Rules of Conduct
|3.||Becoming a ABO|
|4.||Responsibilities and Obligations of all ABO|
|5.||Responsibilities and Obligations of all Sponsors|
|6.||Preservation of the Line of Sponsorship|
|7.||Non-Amway Produced Business Support Materials (BSM)|
|8.||Presentation of the Amway Sales and Marketing Plan|
|9.||Use of the Amway Trade Name, Trademarks and Copyrighted Materials|
|10.||Death and Inheritance|
|11.||Breach of Contract; Procedures|
|12.||Breach of Contract; Sanctions|
|13.||Disposition of Terminated or Non-Renewed ABOship|
Section 1 – Introduction
The Rules of Conduct (“Rules” or “ROC”) define and establish:
|1.||Certain principles to be followed in the development and maintenance of an Amway Business.|
|2.||The rights, duties, and responsibilities of each ABO.|
The terms and conditions of this relationship are set forth in:
|1.||The Amway ABO Contract.|
|2.||The Business Manual, which include these Rules of Conduct.|
|3.||Other official Amway literature, publication, notification or communications.|
While the Rules primarily define relationships between Amway and ABOs, they also concern relationships among ABOs. Its objectives are:
- To ensure an equal opportunity for ABOs through ethical and responsible business conduct.
- To protect and build a conducive environment for a long-term and profitable Amway business.
- To promote unity and harmony among ABOs.
- To preserve the benefits of the Amway Sales & Marketing Plan equitably for all ABOs.
From time to time, the contents of these documents are changed. Amway will notify the ABO leadership of such changes. Upon final notification by Amway with respect to those changes presented to the ABO leadership, such changes will be communicated to all ABOs in a timely manner in the Amway Amagram and other official Amway communications and literature, and shall become effective upon publication. In order to preserve the goals and purposes of the Amway Sales and Marketing Plan, Amway reserves to itself the sole right to adopt, amend, modify, supplement, or rescind any or all of these Rules, as necessary.
Section 2 – Definitions
|-||Amway: “Amway” shall mean Amway Malaysia Sdn. Bhd./ Amway B Sdn. Bhd.|
|-||Amway Business: A business, as identified by the Amway ABO Authorization (ADA) number and the Amway Application for Appointment as an Authorized ABO of Amway Products Form.|
|-||Amway Business Kit: The collection of literature, sales aid and other materials that ABOs are required to possess in connection with acceptance by Amway of their application and the ABO Contract.|
|-||Amway Business Policies: Rules and policies set forth in official Amway literature, including the Rules of Conduct and various other policies and bulletins that may be maintained by Amway from time to time which are incorporated by reference into; (1) the Amway ABO Contract, (2) the Business Manual, and (3) other official Amway literature or communications.|
|-||Amway Business Opportunity: The products, marketing, support and compensation system offered by Amway.|
|-||Amway Produced Business Support Materials (“Amway BSM”): BSM produced by, or on behalf of Amway.|
|-||Amway Products: All goods and services, including literature and other support or auxiliary materials, made available by the Amway Malaysia/Brunei to ABOs.|
|-||Amway Sales and Marketing Plan (“Plan”): The system used to calculate the Bonus compensation and recognition for ABO based on product sales as described in the Amway Business Manual and other official Amway literature.|
|-||Bonus: The monetary rewards that Amway pays to ABOs in accordance with the Amway Sales and Marketing Plan.|
|-||Business Support Materials (“BSM”): The definition for BSM is intended to be interpreted broadly and includes, by way of example, the following; printed materials, audio-video and multimedia productions, internet-based products and services, non-Amway recognition and award systems, meetings and other events, and other materials or equipment used to provide information or support the sale of Amway products and services, as well as coupons, vouchers, tickets or standing order/subscriptions programs relating to any of the previously mentioned. When the term BSM is used with out the preface “Amway Produced”, it refers to non-Amway produced BSM only.|
|-||Digital Communications: Digital Communications are electronic transmissions (generally by computer or mobile device) of text, data, images, video, voice, and other information including, without limitation, any posts or publications made available within the digital space, including emails, videos, live streaming, podcasts, blog posts, mobile applications (apps), advertising, forums, webpages, and through any social media or messaging platform, e.g. Facebook®, Instagram®, Line®, Snapchat®, Telegram®, Twitter®, WeChat®, WhatsApp® or YouTube®.|
