In an effort to protect itself from unsavory opinion in the business world, Quixtar announced
Quixtar, a multi-level marketing company focused on supporting and creating retail business opportunities for individuals, severed ties with 15 independent businesses related to their team training organization as well as other organizations that used their materials. Those organizations, in turn, filed lawsuits against Quixtar.
At the center of this controversy are Orrin Woodward and Chris Brady, the creators of Quixtar's Team training division, also known as Team of Destiny. Woodward and Brady worked with Quixtar in order to clean up some of Team's alleged inappropriate business teachings such as use of unauthorized materials and inappropriate positioning of the opportunity. Quixtar, formerly known as Amway, feared that if the teachings continued, the company and Independent Business Owners (IBOs) would face legal actions against them. IBOs are the individuals who sell products that Quixtar markets, such as their own brands of paper towels, vitamins, and energy drinks like XS. IBOs can get the products at discount prices but can get them at even deeper discounts if they recruit other IBOs. Quixtar avoids becoming an illegal pyramid scheme by not allowing IBOs to take from the profits of their recruits by instead earning bonuses based on their recruits' sales.
the end of business relations with several independent partners due to unethical business teachings.
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