Amway India: Business Starter Guide
Amway India: Business Starter Guide
Amway India: Business Starter Guide
INDIA
BUSINESS
STARTER
GUIDE
BUSINESS
STARTER
GUIDE
INDIA
AMWAY WORLD
HEADQUARTERS www.amway.in
Amway
Founder’s Fundamentals
The Amway story began with two friends who wanted a
better life for their families and many families across the
2 globe. Jay Van Andel and Rich DeVos built the business 3
on the following principles, which they and their fami-
lies believe constitute a sound foundation for a mean-
ingful life:
Freedom
w Provides most conducive environment to live, work,
achieve and grow
w Operate as independent business people
w Conduct a full-time or part-time business
Family
w Our primary social structure provides values, framework
for growth and ability to thrive
w Family-owned business, passed on to generations
w An attempt to strengthen family ties
Hope
w Power to transform lives positively
w Opportunity to establish and run a business irrespective of
social status, profession or educational background
Reward
w Opportunity to develop your talents and abilities
w Hard work is followed by high rewards
w Tangible rewards include certain ranks: Platinum, Ruby,
Emerald, Diamond, etc.
w Intangible rewards include personal growth, pride in
accomplishment and positive relationships with the other
Amway people.
Amway Business
Starter
Guide
Message from
the General Manager
I welcome you to the wonderful world of Amway.
Amway is the world’s No. 1 direct selling business, according to the Direct Selling News Global
100*. Operating in more than 100 countries and territories, Amway manufactures and distributes
more than 450 consumer products, which are supported by our team of more than 950 Amway
scientists, engineers and technical professionals working across more than 75 R&D and quality
assurance labs around the world.
Amway was founded in Ada, Michigan, USA, by two lifelong friends and business partners,
Jay Van Andel and Rich DeVos. They started the business in 1959 out of the basements of their
homes. Rich and Jay believed owning a business allowed people to have greater control of their
lives and provide better for their families. So, they built the Amway business making it easier for
other people to start and grow their own businesses. The founder’s entrepreneurial spirit contin-
ues to fuel Amway.
Amway has a strong belief in India and the future of the nation. That is why we have invested
4 Rs 600 crore ($100 million USD) in a new manufacturing facility in Tamil Nadu – to make high- 5
quality, world-class products right here in India, for India. India is 4th country in the world where
Amway has invested in a manufacturing facility.
We are proud that Amway India has established itself as India’s largest direct selling company.
Amway India is currently amongst the top 10 markets for Amway globally but our target is to have
India in the top 3 markets. We are confident that we can do this over the next 5 years.
Amway sells more than 130 world class products in India. We have a strong portfolio of brands.
Nutrilite has a legacy of more than 80 years. In fact, Nutrilite is the world’s number one selling
brand of vitamins and dietary supplements.* Artistry is ranked among the top-five, largest-selling
premium skincare brands**
There is a huge potential for direct selling in India. This has been validated by various studies,
including a FICCI-KPMG report which mentioned that the potential of direct selling in India is
Rs. 64,500 crore by 2025.
We are trying to further promote the spirit of entrepreneurship that exists in India. There is vir-
tually no capital required to be an Amway Direct Seller. We offer a money-back guarantee on our
products for 100% satisfaction of use. There is no entry fee to join Amway’s business and Direct
Sellers are free to exit any time. Amway Direct Seller sell high-quality nutrition, beauty and home
products to consumers. The more products they sell, the more income they can earn.
I once again congratulate you for joining this unique business opportunity offering world-class
products and reiterate our commitment to help you succeed as you work hard to build your busi-
ness.
Anshu Budhraja
General Manager
Amway India Enterprises Pvt. Ltd.
Amway is led by Chairman Steve Van Andel [left] and
President Doug DeVos. *Published in the June 2016 edition of Direct Selling News, based on 2015 revenues
Both have served in leadership positions with key **Euromonitor International Limited. Euromonitor.com/amway-claims
industry organisations
Amway Business
Starter
Guide
Brands that do wonders
Opportunities that empower
Relationships that endure
Global conscious that is purposeful
It all adds up to our story
The story of Amway
Amway Business
Starter
Guide
Amway India provides free training to all of its Amway is proud of its long record of environmental
Direct Sellers. The company conducts over 18,000 responsibility. The company has built its manufac-
training sessions during an average 12-month peri- turing plant in Tamil Nadu per the most stringent
od which are attended by more than 800,000 Direct environmental and quality standards. It is a Zero
Sellers and prospects. Amway also offers a digital Discharge Waste Facility and, will be, amongst the
learning portal (E-learning) for Direct Sellers. The few LEED GOLD Standard manufacturing plants in
training support empowers and educates Direct the country.
Sellers about Amway product range which helps
them advise customers and sell them appropriate Details of various CSR projects
products for their needs
National Project for the Visually Impaired
Amway Direct Sellers follow a Code of Ethics and Amway, under the National Project for the Visually
Rules of Conduct consistent with the World Federa- Impaired, has taken various initiatives to support
tion of Direct Selling Associations (WFDSA), which the cause of visually impaired including:-
defines the goals, principles and responsibilities in
building and operating an Amway business. • Amway has supported more than 85,000 visually
impaired children with Braille textbooks across 12
States.
AMWAY INDIA’S CSR PHILOSOPHY
• Amway has been providing computer training to
Amway India’s (Amway) CSR initiatives are based the visually impaired since 2008, and has set up
on the belief that social responsibility is much 15 computer centers across the country. A total
more than the incurrence of a cost or a resource or of 1000 visually impaired individuals are being
a charitable/ philanthropic act of social benefit. It helped at the Amway supported computer cen-
is an opportunity to bring in social innovation and ters.
8 change. This belief is articulated in Amway’s vision 9
of helping people live better lives. When it comes to • Amway has also set-up 2 audio libraries in In-
commitment to corporate citizenship, Amway India dore and Madurai; launched a travel and tourism academies for the visually impaired in Chandi- The project is expected to benefit over 1700 villag-
makes a serious and concentrated effort to reach out course in Kolkata; set-up a BPO in Madurai, set- garh, Raipur and Guwahati. ers based out of these 7 identified villages. Amway
and help people improve their lives. up a Braille Library in Bangalore; set-up music India has appointed an NGO - Centre for Improved
• Amway has supported the digitization of class Health and Environment Protection (CIRHEP) -
XIIth educational material for National Institute which is working in the area of water conservation,
of Open Schooling (NIOS), as well as select grad- for the implementation of this project.
uation and post-graduation educational mate-
rial for Delhi University, Mumbai University and Village Health Program
Hyderabad/EFLU University, which will help dif- With an objective to provide quality healthcare to
ferent abled especially visually impaired students the underprivileged, Amway has launched a village
across the country. health program targeted at 26 villages in the Din-
digul district near Madurai. Amway has appointed
• Amway’s commitment to educate the visually-im- Meenakshi Mission Hospital as the implementa-
paired, led Amway to launch an Android-based tion partner of this program. Under this program,
application ‘Accessible Reader’, which leverages Meenakshi Mission Hospital is conducting 12 camps
available text-to-speech engines and makes it every month, a total of 144 health camps till June
convenient for the visually impaired to read digi- 2017. The treatment includes general health check-
tal documents. up, select pathological tests and medicines at zero
cost to the beneficiaries.
• Amway has set up braille and audio libraries at 29
locations across the country to enhance knowl- Project Sunrise
edge and information levels of visually impaired Under Project Sunrise, Amway supports less-privi-
individuals. leged children in the area of education, health and
hygiene by working with more than 15 NGOs across
Water Conservation Project the country. Some of the key projects include:-
With an objective to improve the ground water level
in the Dindigul district near Madurai, Amway has • A Computer training center for girl children in
initiated a water conservation project in 7 villages Bhubaneswar.
which are in close proximity to Amway’s plant site.
Amway Business
Starter
Guide
• A recreation center, health center and tai- fected during the Tsunami in Tamil Nadu.
loring unit for girl children in Bhubanesh- The company has also made contributions
war to support relief work during the Gujarat
and Japan Earthquake.
• Supporting a charitable hospital in Vr-
indavan to provide free consultation and Awards & Recognition
medicine to the needy
• AICB – Millennium Service Award, 2000.
10 • Setting up and supporting a physiotherapy Citation and Award from the World Blind 11
center for the benefit of differently abled Union (WBU). AOF was the first Indian
in Ludhiana and Raipur NGO to be so recognized.
• Computer training center at Channels of • Aaj Tak CARE Award for initiatives taken
Love, Hubli and at Nesakkarengal, Salem in the field of Education, 2010.
• Initiated a Remedial Education Program • Asia’s Best CSR Practices Award for initia-
in Delhi, to support health & education of tives taken in the field of
300 underprivileged children associated
with Khushii. • Education, 2012.
• A business which has no Gender discrimination (b) Trade Discount: A Discount given to
12 Amway Direct Sellers when they effect 13
• A business which has No start-up cost. purchases of eligible products from Am-
way for retailing.
• A business that can be operated from the comfort
of your home (c) Direct Seller Compensation Plan: As
explained in detail during the manda-
• A business you can operate part time or full time tory orientation module which you have
gone through before you decided to start
• A business with no employees & minimal over- your own Amway Business, our Compen-
head cost sation Plan recognizes and rewards your
hard work and achievements. Amway
Success in Direct Selling is about a lot of people, • A business with national & international scope offers an attractive reward program. You
each doing a little. Every person’s effort combines PERFORMANCE COMMISSION AND AWARD generate points on products purchased
together to create a gigantic momentum. And we • A business with no geographical boundaries SCHEDULE ARE BASED ON RETAILING OF to sell. Commissionss are based on the
at Amway have taken this momentum across the AMWAY PRODUCTS WHICH ARE points generated by you through
country and created hundreds of thousands of • A Business that has world class quality products AS UNDER: product sales, and the sales team that
entrepreneurs. that are backed by a 100% Satisfaction Guaran- you build and also includes the points
Success in Direct Selling is about “Selling Effectively” tee. MONTHLY
you generate through your personal
and then creating an “Effective Sales Team” if one NET TEAM
purchases. There are various types of
chooses to. Every person’s effort combines together • The possibility of financial security and freedom SALES SALES
commissions that can be earned basis
to create a gigantic momentum. And we at Amway of time to enjoy life TURNOVER TEAM COMMISION
the Net Team Sales Turnover and the
have taken this momentum across the country and [IN RUPEES] POINTS SLABS
applicable sales com-mission slabs.
created hundreds of thousands of entrepreneurs.
In Amway you encourage people to become better Which other business offers this list of benefits? 7,600 100 6%
than you. You give them all your creative ideas and Apart from these benefits Amway offers compre- 38,000 500 9% The Amway Opportunity works in two-
hope they beat you to the top position - because hensive training & support. Amway offers you the 91,200 1,200 11% fold. Giving you a chance to build your
everyone benefits from success. opportunity to leverage your time by finding other 1,82,400 2,400 13% own business at your pace and achieve
At Amway, you first learn how to be an effective sales people to work with you. 3,04,000 4,000 15% the rewards and recognition linked to the
person, an effective leader and thereby emerge as a 5,32,000 7,000 18% plan, and at the same time helping other
effective Team Leader and then share your learning 7,60,000 10,000 21% people do the same.
One Point equal Rs. 76 Net Sales Volume (excluding taxes & discounts).
The ratio of points to Net Sales Volume (excluding taxes & discounts)
is adjusted periodically by Amway.
Amway BUSINESS
STARTER
GUIDE
14 15
Amway BUSINESS
STARTER
GUIDE
Artistry is
among the
world’s Top
5# Largest
selling,
Nutrilite is world’s No.1* premium
selling vitamins & dietary skincare
supplements brand. brands.
Amway’s In every part of India where you find Amway, you would find milestones listing its development & innovative organic farming
on-going success story. To be part of this success is to walk the path with us. Direct Sellers methods. This interaction of the best of
commitment across the World are walking through this path and touching millions of lives by nature and the best of science is not only
to assure that using Amway products as their building blocks. the foundation and future of the Nutrilite
all products Backed by this confidence, Amway products come with a 100% satisfaction or money Brand, it is the key of realising the best of
produced in refund guarantee. Concentrated formulas enhance the efficiency of many Amway you.
India meet products which offer excellent value-for-money. They are also biodegradable, Artistry is the complete range of skin care
its stringent environment friendly and not tested on animals. So, come and experience the which has been created to make you and
standards World of Amway through the extensive portfolio of its quality products. your customer look & feel the best possibly
resulted in the can. Artistry is also a complete business
creation of High Quality Products opportunity offering personal satisfaction &
Amway India’s The company’s Headquarters is located in Ada, Michigan, USA, where the com- limitless potential to reward for your time & several times as much ordinary cleaner.
Technical plete manufacturing process of the majority of Amway products is controlled. Here effort. Concentration also increases versatility -
Centre. Amway has invested in its own R&D centre with more than 500 scientists and 57 you can adjust the dilution rate to suit the
laboratories, 13 of which are specifically for quality assurance. Each Amway product High Performance / High Value demands of the job.
is manufactured under the most stringent conditions, and quality testing is per- Concentrated formulas enhance the effi-
formed throughout the production process. ciency of many Amway products. Customers Environment Friendly Products
Amway’s on-going commitment to assure that all products produced in India meet will find they can do more with less. Because Surfactant biodegradability of the products
its stringent standards resulted in the creation of Amway India’s Technical Centre. they may be accustomed to using substan- should be mentioned in every customer
*Source This Technical Centre will work closely with Amway’s US technical resources to tial quantities of their regular retail brand, presentation. The surfactant used in Amway
Euromonitor introduce and maintain product technology and quality. changing usage habits may require some products are broken down by normal
International adjustment. But value and convenience are biological processes, which minimize their
Limited ; Vitamins Research + Quality = World Class Products powerful persuaders. impact on the environment. Consumer
and Dietary At present Amway India offers 130 products in 4 categories. They are Personal Care, A key feature of Amway products is their awareness of environment issues is on the
Supplements, Home Care, Nutrition & Wellness and Cosmetics. They carry a tamper proof seal & highly concentrated formulation which increase and your customers could feel good
World Retail Value 100% Money Back Guarantee. offers excellent value-for-money. Often just about the environment sensitivity practised
RSP, 2010 Nutrilite is dedicated to optimising human nutrition through research, product a fraction of Amway concentrate equals by Amway.
Amway Business
Starter
Guide
Amway Learning Solutions
Amway India provides free and unlimited training to all its Direct Sellers to help
them grow their business and achieve their goals.
Providing Guidance at Every Step the training is also imparted
18 Training at Amway is aimed at: • Excellent customer care to answer all que- through Amway’s website where 19
ries regarding product ordering, renewal, the training modules on products
w Enhancing the product knowledge of the Direct Sellers. product information, etc. detailing their composition, features
and benefits are available for the
w Developing the selling skills to help them build their business more effectively. • Incentive programs that reward business Amway Business Owners.
success.
w Empowering the successful Direct Sellers to effectively train other Direct Sellers in their
groups. • Free live and online training courses for
sales and product knowledge.
