Вы находитесь на странице: 1из 37



HEADQUARTERS www.amway.in
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:

Provides most conducive environment to live, work,
achieve and grow
Operate as independent business people
Conduct a full-time or part-time business

Our primary social structure provides values, framework
for growth and ability to thrive
Family-owned business, passed on to generations
An attempt to strengthen family ties

Power to transform lives positively
Opportunity to establish and run a business irrespective of
social status, profession or educational background

Opportunity to develop your talents and abilities
Hard work is followed by high rewards
Tangible rewards include certain ranks: Platinum, Ruby,
Emerald, Diamond, etc.
Intangible rewards include personal growth, pride in
accomplishment and positive relationships with the other
Amway people.

Message from
the General Manager
Amway is the worlds 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 founders 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 Indias 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 worlds 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 oer a money-back guarantee on our
products for 100% satisfaction of use. There is no entry fee to join Amways 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 oering world-class
products and reiterate our commitment to help you succeed as you work hard to build your busi-

With Best Wishes

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

The Amway Story

COMPANIES ACROSS THE WORLD, run on the twin rails of profit and growth. But some ESTABLISHED IN 1995, Amway India commenced commercial operations in May 1998
companies are driven dierently. At Amway, our philosophy is defined by commitment, and has emerged as the largest Direct Selling FMCG Company. Amways first manu-
trust, enduring relationships, and the ideal of perfection above profit. From a humble be- facturing facility in India is located at Nilakottai in the Dindigul district of Tamil
ginning in 1959, Amway, the brainchild of co-founders Rich DeVos and Jay Van Andel, is Nadu. This is Amways third manufacturing plant located outside of USA. The other
now the worlds No. 1 direct selling business.* Today, Amway is one of the largest privately plants are located in China and Vietnam.
6 held companies in the United States. 7
Amway has invested, directly or indirectly, in excess of INR 814 crore in India. This
Amway operates across more than 100 countries and territories, through a sales-force of millions includes the 550 crore that the company has invested in setting up a manufacturing
of Direct Sellers worldwide. More than 19,000 Amway employees across the world support Am- plant near Madurai, Tamil Nadu. Amway India has more than 750 full time employees
way Direct Sellers in building their own businesses. Amway manufactures and distributes more and has generated indirect employment for over 2000 individuals.
than 450 consumer products, which are supported by a team of more than 950 Amway scientists,
engineers and technical professionals working across more than 75 R&D and quality assurance Amway India has nation-wide presence with over 130 Sales oces; 4 regional mother
labs around the world. warehouses, 3 regional hubs and 34 city warehouses. The distribution and home de-
livery network set up with the support of independent logistics partners caters to
Amway is led by Chairman Steve Van Andel and President Doug DeVos. Both have served in over 8900 zip codes across the country. Amway India is a member of leading industry
leadership positions with key industry organisations, including the World Federation of Direct organisations including FICCI, CII, AMCHAM, USIBC and IDSA.
Selling Association (WFDSA) and the Direct Selling Education Foundation.
Amway India sells more than 130 world class products across categories like Nutri-
Doug is currently the chairman of the WFDSA and holds the responsibility of bringing together tion, Beauty, Personal Care and Home Care. All Amway products are supported by a
global companies, CEOs and management team to ensure the standards by which the industry money-back guarantee for 100% satisfaction of use. Any Amway Direct Seller or cus-
operates are as high as possible. Steve is the former chairman of the U.S. Chamber of Commerce, tomer can return products within 30 days from the date of purchase. Amway products
having served two separate terms. are popular, not just in India, but across the world. Nutrilite is the world's No. 1 selling
vitamins and dietary supplements brand while Artistry is among the worlds top five,
Conscious of its global responsibilities as a mature and reputed corporate citizen, Amway binds largest selling, premium skincare brands.
its Direct Sellers to operate their businesses in concert with the Rules of Conduct. The Code of (Source Euromonitor International Limited. www.euromonitor.com/amway-claims)
Ethics and the Rules of Conduct defines best business practices mandatory for Direct Sellers.
Amways Code of Ethics and its Sales & Marketing Plan have set standards for the Direct Selling Amway India provides income-generating opportunity to over 550,000 active Am-
industry internationally. The company is also a long-standing, active member of the World Fed- way Direct Sellers. Amway is in the business of direct selling, which means that the
eration of Direct Selling Associations (WFDSA). company sells through Direct Sellers who, a) make personal recommendations
regarding the use of distinctive high quality Amway products; b) derive earnings from
the sales volume generated by the team. It is free to join Amway business.
*Published in the June 2016 edition of Direct Selling News, based on 2015 revenues

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 oers 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
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
Amway has been providing computer training to
Amway Indias (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 Amways 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 eort 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
Amways 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 Amways plant site.

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 dierently 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 Asias 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.

Launched a school support programme Asian CSR Leadership Awards, 2012

for health and education of students of
five government schools of Delhi. Global CSR Excellence & Leadership Award
for initiatives taken in the field of Educa-
FICCI CSR Award, 2014.
Amway contributed Rs 2 Crore towards
Tamil Nadu Chief Ministers public relief Pt.Madan Mohan Malaviya Award for Best
fund to support the Tamil Nadu flood in CSR Practices in Education, by CSR Times, AMWAYS CSR INITIATIVES ARE BASED ON THE
the year 2015. Amway employees and Direct 2014. BELIEF THAT SOCIAL RESPONSIBILITY IS MUCH
Sellers worked hand-in-hand to supply MORE THAN THE INCURRENCE OF A COST OR A
relief material to the aected during the Pt.Madan Mohan Malaviya Award for Best RESOURCE OR A CHARITABLE/ PHILANTHROPIC
Tamil Nadu flood. CSR Practices in Education, for Project ACT OF SOCIAL BENEFIT. IT IS AN OPPORTUNITY
Amway worked with grass-root level NGOs THIS BELIEF IS ARTICULATED IN AMWAYS VISION
and provided shelters to 36 families af- Asia Best CSR Practices Awards for Inno- OF HELPING PEOPLE LIVE BETTER LIVES
fected during the 2013 Uttarkashi floods. vations, 2016.
Amway also contributed to construct 2
blocks of an orphanage that was badly ef- CSR Leadership Award, 2016.
Amway Business Opportunity Amway Sales & Marketing Plan
at Amway which gives you the opportunity of
CONCEPT and experience with your sales teams and help them
be eective, give them all your creative ideas and
conducting your own business. Simply put, at encourage them to keep moving forward. PLANS income opportunity is retailing of qual-
Amway, we oer a business method of mov- The Amway Opportunity is not a job, it is your own ity Amway products by you to your customers.
ing products & services from manufacturers personal business, to run as you like. And no matter As your Amway business grows, the rewards you
to consumers directly. It is a business oering when you join Amway, you start out as and will earn will grow in proportion and you can earn
income potential, flexibility, travel, power and always be the head of your own group. Youll build money in three ways:
prestige. your own sales team of Amway Direct Sellers. Each
is their own boss, in their own right, as you are, and (a) Retail Margin: Retail margin is the dif-
Globally Direct Selling is a US$ 83 billion in- each has the opportunity to build their own sales ference between your selling price and
dustry with more than 30 million sales people. groups under them. your purchase price (DAP). As an Amway
Direct Seller, you determine the price
Consider some of these benefits: you charge (upto MRP), and when you
sell products to customers above your
A business which needs no basic qualification DAP, you keep the retail margin.

A business which has no Gender discrimination (b) Trade Discount: A Discount given to
12 Amway Direct Sellers when they eect 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 oers an attractive reward program. You
each doing a little. Every persons eort combines generate points on products purchased
together to create a gigantic momentum. And we A business with no geographical boundaries PERFORMANCE BONUS AND AWARD to sell. Bonuses are based on the points
at Amway have taken this momentum across the SCHEDULE ARE BASED ON RETAILING OF generated by you through product sales,
country and created hundreds of thousands of A Business that has world class quality products AMWAY PRODUCTS WHICH ARE and the sales team that you build and
entrepreneurs. that are backed by a 100% Satisfaction Guaran- AS UNDER: also includes the points you generate
Success in Direct Selling is about Selling Eectively tee. through your personal purchases. There
and then creating an Eective Sales Team if one MONTHLY are various types of commissions that
chooses to. Every persons eort combines together The possibility of financial security and freedom NET TEAM can be earned basis the Net Team Sales
to create a gigantic momentum. And we at Amway of time to enjoy life SALES SALES Turnover and the applicable sales com-
have taken this momentum across the country and TURNOVER TEAM COMMISION mission slabs.
created hundreds of thousands of entrepreneurs. [IN RUPEES] POINTS SLABS
In Amway you encourage people to become better Which other business oers this list of benefits?
than you. You give them all your creative ideas and Apart from these benefits Amway oers compre- 7,600 100 6% The Amway Opportunity works in two-
hope they beat you to the top position - because hensive training & support. Amway oers you the 38,000 500 9% fold. Giving you a chance to build your
everyone benefits from success. opportunity to leverage your time by finding other 1,14,000 1,500 12% own business at your pace and achieve
At Amway, you first learn how to be an eective sales people to work with you. 3,04,000 4,000 15% the rewards and recognition linked to the
person, an eective leader and thereby emerge as a 5,32,000 7,000 18% plan, and at the same time helping other
eective Team Leader and then share your learning 7,60,000 10,000 21% people do the same.


14 15


World Class Products,

Unmatched Quality 17

AMWAYS 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 eciency of many Amway you.
INDIA MEET products which oer 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 oering personal satisfaction &
AMWAY INDIAS The companys Headquarters is located in Ada, Michigan, USA, where the com- limitless potential to reward for your time & Concentration also increases versatility -
TECHNICAL plete manufacturing process of the majority of Amway products is controlled. Here eort. you can adjust the dilution rate to suit the
CENTRE. Amway has invested in its own R&D centre with more than 500 scientists and 57 demands of the job.
laboratories, 13 of which are specifically for quality assurance. Each Amway product HIGH PERFORMANCE / HIGH VALUE
is manufactured under the most stringent conditions, and quality testing is per- Concentrated formulas enhance the e- ENVIRONMENT FRIENDLY PRODUCTS
formed throughout the production process. ciency of many Amway products. Customers Surfactant biodegradability of the products
Amways on-going commitment to assure that all products produced in India meet will find they can do more with less. Because should be mentioned in every customer
its stringent standards resulted in the creation of Amway Indias Technical Centre. they may be accustomed to using substan- presentation. The surfactant used in Amway
*SOURCE This Technical Centre will work closely with Amways US technical resources to tial quantities of their regular retail brand, products are broken down by normal
EUROMONITOR introduce and maintain product technology and quality. changing usage habits may require some biological processes, which minimize their
INTERNATIONAL adjustment. But value and convenience are impact on the environment. Consumer
LIMITED ; VITAMINS RESEARCH + QUALITY = WORLD CLASS PRODUCTS powerful persuaders. awareness of environment issues is on the
AND DIETARY At present Amway India oers 130 products in 4 categories. They are Personal Care, A key feature of Amway products is their increase and your customers could feel good
SUPPLEMENTS, Home Care, Nutrition & Wellness and Cosmetics. They carry a tamper proof seal & highly concentrated formulation which about the environment sensitivity practised
WORLD RETAIL VALUE 100% Money Back Guarantee. oers excellent value-for-money. Often just by Amway.
RSP, 2010 Nutrilite is dedicated to optimising human nutrition through research, product a fraction of Amway concentrate equals
several times as much ordinary cleaner.
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.
18 Training at Amway is aimed at: Excellent customer care to answer all que- THROUGH AMWAYS WEBSITE WHERE 19
ries regarding product ordering, renewal, THE TRAINING MODULES ON PRODUCTS
Enhancing the product knowledge of the Direct Sellers. product information, etc. DETAILING THEIR COMPOSITION, FEATURES
Developing the selling skills to help them build their business more eectively. Incentive programs that reward business AMWAY BUSINESS OWNERS.
Empowering the successful Direct Sellers to eectively train other Direct Sellers in their
groups. Free live and online training courses for
sales and product knowledge.

Amway Training Ladder Leadership and business training.

Training and support are also available

You may additionally, at no cost whatsoever,
from your sponsor. avail yourself of the Business Support Ma-
LEVEL 1 BASIC PRODUCT RELATED TRAININGS. terials (BSM) developed by Amway India
ORDERING PRODUCTS specially designed for you to help succeed in
LEVEL 2 SELLING SKILLS WORKSHOPS You may personally visit the Amway Dis- reaching your goals.
tribution Centre during working hours to
LEVEL 3 CATEGORY RETAILING WORKSHOPS procure the products. We advise you to refer to the Business Sup-
port Materials (BSM) developed by Amway
You may log on to our website www.am- India specially designed for you to help suc-
In addition to this, the training is also imparted through Amways website where the train- way.in or www.amway.in/m through your ceed in reaching your goals.
ing modules on products detailing, their composition, features and benefits are available mobile phones and place orders online.
for the Amway Direct Sellers. The courses can be completed by Direct Sellers at their own BSM may include:
pace. These programs are very useful for a new person who may need a lot of support and Or simply contact at 080-3941-6600 to
knowledge on products in the initial days of setting up a successful Amway business. place home delivery orders. 1) Opportunity / Products CDs & DVDs

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

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 35
Section 6: Preservation of the Line of Sponsorship 36
Section 7: Business Support Materials (BSM) 41
Section 8: Presentation of the Amway Sales and Marketing Plan 43
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 51
Section 15: Disposition of Terminated, De-sponsored
or Non-Renewed Businesses 52
Section 16: Review by Amway Corporation 52

Website Rules & Guidelines 55

Zero Tolerance Policy 58
Business Support Material Policy 62
Terms & Conditions of Sale of Products 66
Amway Refund Policy
and guidelines, requirements, pro-
SECTION 2: DEFINITIONS cedures and policies, regarding the
presentation of Amway products,

Code of Ethics of 2.1

In these Rules unless the context
otherwise require, the following words
the Amway business and the man-
agement of an Amway organisation,
as amended from time to time by

Amway Direct Sellers and phrases shall mean what is given

Amway India, and which forms an
integral part of the Direct Seller
Contract. A brief description of the
2.1.1 Alticor Inc. means Alticor Inc., Amway Sales and Marketing Plan
7575 Fulton Street East, Ada, Michi- is included in the Amway Business
As owner of my Amway Distributorship,
I agree to conduct my Amway business
according to the following ethical guide-
Rules of 2.1.2
gan 49355, USA.

Amway means Amway India En- 2.1.8

Starter Guide.