|-||Digital Communication Standards (“DCS”): The document published by Amway and amended from time to time, containing those terms that ABOs must comply with when engaging in any Digital Communications regarding the Amway opportunity, Amway products, or Amway services (directly or indirectly). The DCS are fully incorporated into, and made enforceable as a part of, these Rules of Conduct.|
|-||ABO: An independent contractor who has had his Amway Application Form accepted by Amway.|
|-||ABO Contract: Refers to the ABO Application along with the incorporated documents that form the terms of the contractual agreement between ABO and Amway.|
|-||ABO in Good Standing: ABO can be recognized and compensated by Amway in a variety of ways. Amway’s ABO Compensation Plan offers monthly and annual bonuses that ABOs can earn. ABOs are also eligible for Growth Incentives (GI), Founders Achievement Award (FAA), and noncash awards such as incentive trips, which are discretionary benefits that are separate from the core ABO compensation plan. |
All achievement awards and bonuses are subject to review and approval by Amway. ABOs must be compliant at all times with the terms of the ABO contract, Amway ABO Compensation Plan and the ABO Rules of Conduct. To be eligible for discretionary benefits such as GI, FAA, and incentive trips, an ABO must consistently demonstrate that they are in Good Standing. Being an ABO in Good Standing affirms the ABO’s commitment to the values of Amway, reflected in its Rules of Conduct, to which all ABOs are bound.
ABOs in Good Standing will work collaboratively with Amway to strengthen the business and not engage in any activities that put the Amway business in jeopardy, nor engage in any activities that will bring discredit to Amway. ABOs are considered to be in Good Standing and are eligible to receive any discretionary awards and rewards:
ABOs who have a multiple business terminated as the result of a Rules sanction in one market will minimally lose Good Standing in all other markets. ABOs with multiple businesses who lose Good Standing in one market, but do not have their business terminated as the result of a Rules sanction, will have their Good Standing reviewed in all markets. Loss of Good Standing continues until restored at the discretion of the Amway affiliate or until any Rules sanctions are served.
|-||ABOship: An ABOship is another way to describe an Amway business, which is identified by an ADA number.|
|-||Leg: An ABO and all downline ABOs from that individual.|
|-||Line of Sponsorship or (“LOS”): The structural organization of ABOs established by the contractual relationship that each ABO has with Amway.|
|-||LOS Information: includes all information that discloses or relates to all or part of the structural arrangement of ABOs within the Line of Sponsorship, including but not limited to ABO numbers and other ABO business identification data, ABO personal contact information, ABO business performance information, and all information generated or derived there from, in its present or future forms.|
|-||Platinum: An ABO who has achieved a certain level of business activity as specified by the Amway Sales and Marketing Plan.|
|-||Prospect: A potential ABO or customer.|
|-||Rules of Conduct (“Rules” or “ROC”): Define and establish: |
(1) certain principles to be followed in the development and maintenance of an Amway Business; and
(2) the rights, duties, and responsibilities of each ABO.
|-||Sponsor: There can be one of three relationships -|
Section 3 - Becoming an ABO
|3.1||ABO Application Form and Business Kit: |
To become a duly authorized ABO capable of merchandising Amway’s products and services and sponsoring other ABO, an applicant must apply for authorization from Amway by completing and signing the ABO Application Form and possess the Amway Business Kit. The completed ABO Application must be sent to Amway immediately, and accepted by Amway as authorized in accordance with the provisions of Rule 3.3. No ABO shall present the Amway Business Opportunity as anything other than a business opportunity available to Malaysia and Brunei citizens.
|3.2||Husband and Wife ABO: |
Individuals who are husband and wife shall, upon acceptance by Amway, be authorized as one ABOship. A Person whose spouse is an authorized Amway ABO shall not be eligible to apply as an authorized ABO of another ABOship.
