Finance

In this current low-regulatory environment, I was surprised to see that the Federal Trade Commission (FTC), the State of Washington, and Amway just announced a $225 million settlement over “Unfair and Deceptive Business Practices”.

Multilevel Marketing (MLM) firms, sometimes called “pyramid schemes”, have a common set of criticisms and the settlement details offered some detailed examples of those criticisms. If you have thought about joining an MLM, you should definitely read the entire thing.

Most Amway “Independent Business Owners” (IBOs) lost money. Amway promises you an easy, ready-to-go business opportunity. $40,000+ a year on the side sounds great, right? In fact, the majority of IBOs spent more money purchasing Amway products and paid training materials than they ever made back from Amway. Not really a great side hustle when most people joining ended up losing more money than if they did nothing at all. At least if you deliver for DoorDash, you’ll get paid for your time.

The primary goal is to recruit more IBOs (build the pyramid). You end up getting the most commission when you recruit another person as an Amway IBO (who then buys the products), not actually selling products to customers. The products are nothing special. The “business owners” themselves are the source of profit.

Amway pressured IBOs to buy product themselves and then pretend those were real sales. The settlement states Amway and its affiliates deceptively instructed IBOs to falsely report product sales that never happened. This was designed to create the illusion that Amway’s revenue came from legitimate retail sales rather than internal recruitment purchases. This in turn makes the next recruit think it’s a great business.

Expensive paid training materials and seminars. Another significant source of revenue for people who actually made money at Amway was by selling proprietary training materials and seminars to new IBOs. Many are pitched as “required” for success.

Beyond the $225 million judgement amount, which mostly goes to past Amway IBOs, the settlement will enforce the following new rules to try and counter the above dangers for future Amway IBOs:

• Actually sell 70% of your product: IBOs will be required to sell to others at least 70% of the products they purchase from Amway each month.
• Reduced Recruitment Compensation: Recruiters will receive substantially reduced compensation if the IBOs they recruit buy products but do not resell them.
• Sales Tracking & Receipts: IBOs will need to report all of their customer sales promptly, including the actual sales price, and Amway will send receipts to all of an IBO’s customers.
• No paid training during first year. Amway can’t charge new IBOs for any training or “mentorship” during their first year.

I hope that news of this settlement travels so that people can be informed of the potential dangers of most MLM programs. I’m sure some members make a little bit of side income selling the turnkey MLM product, but the facts are the most just get eaten up in the machine and end up with a bunch of unsold product in their garage.

MLMs are definitely on my “Simply Avoid” list. Beyond having to bother my friends and family, most MLMs don’t have much upside potential because the product is a commodity. I would tell my kids that even the more successful Amway folks would have been better off creating their own business based on their own set of unique products, knowledge, and/or skills. It’s very cheap to start a business now – keep your downside low, and your upside high.

Image source: Amway

Audible has a new promo for $0.99/mo for 4 Months + $20 Audible Credit. This offer is targeted but should be widely available for past customers as long as you haven’t done a trial very recently (it worked for me and I’ve done 5+ free trials in the past). Offer ends October 7, 2026 at 11:59 PM PT. Cancel anytime.

With Audible Standard, you get 1 audiobook credit each month, so that’s 4 credits over 4 months. With the newer and cheaper Audible Standard plan, you only get to listen during that month and then you lose it. (Audible Premium lets you keep the audiobooks forever.) The $20 credit should cover at least 1 additional audiobook at full price and then offset some of a second one, which you get to keep forever. Audible Standard renews at $8.99/per month, so be sure to set a reminder after your four months is up (cancel 3 months from now and it won’t renew).

(Note that I am an Amazon affiliate and Amazon doesn’t let me put links in e-mails, so you may have to visit the original post to see all the links. Thank you.)

With Audible Premium trials and book credits, once you buy an audiobook, it is yours “forever”. (With Audible Standard, the monthly free book only lasts during the month you pick it.) You can go back and listen whenever you want, even if your membership is not active. Through these promos I have the entire Harry Potter collection read by Jim Dale (though now they have the new full cast edition) and currently finishing up the Percy Jackson series for the kids to listen to during roadtrips. More recently, Project Hail Mary was also good as an audiobook.

Activation reminder for 2026 4th Quarter. The credit cards below offer 5% cash back and up on specific categories, some fixed and some that rotate each quarter. It takes a little extra attention to which card you’re using, but it can add up to hundreds of dollars in additional rewards per year without changing your spending habits. I just load them into my Google/Apple Wallet and swipe through them. You can also buy gift cards for other retailers at places like Grocery Stores and Home Improvement stores with 5% back now but spend the gift cards later. New cardmembers may also get an upfront sign-up bonus.

Discover Card (by Capital One)

From October 1st through December 31st, 2026, you can earn 5% cash back on up to $1,500 spent in the following categories:

• Restaurants
• Entertainment (includes movie theaters, sports promoters, theatrical promoters, concert promoters, amusement parks, tourist attractions, aquariums, zoos, dance halls, record stores, video rental locations, pool halls and bowling alleys.)
• Utilities (includes residential electricity, natural gas, water service, internet, cable, satellite TV, and mobile and landline phone service.)