Direct Seller Contract shall

1. As a basic guideline in my activities as an Am-
Conduct terprises Pvt. Ltd., a company reg-
istered under the Companies Act,
1956, having its registered oce at
mean the agreement setting forth
the rights and duties of a Direct
Seller, which, in accordance with
way Direct Seller, I will endeavour to always Ground Floor, Elegance Tower, Plot Section 3 below, is entered into
treat others, as I would have them treat me. No. 8, Non Hierarchical Commer- through acceptance by Amway India
SECTION 1: INTRODUCTION cial Centre, Jasola, New Delhi - 110 of Direct Seller Application in Form
2. I will respect and follow this Code of Eth- 025. SA-88-ID, inclusive of its terms
ics (hereinafter the Code) and the Rules of The Amway Rules of Conduct and conditions and include the
Conduct (hereinafter the Rules) as well as all define and establish certain 2.1.3 Amway Business means the col- following:
applicable laws, rules and regulations observ- principles to be followed in the lective requirements, restrictions
ing not only the letter but also the spirit development and maintenance and opportunities associated with a. The Direct Seller Application Form
22 thereof. of an Amway Distributorship selling Amway Products and servic- SA-88-ID; 23
and the rights, duties, and re- ing Customers.
3. I will present Amway Products and the Amway sponsibilities of each Amway b. The Terms and Conditions forming
Sales and Marketing Plan to all prospective Direct Seller. 2.1.4 Direct Seller or Distributor part of the Direct Seller Applica-
Direct Sellers in an accurate, fair, truthful and shall mean a person appointed by tion;
honest manner, and I will make sure to present The Rules are designed to pre- Amway on a principal-to-principal
only what is approved in ocial Amway pub- serve the benefits available to basis through this Direct Seller Con- c. The Amway Sales and Marketing
lications. all the Direct Sellers under Am- tract to undertake sale, distribution Plan;
way Sales and Marketing Plan. and marketing of Amway products
4. I will be courteous and prompt in the han- and services and to register Pre- d. The Code of Ethics of Amway Direct
dling of any and all claims for exchange and Amway and its Direct Sellers ferred Customers within the pursu- Sellers;
return and follow the procedures prescribed have a binding contractual rela- ant to Section 3.
by Amway from time to time in its ocial pub- tionship. The terms and condi- e. The Rules of Conduct for Amway
lications. tions of this relationship are set 2.1.5 Amway Business Starter Guide Direct Sellers;
forth in the Amway Direct Seller means the literature providing in-
5. I will conduct myself in such a manner as to Application Form (SA-88-ID), formation on the Amway Business, f. The Amway Refund Policy; and
reflect only the highest standards of integrity, Amway Business Starter Guide, Code of Ethics for Amway Direct
frankness and responsibility because I recogn- which includes Amway Sales Sellers and the Rules of Conduct g. The Quality Assurance Standards; as
ise that my conduct as an Amway Direct Seller & Marketing Plan and Amway governing the Amway Direct Sell- amended from time to time. Amway
has far reaching eects. Rules of Conduct as amended ers. may notify any such amendments
by Amway from time-to-time. on its website, www.amway.in.
6. I will accept and carry out the responsibilities (Herein after referred to as the 2.1.6 Amway Products means all prod-
of an Amway Direct Seller (and those of Spon- Ocial Documents) ucts and services, including litera- 2.1.9 Training Provider means a Di-
sor and Platinum when I reach such level), as ture, training and other support or rect Seller who meets the Qualifi-
set forth in ocial Amway publications. Amway may notify all such auxiliary materials, made available cation Criteria (as defined in the
amendments to the Direct Sell- by Amway to Direct Sellers and/or Business Support Material Policy
7. In my AMWAY product sales activities, and for ers by publication on its website Preferred Customers. Section 7.1.2), required to publish
the purposes of protecting the Amway Sales www.amway.in and other places BSM to other Direct Sellers and/or
and Marketing Plan, I will use only Amway where possible. 2.1.7 Amway Sales and Marketing Prospects, subject to the conditions
produced or Amway authorized publications. Plan means the plan detailing set forth in the Rules, the BSM Pol-
Amway Indias performance incen- icy and the Quality Assurance Stan-
tive systems, sponsoring procedures dards.
2.1.10 Business Group refers to a Direct products and/or services oered 2.1.21 Reserved 2.1.30 All the terms used in these Rules
Seller and all his personally spon- through or by Amway. that are defined or explained in the
sored Direct Sellers, all those Direct 2.1.22 Platinum means a Direct Seller Amway Sales and Marketing Plan
Sellers sponsored by his personally 2.1.15 Foster Sponsor means a Direct who has achieved a certain level of shall have the same meaning as giv-
sponsored Direct Sellers and so on Seller who agrees to assist, train and business activity as defined by the en in the Amway Sales and Market-
down to and including those who motivate an Internationally Spon- Amway Sales and Marketing Plan, ing Plan.
have not sponsored anyone, but sored Direct Seller as a member of and who, consequently, becomes
excluding any Platinums in the or- his Business Group (e.g. A a Direct bound by the additional responsi- 2.2
ganisation under him or any Direct Seller of Amway Corporation in bilities, and eligible for the addi- Except when the content so requires, every-
Sellers in the Business Group of USA sponsors B an Indian resident tional opportunities, detailed in the thing that is in the singular shall include the
such Platinums. in India as a Direct Seller of Amway. Service Addendum. plural, and whatever refers to the masculine
C another Amway Direct Seller in shall include the feminine.
2.1.11 Business Support Materials India agrees to be the Foster Spon- 2.1.23 Preferred Customer means an
(BSM) means all products and ser- sor for B in India). end user of products and/or services 2.3
vices (including but not limited to oered through of by Amway whose The Amway Sales and Marketing Plan forms
business aids, books, magazines, 2.1.16 Internationally Sponsored Dis- Preferred Customer Application has an integral part of the Direct Seller Con-
flip charts and other printed mate- tributor refers to any Direct Seller been accepted by Amway, and who tract.
rial, online literature, internet web- introduced to Amway by another may accordingly purchase Amway
sites, audio, video or digital media, Direct Seller who resides outside of Products according to the applica-
rallies, meetings and educational India (International Direct Seller) , ble terms and conditions. SECTION 3: BECOMING A DIRECT SELLER
seminars (inclusive of tickets for the who is then sponsored into Amway
same), and other types of materials and assigned to a Foster Sponsor in 2.1.24 Prospect means a potential Di- 3.1
and services) that: India. rect Seller. Application and Starter Guide:
In order to be considered for an Amway dis-
(i) are designed to solicit and/or edu- 2.1.17 Legal Entity Authorisation 2.1.25 Quality Assurance Standards tributorship, an individual(s) must, in his/
24 cate Prospects, prospective custom- Form (LEAF) means the document (QAS) means the document pub- her/their own name(s) or on behalf of a le- 25
ers or Customers of Amway products that must, in addition to the Direct lished by Amway India which sets gal entity, submit a signed, completed Di-
or services, or to support, train, mo- Seller Contract, be completed by a forth the requirements relating to rect Seller Application (in Form SA-88-ID),
tivate and/or educate Direct Sellers; Direct Seller required to or electing BSM and may in part include their together with all required supporting docu-
to operate an Amway Business in the mandatory, permitted and prohib- mentation.
(ii) incorporate or use one or more of name of an applicable legal entity. ited content as well as the review A distributorship may be taken up in
Amways trademarks, service marks and authorization process, as the individual capacity or as a sole proprietorship
or copyrighted works; or 2.1.18 Line of Sponsorship (LOS) same may be amended from time to concern, partnership firm or company.
means the structural arrangement time. Amway reserves the right to require that
(iii) are otherwise oered with an ex- of Direct Sellers established by the Applicants having Non-Resident Indian
plicit or implied sense of aliation, contractual relationship that each 2.1.26 Reserved (NRI), Person of Indian Origin (PIO) or
connection or association with Am- Direct Seller has with Amway India. Overseas Citizen of India (OCI) status
way. 2.1.27 Rules of Conduct/ Rules shall operate distributorships via certain types of
2.1.19 LOS Information includes all in- mean these Rules of Conduct for legal entities.
2.1.12 Business Year means a period formation that discloses or relates Direct Sellers which can be changed
beginning from September 1 and to all or part of the Line of Spon- or modified by Amway from time to 3.2
ending on August 31 of the follow- sorship, including but not limited time, as provided in these Rules. Equal Opportunity:
ing calendar year. to Direct Seller numbers and other The opportunity to become a Direct Seller
Direct Seller business identification 2.1.28 Servicing Direct Seller means is available to anyone regardless of race, sex,
2.1.13 Corporate Authorisation Form data, Direct Seller personal contact the Direct Seller identified by or as- and religious or political beliefs.
means the form required to be filled information, Direct Seller business signed to a Preferred Customer for
in by proprietorship concern, part- performance information, and all the purpose of providing pre- and 3.3
nership or a company desiring to information generated or derived post-sale support. Requirements:
become a Direct Seller, which pro- therefrom, in its past, present or fu- Without limiting Amways rights, the fol-
vide information about the business ture forms. 2.1.29 Sponsor means a Direct Seller lowing are requirements for becoming a Di-
entity and the authorised signato- who, , is identified by an applicant rect Seller or renewing an Amway Distribu-
ries thereof. 2.1.20 Market means the territory of In- for Amway Distributorship, and torship. A Direct Seller must:
dia and such additional territories who in turn is assigned by Amway
2.1.14 Customer means a person, not as may be added by Amway from to support the requesting applicant 3.3.1 be at least 18 years of age;
being a Direct Seller or Preferred time to time. if the same is accepted by Amway as
Customer, who is an end user of a Direct Seller. 3.3.2 be a citizen and resident of India, or,
if permitted by Amway, a Non-Resi-
dent Indian (NRI), Person of Indian 3.6.5 Purchase tickets for and/or attend individuals to any of the above. However, 3.14.4 All partners, shareholders and Di-
Origin (PIO) or Overseas Citizen of or participate in rallies, seminars, or Amway recognises that certain advantages rectors shall personally and irrevo-
India (OCI); other meetings. could accrue to a Distributorship which cably guarantee due performance
adopts a legal entity structure, including by the partnership firm / company
3.3.3 not be unable to manage his or her 3.7 of all of its obligations and respon-
business due to mental or legal rea- Membership Period: (a) Tax benefits and tax savings, sibilities as a Direct Seller or as a
sons; A Direct Seller shall continue to remain a Platinum, especially those outlined
Direct Seller for Amway unless the Direct (b) Perpetual existence and limited li- in the Code of Ethics and Rules of
3.3.4 not have been suspended from his Seller Contract is terminated by the Direct ability for a LLC Conduct of Amway Direct Sellers as
or her current profession or busi- Seller or Amway in terms of Clause __ of the set forth from time to time in ocial
ness by any professional associa- Terms and Conditions of Direct Seller Ap- (c) Estate planning, and Amway literature.
tion, society, or institution; and plication Form SA-88-ID.
(d) Ease of transfer. 3.14.5 The sole business of the legal entity
3.3.5 not be in jail and/or confined to any 3.8 Reserved must be the operation of an Amway
correctional institution of any kind. Distributorship. No other business
3.9 Reserved On the other hand, the impersonal charac- may be conducted by such an en-
3.4 ter of a legal entity Distributorship could tity.
Acceptance or Rejection of Application: 3.10 Reserved result in unfavourable consequences to Am-
Amway reserves the right to accept or reject way unless certain conditions or restrictions
any application to be a Direct Seller without 3.11 are imposed. Accordingly, Amway will re- 3.15
having to give any explanation whatsoever. Resignation: quire such Distributorships to comply with Trust Distributorships:
A Direct Seller can cancel his Amway Busi- the following: An Amway Distributorship may be trans-
3.5 ness at any time in terms of Clause 9 of the ferred to, and become part of the corpus of,
Eective Date and Authorisation for Terms and Conditions of the Direct Seller 3.14.1 The legal entity in addition to SA-88 either an inter vivos or a testamentary trust
Ordering: Contract Form SA-88-ID by sending a letter must file with Amway a Corporate provided there has been compliance with
26 An Application shall be considered accepted to Amway. Authorisation Form, duly signed by certain requirements and conditions. 27
when Amway notifies the Direct Seller ac- its Sole Proprietor or Partner or Di- In order to assure that the transfer of a
cordingly. The Direct Seller may retail Am- 3.12 rector as applicable. Distributorship to a trust may not result in
way Products immediately after receipt of Application by Former Direct Sellers: unfavourable consequences, Amway will
relevant notification by Amway, and com- A former Direct Seller can request to be au- 3.14.2 All persons who actually conduct, require compliance with the following:
pletion of subsequent formalities, if any. thorised as a new Direct Seller in accordance or who intend to participate in the
with Rule 6.4. operation of the business of the 3.15.1 The creator of the trust must have
3.6 Distributorship must comprise the been a duly qualified and autho-
Prohibited Sponsoring Practices: 3.13 majority of the partners in case of a rised Direct Seller at the time (or, in
No prospect, as a condition to becoming a Informal Partnerships: partnership firm or in case of a com- the case of a deceased Direct Seller,
new Direct Seller shall be required to, nor In the case of an informal (unregistered) pany collectively own not less than a immediately prior to the time) that
any currently authorised Direct Seller, as a partnership, the Amway Distributorship majority of the paid up equity share the Distributorship is transferred to
condition to provide assistance to a prospect shall be only under the names of the indi- capital of the company and must the trust.
or new Direct Seller, in the development of vidual partners and not under a business constitute a majority of the Board of
their Amway Distributorship, require the name that the partnership might use for Directors of the company. 3.15.2 Frequently the beneficiary of the
prospect or such new Direct Seller to: other transactions. trust will be the spouse, child,
3.14.3 No change in the partners, in case grandchild, parent, or sibling of the
3.6.1 Pay any joining fee or purchase any 3.14 of a partnership firm or in case of a Amway Direct Seller, or deceased
specified amount of products. Legal Entity Distributorships: company, no change in the number Direct Seller, whose Distributor-
A Direct Seller may own and operate his of shares issued, in the ownership ship is to be transferred. However,
3.6.2 Maintain a specified minimum in- or her Distributorship as a sole proprietary of the shares or in the membership the beneficiary of a trust may be any
ventory. concern or registered partnership firm or of the Board of Directors, may be individual who is eligible to become
limited liability company (LLC), provided made, and no agreement or arrange- an authorised Amway Direct Seller.
3.6.3 Purchase any Amway or non-Amway it complies with certain requirements and ment aecting control of the com- A beneficiary cannot be a business
produced product or other pack conditions. pany by the individuals conducting entity, existing corporation, charita-
or Starter Guide. Amway values its personal relationship with the Distributorship business may ble organisation, non-profit organi-
its Direct Sellers and would not ordinarily be adopted, without application to, sation, a foundation, or any similar
3.6.4 Purchase tapes, literature, audio-vi- appoint a sole proprietary concern/ and the prior written approval by, entity.
sual aids, or other materials or par- partnership firm/limited liability company Amway.
ticipate in any tape of the month as a Direct Seller or approve of a transfer of
or tape of the week programs. an Amway Distributorship from one or more