Without limiting Amway’s rights, the following are requirements for becoming a ABO or renewing a ABOship:
|3.4||Acceptance or Rejection of ABO Application or Renewal: |
Amway reserves the right to accept or reject any ABO Application. Likewise, Amway reserves the right to refuse any Renewal request and can revoke the ABOship if a ABO's activities have not been in accordance with the Rules of Conduct or if the ABO is not in Good Standing or has not complied with the requirements of Rule 3.3.
|3.5||ABOs Operated through a Legal Entity: |
A party to a ABO Contract may apply to Amway to operate the ABOship through a legal entity, provided it complies with certain requirements and conditions, including that where legally feasible the entity’s sole purpose is the operation of the Amway Business Opportunity. Contact Amway for current information. The person signing the ABO Contract on behalf of a legal entity must be an authorized representative of that legal entity and must personally meet the qualifications set forth in Rule 3.3 above. A legal entity may be required to submit, in addition to other documents, proof of existence and qualification to conduct the activities anticipated in the ABO Contract, proof of compliance with applicable registration requirements, a document (such as an Authorization for Legal Entity Form) containing various information about and agreements of both the legal entity and the founders and management of the legal entity, or such other similar information and documentation as Amway may request.
|3.6||Date of Authorization: |
The date of authorization as an Amway ABO is when the ABO Application has been processed by Amway.
|3.7||Prohibited Sponsoring Practices: |
A sponsor shall not impose on a Prospect, nor any ABO, as a condition to receiving from the Sponsor assistance in the development of such person’s ABOship, such as:
|3.8||Term and Expiration: |
Unless the term is renewed in accordance with Rule 3.9 of the Rules of Conduct and the Amway Business Policies, a ABOship expires or may be terminated in accordance with its terms. As specified in the ABO Contract, unless earlier terminated by a ABO or Amway, the ABOship shall expire on the one year anniversary of his/her original application.
An ABOship may be renewed at the discretion of Amway provided the ABO is not in violation or breach of Amway’s Rules and Policies and terms of ABO Contract in any market. To be eligible for extension, an ABO must submit (annually) a notice to Amway requesting that the ABOship be renewed (annually).
If accepted by Amway, any extension of the term of ABO Contract and Amway’s Rules and Policies shall be effective from the date of extension and concluding twelve months thereafter. The terms of such extension shall be the terms and conditions of the ABO Contract in effect at the time of extension. Without limiting Amway’s discretion to deny extension of a ABOship, the following automatically disqualify an ABO from extension of his/her ABOship.
An ABO may terminate the ABOship at any time by providing Amway with written notice of termination at Amway’s address. Amway may terminate the ABOship at any time by providing the ABO with written notice of termination at his/her specific address if he/she fails to comply with the Amway Business Policies, including the Amway Rules of Conduct, the Amway Sales & Marketing Plan and other policies maintained by Amway and which have been incorporated into the ABO Contract.
|3.11||Invitations Limited to Husband and Wife only: |
Invitations for business seminars, incentive trips and other events organized by Amway will only be extended to the authorized ABO and the legal and registered spouse per ABOship. These individuals shall be listed on Amway’s records.
|3.12||Conspiracy; Inducement to Breach: |
An ABO shall not conspire with any other person to breach or induce a breach of any Rules of Conduct or the Amway Business Policies or to induce or attempt to induce another ABO to breach any of the Rules of Conduct or the Amway Business Policies. Any such activity shall constitute a breach of the Rules of Conduct or the Amway Business Policies.
|3.13||Exceeding Scope of Authorization: |
An ABO shall not exceed the scope of authorizations granted pursuant to the ABO Contract. Any such activity shall constitute a breach of the ABO Contract.
|3.14||Representations and Warranties: |
An ABO shall not make any false representation or statement to Amway, nor induce Amway to enter into a ABO Contract under false pretenses, nor breach any representation or warranties implied in this contract or by law. Any such activity shall constitute a breach of the Rules of Conduct or the Amway Business Policies.
|3.15||Multiple Breaches: |
It is a breach of the Rules of Conduct or the Amway Business Policies for an ABO to allow any breaches to remain uncorrected following notification from Amway of the existence of the same, or to have multiple simultaneous, serial or repeating breaches of the Rules of Conduct or the Amway Business Policies.
|3.16||Zero Tolerance Rule: |
It is a breach of the Rules of Conduct or the Amway Business Policies for an ABO to conduct ABO activities in markets in which he or she is not authorized to conduct business. It is a breach of the Rules of Conduct or the Amway Business Policies to conduct ABO activities in markets in which Amway are not doing business. Such unauthorized activity may result in, without prejudice to any rights and remedies otherwise available, the immediate suspension of the ABO’s rights.
|3.17||Circumvention of the Rules of Conduct: |
In case of attempt to circumvent or acting against the intent and spirit of the Rules of Conduct, Amway may at any time take corrective action at its discretion.