Amway India has certification programs and Forums for Amway Direct Sellers who achieve For any consumer complaint please contact 2) All Product Handbook
a significant level in their business. These programs are aimed to support them build a Amway Customer Care at 080-3941-6600 or
growing and sustainable Amway business. care@amway.com 3) All Product Training Guide
Amway Business
Starter
Guide
CODE OF ETHICS
20 Contents 21
Section 1: Introduction 22
Section 2: Definitions 23
Section 3: Becoming a Direct Seller (Distributor) 25
Section 4: Responsibilities of All Direct Sellers 29
Section 5: Responsibilities of a Sponsor 36
Section 6: Preservation of the Line of Sponsorship 37
Section 7: Business Support Materials (BSM) 41
Section 8: Presentation of the Amway Sales and Marketing Plan 44
Section 9: Use of the Amway Trade Name, Trademarks
and Copyrighted Materials 45
Section 10: Death and Inheritance 47
Section 11: Enforcement of the Amway Rules of Conduct 48
Section 12: Termination and De-sponsorship 49
Section 13: Suspension of a Distributorship 51
Section 14: Termination, De-sponsorship or Suspension
by Amway without Formal Complaint 52
Section 15: Disposition of Terminated, De-sponsored
or Non-Renewed Businesses 52
Section 16: International Review Panel 53
Amway Business
Starter
Guide
and guidelines, requirements, pro-
Section 2: Definitions cedures and policies, regarding the
presentation of Amway products,
Amway Business
Starter
Guide
A beneficiary cannot be a business pany/trust, the authorised representatives SECTION 4: RESPONSIBILITIES terminate automatically without the
entity, existing corporation, charita- indicated in the Corporate Authorisation OF DIRECT SELLERS requirement for any notice by Am-
ble organisation, non-profit organi- Form will be the two individuals who will be way, and the reclassified Preferred
sation, a foundation, or any similar eligible for such invitations. Direct Sellers are retailers of Amway Prod- Customer must wait a minimum of
entity. ucts, and must meet sales criteria set by Am- six (6) months from the date of such
3.17 way in order to retain their status as Direct reclassification to reapply to become
3.15.3 The trust instrument must not per- Husband and Wife Distributorships: Sellers. They must additionally complete a Direct Seller.
mit the beneficiaries to assign any If both husband and wife wish to become required training in order to continue as
beneficial interest in the trust. Direct Sellers, they must be sponsored to- Direct Sellers and be eligible to recommend 4.2.2 Any Direct Seller who has been re-
gether for a single Distributorship. Husbands new Direct Sellers to Amway. classified as a Preferred Customer,
3.15.4 The trustee (all co-trustees, if more and wives may not be sponsored in different whether pursuant to Rule 4.2.1
than one) must sign and file an ap- Lines of Sponsorship. Husbands and wives 4.1 hereof or non-fulfilment of other
plication and receive an Amway Di- may not sponsor each other. If one spouse Abide by the Rules/Direct Seller applicable retail, training or addi-
rect Seller Authorisation. is already a Direct Seller, the other spouse, Contract: tional requirements or on his/her/
upon electing to become a Direct Seller, At all times, Direct Sellers must strictly ad- their own initiative, must wait a
3.15.5 An original signed (or certified) must join the same Distributorship as his or here to the Rules of Conduct and to other minimum of six (6) months from
copy of the trust instrument must her spouse. documents that comprise the Direct Seller the date of such reclassification to
accompany the Application, and Contract. reapply to become a Direct Seller.
the trustee(s) must promptly file 3.17.1 A husband and wife shall operate Amway may from time to time amend the
with Amway any amendments or their Distributorship as a single Rules of Conduct and any other docu- 4.2.3 Eligibility for a Sales Commission
any documents which may vary the entity. Therefore, each is held ac- ment comprising the Direct Seller Contract is based on a Direct Seller’s dem-
terms of the trust. countable for the actions of the oth- through notice on its website, www.amway. onstrated retail sales volume and
er so far as the Rules of Conduct are in. If the Direct Seller does not agree to be contributions to retail sales by other
3.15.6 All trustees must execute on its be- concerned regardless of whether a bound by any amendment(s), he/she/they Direct Sellers in his or her down-
half an irrevocable guarantee that husband or wife is active in the dis- may terminate the Direct Seller Contract line sales group. In order to earn a
28 the trustee will perform all the ob- tributorship or not. with immediate effect by giving a written Sales Commission on downline vol- 29
ligations and responsibilities of a notice to Amway. Otherwise, the Direct ume during a given month, a Direct
Direct Seller (or a Platinum), espe- 3.17.2 If two Direct Sellers, each of whom Seller’s continued relationship with Amway Seller must have at least three (3)
cially as outlined in the Code of Eth- owns and operates a Distributorship constitutes an affirmative acknowledgment Preferred Customers, each of whom
ics and Rules of Conduct as set forth in different lines of sponsorship by the Direct Seller of the amendment(s), places one or more orders for Amway
from time to time in official Amway (neither of which is at Platinum lev- and his/her/their agreement to be bound Products in that month. If a Direct
literature. el), get married to each other, one of there to. Seller does not meet this require-
these Direct Sellers must also elect ment in any month, the Sales Com-
3.15.7 The term of the trust shall not be to surrender (by sale, transfer, or 4.2 mission on downline volume will
perpetual and shall not continue abandonment) his or her Distribu- Retail of Amway Products and pass up and shall be paid to the next
beyond the date necessary to pro- torship and join his or her spouse’s the requirement to have Preferred upline Direct Seller who meets this
tect the interests of those trust Distributorship. Customers: requirement. Upon request by Am-
beneficiaries who are unable to act The Direct Seller agrees and undertakes that way, a Direct Seller may additionally
for themselves legally, e.g., minor 3.17.3 If either of a newly married couple purchase of Amway Products shall be for the be required to provide a description
children or incompetent persons, or has attained Platinum status as Am- purpose of sale to Customers, and to retain of activities that contributed to the
who, because of age or inexperience, way Direct Seller at the time of their and provide records of such sales to Amway sales in the month for which a Sales
require assistance in the conduct of marriage, then the newly married in accordance with the Rules. Commission is claimed.
business affairs. couple may operate both Distribu-
torships, each of which will, howev- 4.2.1 Each Direct Seller must, within 90 4.3
3.15.8 The trust will conduct only the busi- er, be operated in its original Line of (ninety) days of becoming a Direct Retail Stores and E-commerce websites:
ness of an Amway Distributorship Sponsorship. If the spouse surren- Seller, acquire at least three (3) Pre- Amway does not permit Direct Sellers to
and no other. dering a Distributorship does so by ferred Customers1, each of whom display/sell its products/ literature through
way of sale, such sale must be made places one or more orders for Am- retail stores and e-commerce websites.
3.16 in accordance with the provisions of way Products. A Direct Seller who No Direct Seller shall sell or display or permit
Invitations Limited to Two Persons: Rule 6.6 of these Rules of Conduct. does not meet this requirement will Amway Products or services to be sold or
Invitations for seminars, leadership semi- If the spouse surrendering a Distrib- be reclassified as a Preferred Cus- displayed in retail stores (this shall include
nars and other events organised by Amway utorship does so by simple abandon- tomer effective as of 91 (ninety-one) non-Amway e-commerce websites), schools,
will only be addressed to two individuals ing it, the sponsorship of the aban- days after the date of joining. In this fairs, ships or military stores; nor shall he or
per Amway business who are registered with doned Distributorship shall pass up case the Direct Seller Contract will she permit any Amway product to appear in
Amway. In case of a sole proprietary con- the Line of Sponsorship to the next
cern/partnership firm/limited liability com- Sponsorship.
1 Inserted w.e.f. 01 November, 2015
Amway Business
Starter
Guide
such locations even if the Amway product 4.3.1.4 Display of the Amway products and/ (b) State the price charged, fort or expense required to comply with such
or services themselves are not for sale. No or brochures is restricted to inside laws, regulations and/or codes.
Amway literature shall be displayed in retail of the service establishment and (c) Give the name, ADA number, ad-
establishments. A Direct Seller who works should not be visible on the outer dress, and telephone number of the 4.9 Reserved
in or owns a retail store must operate his or display visible to general public. selling Direct Seller,
her Amway business separate and apart from 4.10
the retail store. Such Direct Sellers must 4.4 (d) Include Amway’s Customer Product Unlawful Business Enterprises
secure customers and deliver products to Truthful and Accurate: Refund Policy, and or Activities:
them in the same manner as Amway Direct In addition to the obligations of Direct Sell- Direct Sellers shall not engage in any decep-
Sellers who have no connection with a store. ers provided in Clause 9 of the Terms and (e) Include Amway’s Complaint Redres- tive or unlawful trade practice as defined by
Other types of retail establishments, which Conditions of Direct Seller Application sal mechanism. any Central, State or local law or regulation.
are not technically stores, such as barber Form SA-88-ID, No Direct Seller shall make No Direct Seller shall operate any illegal or
shops, beauty shops, or professional offices, any offer to sell any Amway product which is 4.7 unlawful business enterprise, engage or par-
etc., likewise may not be used to display not accurate and truthful as to price, grade, Customer Product Refunds: ticipate in any illegal or unlawful business
Amway Products, information about Amway quality, performance, and availability. Fur- Direct Sellers shall advise Amway of any cus- activity or be convicted of any illegal or un-
services, or Amway literature. Further, Direct ther, Direct Sellers cannot: tomer complaint and provide copies of all lawful activity. An illegal or unlawful enter-
Sellers may not use mass communication correspondence and details of all conversa- prise or activity is one which is prohibited by
methods such as television merchandising 4.4.1 Make exaggerated product claims or tions regarding the complaint. central, state, or local law or regulation.
channels, computer networks, national or non-guaranteed claims with regard If an application for an Amway Distribu-
international advertising, etc., to secure to Amway Products or products dis- 4.7.1 Direct Sellers are not authorised to torship is presented to Amway by a person
Amway customers. tributed by Amway. make any type of offer or compro- who operates, or is engaging or participating
mise or render Amway liable for any in, any illegal or unlawful enterprise or ac-
4.3.1 Exception to Rule 4.3 (Retail 4.4.2 In any way whatsoever, represent complaint or product return. tivity, Amway may hold such application in
Store) for Beauty salons, health incorrectly with regard to prices, abeyance and contact the applicant to deter-
clubs, Doctor, clinic. quality, standards, grades, contents, 4.7.2 Whenever a customer requests mine whether he or she is so engaged and, if
30 style or model, place of origin or Product Refund service within the so, what his or her intentions are concerning 31
Display and sale of health, beauty availability of Amway Products or stated period, the Direct Seller shall such enterprise or activity. Refusal or failure
and sport nutrition product are products distributed by Amway. immediately offer the customer the on the part of the applicant to produce proof
permitted in health and beauty choice of (a) refund of money paid that he or she has terminated his or her re-
establishment under the follow- 4.4.3 State that Amway Products or prod- as per Amway’s then current prod- lationship with such unlawful enterprise or
ing conditions: ucts distributed by Amway back, uct refund policy, (b) exchange for activity shall disqualify him or her for such
approve, or present any features as a like product, or (c) full credit for Distributorship, and his or her application
4.3.1.1 The primary focus of the business regards yield, accessories, uses or exchange with another item. shall be denied.
is service and retails sale of product benefits that they do not have. If, subsequent to approval of his initial
is incidental to the service provided 4.7.3 Direct Sellers hereby indemnify application, an Amway Direct Seller is de-
(e.g. Beauty salons, health clubs, 4.4.4 In any way whatsoever act or present Amway for any losses, claim, legal termined by Amway to be operating, or
Doctor’s clinic) Amway, its products or the products actions, suit, etc. (including Amway engaging or participating in, an illegal or
Amway distributes in a fraudulent legal fees) which are filed or which unlawful enterprise or activity, and if, upon
4.3.1.2 Only Amway products directly re- manner or promote products that originate because of any failure notification and request by Amway, such Di-
lated to the service provided by an do not belong to Amway as if they by the Direct Seller to observe this rect Seller refuses or fails to terminate his or
establishment will be allowed. For did or sell Amway products at a price rule. her relationship with such illegal or unlaw-
example, a Beauty establishment below the purchase price. ful enterprise or activity, then Amway shall
could display, use and sell only atti- 4.8 terminate such Distributorship, whereupon
tude and Artistry range of products 4.5 Compliance with Applicable Laws, the Direct Seller shall lose all the rights and
and related personal care products No Repacking / Re labelling of Regulations and Codes: privileges of an Amway Direct Seller.
like shampoo and conditioner. A Amway Products. Direct Sellers shall comply with all laws, reg-
Health establishment i.e. Gym could Direct Sellers shall not repackage, or oth- ulations and codes that apply to the opera- 4.11
only display, use and sell Nutrilite erwise change or alter any of the packaging tion of their Amway business wherever said Professionalism:
range of products.” labels of Amway Products. Amway Business may be conducted within An Amway Direct Seller shall at all times
the Market, and they must not conduct any conduct himself or herself in a courteous
4.3.1.3 An Direct Seller is the majority own- 4.6 activity that could jeopardise the reputation and considerate manner and shall not en-
er and operator of the establishment Written Sales Receipt: of the Direct Seller and/or Amway. Appli- gage in any high-pressure selling, but shall
or the Direct Seller is the Manager/ A Direct Seller shall deliver to the customer cable laws, regulations and codes vary from make a fair presentation of Amway Products
Controller of the establishment and at the time of sale a written and dated order one country to the next, and from State to and the Amway Sales and Marketing Plan
has an authorization in writing from or receipt which shall: State in India, and over time, and Amway including, when and where appropriate,
the majority owner/ operator of the does not ensure or make representations demonstrations of such products. An Am-
establishment for sale and display of (a) Describe the product(s) sold, with respect to the quantity or extent of ef- way Direct Seller shall never impose himself
Amway Products.
Amway Business
Starter
Guide
or herself upon his/her prospective custom- the Amway Business Starter Guide or other An Amway Direct Seller can engage in other that such Direct Seller may not ac-
er and shall abide by the following: Amway literature. A Direct Seller is required business/professional activity, but he/she tively solicit the patronage of other
to indemnify Amway for the cost of any must not use Amway Direct Sellers/ activi- Amway Direct Sellers.