3.15.3 The trust instrument must not per- 3.17 SECTION 4: RESPONSIBILITIES requirement for any notice by Am-
mit the beneficiaries to assign any Husband and Wife Distributorships: OF DIRECT SELLERS way, and the reclassified Preferred
beneficial interest in the trust. If both husband and wife wish to become Customer must wait a minimum of
Direct Sellers, they must be sponsored to- Direct Sellers are retailers of Amway Prod- six (6) months from the date of such
3.15.4 The trustee (all co-trustees, if more gether for a single Distributorship. Husbands ucts, and must meet sales criteria set by Am- reclassification to reapply to become
than one) must sign and file an ap- and wives may not be sponsored in dierent way in order to retain their status as Direct a Direct Seller.
plication and receive an Amway Di- Lines of Sponsorship. Husbands and wives Sellers. They must additionally complete
rect Seller Authorisation. may not sponsor each other. If one spouse required training in order to continue as 4.2.2 Any Direct Seller who has been re-
is already a Direct Seller, the other spouse, Direct Sellers and be eligible to recommend classified as a Preferred Customer,
3.15.5 An original signed (or certified) upon electing to become a Direct Seller, new Direct Sellers to Amway. whether pursuant to Rule 4.2.1
copy of the trust instrument must must join the same Distributorship as his or hereof or non-fulfilment of other
accompany the Application, and her spouse. 4.1 applicable retail, training or addi-
the trustee(s) must promptly file Abide by the Rules/Direct Seller tional requirements or on his/her/
with Amway any amendments or 3.17.1 A husband and wife shall operate Contract: their own initiative, must wait a
any documents which may vary the their Distributorship as a single At all times, Direct Sellers must strictly ad- minimum of six (6) months from
terms of the trust. entity. Therefore, each is held ac- here to the Rules of Conduct and to other the date of such reclassification to
countable for the actions of the oth- documents that comprise the Direct Seller reapply to become a Direct Seller.
3.15.6 All trustees must execute on its be- er so far as the Rules of Conduct are Contract.
half an irrevocable guarantee that concerned regardless of whether a Amway may from time to time amend the 4.2.3 Eligibility for a Sales Commission
the trustee will perform all the ob- husband or wife is active in the dis- Rules of Conduct and any other docu- is based on a Direct Sellers dem-
ligations and responsibilities of a tributorship or not. ment comprising the Direct Seller Contract onstrated retail sales volume and
Direct Seller (or a Platinum), espe- through notice on its website, www.amway. contributions to retail sales by other
cially as outlined in the Code of Eth- 3.17.2 If two Direct Sellers, each of whom in. If the Direct Seller does not agree to be Direct Sellers in his or her down-
ics and Rules of Conduct as set forth owns and operates a Distributorship bound by any amendment(s), he/she/they line sales group. In order to earn a
from time to time in ocial Amway in dierent lines of sponsorship may terminate the Direct Seller Contract Sales Commission on downline vol-
28 literature. (neither of which is at Platinum lev- with immediate eect by giving a written ume during a given month, a Direct 29
el), get married to each other, one of notice to Amway. Otherwise, the Direct Seller must have at least three (3)
3.15.7 The term of the trust shall not be these Direct Sellers must also elect Sellers continued relationship with Amway Preferred Customers, each of whom
perpetual and shall not continue to surrender (by sale, transfer, or constitutes an armative acknowledgment places one or more orders for Amway
beyond the date necessary to pro- abandonment) his or her Distribu- by the Direct Seller of the amendment(s), Products in that month. If a Direct
tect the interests of those trust torship and join his or her spouses and his/her/their agreement to be bound Seller does not meet this require-
beneficiaries who are unable to act Distributorship. there to. ment in any month, the Sales Com-
for themselves legally, e.g., minor mission on downline volume will
children or incompetent persons, or 3.17.3 If either of a newly married couple 4.2 pass up and shall be paid to the next
who, because of age or inexperience, has attained Platinum status as Am- Retail of Amway Products and upline Direct Seller who meets this
require assistance in the conduct of way Direct Seller at the time of their the requirement to have Preferred requirement. Upon request by Am-
business aairs. marriage, then the newly married Customers: way, a Direct Seller may additionally
couple may operate both Distribu- The Direct Seller agrees and undertakes that be required to provide a description
3.15.8 The trust will conduct only the busi- torships, each of which will, howev- purchase of Amway Products shall be for the of activities that contributed to the
ness of an Amway Distributorship er, be operated in its original Line of purpose of sale to Customers, and to retain sales in the month for which a Sales
and no other. Sponsorship. If the spouse surren- and provide records of such sales to Amway Commission is claimed.
dering a Distributorship does so by in accordance with the Rules.
3.16 way of sale, such sale must be made 4.3
Invitations Limited to Two Persons: in accordance with the provisions of 4.2.1 Each Direct Seller must, within 90 Retail Stores and E-commerce websites:
Invitations for seminars, leadership semi- Rule 6.6 of these Rules of Conduct. (ninety) days of becoming a Direct Amway does not permit Direct Sellers to
nars and other events organised by Amway If the spouse surrendering a Distrib- Seller, acquire at least three (3) Pre- display/sell its products/ literature through
will only be addressed to two individuals utorship does so by simple abandon- ferred Customers1, each of whom retail stores and e-commerce websites.
per Amway business who are registered with ing it, the sponsorship of the aban- places one or more orders for Am- No Direct Seller shall sell or display or permit
Amway. In case of a sole proprietary con- doned Distributorship shall pass up way Products. A Direct Seller who Amway Products or services to be sold or
cern/partnership firm/limited liability com- the Line of Sponsorship to the next does not meet this requirement will displayed in retail stores (this shall include
pany/trust, the authorised representatives Sponsorship. be reclassified as a Preferred Cus- non-Amway e-commerce websites), schools,
indicated in the Corporate Authorisation tomer eective as of 91 (ninety-one) fairs, ships or military stores; nor shall he or
Form will be the two individuals who will be days after the date of joining. In this she permit any Amway product to appear in
eligible for such invitations. case the Direct Seller Contract will such locations even if the Amway product
terminate automatically without the or services themselves are not for sale. No

