The process typically follows a consistent sequence.

A person is approached in a casual setting, such as a gym, store, or social connection. The opportunity is described using broad, appealing language such as entrepreneurship, mentorship, business opportunity, and passive income. Credibility is introduced through references to mentors, success, and income.

The pitch is as follows - "I'm connected to a CEO that makes $70K annually". The name of the CEO is not stated. 

At this stage, the business is not identified as Amway, and the structure is not explained.

The prospect is then moved into a phone call where interest is reinforced & more details are gradually introduced. During the phone call the name of the CEO is stated-(in this case the name is Daniel & Thao Goebel), and it is stated "they work with passive income." Only later within their self created 7-9 meeting interview process is it revealed that the opportunity is Amway.

By the time Amway is disclosed, time has been invested, trust has been established, and the prospect is no longer evaluating from a neutral position.

FTC Act Section 5, State Consumer Fraud, & Rule #4 of The Amway Business Reference Guide

Under FTC Act Section 5 and state consumer fraud laws, it is unlawful to create a misleading impression or to omit material information that would affect a person’s decision.

A material fact is something a reasonable person would want to know before continuing.

Here, the reported conduct is that the opportunity is presented without identifying it as Amway. The individual is allowed to engage, build interest, and invest time, and only later is the business identified.

That matters because the identity of the company is a material fact. A reasonable person may decide differently if they know the opportunity is Amway and that the structure is MLM-based.

Delaying that disclosure means the person is moving forward, evaluating, and becoming interested without knowing what they are actually evaluating.

Amway’s Business Reference Guide (Rule #4) requires clear identification of the Amway opportunity and prohibits misleading or unclear representations during prospecting.

Temporarily hiding that the opportunity is Amway, even during a vetting process, conflicts with that requirement.

No one has to disclose trade secrets. But they do have to disclose what the opportunity is.

Delaying that disclosure creates a material omission, and it makes Daniel & Thao Goebel guilty for violating The FTC Act §5, state consumer fraud laws, and Rule #4 of The Amway Business Reference Guide.

Deceptive Trade Practice (Passive Income Bait & Switch)

A Deceptive Trade Practice occurs when a person is given a misleading overall impression.

Here, that deceptive trade practice is carried out through a bait-and-switch method using the term passive income.

The reported conduct is that prospects are told Daniel & Thao Goebel work in passive income, while the opportunity is not identified as Amway at that time. Later, it is revealed to be Amway.

The bait is the passive income label. To a reasonable person, passive income means minimal ongoing effort, residual or automated earnings, and income that is not dependent on constant activity.

The switch is the later disclosure that the opportunity is Amway, a business and an MLM  that requires ongoing effort and does not match that definition. Amway also does not label its opportunity as a passive income opportunity-(stated explicitly in The Amway QAS Content Standards). In addition, Amway prohibits all of it's Reps/Distributers to not describe Amway as a passive income opportunity to both prospects and downline. 

So the person is attracted under one understanding, but asked to make a decision under another.

That is a deceptive trade practice executed through bait-and-switch committed by Daniel & Thao Goebel.

False Advertising (Passive Income Claim)

A claim is misleading if it creates inaccurate expectations, is not supported, or conflicts with the nature of the business.

Here, the term passive income is used to describe the opportunity.

Passive income implies low-effort, ongoing, automated earnings. However, the Amway business requires ongoing activity and does not match that definition.

Amway does not describe its opportunity as a passive income opportunity-(explicitly stated in The Amway QAS Content Standards below 👇), and it restricts representatives/Amway Reps from describing Amway as a passive income opportunity. 

Using the term passive income to describe this opportunity creates a false expectation about how income is earned. It also gives a false representation about the Amway opportunity. 

That creates a false advertising issue because the description does not match the Amway structure. It also makes Daniel & Thao Goebel guilty for false advertising about Amway to prospects. 

False Income Claims ($70K Claim)

Income claims must be truthful, substantiated, and tied to the actual source of income.

The reported conduct is that Goebel Reps-(downline members in the Geobel team) are telling prospects they are connected to a CEO making $70,000 annually, or a similar claim.

This claim is referring to Amway income ALONE. If an income claim is made about Amway income, it must be proven.

 Daniel & Thao Goebel do not actually earn $70,000 annually from Amway. That makes Daniel & Thao Goebel guilty of making false income claims. It also makes Daniel & Thao guilty for coaching their downline/recruits to make false income claims about them to prospects. 

This can easily be proven by a profit and loss balance detailing both of their Amway and LTD distributer accounts. A profit and loss balance statement will reveal Daniel and Thao do not make $70K annually from Amway. This is why Daniel and Thao fear disclosing a profit and loss balance to both prospects and downline. They refuse to disclose a profit and loss balance sheet detailing both of their Amway and LTD distributer accounts to all of their prospects and downline. 

Amway requires that income claims be supportable and not create unrealistic expectations.

There is also no context provided about typical earnings, which can further mislead the listener/prospect.

Since Daniel & Thao are Amway Ranked Platinums who struggle to requalify The Amway Founders Platinum Rank and have not requalified since 2020,  this further proves the $70,000 claim is inaccurate and unsubstantiated. This is because the Average Amway Platinum makes less than $22K annually before expenses in the U.S. The average Amway Founders Platinum makes less than $47K annually before expenses in the U.S. (stated in The Annual Amway Income Disclosure below 👇). 

If it cannot be proven, it is a misleading income claim.

Full System Breakdown 

The pattern follows a clear sequence.

1. The opportunity is introduced without identifying it as Amway.

2. It is described using appealing language such as passive income-(Prohibited to.be used from The Amway Corporation).

3. Credibility and income are emphasized.

4. The prospect becomes interested.

5. Key facts are delayed.

6. Amway is revealed after influence has already occurred.

That is the system. The Goebel Fraudulent System.

Final Statement