1. He/She shall always take a prior permis- damage or prejudice stemming from such ties/events to promote his non Amway busi-
sion or appointment before approaching false representation, including any legal fees ness/profession and must not hard sell the 4.14.3 Amway reserves the right to termi-
a prospective customer and shall indicate Amway may have incurred. same on other Amway Direct Sellers. nate the remaining Direct Seller’s
the purpose of his or her visit and iden- Amway Direct Sellers are independent Direct No Amway Direct Seller who personally sells authorisation as a Direct Seller in
tify himself or herself as an Amway Direct Sellers operating their own businesses. They products other than Amway Products, who the event that one partner of hus-
Seller. shall not imply that they are employees of personally participates in any non-Amway band-wife partnership elects to re-
Amway, nor shall they refer to themselves as selling activity and/or sells literature or sign his or her authorisation as a
2. He/She shall provide the following infor- “agents,” “managers,” or “company represen- sales aids not produced by Amway except Direct Seller and subsequently takes
mation to the customer at the time of sale tatives”, nor shall they use such terminology those allowed under Section 7 of the Rules advantage of his or her knowledge
or descriptive phrases on their stationery or of Conduct or who sells services (e.g., tax of, or association with, other Am-
• His/ Her name, address and tele- other printed material. Further Direct Sell- services, insurance, investments, etc) will way Direct Sellers to promote and
phone number along with that of ers shall not use the address of any Amway sell such products or services to another expand his or her non-Amway busi-
Amway. establishment, Amway intellectual property Amway Direct Seller or will induce another ness.
or misrepresent their association with Am- Amway Direct Seller to participate in any
• He/ She shall at all times carry iden- way. (Sponsors are urged to preserve the in- other non-Amway selling activity and/or to 4.15
tity card provided by Amway along dependent contractor relationship between sell such products, literature, sales aids, or Enticement to Change Lines
with any photo ID’s issued by any themselves and their Direct Sellers. If they services to any Amway Direct Seller. Induce of Sponsorship:
Government agency. permit an employer-employee relationship means to persuade (or attempt to persuade) No Direct Seller shall, directly or indirectly,
to develop, Sponsors may find themselves another Direct Seller (either personally or induce/entice other Amway Direct Sellers
• He/ She shall fix time & place for in- liable for the acts of and injuries to their through a third party) to sell any product or to change their Line of Sponsorship. E.g.
spection of the sample and delivery sponsored Direct Sellers. Amway shall not service whether or not this is done to obtain Inducing an Amway Direct Seller to start a
of goods, if customer so desires. permit any relationship between, or repre- revenues or for any other reason. new business in their parents name under
32 sentations by, Direct Sellers which may im- a different sponsor and then advising them 33
• He/ She shall provide customer re- pose employee liability on Amway). 4.14.1 This principle also applies to busi- to resign their existing Distributorship and
ceipt with the description of the Direct Sellers shall not use the Amway ness aids developed privately by Di- build their parents Amway business without
products to be supplied as per Rule Direct Seller identification card to create rect Sellers in compliance with Sec- complying with 6 month inactivity rule.
4.6. the impression that there is a subordinate tion 7 of these Rules of Conduct. Under no circumstances, direct or indirect,
relationship with Amway. This identification nor for purpose of helping another person,
If the customer indicates a desire to card issued to a Direct Seller by Amway is to 4.14.2 Amway Direct Sellers may engage shall a Direct Seller solicit, interfere or
terminate the interview, the Amway Direct be used exclusively when the Direct Seller in selling activities related to non- attempt to induce another Direct Seller to
Seller shall immediately do so and shall wants to purchase products from Amway Amway approved or non-Amway- leave his Line of Sponsorship or change his
leave the premises of the customer. and at the time of approaching customers produced products and services if Line of Sponsorship.
The Amway Direct Seller at all times makes for sale. they personally desire to do so, but
a fair presentation of Amway Products. The they may not take advantage of an 4.16
Amway Direct Seller will also direct his or 4.13 activity organised especially to pro- Exporting Amway Products:
her customer’s attention to the use, direction Franchises and Territories: mote Amway Products or Amway, Amway Direct Sellers must sell Amway
and cautions, which may be included on the No Direct Seller shall represent to anyone or any other Direct Seller’s efforts products and/or sponsor prospective Am-
label for products. that there are exclusive franchises or terri- or resources, or of their knowledge way Direct Sellers within India only.
tories available under the Amway Sales and of, or association with, other Amway No Direct Seller may export, or knowingly
4.12 Marketing Plan. Direct Sellers to promote and ex- sell to others who exports, Amway Products
Employment Relationship: No Direct Seller shall represent that he or pand their non-Amway businesses. from India, or from any other country in
Amway Direct Sellers are independent Di- she, or anyone else has the authority to grant, To do so constitutes an unwarranted which Amway has established operations,
rect Sellers operating their own business sell, assign, or transfer such franchises or to and unreasonable interference in into any country regardless of whether or not
and are not employees/agents of Amway or assign or designate territories. No Direct the business of other Amway Direct Amway is doing business in that country.
its affiliated companies. Seller or Sponsor may state or imply that Sellers. This does not mean, how- For important legal reasons, including trade
No Direct Seller shall represent that he or he or she has a given territory, nor that any ever, that a Direct Seller regularly names and trademark protections; local laws
she has any employment relationship with other Direct Seller is operating outside his engaged in the operation of a petrol on product registration, packaging, labelling,
Amway or any of its affiliated companies territory. pump, repair garage, retail estab- ingredient content and formulation, product
and/or other Direct Sellers. Amway Direct Sellers have no territorial lishment, barber or beauty shop, or liability; customs and tax laws; and literature
Direct Sellers shall not give a false limits. They can operate anywhere within a professional service (law, medi- content or language requirements. Amway
representation as to the nature of the India. cine, dentistry, or accounting) may must limit the resale of Amway Products by
relationship between Amway and its Direct not serve clients or customers who Direct Sellers to only other Direct Sellers or
Sellers, or make any representation except 4.14 are Amway Direct Sellers and have retail customers located within country in
in accordance with the explanation given in Non-Amway Selling Activities: sought them out, but it does mean which the Direct Seller legitimately buys
Amway Business
Starter
Guide
the Amway Products and is authorised to 4.17 4.19 clearly state within the first para-
do business. The term “products” includes, Sound Business Practices: Maintain Good Standing/Conform graph of the response that they are
without limitation, all literature, sales aids, An Amway Direct Seller must operate his or to Rules: offering a business opportunity. Any
and any other items obtained by a Direct her Distributorship in a financially respon- Be an Amway Direct Seller in good standing materials used with a prospect must
Seller from Amway or from his sponsor or sible, solvent, and businesslike manner. and meet all Direct Seller requirements as be approved by the Corporation in
Platinum. Direct Seller shall not permit a non - Direct set forth in these Rules. A Direct Seller shall accordance with Rule 7 herein.
Seller to build / promote his or her Amway not directly or indirectly indulge himself /
4.16.1 business. herself in any wrongful activity, including 4.22
Exporting Rule: Personal Use In signing a Direct Seller Application a Direct but not limited to false complaints and Privacy and Confidentiality:
Seller undertakes to Amway that there is no issuing threats to Amway or its personnel, All Direct Sellers are required to abide by
Globally, Amway’s Rules and Commercial legal bar or limitation on his or her ability which could have any adverse effect upon the Corporation’s Privacy Policy with regard
Principles include prohibitions on exporting to meet the legal obligations of an Amway the Amway business of another Direct Seller to Direct Seller, client and member infor-
and importing Amway products from one Direct Seller, whether such obligations are or on the reputation of Amway. In the event mation, and its Confidentiality Policy with
market to another. to Amway itself, to customers, or to other a Sponsor ceases to be a qualified Direct regard to Direct Seller and business infor-
Direct Sellers. If there is an obstacle or Seller, the rights to any Direct Sellers whom mation.
Amway Direct Sellers may, however, take limitation, the Direct Seller must declare it. he or she may have sponsored shall pass up
Amway products across borders for personal For example, if an undischarged bankrupt to the next qualified Direct Seller in his or 4.23
use, with the following limitations: or an underage person applies for a her Line of Sponsorship. Right to Audit
Distributorship, Amway may reject the
w The Amway Direct Seller is visiting an- application or, if Amway discovers the 4.20 4.23.1 Amway reserves the right to audit all
other country and personally places the disability, alter the Distributorship. If a Activity Outside India or Activity Direct Sellers to check compliance
product order in that country. Distributor or any member partner in his Outside The Market Where The Direct with Direct Seller obligations under
or her Distributorship files a petition in Seller is Registered: the Direct Seller Contract from time
w The Amway Direct Seller physically picks bankruptcy or has bankruptcy or winding- Direct Sellers who engage, directly or indi- to time with or without notice at
up/receives the products in one country up proceedings commenced against him rectly, in any activity related to the Amway Amway’s discretion.
34 and personally carries the products to an- or her, or has any assets seized by Court business in a jurisdiction outside of India 35
other country. There may be no couriers, order or taken in execution of an unsatisfied must do so in a manner that complies with 4.23.2 All Direct Sellers who earn differen-
shipping companies, or freight forwarders judgment debt, the Direct Seller must the letter and spirit of the applicable laws, tial commission shall maintain a log
involved. immediately inform Amway. In such cases, regulations, rules, policies and procedures book in the manner prescribed by
Amway reserves the right to terminate the of the Amway affiliate in that jurisdiction, Amway. In the event a Direct Seller
w If the Amway Direct Seller has a Multiple Distributorship, or alter its terms of trading regardless of whether they are registered earning differential commission is
Business in the country visited, the order with the Direct Seller, or to negotiate with Direct Sellers in that Jurisdiction. Failure to found to be in violation of this re-
cannot be placed as a customer order for the trustee in bankruptcy or responsible do so shall be a breach of the Direct Seller quirement on three occasions he/
an overseas customer. court official concerning arrangements for Contract. she/they/it shall be liable for any or
the disposal of any products belonging to all action listed below:
w The products are for the Amway Direct Amway which are in the possession of the 4.21
Seller’s personal use only. Direct Seller. “Spamming”- Prohibits Direct Sellers (a) Suspension of business activities
from sending messages to persons whom and commissions;
w The products may not be resold, distrib- 4.18 they do not know.Unsolicited e-mail
uted, or given away under any circum- Manipulation of Amway Sales and messages: (b) Elimination from all GIP
stances. Marketing plan / Anti-Stacking: No Direct Seller shall send, transmit or oth- awards/rewards;
No Direct Seller shall manipulate the Am- erwise communicate any unsolicited e-mail
w The products ordered must not be avail- way Sales and Marketing Plan or manipulate messages to persons with whom the Direct (c) Reduction and/or elimination of
able in the Amway Direct Seller’s home sales volume in any way which results in the Seller does not have a pre-existing personal FAA points for India;
market. payment of bonuses or other awards and or business relationship. (This includes, but
recognition that have not been earned in is not limited to, sending e-mails through (d) Non-invitation or withdrawal of in-
w Durables (e.g. water treatment systems, accordance with the terms of the Sales and newsgroups, purchased mailing lists, “safe vitation to award trips;
air treatment systems) may not be carried Marketing Plan and / or the business refer- lists”, or other lists of individuals or entities
from one market to another under any cir- ence guide. In this regard, the strategic and with which the Direct Seller does not have a (e) Denial of any cash/non-cash awards
cumstances. artificial structuring of an Amway organiza- relationship). and rewards from affected Direct
tion for the purpose of depth building by us- Seller to uplines;
w The Amway Direct Seller order must not ing the concept of “stacking” is considered 4.21.1 Employment Postings: If a Direct
be for more than a reasonable amount of to be manipulation and an unacceptable Seller responds to an employment (f) Termination of their Amway
product: under 300 USD annually. business practice. Stacking is a violation of posting for someone seeking an em- business
this Rule. Amway in its sole discretion will ployment opportunity, they shall
w The personal use exclusion may not be determine what constitutes manipulation
used as a business-building strategy. and / or stacking.
Amway Business
Starter
Guide
Section 5: Responsibilities 5.4 Section 6: Preservation Of The 6.2
Of A Sponsor Independent Relationship: Line Of Sponsorship Individual Transfers:
Not represent that there is an employment Without limiting or restricting in any way
EACH SPONSOR SHALL or agency relationship between himself and 6.1 Amway’s powers and discretion under Sec-
the Direct Sellers which he sponsors. The LOS and LOS Information: tion 6.1 above. Any Direct Seller (including
1. Abide by the Code of Ethics and Rules of a Platinum) who wants to change Sponsors
Conduct in their letter and true spirit. 5.5 6.1.1 Confidentiality of the LOS and must submit a written request to Amway ac-
Attend Amway Trainings: LOS Information: companied by
2. Train and motivate all Direct Sellers he/ Use his best efforts to encourage his person-
she has Sponsored to sell Amway Prod- ally sponsored Direct Sellers to attend free Amway protects the LOS and LOS 1. A written release signed by all the Direct
ucts. Amway trainings. Information for the benefit of Am- Sellers in his Line of Sponsorship up to
way and all Direct Seller. Amway and including the first qualified Platinum,
3. Encourage his personally sponsored Di- 5.6 keeps LOS Information propri- and
rect Sellers to attend free Amway train- Follow the Rules: etary and confidential and treats it
ings. Use his best efforts to encourage each of his as a trade secret. The Direct Seller 2. A written acceptance from the new Spon-
personally sponsored Direct Sellers to fully agrees that the LOS and LOS Infor- sor and Platinum. Amway will also contact
4. Advice his/her sponsored Direct Seller(s) comply with the standards set forth in the mation are confidential, commercial any International Sponsor and interna-
to follow the Rules of Conduct. Rules and to study, use and carefully con- and proprietary information (here- tional leadership commission recipients
duct their businesses in accordance with the inafter referred to as “Trade Secret”) and will allow 30 days for comment.
5. Give advice on promotional activities. law and official Amway publications, and owned by Amway and shall not be
disclosed by the Direct Seller to 6.3
A Sponsor is a Direct Seller who recommends 5.7 any person whatsoever. The Direct Group Transfers:
a new applicant, who in turn, if accepted Give Advice: Seller further agrees that a breach Note : No Group Leader i.e. Silver
by Amway as a Direct Seller, is assigned by Give advice concerning (advertising and all by a Direct Seller of his or her con- Producer & above can obtain transfer
Amway for support by the recommending other) promotional activities carried on by fidentiality obligations with respect under this rule without completing 2
36 Direct Seller. In order to acquire and preserve his personally sponsored Direct Sellers to as- to the Trade Secret shall cause Am- full years after obtaining recognition. 37
the status and rights of a Sponsor, a Direct sure that they conform to Amway-approved way irreparable damage for which Without limiting or restricting in any way
Seller must: procedures and rules. monetary damages would be an in- Amway’s powers and discretion under
adequate remedy, and that notwith- Section 6.1 above:
5.1 5.8 standing any other provision hereof,
Amway Business Starter Guide: Prohibited Registration Practices: and, without prejudice to any other 6.3.1 A Direct Seller who wishes to trans-
Encourage all Direct Sellers that he spon- Neither a prospective Direct Seller, as a con- rights Amway may have in law or fer to a different Sponsor with all
sors to procure a copy of the free Business dition to becoming a new Direct Seller, nor under the contract, Amway shall or part of his Business Group must
Starter Guide published by Amway. any currently authorised Direct Seller, as a be entitled to seek specific perfor- submit a written request to Amway
condition of receiving assistance in the de- mance of the Direct Sellers obliga- accompanied by written consent
5.2 Reserved velopment of their business from their spon- tions under this clause or seek such from all Direct Sellers in his Line of
sor, shall be required to: Purchase hardware further relief as may be available in Sponsorship up to and including the
5.3 or software for computers, subscribe to an law. first qualified Platinum and all Plat-
Train: Internet Service Provider (ISP), or establish inums up to and including the first
Conduct, or provide access to, training and a Website. 6.1.2 Protection of the LOS and LOS qualified Emerald Platinum. If the
motivation that complies with the Rules, Information: first qualified Platinum is a qualified
including Section 7, the BSM Policy, and 5.9 Emerald Platinum, written consent
the Quality Assurance Standards (QAS). In Restrictions on Sponsoring: As used herein, the sale of an own- must be received from the next up-
order to meet this obligation the Sponsor ership interest in a Distributorship, line qualified Platinum in the Emer-
shall encourage his sponsored Direct Sell- 5.9.1 Amway reserves the right to set merging Distributorships, or sepa- ald Platinum’s Line of Sponsorship
ers to attend trainings organized by Amway additional restrictions on recom- rating or dividing a Distributorship, as there could be an effect on upline
and/or may personally train the Direct Sell- mending Prospects or serving as a each inherently involve the assign- commission payments. Amway will
ers whom he or she sponsors or arrange for Sponsor to Direct Sellers based on ment of the Distributorship Agree- then notify the first qualified upline
support from other Direct Sellers, including geography or otherwise. Any such ment or an amendment thereof, and, Diamond Platinum and allow 15
his or her upline Platinum, and Direct Seller restriction will be communicated to as such, require prior authorisation days for comment.