Enroll after logging into your online account. 5% rewards won’t apply until after you activate your rewards, so it is best to activate now before you forget. No annual fee.

Discover it $100 bonus + Double Cashback Match details. If you are a new applicant and sign up via Discover Card referral link, you will get a $100 Cashback Bonus after your first purchase of any amount within 3 months of being account opening. On top of that, you will also get Cashback Match for an entire year – a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically. During those 12 months, your 5% cash back rewards becomes 10% cash back, and your 1% cash back rewards become 2% cash back. You can verify this on the bottom of the page:

We’ll match all the rewards you’ve earned on your credit card from the day your new account is approved through your first 365 days and add it to your rewards account within two billing periods. You earn rewards only when transactions are processed, which may be after the transaction date. We will not match: rewards that are processed after your match period ends; statement credits; rewards transfers from Discover or Capital One checking or other deposit accounts; or rewards for accounts that are closed. This promotional offer may not be available in the future and is exclusively for new cardmembers. No purchase minimums.

Chase Freedom Flex Card

From October 1st through December 31st, 2026, you can earn 5% cash back (or 5X Ultimate Rewards points) on up to $1,500 spent in the following categories:

• Grocery Stores (excludes Walmart and Target)
• Dining
• donations to American Red Cross®

(The categories are also the same for the old Chase Freedom card, which is no longer available to new applicants.)

Enroll each quarter online in your Chase account or at ChaseBonus.com. As long as you activate by the 14th of the last month in each quarter, the rewards are retroactive. Technically, you earn Ultimate Rewards points which may be worth even more when converted to airline miles or hotel points instead of cash if you have a Chase Sapphire Preferred or Chase Sapphire Reserve card. You could also use the Pay Yourself Back tool to additional value. Currently, the Chase Freedom Flex card is offering new applicants a $250 bonus if you sign up and make $500 in purchases in your first three months. No annual fee.

Blue Cash Preferred® Card from American Express

• 6% cash back at US supermarkets all year long (on up to $6,000 per year)
• 6% cash back at select US streaming subscriptions (includes Disney+, Hulu, ESPN+, Netflix, Sling, Vudu, Fubo TV, Apple Music, SiriusXM, Pandora, Spotify, YouTube TV, and more).
• $120 Disney Streaming Credit ($10 per month with no minimum or bundle required). You can now earn up to $10 back per month as a statement credit when you use your enrolled Blue Cash Preferred® Card to purchase a subscription, or bundle subscription, on DisneyPlus.com, Hulu.com, or Plus.espn.com U.S. websites, now with no minimum purchase requirement. Subscription is subject to auto-renewal.
• 3% cash back at US gas stations and transit (taxis/rideshare, parking, tolls, trains, buses and more).
• $0 intro annual fee for the first year, then $95.

This keeper card got even better for me with the new $10 a month Disney+ credit that is valid on any plan. I use this card all year long for 6% cash back on groceries up to the limit, get my $120 in Disney+ credit to more than offset the $95 annual fee, and then in December use up the $6k annual limit on gift cards bought in the supermarket aisle. New cardholders are also eligible for a up to $300 welcome offer after $3,000 in purchases within the first 6 months. See details in link.

U.S. Bank Cash+ Visa Signature Card

You must choose the two 5% cash back categories every quarter, out of a preset selection of specific categories:

• Fast Food
• Cell Phone Providers
• Home Utilities
• Ground Transportation
• Select Clothing Stores
• Electronics Stores
• Car Rentals
• Gyms/Fitness Centers
• Sporting Goods Stores
• Department Stores
• Furniture Stores
• Movie Theaters
• TV, Internet, and Streaming Services

Unfortunately, you can’t pick a broad category like gas stations, restaurants, or grocery stores. Make sure to choose your categories each and every quarter, even if you want them to stay the same. If you do not choose your categories, all purchases revert to only earning 1% cash back for that quarter. That’s the “catch”. No annual fee. Currently, new applicants are offered a $200 bonus after you spend $1,000 in eligible purchases within the first 120 days of account opening.

Amazon Prime Rewards Card

Earn 5% back at Amazon.com and Whole Foods all year long. Up to 10% cash back on select items during special promos. Prime membership required. New cardholder bonus of $150 instant Amazon gift card (no spending requirement). No annual fee. Just link this card in your Amazon account as the default payment method and you’ll know how much you spend at Amazon each month when the bill comes…

(Removed section on the Citi Custom Cash. As of May 28, 2026, Citi is no longer accepting applications for this card, which used to automatically offer 5% cash back on your single top eligible spending category up to $500 each month.)

(The Citi Dividend card has also not been available to new applicants for years now, but somehow they keep updating the categories each quarter. If you still have the grandfathered card you can view and activate your quarterly 5% category here. Limit of $300 cash back for the calendar year.