Price Undercutting and Cross Group Supply
Selling is an integral part to creating a successful Amway business. However, to sell ethically means conducting business with your uplines, downlines, customers and company with integrity and in accordance with the Amway Rules of Conduct. This builds trust, confidence and respect among all and ensure our continued growth.
As a leader in your organisation, you are personally responsible to ensure ethical business conduct is taught and used in your organisation. The Company would not hesitate to effect stern action on any ABO for noncompliance to the Amway Rules of Conduct and who conduct their business in a manner that jeopardises other ABOs.
No Cross Group Supply of Product
ABOs are prohibited from selling or supplying products to ABOs in another Line of Sponsorship. This is referred to as “cross group supply”. Such practice tantamount to “stealing” because it deprives that Line of Sponsorship of their rightful PV/BV.
The Rules B-1 states that:
“No Distributor shall engage in cross group buying or supplying. “Cross group buying and supplying” occurs when a Distributor supplies Amway distributed products and/or services to another Distributor who is not within his/her Line of Sponsorship.
A Distributor in one Line of Sponsorship must only buy AMWAYTM products and services and Amway literature supplies directly from his/her Sponsor up to his/her upline Direct Distributor or Amway.
A Distributor must not supply AMWAY products and services to another Distributor who is not in his/her Line of Sponsorship.”
If there is an intention to give AMWAY products as a gift to someone who is a current ABO of another Line of Sponsorship, such gift or product should be ordered from the recipient’s Line of Sponsorship. This will ensure PV/BV is accorded to the correct Line of Sponsorship for proper computation of bonuses as well as qualification. Taking back products to evade corrective action, amount to interference with the Line of Sponsorship. It would also jeopardise the relationship between the Company and its customers/ABOs.
No Price Undercutting
An ABO is entitled to earn retail profits for the personalised services that you render to your customers and because retail profits are part of the Amway reward programme. Price undercutting is defined as selling at a price below the customer or ABO price as recommended by Amway.
Price undercutting not only deprives you of rightful reward, but also deprives others of equal opportunity to build their Amway business. Furthermore, it devalues our products, giving our customers a lower perceived value or price of these products. Such unethical conduct will not help you establish a long-term and profitable business.
Consequences of Non-Compliance
The Company views such practices seriously as it jeopardises the livelihood of other ABOs. We will not hesitate to impose strong corrective actions to protect the interest of all ABOs.
We seek your cooperation to report any such incidences via e-mail to MyHelpDesk@amway.com, and to provide the company with the evidence of such misconduct.