Training Providers. In all cases the Sponsor the Direct Sellers affected. by Amway. Transfers of Direct Sell-
remains responsible and accountable under ers from one Sponsor to another are 6.3.2 The transfer request must be ac-
the Direct Seller Contract for ensuring that only granted at the sole discretion of companied by written consents of
compliant training and motivation are made Amway. all those Direct Sellers whom the
available to his or her sponsored Direct Sell-
ers.
Amway Business
Starter
Guide
transferring Direct Seller wishes to Seller must complete a new Direct ings. During the inactive period, 6.4.5 A Direct Seller’s continuing busi-
take with him or her and the written Seller Application (SA 88ID), which the former Direct Seller must not ness activity in one market will not
acceptance of the transfer, signed by may be obtained from Amway. The participate in any Amway activity affect his eligibility to reapply after
the Sponsor and Platinum to whom application should then be sent to under another Distributorship in six months of inactivity as a Direct
the individual wants to be trans- Amway accompanied by a written the name of his parents, siblings, or Seller in any other country in which
ferred. Amway will also contact any statement of inactivity. When Am- others or he shall not be determined Amway does business.
International Sponsor and interna- way receives an application accom- as “inactive” for the purposes of this
tional leadership commission re- panied by the written statement of Rule. When either a husband or wife 6.4.6 A formerly foster-sponsored Direct
cipients and will allow 30 days for inactivity, it notifies the original is a Direct Seller, both must fulfil the Seller may reapply for Sponsorship
comment. Platinum of the fact and grants him six-month inactivity requirements subject to paragraphs 6.4.1, 6.4.2,
15 days’ time to file an objection to before one or both can be registered 6.4.3 and 6.4.4, and the following
6.3.3 No Distributorship currently recog- the inactivity claim. If evidence of as a Direct Seller. conditions:
nised by Amway as a group leader activity during the six months pe-
(i.e., Silver Sponsors, Silver Produc- riod is provided, Amway will reject 6.4.3 A Direct Seller who transfers to, or 6.4.6.1 At the time of application, the former
ers, Gold Producers, or a Platinum) the application and will return it who following six months of inac- Direct Seller must specify whether or
can be transferred under this Rule. back to the applicant. If the original tivity, applies for Distributorship not he wishes to be internationally
A former Platinum Distributorship Platinum does not reply within 15 under a different Sponsor pursuant and foster sponsored again, and
or Group Leader may be transferred days, or if he verifies that the Direct to the provisions of this Rule, can-
if more than two (2) full years have Seller has in fact been inactive for not be sponsored by anyone who was 6.4.6.2 A former Direct Seller may not be
elapsed since the last fiscal year in six months, then the new applica- previously above him in his original personally sponsored by a Sponsor
which the Distributorship was rec- tion will be accepted and processed. Line of Sponsorship up to and in- who was previously above him in his
ognised as such, provided there has The right of a Direct Seller to contest cluding the first qualified Platinum, original Line of foster Sponsorship
been compliance with the proce- the sponsorship of a former Direct or below him in his former Business up to and including the first quali-
dures outlined above. Seller who is now sponsored under Group down to and including the fied Platinum, or below him in his
a different sponsor ceases upon the first Platinum and who has since original Business Group down to and
38 lapse of 6 months from the date of been transferred to or re-sponsored including the first qualified Platinum
39
6.4 taking up second Distributorship or by a different Sponsor, unless two unless two or more years have elapsed
Six Month Inactivity: cessation of the original Distribu- years have elapsed since the termi- since the termination of his Distribu-
To change Sponsor, Direct Seller must resign torship whichever is later. nation of his Distributorship. torship.
his existing Distributorship, be inactive for 6
months and then join under another Spon- 6.4.2 Definition of Inactivity: 6.4.4 After moving to a new group, a Di- 6.4.7 Corrective Action: If the provisions
sor. The new Sponsor should not have been ‘Inactivity’ means no purchase/sale rect Seller cannot poach persons of paragraphs 6.4.1, 6.4.2, 6.4.3,
part of his original line of sponsorship either of Amway products, no sponsoring from his old group except for Direct 6.4.4 and 6.4.6 are violated, Amway
above or below him during the past 2 years. of prospects and no attending of Sellers who were inactive for atleast may take corrective action, which
A Direct Seller who wishes to change spon- Amway/ Direct Seller’s meetings. 2 years. may include but is not limited to
sor may TERMINATE (by resignation or fail- transfer of the Distributorship of
ure to renew) his Distributorship under his Inactivity for purposes of this Rule A Direct Seller who transfers to, or the Direct Seller at fault. Amway at
present Sponsor and thereafter remain inac- shall mean that during the period of who, following six months of inac- its discretion may also transfer his
tive for a period of six or more consecutive inactivity, the Direct Seller shall have tivity, applies for Distributorship Business Group and the business
months may, following the lapse of said in- been completely inactive, which under a different Sponsor pursuant volume generated during the period
active period, reapply to become a new Di- means he shall not have purchased to the provisions of this Rule, shall of violation to the original Line of
rect Seller under a new Sponsor. Applicants any Amway product as a Direct Sell- have no right to sponsor in his new Sponsorship.
can not apply to become active in an already er for personal use (although he may Business Group any Direct Seller
existing Distributorship. The inactivity pe- do so as a consumer), shall not have who was previously above him in
riod begins from the date on which Amway sold any Amway Products, shall not his original Line of Sponsorship
receives the letter of resignation.. A person have engaged in any phase of a prod- up to and including the first quali- 6.5
who has not renewed and has not submitted uct sale/purchase (e.g., taking an or- fied Platinum, or below him or her Free Agents:
a letter of resignation will be considered to der, making a delivery, or accepting in his former Business Group down A Direct Seller who has been terminated by
have submitted his or her intent on the date payment), shall not have presented to and including the first qualified Amway becomes a “free agent” and may im-
his or her Distributorship expired and must the Amway Sales and Marketing Platinum. However, a Direct Seller mediately file an application to be sponsored
remain inactive for a period of six months Plan to any prospect, shall not have who has been inactive for a period under a new Sponsor. However, whether his
from that date. Applicants can not apply applied for the renewal of his Dis- of two years may be sponsored by or her application will be accepted by Am-
under this Rule to become a partner in an tributorship, and shall not have at- any Sponsor, including his former way will depend upon the reason for which
already existing Distributorship. tended any recruiting, training, or Sponsor who may have since been his or her original Distributorship was ter-
motivational meeting conducted transferred to or re-sponsored by a minated. If it was terminated because of a
6.4.1 To apply for a new Distributorship by any Amway’s Direct Seller or any different Sponsor. violation of the Rules of Conduct, then his
under this inactivity Rule, the Direct Amway company-sponsored meet- or her new application under a new Sponsor
Amway Business
Starter
Guide
may be denied by Amway, or its acceptance the right to acquire the same by meet- Amway. A marriage between Direct Sellers, ant to this Rule; they may operate
may be deferred pending receipt of evidence ing the price and conditions of any a transfer of a business, the sale of a busi- such Distributorships jointly under
satisfactory to Amway that the applicant in- bonafide offer received by and deemed ness or any other similar circumstance does a single corporate, limited liability
tends to abide by the Amway Code of Ethics acceptable to the seller. not cause a merger or combination of busi- company or partnership umbrella,
and Rules of Conduct. nesses unless specifically approved in writ- but Amway shall continue to carry
6.6.2.4 In the case where the local Sponsor ing by Amway. such Distributorships and will only
6.6 does not accept the offer, the business recognise them as separate individ-
Sale of a Distributorship: must be offered simultaneously for sale 6.8 ual Distributorships for both Award
A Direct Seller who owns and operates a dis- to all Direct Sellers personally spon- One Distributorship Rule: and Commission purposes.
tributorship (qualified Silver Producer level sored by the owner. A Direct Seller can have more than one Dis-
or above) may sell his or her ownership in- tributorship, when 6.9
terest in such distributorship. 6.6.2.5 In the case where none of the Direct Divorce, Separation, or Other
Sellers personally sponsored by the Di- • A Platinum marries another Amway Di- Dissolution:
6.6.1 A Direct Seller’s business can only rect Seller accept the offer, the business rect Seller. Whenever a business is separated or divided
be sold to another Direct Seller. The pur- must be offered simultaneously to all as the result of a divorce, dissolution of a
chased business shall remain separate from Platinums located above or below in the • When a Direct Seller purchases another corporation or partnership, the separation
the buyer’s other Amway business and the Line of Sponsorship to the next quali- Distributorship. or division must be accomplished in such a
Lines of Sponsorship shall not be altered in fied Diamond way as to not adversely affect the interests
any way as a result of the sale. • When a Direct Seller names another Di- and/or income of the businesses in the Line
6.6.2.6 If the Platinums above or below in the- rect Seller to his/her Distributorship for of Sponsorship.
Line of Sponsorship of the Direct Seller transfer in case of the former’s death. During the division or separation process,
6.6.2 If a Direct Seller wishes to sell his or in question to the next qualified Dia- neither party will administer or operate,
her Amway business, he or she must mond also reject the purchase offer, or • Through inheritance of full or a part of together or separately, any other Amway
offer it to another Direct Seller in fail to respond to the offer, the Direct Distributorship. business without Amway’s approval.
the following order of priority: Seller may offer the business to all qual-
40 ified Platinums at that time in India. A Direct Seller can own or have an owner- 6.10 41
6.6.2.1 If the business is internationally ship interest in only one Distributorship ex- Disposition of a Distributorship:
sponsored, it must be offered to the 6.6.3 No sale shall be final and no change cept as provided below: If a Direct Seller terminates/cancels his Dis-
International Sponsor, who through- of title of the business shall be made tributorship, or fails to renew it within the
out the negotiations to sell the dis- final until approved in writing by 6.8.1 Where two Direct Sellers marry and required time period or dies without leaving
tributorship retains the right to ac- Amway. one or both have attained Platinum heirs who are ready, willing, and able to be-
quire the same by meeting the price status or above prior to marriage come Direct Sellers and assume the respon-
and conditions of any bonafide offer 6.6.4 If the Direct Seller wishes to sell pursuant to Rule 3.17; sibility of Amway Business, Amway, at its
received by and deemed acceptable the business under terms and con- sole discretion, shall decide the future of the
to the seller, subject to the extant ditions different from those of his 6.8.2 Where an existing Distributorship Distributorship in accordance with Section
policies of Amway and any and all first offer, the business must be once purchases another Distributorship 15 of these Rules.
required permissions and approv- again offered for sale under the re- pursuant to Rule 6.6;
als, including the Reserve Bank of vised terms and conditions in ac-
India and/or any other authority, if cordance with the order of priority 6.8.3 Where a Direct Seller (transfer or), Section 7: Business Support
required under the Foreign Exchange indicated above. in order to facilitate the transfer of Materials (BSM)
Management Act or other applicable a Distributorship in the event of his
law. 6.6.5 Monthly Sales Commissions and or her death, requests the name of The content, review and authorization, cre-
other Higher Achievement Com- another existing Direct Seller be ation, production, promotion, distri-bution,
missions accruing to the business added to their Distributorship. The offering for sale and sale of Business Sup-
shall be paid as specified in the sale name of the transferor(s) must con- port Materials shall strictly adhere to this
6.6.2.2 If the international Sponsor does not agreement as authorised by Amway. tinue to be on the Distributorship Section 7 and other applicable provisions
accept the offer of purchase, or if all All awards previously awarded to until his or her death and support- in the Rules, the BSM Policy and the Qual-
of the required permissions/approv- the business will not be transferred ing estate-planning documentation ity Assurance Standards (QAS).The current
als, including that of the Reserve to the new owners. Qualification must be provided to Amway. BSM Policy and the QAS shall be published
Bank of India are not received, the for awards for the business will be on Amway India’s website and also made
business must be offered to the local determined only by activities occur- 6.8.4 Where an existing Distributorship available by Amway India upon request from
Foster Sponsor of the Direct Seller. ring after the date of sale. inherits all or a portion of a Distrib- Direct Sellers.
utorship.
6.6.2.3 If no international Sponsor exists, the 6.7 7.1
business must be offered to the local Mergers: In the event a Direct Seller owns or General Rules on BSM
Sponsor, who throughout the negotia- Businesses will not merge or be combined has an ownership interest in two
tions to sell the distributorship retains without the previous written approval of or more Distributorships pursu- 7.1.1 Business Support Materials shall
Amway Business
Starter
Guide
at all times be entirely optional. tion offered by Amway India, no 7.2.3 For BSM offered in the form of a 7.4 Reserved
Training Providers who choose to Direct Seller shall record the same rally, meeting or educational semi-
publish Business Support Materials without the express written consent nar conducted by a Direct Seller, it 7.5
must emphasise that the purchase of Amway India. should be consistent with his or her BSM Sale and Refund by
of BSM is strictly voluntary. In no training obligations as a Sponsor Training Providers
circumstance shall the purchase of 7.1.6. Amway India does not endorse the under Rule 5.3.