1 Inserted w.e.f. 01 November, 2015

Amway literature shall be displayed in retail Display of the Amway products and/ (b) State the price charged, fort or expense required to comply with such
establishments. A Direct Seller who works or brochures is restricted to inside laws, regulations and/or codes.
in or owns a retail store must operate his or of the service establishment and (c) Give the name, ADA number, ad-
her Amway business separate and apart from should not be visible on the outer dress, and telephone number of the 4.9 Reserved
the retail store. Such Direct Sellers must display visible to general public. selling Direct Seller,
secure customers and deliver products to 4.10
them in the same manner as Amway Direct 4.4 (d) Include Amways Customer Product Unlawful Business
Sellers who have no connection with a store. Truthful and Accurate: Refund Policy, and Enterprises or Activities:
Other types of retail establishments, which In addition to the obligations of Direct Sell- Direct Sellers shall not engage in any decep-
are not technically stores, such as barber ers provided in Clause 9 of the Terms and (e) Include Amways Complaint Redres- tive or unlawful trade practice as defined by
shops, beauty shops, or professional oces, Conditions of Direct Seller Application sal mechanism. any Central, State or local law or regulation.
etc., likewise may not be used to display Form SA-88-ID, No Direct Seller shall make No Direct Seller shall operate any illegal or
Amway Products, information about Amway any oer to sell any Amway product which is 4.7 unlawful business enterprise, engage or par-
services, or Amway literature. not accurate and truthful as to price, grade, Customer Product Refunds: ticipate in any illegal or unlawful business
Further, Direct Sellers may not use mass quality, performance, and availability. Fur- Direct Sellers shall advise Amway of any cus- activity or be convicted of any illegal or un-
communication methods such as television ther, Direct Sellers cannot: tomer complaint and provide copies of all lawful activity. An illegal or unlawful enter-
merchandising channels, computer correspondence and details of all conversa- prise or activity is one which is prohibited by
networks, national or international 4.4.1 Make exaggerated product claims or tions regarding the complaint. central, state, or local law or regulation.
advertising, etc., to secure Amway non-guaranteed claims with regard If an application for an Amway Distribu-
customers. to Amway Products or products dis- 4.7.1 Direct Sellers are not authorised to torship is presented to Amway by a person
tributed by Amway. make any type of oer or compro- who operates, or is engaging or participating
4.3.1 Exception to Rule 4.3 (Retail mise or render Amway liable for any in, any illegal or unlawful enterprise or ac-
Store) for Beauty salons, health 4.4.2 In any way whatsoever, represent complaint or product return. tivity, Amway may hold such application in
clubs, Doctor, clinic. incorrectly with regard to prices, abeyance and contact the applicant to deter-
quality, standards, grades, contents, 4.7.2 Whenever a customer requests mine whether he or she is so engaged and, if
30 Display and sale of health, beauty style or model, place of origin or Product Refund service within the so, what his or her intentions are concerning 31
and sport nutrition product are availability of Amway Products or stated period, the Direct Seller shall such enterprise or activity. Refusal or failure
permitted in health and beauty products distributed by Amway. immediately oer the customer the on the part of the applicant to produce proof
establishment under the follow- choice of (a) refund of money paid that he or she has terminated his or her re-
ing conditions: 4.4.3 State that Amway Products or prod- as per Amways then current prod- lationship with such unlawful enterprise or
ucts distributed by Amway back, uct refund policy, (b) exchange for activity shall disqualify him or her for such The primary focus of the business approve, or present any features as a like product, or (c) full credit for Distributorship, and his or her application
is service and retails sale of product regards yield, accessories, uses or exchange with another item. shall be denied.
is incidental to the service provided benefits that they do not have. If, subsequent to approval of his initial
(e.g. Beauty salons, health clubs, 4.7.3 Direct Sellers hereby indemnify application, an Amway Direct Seller is de-
Doctors clinic) 4.4.4 In any way whatsoever act or present Amway for any losses, claim, legal termined by Amway to be operating, or
Amway, its products or the products actions, suit, etc. (including Amway engaging or participating in, an illegal or Only Amway products directly re- Amway distributes in a fraudulent legal fees) which are filed or which unlawful enterprise or activity, and if, upon
lated to the service provided by an manner or promote products that originate because of any failure notification and request by Amway, such Di-
establishment will be allowed. For do not belong to Amway as if they by the Direct Seller to observe this rect Seller refuses or fails to terminate his or
example, a Beauty establishment did or sell Amway products at a price rule. her relationship with such illegal or unlaw-
could display, use and sell only atti- below the purchase price. ful enterprise or activity, then Amway shall
tude and Artistry range of products 4.8 terminate such Distributorship, whereupon
and related personal care products 4.5 Compliance with Applicable Laws, the Direct Seller shall lose all the rights and
like shampoo and conditioner. A No Repacking / Re labelling of Regulations and Codes: privileges of an Amway Direct Seller.
Health establishment i.e. Gym could Amway Products. Direct Sellers shall comply with all laws, reg-
only display, use and sell Nutrilite Direct Sellers shall not repackage, or oth- ulations and codes that apply to the opera- 4.11
range of products. erwise change or alter any of the packaging tion of their Amway business wherever said Professionalism:
labels of Amway Products. Amway Business may be conducted within An Amway Direct Seller shall at all times An Direct Seller is the majority own- the Market, and they must not conduct any conduct himself or herself in a courteous
er and operator of the establishment 4.6 activity that could jeopardise the reputation and considerate manner and shall not en-
or the Direct Seller is the Manager/ Written Sales Receipt: of the Direct Seller and/or Amway. Appli- gage in any high-pressure selling, but shall
Controller of the establishment and A Direct Seller shall deliver to the customer cable laws, regulations and codes vary from make a fair presentation of Amway Products
has an authorization in writing from 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
the majority owner/ operator of the or receipt which shall: State in India, and over time, and Amway including, when and where appropriate,
establishment for sale and display of does not ensure or make representations demonstrations of such products.
Amway Products. (a) Describe the product(s) sold, with respect to the quantity or extent of ef- An Amway Direct Seller shall never impose
himself or herself upon his/her prospective in accordance with the explanation given in 4.14 are Amway Direct Sellers and have
customer and shall abide by the following: the Amway Business Starter Guide or other Non-Amway Selling Activities: sought them out, but it does mean
Amway literature. A Direct Seller is required An Amway Direct Seller can engage in other that such Direct Seller may not ac-
1. He/She shall always take a prior permis- to indemnify Amway for the cost of any business/professional activity, but he/she tively solicit the patronage of other
sion or appointment before approaching damage or prejudice stemming from such must not use Amway Direct Sellers/ activi- Amway Direct Sellers.
a prospective customer and shall indicate false representation, including any legal fees ties/events to promote his non Amway busi-
the purpose of his or her visit and iden- Amway may have incurred. ness/profession and must not hard sell the 4.14.3 Amway reserves the right to termi-
tify himself or herself as an Amway Direct Amway Direct Sellers are independent Direct same on other Amway Direct Sellers. nate the remaining Direct Sellers
Seller. Sellers operating their own businesses. They No Amway Direct Seller who personally sells authorisation as a Direct Seller in
shall not imply that they are employees of products other than Amway Products, who the event that one partner of hus-
2. He/She shall provide the following infor- Amway, nor shall they refer to themselves as personally participates in any non-Amway band-wife partnership elects to re-
mation to the customer at the time of sale agents, managers, or company represen- selling activity and/or sells literature or sign his or her authorisation as a
tatives, nor shall they use such terminology sales aids not produced by Amway except Direct Seller and subsequently takes
His/ Her name, address and tele- or descriptive phrases on their stationery or those allowed under Section 7 of the Rules advantage of his or her knowledge
phone number along with that of other printed material. Further Direct Sell- of Conduct or who sells services (e.g., tax of, or association with, other Am-
Amway. ers shall not use the address of any Amway services, insurance, investments, etc) will way Direct Sellers to promote and
establishment, Amway intellectual property sell such products or services to another expand his or her non-Amway busi-
He/ She shall at all times carry iden- or misrepresent their association with Am- Amway Direct Seller or will induce another ness.
tity card provided by Amway along way. (Sponsors are urged to preserve the in- Amway Direct Seller to participate in any
with any photo IDs issued by any dependent contractor relationship between other non-Amway selling activity and/or to 4.15
Government agency. themselves and their Direct Sellers. If they sell such products, literature, sales aids, or Enticement to Change Lines
permit an employer-employee relationship services to any Amway Direct Seller. Induce of Sponsorship:
He/ She shall fix time & place for in- to develop, Sponsors may find themselves means to persuade (or attempt to persuade) No Direct Seller shall, directly or indirectly,
spection of the sample and delivery liable for the acts of and injuries to their another Direct Seller (either personally or induce/entice other Amway Direct Sellers
of goods, if customer so desires. sponsored Direct Sellers. Amway shall not through a third party) to sell any product or to change their Line of Sponsorship. E.g.
32 permit any relationship between, or repre- service whether or not this is done to obtain Inducing an Amway Direct Seller to start a 33
He/ She shall provide customer re- sentations by, Direct Sellers which may im- revenues or for any other reason. new business in their parents name under
ceipt with the description of the pose employee liability on Amway). a dierent sponsor and then advising them
products to be supplied as per Rule Direct Sellers shall not use the Amway 4.14.1 This principle also applies to busi- to resign their existing Distributorship and
4.6. Direct Seller identification card to create ness aids developed privately by Di- build their parents Amway business without
the impression that there is a subordinate rect Sellers in compliance with Sec- complying with 6 month inactivity rule.
If the customer indicates a desire to relationship with Amway. This identification tion 7 of these Rules of Conduct. Under no circumstances, direct or indirect,
terminate the interview, the Amway Direct card issued to a Direct Seller by Amway is to nor for purpose of helping another person,
Seller shall immediately do so and shall be used exclusively when the Direct Seller 4.14.2 Amway Direct Sellers may engage shall a Direct Seller solicit, interfere or
leave the premises of the customer. wants to purchase products from Amway in selling activities related to non- attempt to induce another Direct Seller to
The Amway Direct Seller at all times makes and at the time of approaching customers Amway approved or non-Amway- leave his Line of Sponsorship or change his
a fair presentation of Amway Products. The for sale. produced products and services if Line of Sponsorship.
Amway Direct Seller will also direct his or they personally desire to do so, but
her customers attention to the use, direction 4.13 they may not take advantage of an 4.16
and cautions, which may be included on the Franchises and Territories: activity organised especially to pro- Exporting Amway Products:
label for products. No Direct Seller shall represent to anyone mote Amway Products or Amway, Amway Direct Sellers must sell Amway
that there are exclusive franchises or terri- or any other Direct Sellers eorts products and/or sponsor prospective Am-
4.12 tories available under the Amway Sales and or resources, or of their knowledge way Direct Sellers within India only.
Employment Relationship: Marketing Plan. of, or association with, other Amway No Direct Seller may export, or knowingly
Amway Direct Sellers are independent Di- No Direct Seller shall represent that he or Direct Sellers to promote and ex- sell to others who exports, Amway Products
rect Sellers operating their own business she, or anyone else has the authority to grant, pand their non-Amway businesses. from India, or from any other country in
and are not employees/agents of Amway or sell, assign, or transfer such franchises or to To do so constitutes an unwarranted which Amway has established operations,
its aliated companies. assign or designate territories. No Direct and unreasonable interference in into any country regardless of whether or not
No Direct Seller shall represent that he or Seller or Sponsor may state or imply that the business of other Amway Direct Amway is doing business in that country.
she has any employment relationship with he or she has a given territory, nor that any Sellers. This does not mean, how- For important legal reasons, including trade
Amway or any of its aliated companies other Direct Seller is operating outside his ever, that a Direct Seller regularly names and trademark protections; local laws
and/or other Direct Sellers. territory. engaged in the operation of a petrol on product registration, packaging, labelling,
Direct Sellers shall not give a false Amway Direct Sellers have no territorial pump, repair garage, retail estab- ingredient content and formulation, product
representation as to the nature of the limits. They can operate anywhere within lishment, barber or beauty shop, or liability; customs and tax laws; and literature
relationship between Amway and its Direct India. a professional service (law, medi- content or language requirements. Amway
Sellers, or make any representation except cine, dentistry, or accounting) may must limit the resale of Amway Products by
not serve clients or customers who Direct Sellers to only other Direct Sellers or
retail customers located within country in ence guide. In this regard, the strategic and 4.22 SECTION 5: RESPONSIBILITIES
which the Direct Seller legitimately buys artificial structuring of an Amway organiza- Privacy and Confidentiality: OF A SPONSOR
the Amway Products and is authorised to tion for the purpose of depth building by us- All Direct Sellers are required to abide by
do business. The term products includes, ing the concept of stacking is considered the Corporations Privacy Policy with regard EACH SPONSOR SHALL
without limitation, all literature, sales aids, to be manipulation and an unacceptable to Direct Seller, client and member infor-
and any other items obtained by a Direct business practice. Stacking is a violation of mation, and its Confidentiality Policy with 1. Abide by the Code of Ethics and Rules of
Seller from Amway or from his sponsor or this Rule. Amway in its sole discretion will regard to Direct Seller and business infor- Conduct in their letter and true spirit.
Platinum. determine what constitutes manipulation mation.
and / or stacking. 2. Train and motivate all Direct Sellers he/
4.17 4.23 she has Sponsored to sell Amway Prod-
Sound Business Practices: 4.19 Right to Audit ucts.
An Amway Direct Seller must operate his or Reserved
her Distributorship in a financially respon- 4.23.1 Amway reserves the right to audit all 3. Encourage his personally sponsored Di-
sible, solvent, and businesslike manner. 4.20 Direct Sellers to check compliance rect Sellers to attend free Amway train-
Direct Seller shall not permit a non - Direct Activity Outside India or Activity with Direct Seller obligations under ings.
Seller to build / promote his or her Amway Outside The Market Where The Direct the Direct Seller Contract from time
business. Seller is Registered: to time with or without notice at 4. Advice his/her sponsored Direct Seller(s)
In signing a Direct Seller Application a Direct Direct Sellers who engage, directly or indi- Amways discretion. to follow the Rules of Conduct.
Seller undertakes to Amway that there is no rectly, in any activity related to the Amway
legal bar or limitation on his or her ability business in a jurisdiction outside of India 4.23.2 All Direct Sellers who earn dieren- 5. Give advice on promotional activities.
to meet the legal obligations of an Amway must do so in a manner that complies with tial commission shall maintain a log
Direct Seller, whether such obligations are the letter and spirit of the applicable laws, book in the manner prescribed by A Sponsor is a Direct Seller who recommends
to Amway itself, to customers, or to other regulations, rules, policies and procedures Amway. In the event a Direct Seller a new applicant, who in turn, if accepted
Direct Sellers. If there is an obstacle or of the Amway aliate in that jurisdiction, earning dierential commission is by Amway as a Direct Seller, is assigned by
limitation, the Direct Seller must declare it. regardless of whether they are registered found to be in violation of this re- Amway for support by the recommending
34 For example, if an undischarged bankrupt Direct Sellers in that Jurisdiction. Failure to quirement on three occasions he/ Direct Seller. In order to acquire and preserve 35
or an underage person applies for a do so shall be a breach of the Direct Seller she/they/it shall be liable for any or the status and rights of a Sponsor, a Direct
Distributorship, Amway may reject the Contract. all action listed below: Seller must:
application or, if Amway discovers the
disability, alter the Distributorship. If a 4.21 (a) Suspension of business activities 5.1
Distributor or any member partner in his Spamming- Prohibits Direct Sellers and commissions; Amway Business Starter Guide:
or her Distributorship files a petition in from sending messages to persons whom Encourage all Direct Sellers that he spon-
bankruptcy or has bankruptcy or winding- they do not know. (b) Elimination from all GIP sors to procure a copy of the free Business
up proceedings commenced against him awards/rewards; Starter Guide published by Amway.
or her, or has any assets seized by Court Unsolicited e-mail messages:
order or taken in execution of an unsatisfied No Direct Seller shall send, transmit or oth- (c) Reduction and/or elimination of 5.2
judgment debt, the Direct Seller must erwise communicate any unsolicited e-mail FAA points for India; Maintain Good Standing/Conform
immediately inform Amway. In such cases, messages to persons with whom the Direct to Rules:
Amway reserves the right to terminate the Seller does not have a pre-existing personal (d) Non-invitation or withdrawal of in- Be an Amway Direct Seller in good standing
Distributorship, or alter its terms of trading or business relationship. (This includes, but vitation to award trips; and meet all Direct Seller requirements as
with the Direct Seller, or to negotiate with is not limited to, sending e-mails through set forth in these Rules. A Direct Seller shall
the trustee in bankruptcy or responsible newsgroups, purchased mailing lists, safe (e) Denial of any cash/non-cash awards not directly or indirectly indulge himself /
court ocial concerning arrangements for lists, or other lists of individuals or entities and rewards from aected Direct herself in any wrongful activity, including
the disposal of any products belonging to with which the Direct Seller does not have a Seller to uplines; but not limited to false complaints and issu-
Amway which are in the possession of the relationship). ing threats to Amway or its personnel, which
Direct Seller. (f) Termination of their Amway could have any adverse eect upon the Am-
4.21.1 Employment Postings: If a Direct business way business of another Direct Seller or on
4.18 Seller responds to an employment the reputation of Amway.
Manipulation of Amway Sales and posting for someone seeking an em- In the event a Sponsor ceases to be a qualified
Marketing plan / Anti-Stacking: ployment opportunity, they shall Direct Seller, the rights to any Direct Sellers
No Direct Seller shall manipulate the Am- clearly state within the first para- whom he or she may have sponsored shall
way Sales and Marketing Plan or manipulate graph of the response that they are
sales volume in any way which results in the oering a business opportunity. Any
payment of bonuses or other awards and materials used with a prospect must
recognition that have not been earned in be approved by the Corporation in
accordance with the terms of the Sales and accordance with Rule 7 herein.
Marketing Plan and / or the business refer-
pass up to the next qualified Direct Seller in condition of receiving assistance in the de- 6.1.2 Protection of the LOS and LOS Emerald Platinum, written consent
his or her Line of Sponsorship. velopment of their business from their spon- Information: must be received from the next up-
sor, shall be required to: Purchase hardware line qualified Platinum in the Emer-
5.3 or software for computers, subscribe to an As used herein, the sale of an own- ald Platinums Line of Sponsorship
Train: Internet Service Provider (ISP), or establish ership interest in a Distributorship, as there could be an eect on upline
Conduct, or provide access to, training and a Website. merging Distributorships, or sepa- commission payments. Amway will
motivation that complies with the Rules, rating or dividing a Distributorship, then notify the first qualified upline
including Section 7, the BSM Policy, and 5.9 each inherently involve the assign- Diamond Platinum and allow 15
the Quality Assurance Standards (QAS). In Restrictions on Sponsoring: ment of the Distributorship Agree- days for comment.
order to meet this obligation the Sponsor ment or an amendment thereof, and,
shall encourage his sponsored Direct Sell- 5.9.1 Amway reserves the right to set as such, require prior authorisation 6.3.2 The transfer request must be ac-
ers to attend trainings organized by Amway additional restrictions on recom- by Amway. Transfers of Direct Sell- companied by written consents of
and/or may personally train the Direct Sell- mending Prospects or serving as a ers from one Sponsor to another are all those Direct Sellers whom the
ers whom he or she sponsors or arrange for Sponsor to Direct Sellers based on only granted at the sole discretion of transferring Direct Seller wishes to
support from other Direct Sellers, including geography or otherwise. Any such Amway. take with him or her and the written
his or her upline Platinum, and Direct Seller restriction will be communicated to acceptance of the transfer, signed by
Training Providers. In all cases the Sponsor the Direct Sellers aected. 6.2 the Sponsor and Platinum to whom
remains responsible and accountable under Individual Transfers: the individual wants to be trans-
the Direct Seller Contract for ensuring that Without limiting or restricting in any way ferred. Amway will also contact any
compliant training and motivation are made SECTION 6: PRESERVATION OF THE Amways powers and discretion under Sec- International Sponsor and interna-
available to his or her sponsored Direct Sell- LINE OF SPONSORSHIP tion 6.1 above. Any Direct Seller (including tional leadership commission re-
ers. a Platinum) who wants to change Sponsors cipients and will allow 30 days for
6.1 must submit a written request to Amway ac- comment.
5.4 The LOS and LOS Information: companied by
Independent Relationship: 6.3.3 No Distributorship currently recog-
36 Not represent that there is an employment 6.1.1 Confidentiality of the LOS and 1. A written release signed by all the Direct nised by Amway as a group leader 37
or agency relationship between himself and LOS Information: Sellers in his Line of Sponsorship up to (i.e., Silver Sponsors, Silver Produc-
the Direct Sellers which he sponsors. and including the first qualified Platinum, ers, Gold Producers, or a Platinum)
Amway protects the LOS and LOS and can be transferred under this Rule.
5.5 Information for the benefit of Am- A former Platinum Distributorship
Attend Amway Trainings: way and all Direct Seller. Amway 2. A written acceptance from the new Spon- or Group Leader may be transferred
Use his best eorts to encourage his person- keeps LOS Information propri- sor and Platinum. Amway will also contact if more than two (2) full years have
ally sponsored Direct Sellers to attend free etary and confidential and treats it any International Sponsor and interna- elapsed since the last fiscal year in
Amway trainings. as a trade secret. The Direct Seller tional leadership commission recipients which the Distributorship was rec-
agrees that the LOS and LOS Infor- and will allow 30 days for comment. ognised as such, provided there has
5.6 mation are confidential, commercial been compliance with the proce-
Follow the Rules: and proprietary information (here- 6.3 dures outlined above.
Use his best eorts to encourage each of his inafter referred to as Trade Secret) Group Transfers:
personally sponsored Direct Sellers to fully owned by Amway and shall not be Note : No Group Leader i.e. Silver
comply with the standards set forth in the disclosed by the Direct Seller to Producer & above can obtain transfer 6.4
Rules and to study, use and carefully con- any person whatsoever. The Direct under this rule without completing 2 Six Month Inactivity:
duct their businesses in accordance with the Seller further agrees that a breach full years after obtaining recognition. To change Sponsor, Direct Seller must resign
law and ocial Amway publications, and by a Direct Seller of his or her con- Without limiting or restricting in any way his existing Distributorship, be inactive for 6
fidentiality obligations with respect Amways powers and discretion under months and then join under another Spon-
5.7 to the Trade Secret shall cause Am- Section 6.1 above: sor. The new Sponsor should not have been
Give Advice: way irreparable damage for which part of his original line of sponsorship either
Give advice concerning (advertising and all monetary damages would be an in- 6.3.1 A Direct Seller who wishes to trans- above or below him during the past 2 years.
other) promotional activities carried on by adequate remedy, and that notwith- fer to a dierent Sponsor with all A Direct Seller who wishes to change spon-
his personally sponsored Direct Sellers to as- standing any other provision hereof, or part of his Business Group must sor may TERMINATE (by resignation or fail-
sure that they conform to Amway-approved and, without prejudice to any other submit a written request to Amway ure to renew) his Distributorship under his
procedures and rules. rights Amway may have in law or accompanied by written consent present Sponsor and thereafter remain inac-
under the contract, Amway shall from all Direct Sellers in his Line of tive for a period of six or more consecutive
5.8 be entitled to seek specific perfor- Sponsorship up to and including the months may, following the lapse of said in-
Prohibited Registration Practices: mance of the Direct Sellers obliga- first qualified Platinum and all Plat- active period, reapply to become a new Di-
Neither a prospective Direct Seller, as a con- tions under this clause or seek such inums up to and including the first rect Seller under a new Sponsor. Applicants
dition to becoming a new Direct Seller, nor further relief as may be available in qualified Emerald Platinum. If the can not apply to become active in an already
any currently authorised Direct Seller, as a law. first qualified Platinum is a qualified existing Distributorship. The inactivity pe-
riod begins from the date on which Amway sold any Amway Products, shall not his original Line of Sponsorship 6.5
receives the letter of resignation.. A person have engaged in any phase of a prod- up to and including the first quali- Free Agents:
who has not renewed and has not submitted uct sale/purchase (e.g., taking an or- fied Platinum, or below him or her A Direct Seller who has been terminated by
a letter of resignation will be considered to der, making a delivery, or accepting in his former Business Group down Amway becomes a free agent and may im-
have submitted his or her intent on the date payment), shall not have presented to and including the first qualified mediately file an application to be sponsored
his or her Distributorship expired and must the Amway Sales and Marketing Platinum. However, a Direct Seller under a new Sponsor. However, whether his
remain inactive for a period of six months Plan to any prospect, shall not have who has been inactive for a period or her application will be accepted by Am-
from that date. Applicants can not apply applied for the renewal of his Dis- of two years may be sponsored by way will depend upon the reason for which
under this Rule to become a partner in an tributorship, and shall not have at- any Sponsor, including his former his or her original Distributorship was ter-
already existing Distributorship. tended any recruiting, training, or Sponsor who may have since been minated. If it was terminated because of a
motivational meeting conducted transferred to or re-sponsored by a violation of the Rules of Conduct, then his
6.4.1 To apply for a new Distributorship by any Amways Direct Seller or any dierent Sponsor. or her new application under a new Sponsor
under this inactivity Rule, the Direct Amway company-sponsored meet- may be denied by Amway, or its acceptance
Seller must complete a new Direct ings. During the inactive period, 6.4.5 A Direct Sellers continuing busi- may be deferred pending receipt of evidence
Seller Application (SA 88ID), which the former Direct Seller must not ness activity in one market will not satisfactory to Amway that the applicant in-
may be obtained from Amway. The participate in any Amway activity aect his eligibility to reapply after tends to abide by the Amway Code of Ethics
application should then be sent to under another Distributorship in six months of inactivity as a Direct and Rules of Conduct.
Amway accompanied by a written the name of his parents, siblings, or Seller in any other country in which
statement of inactivity. When Am- others or he shall not be determined Amway does business. 6.6
way receives an application accom- as inactive for the purposes of this Sale of a Distributorship:
panied by the written statement of Rule. When either a husband or wife 6.4.6 A formerly foster-sponsored Direct A Direct Seller who owns and operates a dis-
inactivity, it notifies the original is a Direct Seller, both must fulfil the Seller may reapply for Sponsorship tributorship (qualified Silver Producer level
Platinum of the fact and grants him six-month inactivity requirements subject to paragraphs 6.4.1, 6.4.2, or above) may sell his or her ownership in-
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 terest in such distributorship.
the inactivity claim. If evidence of as a Direct Seller. conditions:
38 activity during the six months pe- 6.6.1 A Direct Sellers business can only 39
riod is provided, Amway will reject 6.4.3 A Direct Seller who transfers to, or At the time of application, the former be sold to another Direct Seller. The pur-
the application and will return it who following six months of inac- Direct Seller must specify whether or chased business shall remain separate from
back to the applicant. If the original tivity, applies for Distributorship not he wishes to be internationally the buyers other Amway business and the
Platinum does not reply within 15 under a dierent Sponsor pursuant and foster sponsored again, and Lines of Sponsorship shall not be altered in
days, or if he verifies that the Direct to the provisions of this Rule, can- any way as a result of the sale.
Seller has in fact been inactive for not be sponsored by anyone who was A former Direct Seller may not be
six months, then the new applica- previously above him in his original personally sponsored by a Sponsor
tion will be accepted and processed. Line of Sponsorship up to and in- who was previously above him in his 6.6.2 If a Direct Seller wishes to sell his or
The right of a Direct Seller to contest cluding the first qualified Platinum, original Line of foster Sponsorship her Amway business, he or she must
the sponsorship of a former Direct or below him in his former Business up to and including the first quali- oer it to another Direct Seller in
Seller who is now sponsored under Group down to and including the fied Platinum, or below him in his the following order of priority:
a dierent sponsor ceases upon the first Platinum and who has since original Business Group down to and
lapse of 6 months from the date of been transferred to or re-sponsored including the first qualified Platinum If the business is internationally
taking up second Distributorship or by a dierent Sponsor, unless two unless two or more years have elapsed sponsored, it must be oered to the
cessation of the original Distribu- years have elapsed since the termi- since the termination of his Distribu- International Sponsor, who through-
torship whichever is later. nation of his Distributorship. torship. out the negotiations to sell the dis-
tributorship retains the right to ac-
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 quire the same by meeting the price
Inactivity means no purchase/sale rect Seller cannot poach persons of paragraphs 6.4.1, 6.4.2, 6.4.3, and conditions of any bonafide oer
of Amway products, no sponsoring from his old group except for Direct 6.4.4 and 6.4.6 are violated, Amway received by and deemed acceptable
of prospects and no attending of Sellers who were inactive for atleast may take corrective action, which to the seller, subject to the extant
Amway/ Direct Sellers meetings. 2 years. may include but is not limited to policies of Amway and any and all
transfer of the Distributorship of required permissions and approv-
Inactivity for purposes of this Rule A Direct Seller who transfers to, or the Direct Seller at fault. Amway at als, including the Reserve Bank of
shall mean that during the period of who, following six months of inac- its discretion may also transfer his India and/or any other authority, if
inactivity, the Direct Seller shall have tivity, applies for Distributorship Business Group and the business required under the Foreign Exchange
been completely inactive, which under a dierent Sponsor pursuant volume generated during the period Management Act or other applicable
means he shall not have purchased to the provisions of this Rule, shall of violation to the original Line of law.
any Amway product as a Direct Sell- have no right to sponsor in his new Sponsorship.
er for personal use (although he may Business Group any Direct Seller
do so as a consumer), shall not have who was previously above him in
GUIDE If the international Sponsor does not agreement as authorised by Amway. tinue to be on the Distributorship in the Rules, the BSM Policy and the Qual-
accept the oer of purchase, or if all All awards previously awarded to until his or her death and support- ity Assurance Standards (QAS).The current
of the required permissions/approv- the business will not be transferred ing estate-planning documentation BSM Policy and the QAS shall be published
als, including that of the Reserve to the new owners. Qualification must be provided to Amway. on Amway Indias website and also made
Bank of India are not received, the for awards for the business will be available by Amway India upon request from
business must be oered to the local determined only by activities occur- 6.8.4 Where an existing Distributorship Direct Sellers.
Foster Sponsor of the Direct Seller. ring after the date of sale. inherits all or a portion of a Distrib-
utorship. 7.1 If no international Sponsor exists, the 6.7 General Rules on BSM
business must be oered to the local Mergers: In the event a Direct Seller owns or
Sponsor, who throughout the negotia- Businesses will not merge or be combined has an ownership interest in two 7.1.1 Business Support Materials shall
tions to sell the distributorship retains without the previous written approval of or more Distributorships pursu- at all times be entirely optional.
the right to acquire the same by meet- Amway. A marriage between Direct Sellers, ant to this Rule; they may operate Training Providers who choose to
ing the price and conditions of any a transfer of a business, the sale of a busi- such Distributorships jointly under publish Business Support Materials
bonafide oer received by and deemed ness or any other similar circumstance does a single corporate, limited liability must emphasise that the purchase
acceptable to the seller. not cause a merger or combination of busi- company or partnership umbrella, of BSM is strictly voluntary. In no
nesses unless specifically approved in writ- but Amway shall continue to carry circumstance shall the purchase of In the case where the local Sponsor ing by Amway. such Distributorships and will only BSM or participation in any training
does not accept the oer, the business recognise them as separate individ- or support oered by Training Pro-
must be oered simultaneously for sale 6.8 ual Distributorships for both Award viders be made a condition of the
to all Direct Sellers personally spon- One Distributorship Rule: and Commission purposes. Direct Seller registration process or
sored by the owner. A Direct Seller can have more than one Dis- explicitly or implicitly represented
tributorship, when 6.9 as necessary for success in the Am- In the case where none of the Direct Divorce, Separation, or Other way Business.
Sellers personally sponsored by the Di- A Platinum marries another Amway Di- Dissolution:
40 rect Seller accept the oer, the business rect Seller. Whenever a business is separated or divided 7.1.2 Except as specified in Rule 5.3, only 41
must be oered simultaneously to all as the result of a divorce, dissolution of a Direct Sellers who have ocially
Platinums located above or below in the When a Direct Seller purchases another corporation or partnership, the separation attained the following recognition
Line of Sponsorship to the next quali- Distributorship. or division must be accomplished in such a levels (the Qualification Criteria)
fied Diamond way as to not adversely aect the interests shall be designated as Direct Seller
When a Direct Seller names another Di- and/or income of the businesses in the Line Training Providers, and thus, to the If the Platinums above or below in the- rect Seller to his/her Distributorship for of Sponsorship. extent expressly authorized, be al-
Line of Sponsorship of the Direct Seller transfer in case of the formers death. During the division or separation process, lowed to publish BSM (as applica-
in question to the next qualified Dia- neither party will administer or operate, ble):
mond also reject the purchase oer, or Through inheritance of full or a part of together or separately, any other Amway
fail to respond to the oer, the Direct Distributorship. business without Amways approval. A Current Qualified Emerald Direct
Seller may oer the business to all qual- Seller and above is allowed to publish
ified Platinums at that time in India. A Direct Seller can own or have an owner- 6.10 BSM to other Direct Sellers.
ship interest in only one Distributorship ex- Disposition of a Distributorship:
6.6.3 No sale shall be final and no change cept as provided below: If a Direct Seller terminates/cancels his Dis- A Current Qualified Platinum Direct
of title of the business shall be made tributorship, or fails to renew it within the Seller and above is allowed to promote
final until approved in writing by 6.8.1 Where two Direct Sellers marry and required time period or dies without leaving BSM within his or her Business Group.
Amway. one or both have attained Platinum heirs who are ready, willing, and able to be-
status or above prior to marriage come Direct Sellers and assume the respon- 7.1.3 Direct Sellers may neither give to,
6.6.4 If the Direct Seller wishes to sell pursuant to Rule 3.17; sibility of Amway Business, Amway, at its nor receive compensation, remu-
the business under terms and con- sole discretion, shall decide the future of the neration or other financial incen-
ditions dierent from those of his 6.8.2 Where an existing Distributorship Distributorship in accordance with Section tives from, other Direct Sellers for
first oer, the business must be once purchases another Distributorship 15 of these Rules. the promotion, distribution, oer-
again oered for sale under the re- pursuant to Rule 6.6; ing for sale or sale of BSM.
vised terms and conditions in ac- SECTION 7: BUSINESS SUPPORT
cordance with the order of priority 6.8.3 Where a Direct Seller (transfer or), MATERIALS (BSM) 7.1.4 BSM shall not infringe in any way
indicated above. in order to facilitate the transfer of on Amway copyrights, trademarks
a Distributorship in the event of his The content, review and authorization, cre- or other intellectual property rights,
6.6.5 Monthly Sales Commissions and or her death, requests the name of ation, production, promotion, distri-bution, or provisions of any other applicable
other Higher Achievement Com- another existing Direct Seller be oering for sale and sale of Business Sup- laws, rules or regulations. Direct
missions accruing to the business added to their Distributorship. The port Materials shall strictly adhere to this Sellers promoting, distributing, of-
shall be paid as specified in the sale name of the transferor(s) must con- Section 7 and other applicable provisions fering for sale or selling BSM must
obtain appropriate written authori- sources, without alteration or modi- 7.3.2. Direct Sellers shall not use with, or tended the event, for a period of 30
zation from Amway in accordance fication. No third-party claim for distribute to, Prospects any BSM days afterward.Except as provided in
with Section 9 and the QAS in or- the same shall be authorized in any which suggest, imply, promise or Rule 7.5.1, such refund shall be for
der to use or ax any trademarks, Business Support Material. Direct guarantee, either directly or in- that portion of the cost of the event
copyrighted material or other intel- Sellers shall, with prior Amway ap- directly, that any specific level or related to admission, exclusive of
lectual property of Amway in BSM. proval and otherwise in accordance amount of sales, income, profit or travel, meals or hotel accommoda-
Additionally, BSM shall not infringe with the QAS, incorporate into their earnings may be derived from the tion.
the trademarks, copyrights or in- communications or include in pre- Amway Business or from selling any
tellectual property rights of other sentations reduced to a fixed me- specific line or lines of Amway Prod- 7.5.4. BSM in the form of website sub-
Training Providers. dium full and exact reproduction(s) ucts. scriptions and downloadable me-
of materials set forth in Amway-pro- dia oered by Direct Sellers shall
7.1.5. For BSM in the form of a presenta- duced literature including labels. adhere to the following additional
tion oered by Amway India, no 7.4 Reserved refund requirements:
Direct Seller shall record the same 7.2.3 For BSM oered in the form of a
without the express written consent rally, meeting or educational semi- 7.5 Purchasers cancelling website sub-
of Amway India. nar conducted by a Direct Seller, it BSM Sale and Refund by scriptions are entitled to a refund for
should be consistent with his or her Training Providers unused, whole months of any prepaid
7.1.6. Amway India does not endorse the training obligations as a Sponsor subscription(s).
representations made, or other under Rule 5.3. 7.5.1. All buyers of Business Support Ma-
content, in any BSM or the training terials may return the BSM, together Purchasers of downloadable media
methods used by other Direct Sell- with a proof of purchase, to the Di- are entitled, if dissatisfied, to obtain a
ers, Training Providers or third-par- Unless otherwise specified in the rect Seller for a 100% refund within replacement download of equal value
ty vendors. Amway Indias review is Rules, the BSM Policy or the QAS, 30 days after purchase. within 30 days of the purchase of the
solely for the purpose of ensuring such rally, meeting or educational subject downloadable media.
compliance with its Rules of Con- seminar does not require prior autho- 7.5.2. The terms of the refund policy ad-
42 duct, the BSM Policy and the QAS. rization from Amway India. Howev- opted by an Training Provider, in- 7.5.5. Amways Refund Policy does not 43
er, it is the responsibility of the Direct cluding procedures for the resolu- apply to BSM sold by Training
7.1.7. Nothing in the Direct Seller Con- Seller organizing or providing access tion of disputes and the responsible Providers.
tract, this Section 7, any other Rule, to the same to ensure that the content person for returns, must be clearly
the BSM Policy or the QAS shall be presented, as well as the duration, communicated to the purchaser
construed or interpreted as a license frequency and pricing, fully complies prior to any such sale. Training Pro- SECTION 8: PRESENTATION OF THE
or other permission to incorporate with the Rules, the BSM Policy and viders shall ensure that the terms AMWAY SALES AND MARKETING PLAN
into any BSM, or to share with any the QAS, and that Amway India is and conditions of any refund policy
third-party vendor of BSM or other provided with all required informa- adopted comply with all applicable 8.1
training or motivation, any LOS In- tion suciently in advance. laws.Any unresolved dispute must Must not Give Impression of
formation. be submitted to the dispute-resolu- Employment Relationship: In each case the Direct Seller shall tion procedure as provided in Sec- When inviting a prospect to hear a presen-
7.2 disclose and arm to a potential con- tion 11 of the Rules. tation of the Amway Sales and Marketing
Specific Categories of BSM sumer of BSM: (a) that the training Plan, an Amway Direct Seller shall neither
In addition to the prior requirements under or support is optional, does not guar- 7.5.3. BSM oered in the form of rallies, utilise the following invitations nor directly
Section 7, the following shall apply to spe- antee success, and is not necessary to meetings or educational seminars or indirectly induce other Direct Sellers to
cial categories of BSM: succeed, in the Amway Business; (b) conducted by Direct Sellers shall do so:
the name and contact details of any adhere to the following additional
7.2.1 BSM reduced to a fixed medium third party providing the training and refund requirements: 8.1.1 Give the impression that it relates to
must also, in accordance with the support at the Direct Sellers request; an employment opportunity,
QAS:(a) be submitted to Amway and (c) refund rights, including the Tickets to rallies, meetings, or edu-
India for review prior to promotion, applicable return period. cational seminars, shall contain 8.1.2 Imply that the invitation is to a so-
distribution, oering for sale or declaration(s) in accordance with cial event,
sale; (b) be expressly authorized by 7.3 this Rule 7.5, the BSM Policy and the
Amway India; and (c) bear the Con- Prospects QAS. 8.1.3 Disguise the invitation as a market
tent Review (CR) number provided survey,
by Amway India. 7.3.1. BSM shall not be oered for sale or Each Training Provider who chooses
sold to Prospects. Prospects must to sell tickets to rallies, meetings or 8.1.4 Promote the event as a tax semi-
7.2.2 Any claim relating to the use, charac- not be charged for BSM, regardless educational seminars is obligated to nar,
teristics and/or performance of Am- of whether such BSM is reduced to a buy back tickets, from any dissatis-
way Products must be reproduced fixed medium. fied individual who personally at- 8.1.5 Promote the Amway Business op-
verbatim from ocial Amway India
portunity as a business relationship 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
with a person, company, or organi- way Products. rich-quick opportunity in which it and infringement by others, or they can be
sation other than Amway, is easy to achieve success with little lost. Each time a trademark or symbol is
In seeking participation of a prospect in the or no expenditure of eort or time. used improperly or is used by someone oth-
8.1.6 Directly or indirectly indicate that Amway Sales and Marketing Plan, the spon- er than its owner, the value and importance
Amway Products are merely one line soring Direct Seller must comply with the 8.3.9 Must not present the Direct Sell- of the trademark can be greatly diminished.
of products distributed through or following guidelines: er plan or solicit participation in Once a trademark is weakened or lost, it is
as a part of a brokerage operated by the Direct Seller Plan through any impossible to regain its full value and im-
a person, company, or organisation 8.3.1 Must disclose the average profits, broadcast communication methods portance. Therefore, Amway makes every ef-
other than Amway, earnings, and sales figures and per- including mass mailing, telemar- fort to protect its house trademark Amway,
centages as published from time to keting, national or international ad- its corporate logotype, label designs, and
8.1.7 Directly or indirectly indicate that time by Amway. vertising, radio, television, facsimile various product names (e.g., L.O.C., SA8,
the Amway Business, Direct Sellers services, computer communication Artistry, Nutrilite) so that others cannot use
or Amway Products are part of any 8.3.2 Must use only Amway-produced and networks including the Internet them.
business other than Amways Busi- Amway-authorized literature. Am- or any other means by which per- Amway will not allow use of its trade name
ness, way authorises for use privately pro- sonal contact with the prospect is (company name), trademarks (product
duced sponsoring aids submitted not present. However, Direct Sellers names), designs, or symbols by any person,
8.1.8 Deny, if asked, that the presentation to Amway through a qualified EDC may use digital media or maintain including an Amway Direct Seller, without
is about the Amway Sales and Mar- member or other Amway designee. an Internet Website for use with its prior permission. Amway will issue cease-
keting Plan, or For further information on how to prospects, provided the contents of and-desist orders to any persons using its
submit materials, please contact the such media or Website meets the trade name, trademarks, designs, and sym-
8.1.9 Imply that it is other than a business Amway oce. requirements set within the Direct bols without its permission and will, if nec-
event. Seller Guidelines (attached), and essary, follow with appropriate court action
8.3.3 May use those earnings and/or otherwise complies with the Rules for failure to comply with a cease-and-desist
commission representations based of Conduct. order. If Amway did not do this, Direct Sell-
44 8.2 on their own personal experiences, ers would soon find the market flooded with 45
First Contact with Prospective provided that they at the same time 8.4 Amway products not produced by Amway
Customers and Direct Sellers: disclose the average profits, earn- No Exclusive Territories: or sold by Amway Direct Sellers. Obvious-
At the first contact with prospective ings, and sales figures and percent- No Direct Seller shall represent that there ly, Amway Direct Sellers would be harmed
customers and Direct Sellers, a Direct Seller ages as published from time to time are exclusive territories available under the greatly by such competition.
should: by Amway. Amway Sales and Marketing Plan. The rules set forth below have been devel-
oped to maintain the integrity of the Amway
8.2.1 Introduce himself by name. 8.3.4 May cite lifestyle examples, e.g. 8.5 trade name and trademark and to ensure
travel, automobile, homes of suc- No Obligation to Purchase: that the name Amway will be available ex-
8.2.2 As soon as practicable, he should cessful Direct Sellers, and contribu- No Direct Seller shall represent that there is clusively for the Amway Business. In addi-
make himself known in suitable tions to charitable causes, provided any obligation to purchase products and/or tion, Amway has implemented a corporate
fashion as an Amway Direct Seller such benefits were actually accrued services under the Amway Sales & Market- identity programme that requires the correct
and should provide information as the result of building a successful ing Plan, nor shall he/she represent, pur- and consistent use of the Amway corporate
concerning his name and address as Amway Distributorship. posely allow or gain from any representation logotype, no matter where it appears. There-
well as concerning Amway. or implication that benefits may be derived fore, no alterations to the approved logotype
8.3.5 Must not say that a successful Dis- solely from the purchase of Amway products are allowed. Upon request, Amway will pro-
8.2.3 Indicate the purpose of contact, tributorship can be built in the or services in conformity with the Amway vide an example of the approved logotype
namely the sale of Amway Products form of a wholesale buying club in Sale and Marketing Plan. and colour specifications.
and/or the introduction of the pros- which the only products bought and
pect to the Amway business. sold are those transferred to Direct 9.1 Reserved
Seller at Direct Seller cost for their SECTION 9: USE OF THE AMWAY
8.3 personal use. TRADE NAME, TRADEMARKS, AND 9.2 Reserved
Sponsoring Guidelines: COPYRIGHTED MATERIALS
Amway Sales & Marketing Plan must not be 8.3.6 Must not say that there is no require- 9.3 Reserved
presented ment for the retail sale or marketing INTRODUCTION
of products. 9.4
as a get-rich-quick opportunity. The Amway trade name, trademarks, and Fund-Raising Events:
8.3.7 Must not promote the enjoyment of service marks are important and valuable Amway Products and services are not au-
that Amway Products are bought and sold tax benefits as the best or principal business assets. They help identify the thorised to be used in conjunction with any
for Direct Sellers personal use. reason for becoming an Amway Di- source and reputation of the Amway busi- type of fund-raising activity. Fund-raising
rect Seller. ness, products, and services worldwide, and includes the solicitation for the purchase of
distinguish them from those of competi- Amway Products or services based on the
tors. representation that all or a portion of gains,
proceeds, or profits generated by such sale names or trademarks without the 9.7.2 All Amway printed material relat- SECTION 10: DEATH AND INHERITANCE
will benefit a particular group, organisation, prior, written consent of Amway. ing to products has been carefully
or cause. The precise copy to be used must prepared to conform with all local, 10.1.
be forwarded to Amway before the state, and central laws and regu- In the case of the death of a single Direct
9.5 printing is actually done. When lations governing the libelling of Seller:
Imprinted Cheques: approval is given by Amway, there products. (The word labelling cov-
No Amway Direct Seller who uses imprint- shall be no deviation whatever from ers not only the label on the product 10.1.1. If Amway is not notified of the ap-
ed cheques can use the Amway logotype the approved copy. itself, but also any literature used to pointment of an administrator in
or trade name nor may he refer to himself promote the sale of such product.). accordance with the provisions of
other than as an Amway Direct Seller on the 9.6.2 No cloth Amway corporate logo- Even a slight deviation from the lan- Section 10.1.2, Amway can appoint
cheques. types shall be axed to any sports guage on the label or promotional a representative, under the terms
uniforms, shirts, or other garments. material may constitute a violation and conditions Amway considers
9.5.1 The only authorised use of the Am- of one or more of the laws or regula- appropriate to manage the Amway
way name on imprinted cheques tions covering the product and its li- Distributorship, or assign the Am-
used by Amway Direct Sellers is ei- No Direct Seller shall, without belling and thus subject the person way Distributorship in accordance
ther of the following: Amways prior approval, produce making such deviations to penalties with Section 10.1.2 or Amway can
any item bearing the Amway imposed by law. Unfortunately such cancel it in accordance with Sec-
Ramesh Kumar name/logotype from any source governmental action not only can tion 15. Without limitations as to
Amway Products Direct Seller other than Amway. adversely aect the particular of- Amways proceedings with regard
Or fender, but also his or her fellow Di- to the terms and conditions of the
Ramesh Kumar rect Sellers as well as Amway itself. representative appointed to manage
Direct Seller of Amway Products 9.7 the Distributorship, such represen-
Copyrighted Materials: 9.8 tatives can, based on Amways spec-
All Amway printed material is copyrighted Penalties for Violators of Section 9: ifications, receive all or part of the
9.5.2 Such cheques may not use the Am- and may not be reproduced in whole or in Any Direct Seller who violates Section 9 Commissions and privileges earned
46 way logotype or the trademark Am- part by Direct Sellers or other persons except can: by the Distributorship he repre- 47
way. No Direct Seller may use such by prior written permission from Amway. sents, for the period during which
imprints as Amway Company, 9.8.1 Be required to remove improper he manages it.
Amway Sales Company, or Amway 9.7.1 Amway makes a claim to copyright signs, destroy improper literature,
Products Company, nor any name for all its printed material in the cancel improper advertising, or 10.1.2. The administrator of the deceased
implying an agency or representa- market. This is done to prevent oth- change improperly listed telephone Direct Sellers estate shall, with let-
tive relationship. A Direct Seller ers, particularly competitors, from numbers. In the case of improper ters of administration or other prop-
who actually carries on business as copying and duplicating Amway telephone listings, Amway may er authority, and as soon as possible
a company may imprint his cheques literature which has been devel- require the listed number to be following the death of the Direct
only as follows: oped and printed at great expense changed to a new number with no Seller(s), do the following:
and to assure Amway Direct Sell- calls to be referred from the listed
Kumar Company ers that the promotional materials number to the new number. a. Sell the Amway Distributorship in accor-
Amway Products Direct Seller which they purchase and distribute dance with Section 6 of these rules;
Or to their customers is unique, attrac- 9.8.2 Be denied the right to make any fu-
Kumar Company tive, and truthful. As in the case of ture use of the Amway trademark or b. If he is or becomes a Direct Seller, take
Direct Seller of Amway Products trademarks and trade names, if Am- trade name. charge of the deceased Direct Sellers Am-
way did not exercise every eort to way Distributorship, or;
9.6 protect its copyrighted materials, 9.8.3 Have his Distributorship terminated
Promotional Literature, Stationery, Direct Sellers might soon find the by Amway. c. Appoint a representative for a period of
Premiums, etc.: market flooded with Amway lit- time, under the terms and conditions
No Amway Direct Seller may produce or pro- erature which was not produced by 9.8.4 Be liable for money damages to Am- specified or approved by Amway, who will
cure from any source other than Amway any Amway and did not relate to prod- way for unauthorised use of the Am- operate the Amway Distributorship, with
premium, giveaway item, stationery, or pro- ucts made and sold by Amway. Ac- way name, trademark, or logotype. the understanding that said representa-
motional literature of any kind upon which cordingly, no person, whether an
the Amway name or logotype or any of its Amway Direct Seller or otherwise,
trade names or trademarks are imprinted may reproduce any of Amways
without securing prior, written approval printed material, in whole or in part,
from Amway. without specific written permission
from Amway. This includes text ma-
9.6.1 No Direct Seller may print, or cause terial, pictures, cartoons, diagrams,
to be printed, for his use any sta- charts, maps, designs, and other
tionery which bears the Amway printed materials.
logotype or any of the Amway trade
tive is or become a Direct Seller before SECTION 11: ENFORCEMENT OF THE 11.1.1 Notification to Alleged Violator: SECTION 12: TERMINATION
he starts to operate the Distributorship. AMWAY RULES OF CONDUCT On receiving this notice, Amway AND DE-SPONSORSHIP
In accordance with limitations or other will notify the appropriate Direct
rules imposed by Amway, the representa- INTRODUCTION Sellers of the complaint and request Amway can terminate/de-sponsor the Dis-
tive can, as stipulated by Amway, receive an immediate response. tributorship of a Direct Seller if he/she
all or part of the incentives and privileges Violation of the Amway Rules of Conduct
earned by the Distributorship he repre- is an extremely serious matter, not only be- 11.1.2 Insucient Information: If the Gives wrong information in the applica-
sents for the period during which he man- cause of the eect it may have on the busi- complaint and response do not con- tion form.
ages it. ness of an individual Distributorship, but tain sucient facts upon which to
also the result this conduct may have on the make a decision, additional infor- Misrepresents Amway/Amway Business.
10.2. opinions of the Amway business held by the mation may be requested from any
If an Amway Distributorship belongs public, the media and government ocials. party by Amway. Breaches any of the Rules of Conduct.
to two unmarried persons, and if one Accordingly while Amway will make every
of them dies, the following provisions eort to correct any violation through guid- 11.1.3 Informal Resolution: After Am- Is convicted of an oence punishable by a
shall apply: ance and counselling, further action may be way receives all information of prison term
required in more serious cases including, facts and circumstances relevant to
10.2.1. The surviving Direct Seller will be but not limited to the following, which may the complaint, Amway will decide Is declared bankrupt.
in charge of the business during the be applied by Amway in any order or in any whether there has been a violation
time stipulated or according to Sec- combination: of the Rules of Conduct and will Is not mentally sound to handle the busi-
tion 10.2.2, or until Amway cancels it then discuss the matter with the ness.
in accordance with Section 12.1.8 of a. Retraining of the (Direct) Direct Seller Direct Sellers involved to explain
these Rules. and his Business Group; the rationale behind the rule and to 12.1
obtain adequate assurance from the Amway may, at its election and by notice in
10.2.2. Further, within 30 days following the b. Suspension period for the oending Dis- Direct Sellers that it will not recur. writing to a Direct Seller, terminate the au-
issuance of letters of administration tributorship; thorisation to operate as a Direct Seller, or
48 or other proper authorisation: 11.1.4 Formal Resolution: If Amway is de-sponsor the Direct Seller from his Busi- 49
c. De-sponsoring the oending Direct Seller unable to settle the matter informal- ness Group, if one or more of the following
a. The surviving Direct Seller shall obtain of his Business Group; ly and if the appropriate corrective occurs:
(by will or sale or operation of law) the in- action is deemed by Amway to be
terest of the deceased Direct Seller or, d. Termination of the oending Distributor- other than termination or De-spon- 12.1.1 If, in Amways opinion, the Direct
ship. sorship, then Amway will forward a Seller provided false information in
b. The administrator of the deceased Direct decision letter to the violating Direct his Direct Seller Application.
Sellers estate can assign or transfer In instances of violation of the Amway Rules Seller, as well as the sponsor and the
of Conduct any Direct Seller may make a Platinum in the Line of Sponsorship 12.1.2 If the Direct Seller makes a serious
the latters part to another Direct Seller complaint to Amway in accordance with the of the violating Direct Seller. The misrepresentation of Amway or the
who shall operate the business with the Complaint Procedure set out in Section 11.1 decision letter will list the specific Amway business which, in Amways
surviving Direct Seller or, below. complaint(s), outline the corrective opinion, is not likely to be satisfacto-
Decisions taken by Amway in its enforce- action to be taken and, if appropri- rily remedied by corrective actions;
c. The Amway Distributorship can be sold in ment of the Amway Rules of Conduct may ate, setting a time limit for compli-
accordance with Section 6 of these Rules be appealed for further review at Amway ance. 12.1.3 If the Direct Seller breaches any of
or, World Headquarters in accordance with the these Rules of Conduct and fails to
Review Panel Procedure set out in Section 11.1.5 Failure to Comply: Amway will al- rectify such breach within the time
d. The administrator of the deceased Direct 16. low the Direct Sellerto implement period specified by Amway in its
Sellers estate and the surviving Direct the appropriate corrective action written notice to the Direct Seller;
Seller shall appoint a representative to op- 11.1 within the time limit specified in the
erate the Distributorship for said period, Complaint Procedure: decision letter. However, if compli- 12.1.4 If the Direct Seller commits repeat-
under the terms and conditions estab- When a Direct Seller has discovered that ance has not occurred on expiration ed breaches of any of these Rules of
lished by Amway, with the understand- there may have been a violation of the Rules of the time limit, Amway will take Conduct;
ing that the representative shall become of Conduct, he must notify Amway and his further enforcement action directly.
an Amway Direct Seller before he takes Platinum of the violation and all facts and Notice of such action shall be given 12.1.5 If the Direct Seller (or, if the busi-
charge of the business. documentary or other evidence connected by letter addressed to the violating ness comprises two or more indi-
with it. Direct Seller, with a copy sent to the viduals, any of those persons) is
violators Platinum and to the com- convicted of an oence punishable
plaining Direct Seller. Such letter by a prison term;
shall be sent by Registered Mail.
12.1.6 If the Direct Seller (or, if the busi-

