Larsen’s
website reveals an entire devotion to negative
missives about Amway Global / Quixtar and its IBOs. Not one
positive story or post can be found, which is
mildly astonishing since the company and its
distributors have been in business in one form or
another since 1959! Under these circumstances, the
considered approach would normally be to reject Mr.
Larsen out of hand. But, when his Web posts became
more personal and malicious in nature, the Victors
and others felt compelled to respond.
Feeling the sting from his previous montage of
admitted errors, Mr. Larsen still could not let the
matter go and continued to search for anything
negative relative to the Victors about matters
occurring nearly 25 years ago. For almost two months
after posting his retractions and public apologies
regarding the Victors, Mr. Larsen’s website was
essentially silent relative to Jody and Kathy
Victor; however, during that time Mr. Larsen was
engaged in a clandestine effort to dredge up any
pejorative facts he could find that would tend to
discredit Jody and Kathy.
Specifically, on April 6, 2006 Mr. Larsen published
a new post making false and disparaging statements
concerning how the Victors achieved their Crown pin
in 1981. According to Mr. Larsen’s research and
information obtained, once again, from unnamed sources, the
Victors obtained their Crown pin by less than
honorable means and were referred to as “Cookware
Crowns”. In Amway jargon, “Cookware
Crown” connoted a distributor who acquired the Crown
pin through an implied circumvention of the spirit
of the qualification rules. Moreover, Mr.
Larsen falsely accused Jody of “publicly
disseminating false information,” and “lying on the IBOA [W]ebsite.”
In his zeal to manufacture support for his caustic
approach, Mr. Larsen once again astoundingly relied
on sources whose reliability and objectivity were
suspect at best.
At the
insistence of the Victors’ attorney, Mr. Larsen revealed the identity of
his sources – many from the same tiresome group he
used for drawing his other erroneous conclusions
about the Victors (Bo Short, Eric Scheibeler and
Bruce Anderson). These sources have no connection with the
Victors and were not even distributors in the
1980’s. Moreover, by Mr. Larsen’s own admission,
even these sources reported that the “Cookware
Crown” issue was nothing more than a
rumor. Consistent with his past conduct, Mr. Larsen
chose to stretch this rumor and report it on his website as fact.
In fact, Jody and Kathy Victor achieved their Crown
pin in August 1981 by sponsoring twenty (20) Direct
Distributor legs (25% level for at least three
consecutive months), an accomplishment much more
difficult than what Mr. Larsen described. The
Victors and many others remain mystified by Mr.
Larsen’s continuous obsession with twisting obscure
events, even some that occurred 25 years earlier.
Challenged yet again by the Victors for his false
and disparaging content, on April 17, 2006
Mr.
Larsen immediately issued
another retraction and
apology for “jumping the gun.” In correspondence between Mr. Larsen
and the Victors’ attorney, Mr. Larsen on several
occasions agreed to not publish any further material
or comments about the Victors. Only time will tell
if Mr. Larsen will keep his word.
BILLY FLORENCE
Soon after Jody Victor engaged
Mr. Larsen,
Billy Florence wrote
to Mr. Larsen
demanding a retraction and that Larsen correct
the record concerning disparaging statements he
posted about Billy and his business. Mr.
Larsen had stated on his site that the Amway Global / Quixtar
approved SA4400 used by Billy was “overly
deceptive”, essentially accusing Billy of fraudulent
business conduct. Billy’s letter pointed out to Mr.
Larsen that his allegations were based on an
entirely erroneous analysis of the SA4400 and the
Amway Global / Quixtar Sales and Marketing Plan.
The errors made by Mr. Larsen should have been
apparent to someone who represents that his “site
presents common sense business analysis
and realistic views of the Amway/Quixtar business”
(emphasis added). Specifically, Billy found four
significant mistakes in Mr. Larsen’s post, which
render his analysis of the Plan fatally flawed,
arbitrary and completely unreliable.
Mr. Larsen’s errors included:
-
An allegation that Billy created the SA4400 he
uses and simply stamped a Amway Global / Quixtar copyright on
the document;
-
An assertion that an IBO with two qualifying
legs must have at least 2500 PV in side volume
to qualify for the leadership bonus;
-
Carelessly misrepresenting what the SA4400
explicitly provides regarding over what period
of time the income potential may be earned
(inaccurately claiming the SA4400 shows total
income potential per year, instead of over a two
year period);
-
Improperly calculating and grossly understating
the leadership bonus available to an IBO with
two qualifying legs and 7500 PV in side volume.
Mr. Larsen relied upon these false and misleading
assumptions to support his premise that Billy is
deceiving prospective IBOs by using his customized
SA4400.1
In response
to Billy’s letter, and in similar fashion to Jody’s
case,
Mr. Larsen posted a new
Web page admitting his
errors on all four issues. While
Mr. Larsen conceded making numerous errors in his
analysis of the SA4400, he made a futile effort to
deflect criticism, claiming he has never held
himself out as an expert in the Amway Global / Quixtar
business. This self-serving declaration belies the
actual facts. A casual review of Larsen’s site
reveals his unfettered and express desire to be
considered an expert in all matters Amway Global / Quixtar
related. The site contains numerous links to a
myriad of Amway Global / Quixtar and IBO-related subjects, even
offering an alternative sales and marketing plan for
Amway Global / Quixtar to employ.
Mr. Larsen is attempting to have it both ways. On
the one hand, when his mistakes surface and are
revealed to the public, Mr. Larsen admits he is not
an expert and that his sources are not always
perfect. In contrast, he indisputably holds himself
out as an expert and the foremost critic of Amway Global / Quixtar
and its IBOs.