Section 4 - Responsibilities and Obligations of all ABOs
|4.1||Abide by the Amway Business Policies/Amendments/Duty of Good Faith: |
At all times, ABO must adhere strictly to the guidelines, procedures and policies stated in the Amway Business Policies of which these Rules of Conduct are a part, in addition to the Amway Sales and Marketing Plan, and, in each case, any amendments made to such from time to time. All ABOs are charged with the duty of good faith and fair dealing under the terms of the ABO Contract.
|4.2||Cross Group Buying or Selling/ Supplying: |
No ABO shall engage in cross-group buying or selling / supplying. “Cross group buying and selling / supplying” occurs when an ABO sells or supplies Amway distributed or supplied products and/or services to another ABO who is not personally sponsored and downline of those sponsored, down to the next Platinum.
|4.4||Truthful and Accurate: |
No ABO shall make any offer to sell any Amway products or services which are not accurate and truthful as to price, grade, quality, performance, and availability. ABO shall not:
ABO may not repackage products, change the content of products or otherwise change or alter any of the packaging labels of Amway products or services.
|4.6||Written Sales Receipt: |
An ABO who takes and/or delivers an order in person shall deliver to the customer at the time of sale, a written and dated order or receipt which shall: (a) describe the product(s) sold, (b) state the price charged, and (c) give the name, address, and telephone number of the selling ABO.
|4.7||Satisfaction Guarantee: |
Whenever a customer requests Satisfaction Guarantee service within the stated guarantee period, an ABO shall immediately offer the individual his or her choice of a: (a) full refund; (b) exchange for a like product; or (c) full credit toward the purchase of another product.
|4.8||Compliance with Applicable Laws, Regulations and Codes: |
ABOs shall comply with all laws, regulations and codes that apply to the operation of their ABOship wherever their business may be conducted. ABOs must not conduct any activity that could jeopardize the reputation of the ABO and/or Amway. Upon request, ABOs shall forthrightly provide any information requested about an ABO’s activities or any other activities known by the ABO (even with respect to other ABOs). In all such communications with Amway, the ABO shall act with absolute candor and good faith.
|4.9||Deceptive or Unlawful Trade Practices: |
No ABO shall engage in any deceptive or unlawful trade practice.
|4.10||Unlawful Business Enterprises or Activities: |
An ABO shall not operate any illegal or unlawful business enterprise, engage or participate in any illegal or unlawful business activity.
An ABO shall at all times conduct himself or herself in a courteous and considerate manner and shall not engage in any high-pressure tactics, but shall make a fair presentation of Amway products or services, or the Amway Sales and Marketing Plan, when and where appropriate.
|4.12||ABO Relationship: |
No ABO shall represent that he or she has any employment relationship with Amway or any of its affiliated companies and/or other ABO.
|4.13||Franchises and Territories: |
No ABO shall represent to anyone that there are exclusive franchises or territories available under the Amway Sales & Marketing Plan.
|4.14||Other Selling Activities: |
Except as provided in the Digital Communications Standards, ABOs may not take advantage of their knowledge of or association with other ABOs, including their knowledge resulting from or relating to the Line of Sponsorship, in order to promote and expand other business ventures. Such conduct constitutes an unwarranted and unreasonable interference with the business contract of other ABOs and Amway.
|4.15||Interference in another ABO’s ABOship; Inducement: |
It is a breach of the Rules of Conduct or the Amway Business Policies for a ABO to:
|4.16||Exporting Amway’s Products: |
No ABO may export or import, or sell to others who import or export, AMWAY’s products from any other country in which AMWAY has established operations, into any country regardless of whether or not AMWAY is doing business in that country.
ABOs may, however, take Amway products across borders for personal use, with the following limitations:
|4.17||Retail Effort Rule: |
Amway pays bonuses under the Amway Sales & Marketing Plan based on sales to end consumers. For a ABO to be entitled to bonuses and/or qualification under the Amway Sales & Marketing Plan, that ABO’s purchases must be consumed or sold to end consumers within a reasonable period as determined by Amway. Amway reserves the right to deny all qualifications, awards and rewards if in Amway’s judgment, the ABO’s purchases are not in compliance to this rule.
|4.18||Unsolicited E-mail Messages: |
Digital Communications as used in these Rules means electronic transmissions (generally by computer or mobile device) of text, data, images, video, voice, and other information including, without limitation, any posts or publications made available within the digital space, including emails, videos, live streaming, podcasts, blog posts, mobile applications (apps), advertising, forums, webpages, and through any social media or messaging platform, e.g. Facebook®, Instagram®, Line®, Snapchat®, Telegram®, Twitter®, WeChat®, WhatsApp® or YouTube®.