ness comprises two or more indi- specified by Amway in its written notice to uted products in his possession as Amway with recordings of their
viduals, any of those persons) is sus- the Direct Seller. specified in the Buy-Back policy. Sales Plan presentations, and/or
pended or disbarred from practicing
his usual trade or profession by any 12.4 12.6.2 Cease to use all trademarks, trade 13.1.6 Request/require the mailing of an
association, institute or professional De-sponsorship means removal of names, insignia, or other industrial Ethics Bulletin to the Business
society; a Direct Seller from his position as a property used in or related to the Group of the Platinum and to all
Sponsor in the Line of Sponsorship. Amway business, and Platinums in an Emeralds or Dia-
12.1.7 If the Direct Seller becomes the sub- De-sponsorship or de-sponsored from monds organization.
ject of bankruptcy or winding-up ones Business Group means the removal of 12.6.3 Cease to identify himself as an Am-
proceedings; a Direct Seller from his position as a Sponsor way Direct Seller or Platinum. 13.2
in the Line of Sponsorship (including, at the Interim Managers:
12.1.8 In the event that a Direct Seller dies absolute discretion of Amway, the removal 12.7 Where Amway is of the opinion that the
without either an executor or an of the Direct Sellers right to ever sponsor In the event that Amway terminates a Direct interests of any Distributorship within a
heir appointed by the executor who again in his current Line of Sponsorship or Sellers business or that a Direct Seller is de- particular Line of Sponsorship are being
wishes to assume responsibility for any other Line of Sponsorship), such re- sponsored of his Business Group by Amway adversely aected by the inability or unwill-
continuing the deceaseds business; moval being eected by written notice from pursuant to these Rules of Conduct, the Di- ingness of a Direct Seller within the same
Amway to the relevant Direct Seller and be- rect Seller will have no claim against Amway Line of Sponsorship to properly carry out
12.1.9 In the event that a Direct Seller is coming eective on the date stated in such arising out of or in respect of the termina- his/her responsibilities and obligations as a
incapable of managing his aairs by notice. tion or De-sponsorship. Direct Seller, Amway may by notice in writ-
reason of mental condition. ing appoint an Interim Manager to run the
12.5 business of the violating Direct Seller. Such
12.1.10 If the Direct Seller commits a breach The Process of Termination SECTION 13: SUSPENSION OF appointment shall apply until resolution of
of terms and conditions of availing or De-sponsorship: A DISTRIBUTORSHIP the situation.
of any value added service including The Direct Seller, whose authorisation is to
any payment thereof and / of fails be cancelled or who is to be desponsored, 13.1
50 to make payment of any products / shall be given written notice of Amways In an eort to eliminate misrepresenta- SECTION 14: 51
services provided by Amway. decision by Registered Mail. In addition to tions of the Amway Sales and Marketing TERMINATION, DE-SPONSORSHIP
complying with the laws of India pertaining Plan within a Line of Sponsorship, or as an OR SUSPENSION BY AMWAY
12.2 to such termination or De-sponsorship, the alternative to terminating the business of a WITHOUT FORMAL COMPLAINT
The decision of Amway regarding termina- notice of termination, cancellation, or De- Direct Seller or Platinum who has violated
tion or de-sponsoring of a Direct Seller shall sponsorship shall: the Rules of Conduct, Amway may employ 14.1
be final and binding on the Direct Seller various actions and procedures to encour- Amway may initiate termination, De-spon-
subject to appeal to a Review Panel pursuant 12.5.1 Be mailed to the last mailing address age proper Amway business conduct. Am- sorship, or suspension of a Direct Sellers
to the procedure set out in Section 16. of such parties as shown in Amways way may use any or all of the following to business even in the absence of a formal
records; address the matter: complaint. Amway shall not, however, take
12.3 action against the Direct Seller until Amway
Termination of a Direct Seller means 12.5.2 If applicable, state the Rule(s) vio- 13.1.1 Hold / forfeit payment of commis- has first oered the violating Direct Seller
termination of lated by the Direct Seller; sions, higher award monies, or other an opportunity to explain and/or justify his
monies payable to the business. conduct.
All rights as an Amway Direct Seller. 12.5.3 State the date on which any such ac-
tion shall become eective, and 13.1.2 Suspend authorisation to conduct 14.2
All income being generated after the sponsoring activity (sponsoring, re- Where the violation has been of such mag-
date of termination. 12.5.4 If applicable, advise the Direct cruiting meetings, training sessions, nitude as to bring into serious question the
Seller of his opportunity to appeal home presentations, etc.), right of such Direct Seller to continue to op-
Termination of the Direct Sellers Amways decision to a Review Panel erate his business, Amway may terminate
authorisation to operate as an Amway Direct pursuant to the procedure set out in 13.1.3 Suspend invitations to company- without aording the Direct Seller the op-
Seller means the termination of all rights Section 16. sponsored trips, portunity to rectify his past improper con-
derived from said authorisation, and in duct.
conjunction therewith, the right to receive 13.1.4 Conduct reorientation meetings
any further income from or generated by 12.6 and charge back the expenses to the 14.3
such business arising or accruing after the Upon termination of his or her Line of Sponsorship, The Direct Seller shall have the right to re-
date of termination, except the right to authorisation as an Amway Direct Seller quest a review of the decision by Amway in
receive reimbursements of the discounts for any cause whatsoever, the Direct 13.1.5 Request Direct Sellers to provide accordance with Section 16.
corresponding to the purchases which Seller shall forthwith:
were made prior to the termination date. 12.6.1 Return, in good condition, all Am-
Termination shall be eective upon the date way Products and Amway distrib-

