Official Amway UK Update – Change in on the way…
Posted on 24. May, 2007 by Ty Tribble in Amway, Amway UK - Sanctions
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I received a funny comment on my TyTribble.com web site this morning. (OK the "web site" is really a blog but I am not really actively blogging on it and I use it more as a landing page - I know too much information). The comment was from someone at Amway and they suggested that I enjoy a post on the Amway Media Blog with my morning cup of coffee.
So I replied back to them asking for permission to re-post the entire update here at the MLM Blog. Amway game me full permission to "have at it" so here you go...
We would like to update you on events in the United Kingdom, where Amway, Network 21 and Britt World Wide are involved in a legal dispute with the UK’s Department of Trade and Industry.
What’s happening
Following an investigation that lasted more than a year, DTI last month issued individual petitions against each of the three companies, claiming each was engaged in “objectionable” practices.
The DTI’s petitions initiated civil court proceedings, which, if successful, could lead to the closing of each company’s business operations in the UK.
We are obviously disappointed that the DTI felt the need to take us to court. We certainly do not agree with all their claims.
But most important, we intend to address the problems that may exist in the UK and around the world so that no government ever sees the need to step in again.
What it means
The heart of the DTI’s position, as we understand it, is that the business opportunity is promoted by incorporated and unincorporated organizations in a manner that does not reflect the financial rewards people are likely to earn when they participate in the Amway business.
The DTI also objects to the manner and frequency in which meetings and BSMs are promoted by the sales organizations in conjunction with the Amway business opportunity.
Amway’s fault, according to the petition, lies in our failure to take sufficient action to prevent these abuses from occurring.
Following a first court hearing on May 21, 2007, the DTI’s case is now scheduled to be heard by the Court later this year.
At that hearing, the Court ordered DTI to set out its case in more detail so that Amway, Network 21 and Britt know precisely what is being alleged. Each company will have the opportunity to respond to the claims and to submit evidence.
What’s ahead
Though the trial is still months away, Amway has already offered important “undertakings” to the Court, which we believe address the DTI’s principal concerns. These undertakings make it clear that Amway will stand accountable for the experiences people have when they join the Amway business.
In shortened form, they are:
- Prohibiting business support materials that are not authorized and
distributed by Amway.- Prohibiting meetings where an entry fee is charged, unless Amway has
approved the meeting and its content.- Imposing a moratorium on the registration of new IBOs for 120 days,
then introducing a revised registration policy.- Providing the DTI 21 days’ notice before restarting the registration
of IBOs.- Amway will not implement any policy that requires payment of a
registration fee prior to the hearing of the petition.- Amway has also volunteered to inform the DTI of any violations of the
corrective measures, and the action that Amway will take in response to the
violations.Once the business review in the UK has been completed and a new mode of operation has been devised, we will inform the DTI of the details. If the DTI is satisfied that their concerns have been addressed, then Amway will invite the DTI to end its legal action. If the DTI is not willing to agree to this, then the matter will be decided by the Court.
One further note. We have already weighed in against “spin” from tool companies. We have read the complaints. These problems are not Amway’s alone. Comments that suggest otherwise are wrong, plain and simple.
Conclusions
We fully intend to provide business reforms in the UK and in any other market where we see that business practices can be improved. A promised global review of practices is underway, and we are on track to release its findings next month.
We are holding ourselves accountable to deliver on what we promise.
We expect all our business partners to deliver as well.
There have been enough of these disappointments. They are serious distractions to the operations of the company, embarrassments to the many IBOs and Amway markets that provide exemplary service to the public, and a threat to the company’s long-term health.
Change is on the way.
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