If Mr. Larsen is taken at his word that he does not
consider himself an expert and that his sources are
not always accurate, most troubling is his unabated
willingness to cast aspersions on the integrity of
Amway Global / Quixtar and its IBOs. For example, in one of the
pages on his site Mr. Larsen characterizes the
Amway Global / Quixtar business as “Americas [sic] most respected
fraudulent marketing scheme.” He accuses Billy and
other IBOs of engaging in fraudulent behavior and
refers to the Amway Global / Quixtar business as “America’s most
popular commercial cult.” These offensive and
insulting themes can be found throughout Mr.
Larsen’s website.
Mr. Larsen admittedly was an Amway distributor for
only a period of months over 12 years ago. He
acknowledges that he is not an expert in the Amway Global / Quixtar
business and relies on sources, anonymous and
otherwise, that provide inaccurate information and,
in Jody’s case, unsubstantiated rumor and
innuendo. There is little to no effort made by Mr.
Larsen to corroborate any of the charges he levels
against Amway Global / Quixtar or the IBOs. In sum, Mr. Larsen’s
website provides anything but a good faith,
objective analysis of the business.
To determine Mr. Larsen’s real
motives, examining
several of the links to his site prove
illuminating. Astonishingly, the site contains a
link to a page exploiting the personal tragedies of IBOs and their family members. This
page has no legitimate business purpose and is
designed only to
embarrass and humiliate individuals
and families. Some of the types of information
include the following:
-
divorces,
-
confidential
details of personal relationships,
-
medical
conditions,
-
personal
family tragedies,
-
and a section
containing negative rumors and innuendo.
This and other pages to
which Mr. Larsen’s site is linked appeal solely his
prurient interest.
Another troubling fact about Mr. Larsen emerges from
his publications. When Mr. Larsen publishes grossly
inaccurate information that disparages and defames
IBOs, his reputation in his trade or occupation is
not tarnished or adversely affected. Mr. Larsen
answers to no one and is guided only by his own
ethics and moral compass. In other words, Mr. Larsen
risks nothing by taking a wayward and cavalier
approach to Amway Global / Quixtar and its IBOs. Conversely, Mr.
Larsen’s invectives about IBOs, such as Jody and
Billy, have a direct, adverse impact on their
businesses. Substantial time, effort and money must
be expended to repair the damage caused by such
false and disparaging comments. The use of these
valuable resources is diverted from what IBOs do
best – engage in building and helping others build a
successful Amway Global / Quixtar business.
The difficulties created by Mr. Larsen’s erroneous
and fabricated publications are compounded when
republished and promoted by other bloggers. Several
Amway Global / Quixtar critics have adopted Mr. Larsen’s defamatory
statements and caustic theme to advance their own
crusade against Amway Global / Quixtar and its IBOs.
These bloggers report as true Mr. Larsen’s
publications with very little or no independent
research having been performed. The republications
allow for the false rumor and innuendo to be spread
exponentially. Though Mr. Larsen retracts his untrue
statements after being shown that his information is
false, the bloggers who repeat his
misrepresentations and rumors let them stand.
Debra Masselink is a Amway Global / Quixtar critic who believes in
and supports Mr. Larsen to a fault. Ms. Masselink
is a frequent blogger, engaging with several other
bloggers in endless criticism of Amway Global / Quixtar and IBOs. Ms.
Masselink on several occasions repeated Mr. Larsen’s
April 6, 2006 publication accusing Jody Victor of
“publicly disseminating false information” and
“lying on the IBOA [W]ebsite.” Moreover, Ms.
Masselink failed to correct or even modify her
negative comments, even after Mr. Larsen retracted
his statements and apologized to the Victors.
Unabated by Mr. Larsen’s admitted errors, Ms.
Masselink incredulously suggested that Mr. Larsen
was “just gathering more evidence.” The Victors were
compelled to retain legal counsel in an effort to
dissuade Ms. Masselink. A
demand letter from counsel evoked a
retraction and
an apology to the Victors from Ms. Masselink. Ms. Masselink claimed she “did
not respond to Scott Larsen’s retraction” hoping to
“let a dead dog lie”.
Not surprisingly, Ms. Masselink was unable to follow
her own credo; her rancor against Amway Global / Quixtar and the
Victors get the better of her. Soon after she issued
the retraction and apologized to the Victors, Ms.
Masselink complained to the other bloggers that she
would have responded favorably to a friendly or
“nice” letter from the Victors. According to Ms.
Masselink, a “threatening” letter from legal counsel
was heavy-handed.
But Ms. Masselink and her fellow bloggers who cry
out for a friendly, less hostile, communication
environment, refuse to adhere to the ethics they
espouse. Prior to accusing the Victors of lying,
publishing false information and generally engaging
in dishonorable business tactics, neither Mr. Larsen
nor Ms. Masselink attempted to contact the Victors
to engage in a “friendly” dialogue. Under any
reasonably ethical communication standards, a person
accused of such conduct should be permitted to
respond before the allegations are published.
Regrettably, this is the environment several critics
have created. They publish false and disparaging
statements about Amway Global / Quixtar and its IBOs based upon
inadequate research and information obtained from
unreliable sources. Prior to publishing their
invectives, these critics fail to provide the IBO
under attack with an opportunity to refute the
allegations or place the dubious information in
proper context. Conversely, when the critics’ errors
and missteps are exposed, they remarkably complain
because the targets of their malicious attacks
failed to educate them with a friendly telephone
call or a kind note.
1In a
transparent effort to save face, Mr. Larsen could
only point out one relatively insignificant issue
concerning the SA4400. The SA4400 prepared by
Amway Global / Quixtar for Billy was first published in November
2004. Just prior to its publication, a rule change
occurred in the sales and marketing plan, causing
the SA4400 to actually understate potential
earnings. The
SA4400 was modified in a timely manner to
incorporate the change and republished only two
months later, in January 2005.
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