SECTION 15: DISPOSITION OF 15.2 qualified for such business seminars If the Direct Seller initiates litigation prior to
TERMINATED, DE-SPONSORED, No Limitation on Amway: prior to the period of suspension. the hearing by the Review Panel, the hear-
OR NON-RENEWED BUSINESSES Amway, however, is in no way limited to any ing shall be cancelled and the opportunity
of the above methods of disposition of a 16.1.6 In the event the decision of the Re- for review withdrawn by Amway.
15.1 business and may exercise complete discre- view Panel is rendered in favour of
Process: tion as to methods and/or timing of disposi- the Direct Seller, Amway shall re- 16.5
In the event that Amway determines that tion. store full rights and privileges and Procedures for Review by Panel
it is necessary to terminate, de-sponsor, or pay the balance of monies previous- 16.5.1 The parties may oer evidence and
non-renew a Direct Sellers business, or if a SECTION 16: ly held in escrow to the Direct Seller. produce additional evidence independently
Direct Seller cancels his Direct Seller Agree- REVIEW BY AMWAY CORPORATION Any administrative costs incurred or as the Panel requests. The Review Panel
ment or fails to renew it within the required by Amway during these proceedings shall be the judge of the relevancy and ma-
time period, or dies without leaving heirs 16.1 may be calculated and deducted teriality of the evidence oered. Strict con-
who will assume the operation of the Dis- Suspension of Authorisation Until from the money which were held in formity to legal rules of evidence will not be
tributorship, the disposition of the business Decision is Made: escrow. necessary.
of such Distributorship will be determined In the event that a Direct Seller makes use of
by Amway in its sole discretion. In exercis- his right to appeal to the Review Panel, the 16.1.7 In the event of any other decision 16.6
ing its prerogative to determine the disposi- decision taken by Amway may be suspended taken by the Review Panel, Amway shall Final Determination by the
tion of such business, Amway may elect to until review has taken place and a final de- decide what will happen with the monies Review Panel
employ one of the following methods: cision has been taken by the Review Panel. held in escrow.
During this period of suspension: 16.6.1 The determination of the Review
15.1.1 Sale/Assignment of Business If Am- 16.2 Panel will be communicated to all
way elects to sell/assign the busi- 16.1.1 The Direct Seller is not allowed to Procedure for Filing an Appeal for parties.
ness, and subject to the provisions conduct any Amway related activ- Review: The request for review must
of the Foreign Exchange Manage- ity, be in writing and may be accompanied 16.6.2 The Review Panel may arm, re-
ment Act and other applicable laws by any documents supporting this verse or modify the decision of Am-
52 and regulations, the following will 16.1.2 The Direct Seller shall not represent request. The request must be filed way. 53
be observed: himself as an Amway Direct Seller, within the time period specified in the
decision letter and is to be addressed to 16.6.3 If the determination of the Review The business will be oered for sale/ 16.1.3 Payment of any discounts, Commis- Amway Corporation, 7575 Fulton Street Panel upholds or calls for termina-
assignment to another Direct Seller sions or other monies payable to the East, Ada, Michigan 49355 USA, for the tion of a Direct Seller, such termi-
recognising the order of priority im- business are computed but are held attention of Vice-President, Sales Plan nation will be confirmed by Amway
posed by Rule 6.6. in escrow by Amway, Administration International. If the Corporation notifying the Direct
request is filed after the time limit, the Seller that either: The terms of the sale will be set 16.1.4 Whether the monthly Business Vol- request will be denied and the Direct
forth in a written contract executed ume of the business is to be counted Seller will be notified that his request a. The termination of his business has been
between Amway and the purchaser. towards qualification for Emerald, has been dismissed. confirmed as eective from the date of ter-
Diamond, one-time cash awards, mination previously notified to the Direct
Executive Diamond Commission, 16.3 Seller by Amway or The business will remain in its cur- or Founders Commission, for any Membership of Panel: The Review Panel
rent position in the Line of Sponsor- awards or for Leadership Seminar, shall consist of appropriate personnel b. His or her business has been terminated
ship and will be made a No. 2 busi- will be determined by Amway when from the corporate sta of Amway by the Review Panel in which event the
ness of the purchaser. final decision by the Review Panel Corporation as may be determined business shall be deemed to have been
has been taken. Recognition as Sil- at that time by the Vice President of terminated by Amway upon and by virtue All funds resulting from the sale will ver Producer, Gold Producer, Plati- Worldwide Sales Plan Administration. of service of notice of the Review Panels
be added to an incentive fund to be num, and at, higher Platinum levels decision upon the terminated Direct Sell-
distributed by Amway among eli- may be withheld by Amway at its 16.4 er.
gible Direct Sellers. discretion. Review Panel Members Are Not
Arbitrators: The Review Panel provides 16.6.4 In the event that the Review Panel
15.1.2 Dissolution of Business. If Amway 16.1.5 The Direct Seller will not be invited an internal procedure for the review decides upon corrective action oth-
so elects, the business will merge to attend Leadership Seminars, Dia- of decision as to the termination, non- er than termination, then:
with the business of the first quali- mond weekends, or EDC Seminars renewal, De-sponsorship or suspension
fied sponsor Upline in the Line of which may be held during this pe- of a Direct Seller. Members of the a. Notification of corrective action other
Sponsorship. riod, even though they may have Review Panel do not, however, act as than termination shall be communicated
arbitrators. directly by Amway Corporation to the of-

