Business Support Materials (BSM) Policy
RULES & REGULATIONS
For long term stability and profitability of your Amway business, we are pleased to announce that with effect from April 01, 2003, Amway is implementing the following Business Support Materials (BSM)/Events Policy. We urge that all Amway Business Owners (ABOs) understand and observe both the letter and spirit of the policy in addition to the Amway Rules of Conduct.
BUSINESS SUPPORT MATERIALS (BSM) / EVENTS POLICY
The fundamental business of Amway & its ABOs is to sell products and services and provide a legitimate business opportunity. In building the business, Amway recognises that responsible and appropriate Business Support Materials (BSM) and Events may assist in providing valuable training and motivation. However, BSM and Events unless properly managed, can become a source of controversy and have a negative impact on Amway's reputation as a respected corporate citizen.
The Amway business in Malaysia is licensed under the Direct Sales Act 1993. Amway must comply with the laws plus the terms and conditions indicated in our Direct Sales Licence. ABOs are authorised by Amway to operate under the umbrella of the Direct Sales Licence issued to Amway. The business of ABOs are so associated and intertwined with that of Amway Malaysia that involvement in any uncontrolled and unregulated activities by ABOs may be prejudicial to and could expose Amway's licence to risk. Any form of rewards or benefits built into sale or promotion of BSM/Events may be regarded by the Authorities that such production, dissemination, sale and promotion of these BSM/Events are themselves some form of unlicensed direct sales business conducted by individuals, group of ABOs or third party incorporated companies. This is a grave risk, as Amway may be perceived as being directly involved. Amway may be seen as encouraging, aiding and abetting such BSM. Aiding and abetting the breach of a criminal provision such as one contained in the Direct Sales Act 1993 is itself a criminal wrong. In addition to potential criminal exposure, Amway's licence could be put at risk as well as its good reputation earned over the past years.
In light of the foregoing, a BSM/Events Policy is therefore necessary to protect the long-term stability of Amway & its ABOs as well as maintain and foster the excellent reputation of Amway's and its ABOs as responsible business operators. As such, BSM/Events will be allowed under Amway's guidelines.
Definition of Business Support Materials (BSM)
For purposes of this Policy, Business Support Materials (BSM) shall mean those products and services which are intended to support and assist the marketing and sale of Amway's products and services as well as the Amway business opportunity, including but not limited to:
- Books, magazines, catalogues, newspapers, newsletters or any forms of printed materials.
- Tapes, CDs, Wav, MP3 or any other form of audible materials.
- Video cassettes, VCDs, DVDs or any other form of visual materials.
- Websites, Web pages, Standing Order Forms or any other multimedia form of materials.
Statement of Requirements
The following general standards will apply:
|1.||All sales and purchases of BSM (including hereafter event tickets) must be strictly voluntary. No sales pressure or coercion whatsoever may be used to compel or convince an ABO to buy or sell BSM. For the avoidance of any doubt, no ABO may be offered or an ABO cannot be burdened or obligated to purchase BSM consisting of which may include but not limited to series of BSM, services or products or any combination thereof of any third party packaged, bundled, combined with or tagged to any of such BSM. ABOs may not be offered BSM that are packaged together with products and/or services. There must be a written statement provided to each ABO that is in a form satisfactory to Amway that indicates that the purchase of BSM is voluntary and that if for any reason the ABO is not satisfied he or she can receive a full refund.|
|2.||An ABO cannot be placed at any disadvantage by an upline or downline as a result of not selling and/or purchasing BSM.|
|3.||ABOs shall not receive any compensation, incentives or benefits for sale of BSM.|
|4.||ABOs may sell BSM only at cost and its pricing must be clearly stated. There should be no profiteering from the sale of any BSM. ABOs can always provide BSM for free. BSM pricing must therefore adhere to this but not exceed the respective pricing stated below:|
|Note: The above pricing policy shall be subject to review or amendment as deemed appropriate by Amway Malaysia.|
|5.||Contents of BSM must be truthful and fair and not contain any income claims, product claims nor religious and political elements. The Company has the right to review any BSM offered by an ABO for sale (or free) to ensure compliance with this Policy.|
|6.||ABOs cannot receive any benefits from third party produced BSM.|
|7.||No Amway trademark, trade name or logo may be used on any BSM, including third party BSM, without prior written permission of Amway.|
|8.||ABOs may not promote or sell events tickets/BSM offered by third parties who fail to comply with this Policy and the Amway Rules of Conduct.|
Events, Rallies and Meetings
With respect to events, rallies and meetings ("events"), in addition to the foregoing standards, the following additional standards apply.
|2.||No profit may be earned from sale of tickets to these events.|
|3.||Following the conclusion of the event, a summary of account substantiating no profit was earned must be submitted to Amway Malaysia upon request.|
|4.||In the event Amway cannot identify the ABO who is responsible for the meeting, all Diamonds in the line of sponsorship may be held accountable.|
|5.||Costs such as per diems and travel expenses paid to guest speakers should be in compliance with Amway's published guidelines.|
|6.||Cross-group supply of tickets/passes to ABO-organised events is strictly prohibited. Leaders are to ensure event promotion, if any, should strictly be within their own organisation and no cross-group promotion of events unless with the written consent of upline Diamond.|
|7.||Upline Diamond's consent is required for any Platinum who wish to plug-in into other groups.|
|8.||No solicitation or inducement to any ABO of other groups to plug-in.|
|9.||Organisation identity at Amway Sponsored Meetings, Newsgram and Amagram publications is not allowed.|
Rules Governing Presentation Content at Meetings Designed to Support the Amway Business.
To protect both the ABO’s and Amway's reputations and so as to avoid unwanted and inappropriate remarks, assertions and statements made in the course of a presentation that could give rise to issues, disharmony and expose Amway to unnecessary and undue scrutiny, the following Presentation Rules will have to be adhered to at all Amway business related events.
The content of the presentations must include or support the promotion of the retailing of Amway products and services, and must otherwise be in accordance with the following:
|1.||ABOs shall not:|
|2.||Personal reflections on the following are not appropriate:|
|3.||Discussions from a business stage must only relate to ethics and positive attitudes that will assist and encourage the ABO's and Amway's products, services and business.|
|4.||Income representations, whether direct or implied, must reflect a realistic income potential from participation in the Amway Sales and Marketing Plan.|
|5.||Participation in a BSM/Events must always be positioned as an optional aspect of supporting the building of an Amway Business.|
Consequences of Non-Compliance
|•||If an ABO violates the BSM/Event Policy, a written letter demanding the ABO to cease and desist within a time period will be issued.|
|•||Those who fail to comply or who have shown a total disregard for the policy as evidenced by repeated violations may be subject to one or more of the following actions:|
Amendment of Policy
This policy will be reviewed and possibly amended from time to time to always ensure Amway Malaysia's best efforts to remain compliant with the Direct Sales Act and the conditions imposed upon our Licence Renewal and to meet the diverse and changing needs of Amway Malaysia and its ABO organisation.
This policy is without prejudice to and is not in derogation of any other provisions or Rules contained in the Amway Rules of Conduct.
The description of Business Support Materials (BSM) set out in these Rules shall equally apply to any foregoing Rules.