BSM or participation in any training representations made, or other 7.5.1. All buyers of Business Support Ma-
or support offered by Training Pro- content, in any BSM or the training 7.2.3.1. Unless otherwise specified in the terials may return the BSM, together
viders be made a condition of the methods used by other Direct Sell- Rules, the BSM Policy or the QAS, with a proof of purchase, to the Di-
Direct Seller registration process or ers, Training Providers or third-par- such rally, meeting or educational rect Seller for a 100% refund within
explicitly or implicitly represented ty vendors. Amway India’s review is seminar does not require prior 30 days after purchase.
as necessary for success in the Am- solely for the purpose of ensuring authorization from Amway India.
way Business. compliance with its Rules of Con- However, it is the responsibility 7.5.2. The terms of the refund policy ad-
duct, the BSM Policy and the QAS. of the Direct Seller organizing or opted by an Training Provider, in-
7.1.2 Except as specified in Rule 5.3, only providing access to the same to cluding procedures for the resolu-
Direct Sellers who have officially 7.1.7. Nothing in the Direct Seller Con- ensure that the content presented, tion of disputes and the responsible
attained the following recognition tract, this Section 7, any other Rule, as well as the duration, frequency person for returns, must be clearly
levels (the “Qualification Criteria”) the BSM Policy or the QAS shall be and pricing, fully complies with communicated to the purchaser
shall be designated as Direct Seller construed or interpreted as a license the Rules, the BSM Policy and prior to any such sale. Training Pro-
Training Providers, and thus, to the or other permission to incorporate the QAS, and that Amway India is viders shall ensure that the terms
extent expressly authorized, be al- into any BSM, or to share with any provided with all required infor- and conditions of any refund policy
lowed to publish BSM (as applica- third-party vendor of BSM or other mation sufficiently in advance. adopted comply with all applicable
ble): training or motivation, any LOS In- laws.Any unresolved dispute must
formation. 7.2.3.2. In each case the Direct Seller shall be submitted to the dispute-resolu-
7.1.2.1. A Current Qualified Emerald Direct disclose and affirm to a potential tion procedure as provided in Sec-
42 Seller and above is allowed to publish 7.2 consumer of BSM: (a) that the tion 11 of the Rules. 43
BSM to other Direct Sellers. Specific Categories of BSM training or support is optional,
In addition to the prior requirements under does not guarantee success, and 7.5.3. BSM offered in the form of rallies,
7.1.2.2. A Current Qualified Platinum Direct Section 7, the following shall apply to spe- is not necessary to succeed, in the meetings or educational seminars
Seller and above is allowed to promote cial categories of BSM: Amway Business; (b) the name conducted by Direct Sellers shall
BSM within his or her Business Group. and contact details of any third adhere to the following additional
7.2.1 BSM reduced to a fixed medium party providing the training and refund requirements:
7.1.3 Direct Sellers may neither give to, must also, in accordance with the support at the Direct Seller’s re-
nor receive compensation, remu- QAS:(a) be submitted to Amway quest; and (c) refund rights, in- 7.5.3.1. Tickets to rallies, meetings, or ed-
neration or other financial incen- India for review prior to promotion, cluding the applicable return pe- ucational seminars, shall contain
tives from, other Direct Sellers for distribution, offering for sale or riod. declaration(s) in accordance with
the promotion, distribution, offer- sale; (b) be expressly authorized by this Rule 7.5, the BSM Policy and
ing for sale or sale of BSM. Amway India; and (c) bear the Con- 7.3 the QAS.
tent Review (CR) number provided Prospects
7.1.4 BSM shall not infringe in any way by Amway India. 7.5.3.2. Each Training Provider who
on Amway copyrights, trademarks 7.3.1. BSM shall not be offered for sale or chooses to sell tickets to rallies,
or other intellectual property rights, 7.2.2 Any claim relating to the use, charac- sold to Prospects. Prospects must meetings or educational seminars
or provisions of any other applicable teristics and/or performance of Am- not be charged for BSM, regardless is obligated to buy back tickets,
laws, rules or regulations. Direct way Products must be reproduced of whether such BSM is reduced to a from any dissatisfied individual
Sellers promoting, distributing, of- verbatim from official Amway India fixed medium. who personally attended the
fering for sale or selling BSM must sources, without alteration or modi- event, for a period of 30 days after-
obtain appropriate written authori- fication. No third-party claim for 7.3.2. Direct Sellers shall not use with, or ward.Except as provided in Rule
zation from Amway in accordance the same shall be authorized in any distribute to, Prospects any BSM 7.5.1, such refund shall be for that
with Section 9 and the QAS in or- Business Support Material. Direct which suggest, imply, promise or portion of the cost of the event
der to use or affix any trademarks, Sellers shall, with prior Amway ap- guarantee, either directly or in- related to admission, exclusive of
copyrighted material or other intel- proval and otherwise in accordance directly, that any specific level or travel, meals or hotel accommo-
lectual property of Amway in BSM. with the QAS, incorporate into their amount of sales, income, profit or dation.
Additionally, BSM shall not infringe communications or include in pre- earnings may be derived from the
the trademarks, copyrights or in- sentations reduced to a fixed me- Amway Business or from selling any 7.5.4. BSM in the form of website sub-
tellectual property rights of other dium full and exact reproduction(s) specific line or lines of Amway Prod- scriptions and downloadable me-
Training Providers. of materials set forth in Amway-pro- ucts. dia offered by Direct Sellers shall
duced literature including labels.
7.1.5. For BSM in the form of a presenta-
Amway Business
Starter
Guide
adhere to the following additional 8.1.7 Directly or indirectly indicate that 8.3.2 Must use only Amway-produced and or any other means by which per-
refund requirements: the Amway Business, Direct Sellers Amway-authorized literature. Am- sonal contact with the prospect is
or Amway Products are part of any way authorises for use privately pro- not present. However, Direct Sellers
7.5.4.1. Purchasers cancelling website sub- business other than Amway’s Busi- duced sponsoring aids submitted may use digital media or maintain
scriptions are entitled to a refund for ness, to Amway through a qualified EDC an Internet Website for use with
unused, whole months of any prepaid member or other Amway designee. prospects, provided the contents of
subscription(s). 8.1.8 Deny, if asked, that the presentation For further information on how to such media or Website meets the
is about the Amway Sales and Mar- submit materials, please contact the requirements set within the Direct
7.5.4.2. Purchasers of downloadable media keting Plan, or Amway office. Seller Guidelines (attached), and
are entitled, if dissatisfied, to obtain a otherwise complies with the Rules
replacement download of equal value 8.1.9 Imply that it is other than a business 8.3.3 May use those earnings and/or of Conduct.
within 30 days of the purchase of the event. commission representations based
subject downloadable media. on their own personal experiences, 8.4
8.2 provided that they at the same time No Exclusive Territories:
7.5.5. Amway’s Refund Policy does not First Contact with Prospective disclose the average profits, earn- No Direct Seller shall represent that there
apply to BSM sold by Training Customers and Direct Sellers: ings, and sales figures and percent- are exclusive territories available under the
Providers. At the first contact with prospective ages as published from time to time Amway Sales and Marketing Plan.
customers and Direct Sellers, a Direct Seller by Amway.
should: 8.5
Section 8: Presentation of the 8.3.4 May cite lifestyle examples, e.g. No Obligation to Purchase:
Amway Sales and Marketing Plan 8.2.1 Introduce himself by name. travel, automobile, homes of suc- No Direct Seller shall represent that there is
cessful Direct Sellers, and contribu- any obligation to purchase products and/or
8.1 8.2.2 As soon as practicable, he should tions to charitable causes, provided services under the Amway Sales & Market-
Must not Give Impression of make himself known in suitable such benefits were actually accrued ing Plan, nor shall he/she represent, pur-
Employment Relationship: fashion as an Amway Direct Seller as the result of building a successful posely allow or gain from any representation
44 When inviting a prospect to hear a presen- and should provide information Amway Distributorship. or implication that benefits may be derived 45
tation of the Amway Sales and Marketing concerning his name and address as solely from the purchase of Amway products
Plan, an Amway Direct Seller shall neither well as concerning Amway. 8.3.5 Must not say that a successful Dis- or services in conformity with the Amway
utilise the following invitations nor directly tributorship can be built in the Sale and Marketing Plan.
or indirectly induce other Direct Sellers to 8.2.3 Indicate the purpose of contact, form of a “wholesale buying club” in
do so: namely the sale of Amway Products which the only products bought and
and/or the introduction of the pros- sold are those transferred to “Direct Section 9: Use of the Amway
8.1.1 Give the impression that it relates to pect to the Amway business. Seller” at Direct Seller cost for their Trade Name, Trademarks, and
an employment opportunity, personal use. Copyrighted Materials
8.3
8.1.2 Imply that the invitation is to a so- Sponsoring Guidelines: 8.3.6 Must not say that there is no require- Introduction
cial event, Amway Sales & Marketing Plan must not be ment for the retail sale or marketing
presented of products. The Amway trade name, trademarks, and
8.1.3 Disguise the invitation as a “market service marks are important and valuable
survey,” • as a get-rich-quick opportunity. 8.3.7 Must not promote the enjoyment of business assets. They help identify the
tax benefits as the best or principal source and reputation of the Amway busi-
8.1.4 Promote the event as a “tax semi- • that Amway Products are bought and sold reason for becoming an Amway Di- ness, products, and services worldwide, and
nar,” for Direct Sellers personal use. rect Seller. distinguish them from those of competi-
tors.
8.1.5 Promote the Amway Business op- • that there is no requirement to retail Am- 8.3.8 Must not say that Amway is a “get- Trademarks must be protected from misuse
portunity as a business relationship way Products. rich-quick” opportunity in which it and infringement by others, or they can be
with a person, company, or organi- is easy to achieve success with little lost. Each time a trademark or symbol is
sation other than Amway, In seeking participation of a prospect in the or no expenditure of effort or time. used improperly or is used by someone oth-
Amway Sales and Marketing Plan, the spon- er than its owner, the value and importance
8.1.6 Directly or indirectly indicate that soring Direct Seller must comply with the 8.3.9 Must not present the Direct Sell- of the trademark can be greatly diminished.
Amway Products are merely one line following guidelines: er plan or solicit participation in Once a trademark is weakened or lost, it is
of products distributed through or the Direct Seller Plan through any impossible to regain its full value and im-
as a part of a brokerage operated by 8.3.1 Must disclose the average profits, broadcast communication methods portance. Therefore, Amway makes every ef-
a person, company, or organisation earnings, and sales figures and per- including mass mailing, telemar- fort to protect its house trademark Amway,
other than Amway, centages as published from time to keting, national or international ad- its corporate logotype, label designs, and
time by Amway. vertising, radio, television, facsimile various product names (e.g., L.O.C., SA8,
services, computer communication Artistry, Nutrilite) so that others cannot use
networks including the Internet them.
Amway Business
Starter
Guide
Amway will not allow use of its trade name way name on imprinted cheques No Direct Seller shall, without tions covering the product and its li-
(company name), trademarks (product used by Amway Direct Sellers is ei- Amway’s prior approval, produce belling and thus subject the person
names), designs, or symbols by any person, ther of the following: any item bearing the Amway making such deviations to penalties
including an Amway Direct Seller, without name/logotype from any source imposed by law. Unfortunately such
its prior permission. Amway will issue cease- Ramesh Kumar other than Amway. governmental action not only can
and-desist orders to any persons using its Amway Products Direct Seller adversely affect the particular of-
trade name, trademarks, designs, and sym- Or fender, but also his or her fellow Di-
bols without its permission and will, if nec- Ramesh Kumar 9.7 rect Sellers as well as Amway itself.
essary, follow with appropriate court action Direct Seller of Amway Products Copyrighted Materials:
for failure to comply with a cease-and-desist All Amway printed material is copyrighted 9.8
order. If Amway did not do this, Direct Sell- and may not be reproduced in whole or in Penalties for Violators of Section 9:
ers would soon find the market flooded with 9.5.2 Such cheques may not use the Am- part by Direct Sellers or other persons except Any Direct Seller who violates Section 9
“Amway” products not produced by Amway way logotype or the trademark Am- by prior written permission from Amway. can:
or sold by Amway Direct Sellers. Obvious- way. No Direct Seller may use such
ly, Amway Direct Sellers would be harmed imprints as “Amway Company,” 9.7.1 Amway makes a claim to copyright 9.8.1 Be required to remove improper
greatly by such competition. “Amway Sales Company,” or “Amway for all its printed material in the signs, destroy improper literature,
The rules set forth below have been devel- Products Company,” nor any name market. This is done to prevent oth- cancel improper advertising, or
oped to maintain the integrity of the Amway implying an agency or representa- ers, particularly competitors, from change improperly listed telephone
trade name and trademark and to ensure tive relationship. A Direct Seller copying and duplicating Amway numbers. In the case of improper
that the name Amway will be available ex- who actually carries on business as literature which has been devel- telephone listings, Amway may
clusively for the Amway Business. In addi- a company may imprint his cheques oped and printed at great expense require the listed number to be
tion, Amway has implemented a corporate only as follows: and to assure Amway Direct Sell- changed to a new number with no
identity programme that requires the correct ers that the promotional materials calls to be referred from the listed
and consistent use of the Amway corporate Kumar Company which they purchase and distribute number to the new number.
logotype, no matter where it appears. There- Amway Products Direct Seller to their customers is unique, attrac-
46 fore, no alterations to the approved logotype Or tive, and truthful. As in the case of 9.8.2 Be denied the right to make any fu- 47
are allowed. Upon request, Amway will pro- Kumar Company trademarks and trade names, if Am- ture use of the Amway trademark or
vide an example of the approved logotype Direct Seller of Amway Products way did not exercise every effort to trade name.
and colour specifications. protect its copyrighted materials,
9.6 Direct Sellers might soon find the 9.8.3 Have his Distributorship terminated
9.1 Reserved Promotional Literature, Stationery, market flooded with “Amway” lit- by Amway.
Premiums, etc.: erature which was not produced by
9.2 Reserved No Amway Direct Seller may produce or pro- Amway and did not relate to prod- 9.8.4 Be liable for money damages to Am-
cure from any source other than Amway any ucts made and sold by Amway. Ac- way for unauthorised use of the Am-
9.3 Reserved premium, giveaway item, stationery, or pro- cordingly, no person, whether an way name, trademark,or logotype.
motional literature of any kind upon which Amway Direct Seller or otherwise,
9.4 the Amway name or logotype or any of its may reproduce any of Amway’s
Fund-Raising Events: trade names or trademarks are imprinted printed material, in whole or in part,
Amway Products and services are not au- without securing prior, written approval without specific written permission Section 10: Death and Inheritance
thorised to be used in conjunction with any from Amway. from Amway. This includes text ma-
type of fund-raising activity. Fund-raising terial, pictures, cartoons, diagrams, 10.1.
includes the solicitation for the purchase of 9.6.1 No Direct Seller may print, or cause charts, maps, designs, and other In the case of the death of a single Direct
Amway Products or services based on the to be printed, for his use any sta- printed materials. Seller:
representation that all or a portion of gains, tionery which bears the Amway
proceeds, or profits generated by such sale logotype or any of the Amway trade 9.7.2 All Amway printed material relat- 10.1.1. If Amway is not notified of the ap-
will benefit a particular group, organisation, names or trademarks without the ing to products has been carefully pointment of an administrator in
or cause. prior, written consent of Amway. prepared to conform with all local, accordance with the provisions of
The precise copy to be used must state, and central laws and regu- Section 10.1.2, Amway can appoint
9.5 be forwarded to Amway before the lations governing the libelling of a representative, under the terms
Imprinted Cheques: printing is actually done. When products. (The word “labelling” cov- and conditions Amway considers
No Amway Direct Seller who uses imprint- approval is given by Amway, there ers not only the label on the product appropriate to manage the Amway
ed cheques can use the Amway logotype shall be no deviation whatever from itself, but also any literature used to Distributorship, or assign the Am-
or trade name nor may he refer to himself the approved copy. promote the sale of such product.). way Distributorship in accordance
other than as an Amway Direct Seller on the Even a slight deviation from the lan- with Section 10.1.2 or Amway can
cheques. 9.6.2 No cloth Amway corporate logo- guage on the label or promotional cancel it in accordance with Sec-
types shall be affixed to any sports material may constitute a violation tion 15. Without limitations as to
9.5.1 The only authorised use of the Am- uniforms, shirts, or other garments. of one or more of the laws or regula- Amway’s proceedings with regard
Amway Business
Starter
Guide
to the terms and conditions of the a. The surviving Direct Seller shall obtain d. Termination of the offending Distributor- Platinum in the Line of Sponsorship
representative appointed to manage (by will or sale or operation of law) the in- ship. of the violating Direct Seller. The
the Distributorship, such represen- terest of the deceased Direct Seller or, decision letter will list the specific
tatives can, based on Amway’s spec- In instances of violation of the Amway Rules complaint(s), outline the corrective
ifications, receive all or part of the b. The administrator of the deceased Direct of Conduct any Direct Seller may make a action to be taken and, if appropri-
Commissions and privileges earned Seller’s estate can assign or transfer complaint to Amway in accordance with the ate, setting a time limit for compli-
by the Distributorship he repre- Complaint Procedure set out in Section 11.1 ance.
sents, for the period during which the latter’s part to another Direct Seller below.
he manages it. who shall operate the business with the Decisions taken by Amway in its enforce- 11.1.5 Failure to Comply: Amway will al-
surviving Direct Seller or, ment of the Amway Rules of Conduct may low the Direct Sellerto implement
10.1.2. The administrator of the deceased be appealed for further review at Amway the appropriate corrective action
Direct Seller’s estate shall, with let- c. The Amway Distributorship can be sold in World Headquarters in accordance with the within the time limit specified in the
ters of administration or other prop- accordance with Section 6 of these Rules Review Panel Procedure set out in Section decision letter. However, if compli-
er authority, and as soon as possible or, 16. ance has not occurred on expiration
following the death of the Direct of the time limit, Amway will take
Seller(s), do the following: d. The administrator of the deceased Direct 11.1 further enforcement action directly.