Website Rules and Guidelines
people have realised the unlimited po-
fending Direct Seller by letter sent by Reg- 16.7 tential to conduct a business and com- 1. Nothing on the Internet is 100% se-
istered Mail, with either the date for com- Dispute Resolution: municate through the Internet. In gen- cure, and therefore utmost precautions
pletion of any action by the Direct Seller Any dispute, dierences or claim arising out eral there are two types of Website you, should be taken when handling sensitive
or the dates(s) on which any action shall of or in connection with the Direct Seller as a Current Qualified Emerald & above customer information such as names,
be taken by Amway. Agreement shall be submitted to binding Direct Seller can create: addresses, and credit card numbers. Di-
arbitration and shall be referred to the sole rect Seller sare also required to abide by
b. Amway will take such steps as may be nec- Arbitrator appointed in accordance with the Personal Home Page (PHP) - You may the terms and conditions of any privacy
essary to implement the Review Panels rules and regulation of International Center share your personal story or information statement posted on the Website.
determination. for Alternate Dispute Resolution as a fast about your business, hobbies, or interests
track arbitration. The venue of such arbi- with friends and personal group. You may 2. All site contents must be reviewed and
16.6.5 The decision of the Review Panel tration shall be at New Delhi and the award decide to include your name and state, authorised in accordance with the Rules
shall not give rise to any liability on of the Arbitrator shall be final and binding achievement level, a personal statement of Conduct of Amway Direct Sellers. Un-
the part of Amway Corporation or on all parties. Subject to the above, courts regarding the business, a photograph or der the Rules of Conduct, the contents
Amway to the Direct Seller, includ- at New Delhi shall alone have jurisdiction in an audio greeting. for all Internet and Websites should
54 ing but not limited to loss of profits relation to the Direct Seller Agreement and be reviewed and authorised by Amway 55
or goodwill. matters connected thereto. Prospecting Website - You may develop a India Enterprises Pvt. Ltd., First Floor,
Website that is designed to interest poten- Elegance Tower, Plot No. 8, Non Hierar-
tial Direct Sellers in the business opportu- chical Commercial Centre, Jasola, New
nity. Here you could include information Delhi - 110 025.
regarding the benefits of participation in
the business, your personal story regard- 3. Site-addresses and e-mail addresses:
ing the business, general how-tos or e- Address for Websites or e-mail must not
mail addresses to facilitate communica- be deceptive or misleading or violate the
tion. Rules of Conduct.

Direct Seller desiring to create a Website 4. Non-corporate products or business

should review all Rules of Conduct, paying opportunities: No product other than
particular attention to the following amend- those oered by Amway to its Direct
ments and new rules: Sellers may be sold, under these guide-
Rules 4.3 and 8.3.9 - (Mass Communication)
prohibit any type of mass communication All of these are subject to any specific law
designed to obtain Direct Sellers or sales. that the Government of India may promul-
gate in this regard.
Section 7 (Business Support Materials) re- Are you ready to unleash
quires that BSM, including Internet Web- your potential?
sites, used with prospects, or sites that If you are interested in more information,
contain a presentation, explanation, or illus- please contact Amway for more informa-
tration of the sales plan or product informa- tion regarding Website usage.
tion to be reviewed by Amway prior to use.
Section 9 (Trademarks, Trade Names and Requirements Specific to Personal
Copyrights) requires permission to use the Home Page (PHP)
Corporations trade names, or copyrights.
1. Passcode Protection is NOT required for appear for individuals experiencing dif- Rules of Conduct. These links may in- 2. Appropriate Content Includes
PHPs. ficulty. The page may not contain Direct clude ones LOS Home Page, amway.
Seller numbers or passcodes that would com, and (insert name of market, ex. a. Country appropriate product informa-
2. Appropriate Content Includes provide a casual web viewer access. Di- amwaymalaysia.com). tion and imagery as provided by Amway.
rect Sellers may give out their passcode Use of any trademark, trade names, ser-
a. Direct Sellers name and state/province// to prospective Direct Sellers only in h. Inbound links from an authorised Per- vice marks or other intellectual property
country. face-to-face or other one-to-one contact sonal Home Page and/or a LOS site. including photos and text must be used
situations. appropriately and requires written per-
b. Direct Seller achievement level. i. Communication areas may include e- mission from Amway. Such information
c. The passcode page must carry the fol- mail addresses to facilitate communica- must remain current.
c. Personal statements regarding the busi- lowing statement: For use with pros- tion.
ness that comply with the general re- pects by Direct Sellers in (Direct Sellers b. On-line forms and on-line processing of
quirements stated above and the Rules home market) only. 3. Prohibited Content in addition to that orders. However, Direct Sellers are re-
of Conduct. listed in General Requirements above sponsible for all security issues, includ-
Remember - Disseminating the passcode ing but not limited to the confidentiality
d. A photograph of the Direct Seller fea- and URL address prior to receiving final au- a. Language which states or implies a guar- of customer credit card numbers, asso-
tured on the Personal Home Page. thorisation will result in the enforcement of antee of income. ciated with their Websites.
the Rules of Conduct.
e. Artistic elements in good taste which b. Product Sales (see Product Sales Web- c. Product Promotion Information as pro-
will reflect positively on the Direct Seller 2. Appropriate Content Includes sites below). vided by Amway.
and the business opportunity.
a. Information regarding the benefits of c. Personal success stories that reflect a d. Direct Sellers must clearly and conspic-
f. An audio greeting. participation in the business. level of achievement not attained solely uously state that they are independent
through participation in the business. businesspersons and products are not
g. The Business Opportunity must be b. The personal story of the featured Di- being ordered directly from the Corpo-
56 identified as applicable in (Direct Sell- rect Seller and/or personal reflections d. Sale of BSM. ration. 57
ers home market) only. regarding the business opportunity.
REQUIREMENTS SPECIFIC TO PRODUCT 3. Prohibited Content in addition to that
Please be aware this information can be c. Accurately sourced background and sta- SALES WEB/INTERNET SITES listed in General Requirements above
viewed by anyone on the Internet so you may tistical information having to do with
not wish to publish information considered the economic trends, general business 1. Passcode Protection a. Prospecting and recruiting content. (See
private or personal. environment, and future projections. Prospecting Websites above.)
a. Product sale sites must be passcode pro-
3. Prohibited Content (in addition to that d. Build-the-dream sections consisting of tected, utilizing a passcode that is not GENERAL GUIDELINES
listed in General Requirements above) hyperlinks to sites reflecting potential easily determined by uninvited individ-
dreams of a prospect (i.e. cars, vacation uals seeking entrance. Direct Sellers shall refrain from incorpo-
a. Product or service information. spots etc.). This section must not im- rating and shall not allow incorporation of
ply that the business will provide these b. The passcode page may only contain in- any material relating to products of Am-
b. Content which could be interpreted as dreams or goals. Also this section must formation needed for sign-in purposes ways competitors.
an advertisement or prospecting infor- be explicitly clear that it is for building and a small introductory paragraph to
mation. ones dreams or goals. verify a viewer has reached the correct The Direct Seller Websites shall be hyper-
site. A technical help e-mail address can linked to the Amway India and Amway
REQUIREMENTS SPECIFIC TO e. General how tos reflective of the type appear for individuals experiencing dif- Corporation Websites to enable individu-
PROSPECTING WEB/INTERNET SITE of activities a new Direct Seller would ficulty. The page may not contain Direct als to access company policies, Rules of
engage in to build their business. Exam- Seller numbers or passcodes that would Conduct etc.
1. Passcode Protection ples include how to make a prospecting provide a casual web viewer access. Di-
list, how to conduct product demonstra- rect Sellers may give out their passcode The Website shall not contain any obscene
a. Prospecting sites must be passcode pro- tions, etc. to prospective Direct Sellers only in material or any material that is in viola-
tected, utilizing a passcode that is not face-to-face or other one-to-one contact tion of the Rules of Conduct or ethics in
easily determined by uninvited individ- f. Information regarding the system, or- situations. general.
uals seeking entrance. ganisation, or personal development
programme in which the featured Direct c. Direct Sellers may not sell products to Consequent action being taken against
b. The passcode page may only contain in- Seller participates. System participation customers outside (Indian market). The Distributorship for failure to comply with
formation needed for sign-in purposes must always be framed as optional. passcode page must carry the following the Rules of Conduct and these guidelines,
and a small introductory paragraph to statement: For use with prospects and the Direct Seller shall refrain from using
verify a viewer has reached the correct g. Outbound links to other sites, provided Direct Sellers in (Direct Sellers home the Websites developed for prospecting
site. A technical help e-mail address can such links are in accordance with the market) only. and product sales.
Amway India will not be liable, in any Amway India markets its products through d) Non-invitation to award trips. Islands, Panama, Peoples Republic of China,
manner whatsoever, for information on the direct selling channel under which the Philippines, Poland, Portugal, Puerto Rico,
the Direct Seller Websites unless it has sale of products by a Direct Seller happens f) Denial of any cash/ non cash awards and Romania,Russia, Singapore,The Slovak
been incorporated with prior written ap- in a face-to-face manner with the consumer. rewards from aected leg to uplines. g) Republic, Slovenia, South Africa, Spain, St.
proval. This sale takes place away from fixed loca- Termination of their Amway Business. Barthelemy, St. Kitts and Nevis, St. Lucia, St.
tions like retail shops. Use of any alternate Martin/St. Maarten, St. Vincent, Sweden,
Amway India will have the right to access channels by Direct Sellers, for selling Am- For the purposes of this Rule it is expressly Switzerland, Taiwan, Thailand, Trinidad
each relevant record of the Direct Seller way products, violates the fundamental clarified that in case a Direct Seller is found and Tobago, Trust Territories of the Pacific
Website and the Direct Seller shall, at reg- principle of Direct Selling and also distorts violating any element of the Zero Tolerance (Mariana, Marshall, and Caroline Islands),
ular intervals, provide the company with the level playing field provided to all Direct Policy then along with the concerned Direct Turkey, Turks and Caicos Islands, Ukraine,
complete details of data pertaining to the Sellers to do business. Amway India is com- Seller, any upline of that Direct Seller who United Kingdom, United States of America,
site. mitted to protecting the rights and opportu- stands to benefit from such violation shall US Virgin Islands, Uruguay, Venezuela,
nities of every Amway Direct Seller. Hence be declared to be not in good standing with Vietnam, Wake Islands.
THESE GUIDELINES ARE SUBJECT TO Rules of Conduct prohibits Direct Sellers Amway and may also be subject to penal
CHANGE FROM TIME TO TIME. FAILURE from selling products through retail shops, action by Amway at the discretion of Amway. Direct Sellers are encouraged to contact
TO COMPLY WITH THE RULES OF unauthorized channels and online stores. Such penal action may extend to termination Amway to ensure that they have up to
CONDUCT AND THESE GUIDELINES Amway has adopted a Zero Tolerance Policy of distributorship of such upline. date information on the procedures for
MAY RESULT IN ACTION AGAINST YOUR for sale through alternate channels and re- international sponsoring. Additionally,
INDEPENDENT BUSINESS. serves the right to take immediate action REGARDING UNAUTHORIZED DIRECT SELLER Direct Sellers should become aware of
and / or sanction any Direct Sellers on re- ACTIVITY IN UNOPENED MARKETS and uphold the laws and regulations of
ZERO TOLERANCE POLICY ceipt of verifiable information. each market, as well as understand and be
Additionally, Direct Sellers and Leaders IMPORTANT!! Direct Sellers considering considerate of social and cultural customs.
Zero Tolerance means not allowing any un- need to consider certain aspects as they expanding their businesses internationally
desirable behavior to continue and impos- build their business and help their down- must not conduct unauthorized activities in NOTICE
ing definite sanctions against Direct Sellers lines do the same: markets not yet opened by Amway. Penal-
58 found indulging in such adverse conduct. ties for unauthorized activities can seriously Amway has adopted a zero tolerance policy 59
The Amway Zero Tolerance policy covers Uplines must educate their downlines on jeopardize your current and future busi- that prohibits any Direct Seller activity in
issues which can lead to potential reputa- the correct and ethical business building nesses. markets that have not been ocially opened
tional concerns for Amway thereby aecting practices with a special focus on the Zero Amway is currently open in the following by Amway.
the business at large. This policy underlines Tolerance policy. countries and territories. Amway defines Direct Seller activity as
that Amway will not overlook any violation American Samoa, Anguilla, Antigua, any activity which is designed to promote or
of the policy and no leniency shall be shown Ordering Direct Sellers who place orders Argentina, Aruba, Australia, Austria, build the Amway business. All Direct Sellers
in dealing with an Direct Seller who is found for other Direct Sellers are responsible Azores, Bahamas, Barbados, Barbuda, are prohibited from visiting a new market
to be in violation of this policy. At present, for the orders placed by them. Ordering Belgium, Bermuda, Botswana, Brazil, country for the purpose of interesting one or
five areas have been identified by Amway In- Direct Sellers need to be prudent so as to British Virgin Islands, Brunei, Bulgaria, more prospective Direct Sellers in the Amway
dia as Zero Tolerance. These are: safeguard their business interest. Canada, Canary Islands, Cayman Islands, business. Amway does not permit holding
Ceuta - Autonomous City of Ceuta,, meetings (even one-on-one meetings) in
Selling and/or making available Amway Uplines should encourage downlines to Channel Islands (Guernsey, Jersey Island), any country prior to the announcement of
products for sale through retail shops, un- place their orders independently. Chatham Islands, Chile, Colombia, Costa the launch date and launch plans.
authorized channels and online stores Rica, Croatia, Curacao, Czech Republic, Prospecting by websites directed at the
CONSEQUENCES OF NON-COMPLIANCE Denmark, Dominica, Dominican Republic, unopened market is also considered as
Unauthorized Direct Seller activity in un- El Salvador, Estonia, Finland, France, inappropriate Direct Seller activity.
opened markets Those who fail to comply or who have shown French Antilles (Martinique, Guadalupe), It is highly inappropriate and a violation of
a disregard for the policy may be subject to French Guiana, Germany,Granada,Greece, the spirit of these Rules to educate a non-
Business Support Material Policy; one or more of the following actions: Guam, Guatemala, Haiti, Honduras, Hong Direct Seller about the Amway Opportunity
Kong, Hungary, India, Indonesia,Republic and to then encourage the prospective Direct
Quality Assurance Standards; a) Suspension of business activities and of Ireland, Isle of Man, Italy, Jamaica, Seller to return to his/her native country
commissions Japan, Kazakhstan, Korea, La Reunion, for the purpose of generating interest
Direct Selling Guidelines Latvia, Leeward Islands, Lithuania, Macau, prematurely.
b) Elimination from all GIP awards/ re- Madeira, Malaysia, Melilla Autonomous City In the event that Amway ocially launches
SELLING AND/OR MAKING AVAILABLE wards. of Melilla, Mexico, Micronesia, Montserrat, a new market, Amway will announce
AMWAY PRODUCTS FOR SALE THROUGH Namibia,The Netherlands , New Zealand, the opening of the market through
RETAIL SHOPS, UNAUTHORIZED CHAN- c) Reduction and/ or elimination of FAA Northern Mariana Islands, Norway, Palau ocial corporate communications. Such
NELS AND ONLINE STORES. points for India.

