Webster v. Omnitrition, 79 F.3d 776 (1996)

Is Summary Judgment appropriate when a company pleads an "Amway safeguards defense?"


The Court of Appeals held that to succeed on Summary Judgment by asserting an "Amway safeguards defense", a company must present evidence that their safeguards are actually effective in preventing inventory loading and encouraging retail sales by distributors. In the District Court, Omnitrition had presented evidence that its sales program had been deliberately structured like Amway's program, which had been found not to be fraudulent or deceptive in a FTC administrative decision. Omnitrition failed to present evidence that their program rules regarding minimum retail sales and minimum number of retail customers were actually successful in doing what they claimed. Hence, a genuine issue of material fact existed, and summary judgment was not appropriate.

The full case and case summary also available online at: http://www.mlmlegal.com/legal-cases/Webster_v_Omnitrition79F3d776-1996.php

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:Federal, 9th Circuit, California | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Written by:


Babener & Associates on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.