Seller’s estate and the surviving Direct Complaint Procedure: Notice of such action shall be given
a. Sell the Amway Distributorship in accor- Seller shall appoint a representative to op- When a Direct Seller has discovered that by letter addressed to the violating
dance with Section 6 of these rules; erate the Distributorship for said period, there may have been a violation of the Rules Direct Seller, with a copy sent to the
under the terms and conditions estab- of Conduct, he must notify Amway and his violator’s Platinum and to the com-
b. If he is or becomes a Direct Seller, take lished by Amway, with the understand- Platinum of the violation and all facts and plaining Direct Seller. Such letter
charge of the deceased Direct Seller’s Am- ing that the representative shall become documentary or other evidence connected shall be sent by Registered Mail.
way Distributorship, or; an Amway Direct Seller before he takes with it.
charge of the business. 11.1.1 Notification to Alleged Violator: Section 12: Termination
c. Appoint a representative for a period of On receiving this notice, Amway and De-sponsorship
48 time, under the terms and conditions will notify the appropriate Direct 49
specified or approved by Amway, who will Sellers of the complaint and request Amway can terminate/de-sponsor the Dis-
operate the Amway Distributorship, with Section 11: Enforcement of the an immediate response. tributorship of a Direct Seller if he/she
the understanding that said representa- Amway Rules of Conduct
tive is or become a Direct Seller before 11.1.2 Insufficient Information: If the • Gives wrong information in the applica-
he starts to operate the Distributorship. Introduction complaint and response do not con- tion form.
In accordance with limitations or other tain sufficient facts upon which to
rules imposed by Amway, the representa- Violation of the Amway Rules of Conduct make a decision, additional infor- • Misrepresents Amway/Amway Business.
tive can, as stipulated by Amway, receive is an extremely serious matter, not only be- mation may be requested from any
all or part of the incentives and privileges cause of the effect it may have on the busi- party by Amway. • Breaches any of the Rules of Conduct.
earned by the Distributorship he repre- ness of an individual Distributorship, but
sents for the period during which he man- also the result this conduct may have on the 11.1.3 Informal Resolution: After Am- • Is convicted of an offence punishable by a
ages it. opinions of the Amway business held by the way receives all information of prison term
public, the media and government officials. facts and circumstances relevant to
10.2. Accordingly while Amway will make every the complaint, Amway will decide • Is declared bankrupt.
If an Amway Distributorship belongs effort to correct any violation through guid- whether there has been a violation
to two unmarried persons, and if one ance and counselling, further action may be of the Rules of Conduct and will • Is not mentally sound to handle the busi-
of them dies, the following provisions required in more serious cases including, then discuss the matter with the ness.
shall apply: but not limited to the following, which may Direct Sellers involved to explain
be applied by Amway in any order or in any the rationale behind the rule and to 12.1
10.2.1. The surviving Direct Seller will be combination: obtain adequate assurance from the Amway may, at its election and by notice in
in charge of the business during the Direct Sellers that it will not recur. writing to a Direct Seller, terminate the au-
time stipulated or according to Sec- a. Retraining of the (Direct) Direct Seller thorisation to operate as a Direct Seller, or
tion 10.2.2, or until Amway cancels it and his Business Group; 11.1.4 Formal Resolution: If Amway is de-sponsor the Direct Seller from his Busi-
in accordance with Section 12.1.8 of unable to settle the matter informal- ness Group, if one or more of the following
these Rules. b. Suspension period for the offending Dis- ly and if the appropriate corrective occurs:
tributorship; action is deemed by Amway to be
10.2.2. Further, within 30 days following the other than termination or De-spon- 12.1.1 If, in Amway’s opinion, the Direct
issuance of letters of administration c. De-sponsoring the offending Direct Seller sorship, then Amway will forward a Seller provided false information in
or other proper authorisation: of his Business Group; decision letter to the violating Direct his Direct Seller Application.
Seller, as well as the sponsor and the
Amway Business
Starter
Guide
12.1.2 If the Direct Seller makes a serious subject to appeal to a Review Panel pursuant 12.5.1 Be mailed to the last mailing address alternative to terminating the business of a
misrepresentation of Amway or the to the procedure set out in Section 16. of such parties as shown in Amway’s Direct Seller or Platinum who has violated
Amway business which, in Amway’s records; the Rules of Conduct, Amway may employ
opinion, is not likely to be satisfacto- 12.3 various actions and procedures to encour-
rily remedied by corrective actions; Termination of a Direct Seller means 12.5.2 If applicable, state the Rule(s) vio- age proper Amway business conduct. Am-
termination of lated by the Direct Seller; way may use any or all of the following to
12.1.3 If the Direct Seller breaches any of address the matter:
these Rules of Conduct and fails to • All rights as an Amway Direct Seller. 12.5.3 State the date on which any such ac-
rectify such breach within the time tion shall become effective, and 13.1.1 Hold / forfeit payment of commis-
period specified by Amway in its • All income being generated after the sions, higher award monies, or other
written notice to the Direct Seller; date of termination. 12.5.4 If applicable, advise the Direct monies payable to the business.
Seller of his opportunity to appeal
12.1.4 If the Direct Seller commits repeat- Termination of the Direct Seller’s Amway’s decision to a Review Panel 13.1.2 Suspend authorisation to conduct
ed breaches of any of these Rules of authorisation to operate as an Amway Direct pursuant to the procedure set out in sponsoring activity (sponsoring, re-
Conduct; Seller means the termination of all rights Section 16. cruiting meetings, training sessions,
derived from said authorisation, and in home presentations, etc.),
12.1.5 If the Direct Seller (or, if the busi- conjunction therewith, the right to receive
ness comprises two or more indi- any further income from or generated by 12.6 13.1.3 Suspend invitations to company-
viduals, any of those persons) is such business arising or accruing after the Upon termination of his or her sponsored trips,
convicted of an offence punishable date of termination, except the right to authorisation as an Amway Direct Seller
by a prison term; receive reimbursements of the discounts for any cause whatsoever, the Direct 13.1.4 Conduct reorientation meetings
corresponding to the purchases which Seller shall forthwith: and charge back the expenses to the
12.1.6 If the Direct Seller (or, if the busi- were made prior to the termination date. 12.6.1 Return, in good condition, all Am- Line of Sponsorship,
ness comprises two or more indi- Termination shall be effective upon the date way Products and Amway distrib-
viduals, any of those persons) is sus- specified by Amway in its written notice to uted products in his possession as 13.1.5 Request Direct Sellers to provide
50 pended or disbarred from practicing the Direct Seller. specified in the “Buy-Back” policy. Amway with recordings of their 51
his usual trade or profession by any Sales Plan presentations, and/or
association, institute or professional 12.4 12.6.2 Cease to use all trademarks, trade
society; De-sponsorship means removal of names, insignia, or other industrial 13.1.6 Request/require the mailing of an
a Direct Seller from his position as a property used in or related to the “Ethics Bulletin” to the Business
12.1.7 If the Direct Seller becomes the sub- Sponsor in the Line of Sponsorship. Amway business, and Group of the Platinum and to all
ject of bankruptcy or winding-up De-sponsorship or “de-sponsored from Platinums in an Emerald’s or Dia-
proceedings; one’s Business Group” means the removal of 12.6.3 Cease to identify himself as an Am- mond’s organization.
a Direct Seller from his position as a Sponsor way Direct Seller or Platinum.
12.1.8 In the event that a Direct Seller dies in the Line of Sponsorship (including, at the 13.2
without either an executor or an absolute discretion of Amway, the removal 12.7 Interim Managers:
heir appointed by the executor who of the Direct Seller’s right to ever sponsor In the event that Amway terminates a Direct Where Amway is of the opinion that the
wishes to assume responsibility for again in his current Line of Sponsorship or Seller’s business or that a Direct Seller is de- interests of any Distributorship within a
continuing the deceased’s business; any other Line of Sponsorship), such re- sponsored of his Business Group by Amway particular Line of Sponsorship are being
moval being effected by written notice from pursuant to these Rules of Conduct, the Di- adversely affected by the inability or unwill-
12.1.9 In the event that a Direct Seller is Amway to the relevant Direct Seller and be- rect Seller will have no claim against Amway ingness of a Direct Seller within the same
incapable of managing his affairs by coming effective on the date stated in such arising out of or in respect of the termina- Line of Sponsorship to properly carry out
reason of mental condition. notice. tion or De-sponsorship. his/her responsibilities and obligations as a
Direct Seller, Amway may by notice in writ-
12.1.10 If the Direct Seller commits a breach 12.5 Section 13: Suspension of ing appoint an Interim Manager to run the
of terms and conditions of availing The Process of Termination a Distributorship business of the violating Direct Seller. Such
of any value added service including or De-sponsorship: appointment shall apply until resolution of
any payment thereof and / of fails The Direct Seller, whose authorisation is to 13.1 the situation.
to make payment of any products / be cancelled or who is to be desponsored, In an effort to eliminate misrepresenta-
services provided by Amway. shall be given written notice of Amway’s tions of the Amway Sales and Marketing
decision by Registered Mail. In addition to Plan within a Line of Sponsorship, or as an
12.2 complying with the laws of India pertaining
The decision of Amway regarding termina- to such termination or De-sponsorship, the
tion or de-sponsoring of a Direct Seller shall notice of termination, cancellation, or De-
be final and binding on the Direct Seller sponsorship shall:
Amway Business
Starter
Guide
SECTION 14: 15.1.1.1 The business will be offered for sale/ documents supporting this request (all conference or in person at their own
TERMINATION, DE-SPONSORSHIP assignment to another Direct Seller documents must be provided in English). expense. If a translator is required, the
OR SUSPENSION BY AMWAY recognising the order of priority im- Only the Direct Seller whose Amway business appellant must provide their own
WITHOUT FORMAL COMPLAINT posed by Rule 6.6. was sanctioned can appeal and must do so translator at their expense.
within 30 days of the date of the affiliate’s
14.1 15.1.1.2 The terms of the sale will be set decision letter. The appeal must be submitted 16.5
Amway may initiate termination, De-spon- forth in a written contract executed to the Appeal Administrator either via email at Final determination by the
sorship, or suspension of a Direct Seller’s between Amway and the purchaser. appeal.administrator@amway.com or via International Review Panel:
business even in the absence of a formal postal service to: Amway Corporation, Attn:
complaint. Amway shall not, however, take Appeal Administrator, Global Business 16.5.1 The International Review Panel may
action against the Direct Seller until Amway 15.1.1.3 The business will remain in its cur- Conduct & Rules, 7575 Fulton Street East, Ada affirm, reverse and/or modify the
has first offered the violating Direct Seller rent position in the Line of Sponsor- Michigan 49355 USA. decision of Amway.
an opportunity to explain and/or justify his ship and will be made a No. 2 busi-
conduct. ness of the purchaser. 16.2 16.5.2 The determination of the International
Membership of the Review Panel will be communicated to
14.2 15.1.1.4 All funds resulting from the sale will International Review Panel: all parties.
Where the violation has been of such mag- be added to an incentive fund to be The International Review Panel consists of
nitude as to bring into serious question the distributed by Amway among eli- corporate staff from Global Rules, North 16.5.3 Amway will take such steps as may be
right of such Direct Seller to continue to op- gible Direct Sellers. America Rules, Global Sales and International necessary to implement the
erate his business, Amway may terminate Legal. International Review Panel's
without affording the Direct Seller the op- 15.1.2 Dissolution of Business. If Amway determination.
portunity to rectify his past improper con- so elects, the business will merge 16.2.1 Members of the International Review
duct. with the business of the first quali- Panel do not act as arbitrators. 16.5.4 In the event the determination of the
fied sponsor Upline in the Line of International Review Panel is rendered
14.3 Sponsorship. 16.3 in favour of the Direct Seller, Amway
52 The Direct Seller shall have the right to re- Market decision remains in force 53
shall restore full rights and privileges,
quest a review of the decision by Amway in 15.2 pending decision by the International and as appropriate, pay the balance of
accordance with Section 16. No Limitation on Amway: Review Panel: monies previously held in escrow.