communications will announce the date of personal consumption) including sales, not legally binding. The lead form must on a case-by-case basis. Amway may, at
launch, indicate what pre-launch activity is demonstration, or display is strictly pro- not be signed by the prospective Direct its discretion, follow up on any reported
permitted, and provide other information hibited. Import of products and promo- Seller and a copy must not be left with activity to make a determination of its
critical for successful Direct Seller tional materials without proper import the prospect. The Lead Form and its use accuracy and viability.
participation. If Amway has not ocially licenses, registrations, and labelling must never appear to commit or obligate
opened a market, no Direct Seller activity is may subject the violating Direct Seller the prospect in any manner. 2. Penalties may include any action deemed
authorized with respect to that market. and Amway to substantial fines, impris- appropriate by Amway up to and includ-
Any mention in the media of Amways public onment, and confiscation of materials 8. Prospective Direct Sellers who are resi- ing suspension or termination. Amway
relations eorts or of legal notices that and product and undermines the repu- dents of non-Amway markets should not may sanction rewards and recognition
Amway is required to file in a new market tation and goodwill associated with the be invited to any Direct Seller- sponsored derived unauthorized activities in an
must not be interpreted as the ocial Amway trademarks and brand. It may or Company-sponsored functions orga- unopened market and may prohibit the
announcement of Amways intention to also seriously jeopardize Amways abil- nized in either Amway- or non-Amway Direct Sellers from entering into new
open a new market. ity to open a market in the future, or to markets. markets.
oer its full range of products.
ACTIVITIES NOT AUTHORIZED AT ANY TIME 9. Showing the Amway Sales Plan, import- 3. In the event of termination action, the
4. Advertising for prospective Direct Sell- ing, selling Amway produced or provided appeal rights as granted by the Enforce-
Amway has adopted a Zero Tolerance Pol- ers in the new market in any format is products, in an unopened market is not ment Procedures in the Rules of Con-
icy for unauthorized activity in unopened prohibited, both, in the new market and permitted at any time. duct, Commercial Principles or appli-
markets. Below is a list of behavior/ activity in the Direct Sellers home market. This cable policies in an Amway aliate may
that would be subject to the Zero Tolerance includes flyers, bulletin boards, misuse 10. Violation of the Direct Selling Guide- be invoked by the Direct Seller.
Policy no matter whether such activity takes of business cards, publication of meet- lines.
place in an unopened market or in a market ing schedules, and seeking media cov- 4. Platinums are responsible for ensuring
that has been ocially launched by Amway. erage. Direct Seller cannot participate 11. Violation of the Quality Assurance Stan- that all Direct Sellers / Direct Sellers in
The Corporation reserves the right to take in blind prospecting by using phone dards (QAS). their organizations who are involved in
immediate action and or sanction any Direct books, professional society membership international markets understand these
60 Seller once it receives a verifiable complaint. lists, etc. Under no circumstances may PENALTIES FOR UNAUTHORIZED ACTIVITY IN Rules. It is the responsibility of each Di- 61
Direct Sellers use any form of mass com- NON-AMWAY MARKETS rect Sellerto abide by this Policy.
1. Direct Sellers cannot solicit other Di- munication such as spam (unsolicited
rect Sellers from outside their Line of email), television merchandising chan- Penalties may include any action deemed 5. Violators will be required to provide
Sponsorship or Business Group to sign nels or computer networks to advertise appropriate by Amway. Corrective action Amway with a mailing list, complete
under or to provide prospects in a new the Amway opportunity. may range from re-educating an oending with names and addresses, of all per-
market. To do so is a direct violation of group and/or suspension to termination of sons solicited / contacted by him or her
the contract between Amway and its Di- 5. Direct Sellers may never misrepre- the violators business. Corrective action as prospective Direct Sellers as the result
rect Sellers and the Rules of Conduct or sent the Amway business by promising may negatively impact the violators an- of unauthorized pre-launch activity.
Commercial Principles applicable in a wealth with little eort, no retailing, tax nual bonuses, award recognition and other
Direct Sellers market. Amway encour- shelter, guaranteed residual income for rewards such as SIP, Non-cash awards and
ages Direct Seller to follow their original life, etc. Such claims are prohibited in FAA monies. THESE GUIDELINES ARE SUBJECT TO
Line of Sponsorship when applying for every Amway market. CHANGE FROM TIME TO TIME. FAILURE
authorization in a new market. 1. Complaints of improper activity are to TO COMPLY WITH THE RULES OF
6. Direct Sellers may neither state, nor im- be submitted in writing to the appro- CONDUCT AND THESE GUIDELINES
2. The importation, use, or sale of any ply that they are employees or represen- priate Sales/Direct Seller Relations De- MAY RESULT IN ACTION AGAINST YOUR
privately produced literature, tapes or tatives of Amway Corporation or any of partment sta for review and handling INDEPENDENT BUSINESS.
other such Business Support Materials its aliated 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
matically serve as authorization for use Seller to join a particular line of spon-
in ALL and especially new or unopened sorship, are authorized Lead Forms,
markets. which are used only for a Direct Sellers
internal use to collect information about
3. The import of any Amway product into prospective Direct Sellers, must NEVER
a market for any reason (other than for be utilized as pre-applications and are

Weekly / Open / Plan meetings Maximum 120 per person in Major Metros* As may be required
Maximum 90 per person in all other cities


Characteristics: Generally Maximum 120 per person in Major Metros* No Direct Seller shall be
DEFINITION OF BUSINESS SUPPORT MATERIALS (BSM) organized by Platinum and Maximum 90 per person in all other cities required to attend any such
above and attended by their any such meeting.
dedicated LOS. This will also
THIS POLICY APPLIES TO ALL produces/ develops, free of cost to all Direct Sellers. include meeting called by Diamond
TRAINING PROVIDERS. Amway does not require a Direct Seller to purchase for his downline Platinum groups
For purposes of this Policy, Business Support Ma- any BSM from any other Direct Seller or third party provided downline Platinum does
terials (BSM) shall mean all products and services source whether as a condition of participation or not hold an independent separate
(including but not limited to business aids, books, otherwise. In the event that a Direct Seller is desir- meeting in the same month.
magazines, flip charts and other printed material, ous of purchasing certain non-Amway produced In the event a Diamond is conducting
online literature, internet websites, audio, video BSM from another Direct Seller such Direct Sell- the meeting for downline Platinum
or digital media, rallies, meetings and educational ers are advised that prices for such BSM should not group, it must be ensured that no ABO
seminars (inclusive of tickets for the same), and normally exceed the prices listed in clause 2 below, is required to travel for more than 100kms.
other types of materials and services) that: inclusive of all duties, taxes and levies, including Attendance is not over 500 people.
Service Tax. Duration generally is two hours to five.
(i) are designed to solicit and/or educate Prospects,
prospective customers or Customers of Amway The prices indicated below are based on Amways BUSINESS BUILDING SEMINAR
products or services, or to support, train, moti- own experience and reasonable judgment that Am- Characteristics: Generally organized Maximum 300 per person in Major Metros* 6 series of meetings in any
vate and/or educate Direct Sellers; way has acquired from production of its own BSM. by third party vendors, with Diamond Maximum 240 per person in all other cities no. of cities. All meetings
We strongly recommend that all Direct Sellers fol- or Emerald speakers. Attended by over in a month to constitute
62 (ii) incorporate or use one or more of Amways low Amways own policy regarding BSM policy 500 but fewer than 2000 people. 1 (one) series.
trademarks, service marks or copyrighted which is to share all BSM produced/developed by Generally from two hours to 5 hours
works; or Amway, on a cost free basis to all Direct Sellers. Am- in duration.
way does not prescribe any price for any Direct Seller
(iii) are otherwise oered with an explicit or im- or third party produced BSM and only approves the MAJOR FUNCTIONS, CONFERENCES, FED / CONVENTIONS/ FAMILY REUNION ETC.
plied sense of aliation, connection or associa- content of such BSM to ensure consistency, quality Characteristics: Generally, a half-day Maximum 900 per person irrespective 2 series of meetings
tion with Amway. and adherence with the policies prescribed by Am- to full-day function (start and end on of the duration of the event in any no. of cities.
way from time to time. In the event of inconsisten- the same day) organized by third party (excluding food and lodging at cost) All meetings in a
STATEMENT OF REQUIREMENTS cy, if any, of such BSM to that of Amways policies, vendors, where Diamonds or month to constitute
then Amways policies shall override. Further, we Foreign speakers are invited to speak 1 (one) series.
The following general standards will apply: strongly recommend that all meetings conducted and which are attended by over All meetings in a
for Direct Sellers be held with in a similar frequency 2000 people. region to happen in
Direct Sellers can only sell or promote BSM to ex- as Amway hosted meetings of a similar type, and in the same month.
isting Direct Sellers that have been authorized by any event not more than the frequency indicated No 2 (two) major
Amway. The Direct Sellers are advised that Amway, below. You are requested to inform Amway of any functions should be
apart from holding a number of free training ses- inconsistency in the aforementioned parameters to held in neighbouring
sions periodically, also provides BSM that it itself take appropriate consequential action. cities if the distance
between the two
cities is less than
200 kms.

(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 BSMs of other Direct
rules or principles but is intended to help tions to Amway Sellers or your BSMs that have not been
Direct Sellers shall not solicit or induce any Direct Sellers apply them to social me- approved by Amway (Section 7 and 9).
Direct Seller of another group to plug-in dia interactions. Direct Sellers 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, dont 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 Diamonds 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
Sellers 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 eorts 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 Amways business interest. and expresses a desire to buy product or
2. Use Social Media to communicate with learn more about the business, contact 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 oer discounts or special promo-
64 a disregard for the policy may be subject to 3. Make new friends online. tions not oered by Amway. 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 aliation 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- AIEPLs 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 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. Oer 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 BSMs without prior
relevant and credible. permission from Amway or misrepre- 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 ocial 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 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 Amways / content related to Amway Business, on rejected goods received as per AIEPLs
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.

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 worlds largest di-
AIEPL shall be entitled to treat such fail- rect selling organisation. The superior value AMWAY RETURNS POLICY FOR DIRECT SELLER
ures as a breach of contract in addition and high quality of Amway products and
and without prejudice to AIEPLs 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-
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 VAT
Each lot/instalment of goods delivered
under an invoice shall deemed to be sold AMWAYS CUSTOMER PRODUCT
under a separate contract. REFUND POLICY Unmarketable** Within 30 days of purchase Yes DAP less VAT
Within 30 days of purchase No DAP less VAT
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 Amways Excess Stock*** Within 60 days of purchase Yes DAP
Customer Product Refund Policy. If the Cus- Within 60 days of purchase No DAP less VAT
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 VAT (Value Added Tax)
if sent by ordinary prepaid post to the buy- days from the date of delivery for a full re-
66 ers 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
products in saleable condition, and partially or special promotional products and/or services.
All sale contracts and transactions of 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.
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 Sellers account &
any excess amount paid shall be recover-
able from Direct Seller.

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 Sellers account.
the date of receipt at the Amway Oce.
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 Sellers account & any excess
executive at the Amway oce. amount paid shall be recoverable from Direct

68 69