Actually, that is a very good question.
Officially, Amway corporate, like other corporations, ultimately really only cares about selling products.
However, they do tend to turn a blind eye to the tactics and methods used by their distributors to get new recruits. The real big money for the distributors comes from the training tools and seminars and not the products themselves. Amway corporate seems to willingly ignore this because it helps them sell more product.
I do not know whether AMWAY proposal is ethical or not but it has presence in 108 countries since 1959 with 1000 PATENTS and around usd 12 billion annual turnover and its officially no 1 network marketing company according to direct selling official site
this has been a method of retail for decades so obviously it is legal
whether it is ethical or not is probably dependent on the person judging the method
of course there are unethical people is all forms of business
Ethics is a tricky topic. Let me ask you this: Do you want to have relationships with people that are based solely on you selling them stuff?
I know I don't.
Yes, their company, procedures and products are legitimate, patented and ethical.