Amway, however, is in no way limited to any In the event Amway grants an Direct Seller the
of the above methods of disposition of a opportunity to have an affiliate’s decision 16.5.4.1 In the event of any other decision taken
SECTION 15: DISPOSITION OF business and may exercise complete discre- reviewed by the International Review Panel, by the International Review Panel,
TERMINATED, DE-SPONSORED, tion as to methods and/or timing of disposi- the decision taken by Amway will remain in Amway shall determine the disposition
OR NON-RENEWED BUSINESSES tion. force until the review has taken place and a of the monies held in escrow.
final determination has been made by the
15.1 SECTION 16: International Review Panel. 16.5.5 The decision of the International
Process: INTERNATIONAL REVIEW PANEL Review Panel shall not give rise to any
In the event that Amway determines that 16.4 legal or financial liability, claim for
it is necessary to terminate, de-sponsor, or The International Review Panel provides an Procedures for review by the damages or other recourse, including
non-renew a Direct Seller’s business, or if a internal procedure for the review of decisions International Review Panel: but not limited to loss of profits- or
Direct Seller cancels his Direct Seller Agree- as to a Direct Seller’s termination, suspension, goodwill, on the part of Amway or any
ment or fails to renew it within the required non-renewal, and/or de-sponsorship. Any 16.4.1 The Appeal Administrator will provide other Amway affiliate to the Direct
time period, or dies without leaving heirs other decision may be reviewed by the notification to all parties (affiliate and Seller or any other person.
who will assume the operation of the Dis- International Review Panel at Amway’s appellant) concerning the scheduled
tributorship, the disposition of the business discretion. appeal hearing date. 16.6
of such Distributorship will be determined Dispute Resolution:
by Amway in its sole discretion. In exercis- 16.1 16.4.2 The parties may offer evidence and Any dispute, differences or claim arising out of
ing its prerogative to determine the disposi- Procedure for filing an appeal request produce additional evidence or in connection with the Direct Seller
tion of such business, Amway may elect to to the International Review Panel: independently or as requested by the Agreement shall be submitted to binding
employ one of the following methods: International Review Panel. The arbitration and shall be referred to the sole
In the event a Direct Seller disagrees with an International Review Panel will Arbitrator appointed in accordance with the
15.1.1 Sale/Assignment of Business If Am- affiliate’s decision regarding a determine the relevancy and rules and regulation of International Centre for
way elects to sell/assign the busi- sanction/decision (as noted above), the Direct materiality of the evidence offered. Alternate Dispute Resolution as a fast track
ness, and subject to the provisions Seller has the right to request an appeal of arbitration. The venue of such arbitration shall
of the Foreign Exchange Manage- their case for review by the International 16.4.3 Either party may attend the be at New Delhi and the award of the Arbitrator
ment Act and other applicable laws Review Panel. The appeal must be submitted International Review Panel hearing shall be final and binding on all parties. Subject
and regulations, the following will in writing and may be accompanied by any (held at Amway’s World Headquarters to the above, courts at New Delhi shall alone
be observed: in Ada - USA), either via phone -
have jurisdiction in relation to the Direct Seller
Agreement and matters connected thereto.
Amway BUSINESS
STARTER
GUIDE
16.7
Reserved
Amway BUSINESS
RTER
GUIDE
1. Passcode Protection is NOT required for site. A technical help e-mail address can g. Outbound links to other sites, provided passcode page must carry the following
PHPs. appear for individuals experiencing dif- such links are in accordance with the statement: For use with prospects and
ficulty. The page may not contain Direct Rules of Conduct. These links may in- Direct Sellers in (Direct Seller’s home
2. Appropriate Content Includes Seller numbers or passcodes that would clude one’s LOS Home Page, amway. market) only.
provide a casual web viewer access. Di- com, and (insert name of market, ex.
a. Direct Sellers name and state/province// rect Sellers may give out their passcode amwaymalaysia.com). 2. Appropriate Content Includes
country. to prospective Direct Sellers only in
face-to-face or other one-to-one contact h. Inbound links from an authorised Per- a. Country appropriate product informa-
b. Direct Seller achievement level. situations. sonal Home Page and/or a LOS site. tion and imagery as provided by Amway.
Use of any trademark, trade names, ser-
c. Personal statements regarding the busi- c. The passcode page must carry the fol- i. Communication areas may include e- vice marks or other intellectual property
ness that comply with the general re- lowing statement: For use with pros- mail addresses to facilitate communica- including photos and text must be used
quirements stated above and the Rules pects by Direct Sellers in (Direct Seller’s tion. appropriately and requires written per-
of Conduct. home market) only. mission from Amway. Such information
3. Prohibited Content in addition to that must remain current.
d. A photograph of the Direct Seller fea- Remember - Disseminating the passcode listed in General Requirements above
tured on the Personal Home Page. and URL address prior to receiving final au- b. On-line forms and on-line processing of
thorisation will result in the enforcement of a. Language which states or implies a guar- orders. However, Direct Sellers are re-
e. Artistic elements in good taste which the Rules of Conduct. antee of income. sponsible for all security issues, includ-
will reflect positively on the Direct Seller ing but not limited to the confidentiality
and the business opportunity. 2. Appropriate Content Includes b. Product Sales (see Product Sales Web- of customer credit card numbers, asso-
sites below). ciated with their Websites.
f. An audio greeting. a. Information regarding the benefits of
participation in the business. c. Personal success stories that reflect a c. Product Promotion Information as pro-
g. The Business Opportunity must be level of achievement not attained solely vided by Amway.
56 identified as applicable in (Direct Sell- b. The personal story of the featured Di- through participation in the business. 57
er’s home market) only. rect Seller and/or personal reflections d. Direct Sellers must clearly and conspic-
regarding the business opportunity. d. Sale of BSM. uously state that they are independent
Please be aware this information can be businesspersons and products are not
viewed by anyone on the Internet so you may c. Accurately sourced background and sta- Requirements Specific to Product being ordered directly from the Corpo-
not wish to publish information considered tistical information having to do with Sales Web/Internet Sites ration.
private or personal. the economic trends, general business
environment, and future projections. 1. Passcode Protection 3. Prohibited Content in addition to that
3. Prohibited Content (in addition to that listed in General Requirements above
listed in General Requirements above) d. Build-the-dream sections consisting of a. Product sale sites must be passcode pro-
hyperlinks to sites reflecting potential tected, utilizing a passcode that is not a. Prospecting and recruiting content. (See
a. Product or service information. dreams of a prospect (i.e. cars, vacation easily determined by uninvited individ- Prospecting Websites above.)
spots etc.). This section must not im- uals seeking entrance.
b. Content which could be interpreted as ply that the business will provide these GENERAL GUIDELINES
an advertisement or prospecting infor- dreams or goals. Also this section must b. The passcode page may only contain in-
mation. be explicitly clear that it is for building formation needed for sign-in purposes • Direct Sellers shall refrain from incorpo-
one’s dreams or goals. and a small introductory paragraph to rating and shall not allow incorporation of
Requirements Specific to verify a viewer has reached the correct any material relating to products of Am-
Prospecting Web/Internet Site e. General how to’s reflective of the type site. A technical help e-mail address can way’s competitors.
of activities a new Direct Seller would appear for individuals experiencing dif-
1. Passcode Protection engage in to build their business. Exam- ficulty. The page may not contain Direct • The Direct Seller Websites shall be hyper-
ples include how to make a prospecting Seller numbers or passcodes that would linked to the Amway India and Amway
a. Prospecting sites must be passcode pro- list, how to conduct product demonstra- provide a casual web viewer access. Di- Corporation Websites to enable individu-
tected, utilizing a passcode that is not tions, etc. rect Sellers may give out their passcode als to access company policies, Rules of
easily determined by uninvited individ- to prospective Direct Sellers only in Conduct etc.
uals seeking entrance. f. Information regarding the system, or- face-to-face or other one-to-one contact
ganisation, or personal development situations. • The Website shall not contain any obscene
b. The passcode page may only contain in- programme in which the featured Direct material or any material that is in viola-
formation needed for sign-in purposes Seller participates. System participation c. Direct Sellers may not sell products to tion of the Rules of Conduct or ethics in
and a small introductory paragraph to must always be framed as optional. customers outside (Indian market). The general.
verify a viewer has reached the correct
Amway Business
Starter
Guide
• Consequent action being taken against • Direct Selling Guidelines b) Elimination from all GIP awards/ re- Japan, Kazakhstan, Korea, La Reunion,
Distributorship for failure to comply with wards. Latvia, Leeward Islands, Lithuania, Macau,
the Rules of Conduct and these guidelines, SELLING AND/OR MAKING AVAILABLE Madeira, Malaysia, Melilla Autonomous City
the Direct Seller shall refrain from using AMWAY PRODUCTS FOR SALE THROUGH c) Reduction and/ or elimination of FAA of Melilla, Mexico, Micronesia, Montserrat,
the Websites developed for prospecting RETAIL SHOPS, UNAUTHORIZED CHAN- points for India. Namibia,The Netherlands , New Zealand,
and product sales. NELS AND ONLINE STORES. Northern Mariana Islands, Norway, Palau
Amway India markets its products through d) Non-invitation to award trips. Islands, Panama, Peoples Republic of China,
• Amway India will not be liable, in any the direct selling channel under which the Philippines, Poland, Portugal, Puerto Rico,
manner whatsoever, for information on sale of products by a Direct Seller happens f) Denial of any cash/ non cash awards and Romania,Russia, Singapore,The Slovak
the Direct Seller Websites unless it has in a face-to-face manner with the consumer. rewards from affected leg to uplines. g) Republic, Slovenia, South Africa, Spain, St.
been incorporated with prior written ap- This sale takes place away from fixed loca- Termination of their Amway Business. Barthelemy, St. Kitts and Nevis, St. Lucia, St.
proval. tions like retail shops. Use of any alternate Martin/St. Maarten, St. Vincent, Sweden,
channels by Direct Sellers, for selling Am- For the purposes of this Rule it is expressly Switzerland, Taiwan, Thailand, Trinidad
• Amway India will have the right to access way products, violates the fundamental clarified that in case a Direct Seller is found and Tobago, Trust Territories of the Pacific
each relevant record of the Direct Seller principle of Direct Selling and also distorts violating any element of the Zero Tolerance (Mariana, Marshall, and Caroline Islands),
Website and the Direct Seller shall, at reg- the level playing field provided to all Direct Policy then along with the concerned Direct Turkey, Turks and Caicos Islands, Ukraine,
ular intervals, provide the company with Sellers to do business. Amway India is com- Seller, any upline of that Direct Seller who United Kingdom, United States of America,
complete details of data pertaining to the mitted to protecting the rights and opportu- stands to benefit from such violation shall US Virgin Islands, Uruguay, Venezuela,
site. nities of every Amway Direct Seller. Hence be declared to be ‘not in good standing’ with Vietnam, Wake Islands.
Rules of Conduct prohibits Direct Sellers Amway and may also be subject to penal
THESE GUIDELINES ARE SUBJECT TO from selling products through retail shops, action by Amway at the discretion of Amway. Direct Sellers are encouraged to contact
CHANGE FROM TIME TO TIME. FAILURE unauthorized channels and online stores. Such penal action may extend to termination Amway to ensure that they have up to
TO COMPLY WITH THE RULES OF Amway has adopted a Zero Tolerance Policy of distributorship of such upline. date information on the procedures for
CONDUCT AND THESE GUIDELINES for sale through alternate channels and re- international sponsoring. Additionally,
MAY RESULT IN ACTION AGAINST YOUR serves the right to take immediate action REGARDING UNAUTHORIZED DIRECT SELLER Direct Sellers should become aware of
58 INDEPENDENT BUSINESS. and / or sanction any Direct Sellers on re- ACTIVITY IN UNOPENED MARKETS and uphold the laws and regulations of 59
ceipt of verifiable information. each market, as well as understand and be
Zero Tolerance Policy Additionally, Direct Sellers and Leaders IMPORTANT!! Direct Sellers considering considerate of social and cultural customs.
need to consider certain aspects as they expanding their businesses internationally
‘Zero Tolerance’ means not allowing any un- build their business and help their down- must not conduct unauthorized activities in NOTICE
desirable behavior to continue and impos- lines do the same: markets not yet opened by Amway. Penal-
ing definite sanctions against Direct Sellers ties for unauthorized activities can seriously Amway has adopted a zero tolerance policy
found indulging in such adverse conduct. • Uplines must educate their downlines on jeopardize your current and future busi- that prohibits any Direct Seller activity in
The Amway Zero Tolerance policy covers the correct and ethical business building nesses. markets that have not been officially opened
issues which can lead to potential reputa- practices with a special focus on the ‘Zero Amway is currently open in the following by Amway.
tional concerns for Amway thereby affecting Tolerance’ policy. countries and territories. Amway defines “Direct Seller activity” as
the business at large. This policy underlines American Samoa, Anguilla, Antigua, any activity which is designed to promote or
that Amway will not overlook any violation • Ordering Direct Sellers who place orders Argentina, Aruba, Australia, Austria, build the Amway business. All Direct Sellers
of the policy and no leniency shall be shown for other Direct Sellers are responsible Azores, Bahamas, Barbados, Barbuda, are prohibited from visiting a new market
in dealing with an Direct Seller who is found for the orders placed by them. Ordering Belgium, Bermuda, Botswana, Brazil, country for the purpose of interesting one or
to be in violation of this policy. At present, Direct Sellers need to be prudent so as to British Virgin Islands, Brunei, Bulgaria, more prospective Direct Sellers in the Amway
five areas have been identified by Amway In- safeguard their business interest. Canada, Canary Islands, Cayman Islands, business. Amway does not permit holding
dia as ‘Zero Tolerance’. These are: Ceuta - Autonomous City of Ceuta,, meetings (even one-on-one meetings) in
• Uplines should encourage downlines to Channel Islands (Guernsey, Jersey Island), any country prior to the announcement of
• Selling and/or making available Amway place their orders independently. Chatham Islands, Chile, Colombia, Costa the launch date and launch plans.
products for sale through retail shops, un- Rica, Croatia, Curacao, Czech Republic, Prospecting by websites directed at the
authorized channels and online stores Consequences of Non-Compliance Denmark, Dominica, Dominican Republic, unopened market is also considered as
El Salvador, Estonia, Finland, France, inappropriate Direct Seller activity.
