Amway Corp. and two affiliates have agreed to pay $225 million to the Federal Trade Commission and Washington state to resolve allegations that they used deceptive income claims to recruit new members, the FTC announced Thursday.

The agency alleged that Amway, World Wide Group LLC and Leadership Team Development Inc. told prospective recruits they could earn $40,000 or more through the business. According to the FTC, however, most people who joined the two affiliates after 2020 spent more on training and Amway products than they earned.

The FTC said recruits were encouraged to purchase products they did not want or need as a way to qualify for compensation and advance within the company's structure. The $225 million settlement will largely be used to compensate Amway members affected by the alleged conduct.

Amway also agreed to change its business practices to discourage members from attempting to generate income primarily by purchasing products themselves and recruiting others to make purchases rather than through actual product sales.

The FTC described the settlement as the largest monetary resolution resulting from an agency action against a multilevel marketing company.