• Unauthorized Direct Seller activity in un- Those who fail to comply or who have shown French Antilles (Martinique, Guadalupe), It is highly inappropriate and a violation of
opened markets a disregard for the policy may be subject to French Guiana, Germany,Granada,Greece, the “spirit” of these Rules to educate a non-
one or more of the following actions: Guam, Guatemala, Haiti, Honduras, Hong Direct Seller about the Amway Opportunity
• Business Support Material Policy; Kong, Hungary, India, Indonesia,Republic and to then encourage the prospective Direct
a) Suspension of business activities and of Ireland, Isle of Man, Italy, Jamaica, Seller to return to his/her native country
• Quality Assurance Standards; commissions
Amway Business
Starter
Guide
for the purpose of generating interest matically serve as authorization for use Seller to join a particular line of spon- be submitted in writing to the appro-
prematurely. in ALL and especially new or unopened sorship, are authorized “Lead Forms”, priate Sales/Direct Seller Relations De-
In the event that Amway officially launches markets. which are used only for a Direct Seller’s partment staff for review and handling
a new market, Amway will announce internal use to collect information about on a case-by-case basis. Amway may, at
the opening of the market through 3. The import of any Amway product into prospective Direct Sellers, must NEVER its discretion, follow up on any reported
official corporate communications. Such a market for any reason (other than for be utilized as “pre-applications” and are activity to make a determination of its
communications will announce the date of personal consumption) including sales, not legally binding. The lead form must accuracy and viability.
launch, indicate what pre-launch activity is demonstration, or display is strictly pro- not be signed by the prospective Direct
permitted, and provide other information hibited. Import of products and promo- Seller and a copy must not be left with 2. Penalties may include any action deemed
critical for successful Direct Seller tional materials without proper import the prospect. The Lead Form and its use appropriate by Amway up to and includ-
participation. If Amway has not officially licenses, registrations, and labelling must never appear to commit or obligate ing suspension or termination. Amway
opened a market, no Direct Seller activity is may subject the violating Direct Seller the prospect in any manner. may sanction rewards and recognition
authorized with respect to that market. and Amway to substantial fines, impris- derived unauthorized activities in an
Any mention in the media of Amway’s public onment, and confiscation of materials 8. Prospective Direct Sellers who are resi- unopened market and may prohibit the
relations efforts or of legal notices that and product and undermines the repu- dents of non-Amway markets should not Direct Sellers from entering into new
Amway is required to file in a new market tation and goodwill associated with the be invited to any Direct Seller- sponsored markets.
must not be interpreted as the official Amway trademarks and brand. It may or Company-sponsored functions orga-
announcement of Amway’s intention to also seriously jeopardize Amway’s abil- nized in either Amway- or non-Amway 3. In the event of termination action, the
open a new market. ity to open a market in the future, or to markets. appeal rights as granted by the Enforce-
offer its full range of products. ment Procedures in the Rules of Con-
Activities not Authorized at Any Time 9. Showing the Amway Sales Plan, import- duct, Commercial Principles or appli-
4. Advertising for prospective Direct Sell- ing, selling Amway produced or provided cable policies in an Amway affiliate may
Amway has adopted a Zero Tolerance Pol- ers in the new market in any format is products, in an unopened market is not be invoked by the Direct Seller.
icy for unauthorized activity in unopened prohibited, both, in the new market and permitted at any time.
markets. Below is a list of behavior/ activity in the Direct Seller’s home market. This 4. Platinums are responsible for ensuring
60 that would be subject to the Zero Tolerance includes flyers, bulletin boards, misuse 10. Violation of the Direct Selling Guide- that all Direct Seller’s / Direct Sellers in 61
Policy no matter whether such activity takes of business cards, publication of meet- lines. their organizations who are involved in
place in an unopened market or in a market ing schedules, and seeking media cov- international markets understand these
that has been officially launched by Amway. erage. Direct Seller cannot participate 11. Violation of the Quality Assurance Stan- Rules. It is the responsibility of each Di-
The Corporation reserves the right to take in “blind prospecting” by using phone dards (QAS). rect Sellerto abide by this Policy.
immediate action and or sanction any Direct books, professional society membership
Seller once it receives a verifiable complaint. lists, etc. Under no circumstances may Penalties for Unauthorized Activity in 5. Violators will be required to provide
Direct Sellers use any form of mass com- Non-Amway Markets Amway with a mailing list, complete
1. Direct Sellers cannot solicit other Di- munication such as spam (unsolicited with names and addresses, of all per-
rect Sellers from outside their Line of email), television merchandising chan- Penalties may include any action deemed sons solicited / contacted by him or her
Sponsorship or Business Group to sign nels or computer networks to advertise appropriate by Amway. Corrective action as prospective Direct Sellers as the result
under or to provide prospects in a new the Amway opportunity. may range from re-educating an offending of unauthorized pre-launch activity.
market. To do so is a direct violation of group and/or suspension to termination of
the contract between Amway and its Di- 5. Direct Sellers may never misrepre- the violator’s business. Corrective action
rect Sellers and the Rules of Conduct or sent the Amway business by promising may negatively impact the violator’s an- THESE GUIDELINES ARE SUBJECT TO
Commercial Principles applicable in a wealth with little effort, no retailing, tax nual bonuses, award recognition and other CHANGE FROM TIME TO TIME. FAILURE
Direct Seller’s market. Amway encour- shelter, guaranteed residual income for rewards such as SIP, Non-cash awards and TO COMPLY WITH THE RULES OF
ages Direct Seller to follow their original life, etc. Such claims are prohibited in FAA monies. CONDUCT AND THESE GUIDELINES
Line of Sponsorship when applying for every Amway market. MAY RESULT IN ACTION AGAINST YOUR
authorization in a new market. 1. Complaints of improper activity are to INDEPENDENT BUSINESS.
6. Direct Sellers may neither state, nor im-
2. The importation, use, or sale of any ply that they are employees or represen-
privately produced literature, tapes or tatives of Amway Corporation or any of
other such Business Support Materials its affiliated Companies, nor may they
(including the use of websites, e-mail say that they are the exclusive represen-
and other electronic means of adver- tative of Amway in any particular coun-
tisement or communication) in relation try.
to the Amway business not previously
reviewed by Amway for use in a/each 7. No Direct Seller-produced “pre-applica-
specific market is unauthorized. Autho- tions”, or any similar documents which
rization in one market does not auto- appear to commit a prospective Direct
Amway Business
Starter
Guide
Event IP INDICATIVE Max.
Frequency
Weekly / Open / Plan meetings Maximum 120 per person in Major Metros* As may be required
Maximum 90 per person in all other cities
Indicative Pricing (IP) of BSM in Indian Rupees Go Diamond/Silver Producers & up Leadership Meetings
(INR) and indicative maximum frequency: Characteristics: Generally, a full-day Maximum 1080 per day or its Frequency of such a
to 2 days function organized by equivalent In foreign currency meeting whether
third party vendors, where Diamonds per person conducted free or
BSM IP or Foreign speakers are invited to excluding food and lodging at cost charged for, shall be
Tapes, cassettes or audio CD 110/- per unit speak and which are attended by limited to 1 (one) per
Video CD, DVD 110/- per unit Leaders at the level of *current person
Internet Sites Access Charges not to exceed 500/- qualified Silver Producers and above.
or equivalent A Current qualified Silver Producer is one
foreign currency. who has qualified / re-qualified atleast
one month at SP level in the last
twelve month period.
Amway * Metros : Mumbai, Kolkata, Delhi, Banglore, Chennai, Pune & Hyderabad
Diamond Consent Rule This Policy does not change the current 10. Refer questions or other users with ques- 9. Do not upload BSM’s of other Direct
rules or principles but is intended to help tions to Amway Seller’s or your BSM’s that have not been
Direct Sellers shall not solicit or induce any Direct Seller’s apply them to social me- approved by Amway (Section 7 and 9).
Direct Seller of another group to plug-in dia interactions. Direct Seller’s desiring to 11. Do abide by the Rules of Conduct for
with their group. Cross group supply of tick- use Social Media for their Amway Business Amway Direct Sellers. Only some of the 10. If in doubt …. Ask. The Amway India
ets/passes to Direct Seller organized events should review all Rules of conduct particu- applicable rules are identified here. If in Code Compliance team is always avail-
is strictly prohibited. Leaders are to ensure larly the Website Rules and Guidelines, Rule doubt, don’t do it. Check with Amway. able to provide advise and guidance.
event promotion, if any, should strictly be 4.3, Rule 8.3.9, Section 7 and Section 9 and
within their own business group and no adhere to the same. PROHIBITED CONDUCT * Direct Seller conduct and activities
cross group promotion of events unless with while using the Social media for their
the written consent of upline Diamond. The Appropriate Conduct 1. Do not create pages, websites, accounts Amway Business is governed by the
immediate Upline Diamond’s consent is re- or other online avenues to sell products Rules of Conduct and the above pol-
quired for any Platinum and above Direct 1. Create an individual Social media pro- (Rule 4.3). icy, which are subject to change from
Seller’s who wish to plug-in into events or- file. Enhance the profile by adding time to time. Violation of the Rules
ganized by other Diamonds or groups not personal information and posting pic- 2. Do not prospect or ‘cold’ contact in re- and/or this policy may invite action
in their natural LOS. Provided however that tures. Connect with family, friends and gards to sponsorship. The same rules against your Amway Business.
Amway shall have the discretion to waive the acquaintances. Remember to maintain that apply to online prospecting apply
requirement of such consent in the event it privacy settings to friends or friend of to your efforts in establishing customers Terms And Conditions of
is of the opinion that such refusal of consent friends. online. If someone contacts you online Sale of Products
is not in Amway’s business interest. and expresses a desire to buy product or
2. Use Social Media to communicate with learn more about the business, contact w Supply of goods by Amway India Enter-
Consequences of non-compliance those downline and upline as appropri- them privately through chats, messages prises Pvt. Ltd. (AIEPL) under an Invoice
ate. Maintain appropriate privacy set- or email. (Rule 4.3 and 8.3.9). shall be subject to the terms and condi-
This is a Zero Tolerance policy. tings. tions of sale herein contained.
Those who fail to comply or who have shown 3. Do not offer discounts or special promo-
64 a disregard for the policy may be subject to 3. Make new friends online. tions not offered by Amway. w Amway India Enterprises Pvt. Ltd.’s 65
one or more of the following actions: (AIEPL) weights, measures and statement
4. Be transparent, authentic and honest. 4. Do not spam or broadcast using social as to quantity, quality, date of manufac-
a) Suspension of business activities (which Be truthful and accurate at all times. media (Rule 4.3, 4.3.2 and 8.3.9). ture etc. as contained on the packing shall
may include commissions) Self disclose your affiliation with Amway be presumed to be correct.
if you intend to discuss the business on 5. Do not create fake Amway or product
b) Elimination from all GIP awards/ re- your page. brand identities. When it comes to nam- w AIEPL’s legal title of the goods shall cease
wards. ing your page, you are not allowed to use as soon as the goods are handed over to
5. Share positive experiences about Amway Amway trademarks or trade names. We the Buyer/or to the Carriers as the case
c) Reduction and/ or elimination of FAA products and the Amway business. suggest you use your full name. People may be.
points for India who search for you online are more like-
6. Treat people with respect and courtesy ly to remember and use your name than w Buyer is requested to verify quality/ and
d) Non-invitation to award trips. as you would have them treat you. some clever name for your site (Section quantity of the goods before accepting de-
9). livery. No claim regarding quality/quan-
e) Non-acceptance of the Direct Seller Ap- 7. Offer participation, support and feed- tity of the goods will be entertained once
plication Renewal Form. back. The conversation should take 6. Do not use Amway logos, Amway Prod- goods are handed over to the Buyer/Car-
place much like it would in person. uct logos, brand images, photographs riers as the case may be unless promptly
f) Termination of their Amway Business. When approaching others or entering and copyrighted text including product notified in the Delivery Challan.
the conversation, interact positively, be literature or Amway BSM’s without prior
relevant and credible. permission from Amway or misrepre- w Price is inclusive of all taxes as on date of
Social Media Policy sent Amway in any way (Section 9). sale. Any levy/increase in taxes/freight, in
Definition of Social Media 8. Connect with Amway online, join official respect of goods sold, before/after delivery
sites and share posts, videos and photos 7. Do not make claims about Amway prod- to the Buyer shall be reimbursed by the
Social Media is an umbrella term that de- posted by Amway with your teams, cus- ucts that are false, misleading or incor- Buyer to AIEPL.
scribes websites and online tools that peo- tomers and prospects. rect (Rule 4.4).
ple use to connect and interact online with w Refund of VAT/ Sales Tax/ Statutory Lev-
other people and share content, profiles, ex- 9. Use commonsense. Remember what 8. Do not upload photographs / videos ies already collected will be allowed only
periences, opinions and media. These tools you say reflects upon your and Amway’s / content related to Amway Business, on rejected goods received as per AIEPL’s
include blogs, message boards, podcasts, reputation. events or products that are not autho- returns policy as laid down in the Amway
video and photo sharing sites, micro blogs, rized by Amway, false, misleading or in- Business Starter Guide and as updated
online communities and wikis. correct (Section 7 and 9). from time to time.
Amway Business
Starter
Guide
w In case of failure to take delivery of goods, Amway Refund Policy
Buyer shall be solely liable for all stor-
age, demurrage costs and other expenses. Amway Corporation is the world’s largest di-
AIEPL shall be entitled to treat such fail- rect selling organisation. The superior value Amway Returns Policy for Direct Seller
Direct Seller may return the products within 30 days of purchase as given below.
ures as a breach of contract in addition and high quality of Amway products and
and without prejudice to AIEPL’s other services have earned us the trust of our Di-
rights and remedies. rect Sellers and their customers. This trust Return of Products by Direct Sellers
is a precious and unique relationship. Every-
w AIEPL is not liable for delays or non-de- one must share in the Amway commitment
livery of goods by the Carrier due to Force to excellence. Everyone has a responsibility Condition Time Period Invoice Payment
Majeure conditions in course of transit/ to ensure the superior value and high qual-
delivery or any loss arising there from. ity of Amway products and services – quality Saleable* Within 30 days of purchase Yes DAP
and value that we guarantee! Within 30 days of purchase No DAP less GST
w Each lot/instalment of goods delivered
under an invoice shall deemed to be sold Amway’s Customer Product
under a separate contract. Refund Policy Unmarketable** Within 30 days of purchase Yes DAP less GST
Within 30 days of purchase No DAP less GST
w All Bank charges (including collection We stand behind the quality of
charges), shall be payable by the Buyer. Amway products.
AIEPL shall not be liable for any loss/theft
of bank drafts/cheques etc. in transit. All Amway Products are covered by Amway’s Excess Stock*** Within 60 days of purchase Yes DAP
Customer Product Refund Policy. If the Cus- Within 60 days of purchase No DAP less GST
w Any notice to be served on the Buyer by tomer is not completely satisfied, he/she is
AIEPL shall be deemed to be validly served entitled to return the products within 30 GST (Goods and Services Tax)
if sent by ordinary prepaid post to the buy- days from the date of delivery for a full re-
66 er’s address as mentioned on the invoice. fund. The refund policy is applicable only for *’Saleable’ refers to those products that are marketable, unused, not expired and, not seasonal, discontinued
67
products in saleable condition, and partially or special promotional products and/or services.
All sale contracts and transactions of
w used products (30%) accompanied with an
AIEPL are subject to exclusive jurisdiction invoice. This policy does not apply to prod- **Unmarketable are products which have been partially used (30%).
of the Courts at Delhi. ucts that have been intentionally damaged
or misused. It is incumbent upon Amway ***Excess stock refers to products greater than or equal to six in number.
w If products are returned by customers di- Direct Sellers to follow the Customer Prod-
rectly to Amway, PV/BV adjustment shall uct Refund Policy in letter and spirit.
be done from the Direct Seller’s account &
any excess amount paid shall be recover-
able from Direct Seller.
Reference Notes
• The Direct Seller must return the product(s) to • PV/BV adjustment of Products returned up
Amway Pick up Centers. till 25th of each month shall be processed in
the same month. Total PV/BV of the returned
• Period of return for products is calculated as products will be deducted from the returning
the number of days from the Invoice Date, to Direct Seller’s account.
the date of receipt at the Amway Office.
• Total returns cannot exceed the quantity ap-
• Condition refers to the condition in which the pearing on the Invoice.
stock is received back from the Direct Seller as
a return. The product can be ‘marketable’ or • If products are returned by customers directly
‘unmarketable’ depending on the condition of to Amway, PV/BV adjustment shall be done
the returned stock as assessed by the Returns from the Direct Seller’s account & any excess
executive at the Amway office. amount paid shall be recoverable from Direct
Seller.
Amway Business
Starter
Guide
68 69
Amway Business
Starter
Guide
www.amway.in
BUSINESS
STARTER
GUIDE
AMWAY INDIA
MANUFACTURING PLANT