The Rules apply to ABO Digital Communications regarding Amway, the Amway opportunity, Amway products and services (directly or indirectly), or when the Digital Communications constitute BSM as defined under the Rules and BSM Policy. Since the digital space is unique, Amway has established Digital Communications Standards (DCS) to ensure ABO Digital Communications are in compliance with the Rules. The DCS are incorporated into and made a part of these Rules, and ABOs must comply with the DCS. A copy of the currently applicable DCS is available upon request from Amway.
No ABO shall use Amway products in conjunction with any type of fundraising activity. Fundraising includes but is not limited to the solicitation for the purchase of Amway products or services based on the representation that all, or some, of the gains, proceeds, bonuses, or profits generated by such sale will benefit a particular group, organization or cause.
|4.20||Amway Sales and Marketing Plan Manipulation: |
No ABO shall manipulate the Amway Sales and Marketing Plan or award volume in any way which results in the payment of Bonuses or other awards and recognition that have not been earned in accordance with the terms of the Amway Sales and Marketing Plan and/or the Amway Business Manual. In this regard, the strategic and artificial structuring of an Amway Line of Sponsorship for the purpose of depth building, whether or not there are relationships between those who are sponsored and those who sponsor, is considered to be manipulation and an unacceptable business practice. Amway at its sole discretion will determine what constitutes manipulation of the Amway Sales and Marketing Plan.
|4.21||Personal/Business Information Update: |
All ABOs are responsible for communicating any updates or changes to their personal information (e.g., name, address, and telephone numbers, etc.) or business information (e.g., change of business status, etc.) to Amway.
|4.22||Proprietary Information: |
In addition to the provisions contained in Rule 9 of the Rules of Conduct, pertaining to the use of the Amway trade name, trademarks and copyrighted materials, Amway’s confidential and proprietary business information including, by way of example and not limitation, Line of Sponsorship information (i.e., information compiled by Amway that discloses or relates to all or part of the specific arrangement of sponsorship within the Amway business, including, without limitation, ABO lists, sponsorship trees, and all ABOs or Amway business information generated there from, in its present and future forms), business information, manufacturing and product development, business plans, and ABO sales, earnings and other financial information, etc., constitute commercially advantageous, unique, and proprietary trade secret and business secrets of Amway which it keeps proprietary and confidential and treats as a trade secret and business secret and constitute “Proprietary Information” subject to the ABO Contract.
|4.23||Presentation Rules |
The content of the presentations which include or support the promotion of the retailing of Amway™ products and services, or the Amway Sales and Marketing Plan, must otherwise be in accordance with the following:
|4.24||Activity Outside Malaysia or Activity Outside The Market Where The ABO Is Registered: |
ABOs who engage, directly or indirectly, in any activity related to the Amway business in a jurisdiction outside of Malaysia must do so in a manner that complies with the letter and spirit of the applicable laws, regulations, and rules, policies and procedures of the Amway affiliate in that jurisdiction, regardless of whether they are registered ABOs in that jurisdiction. Failure to do so shall be a breach of the ABO Contract.
An ABO may not present the Amway Business Plan or solicit participation in the Amway Business Plan through any broadcast communication methods including mass mailings, telemarketing, national or international advertising, radio, television, facsimile services, or any other means by which personal contact with a Prospect is not present. Advertising is allowed in a limited context as described in the Digital Communication Standards.
Section 5 - Responsibilities and Obligation of All Sponsors/Platinums
Each Amway Business Owner (ABOs) is responsible for building his/her own Amway business. Amway recognizes that proper support, training and motivation from the Sponsor/Platinum are also important to the continued growth of Amway businesses downline. However, Sponsor and other upline activities must never undermine the independence and personal effort of each Amway business or improperly interfere with the relationship between Amway and each ABO. Further, Section 5 prohibits excessive or improper upline involvement which may also constitute manipulation of the Amway Sales and Marketing Plan (Section 4.20).
Amway reserves the right to evaluate the type and frequency of upline involvement to determine whether it constitutes interference in violation of the Rules of Conduct.
|5.1||Duties and Responsibilities of Sponsors |
An ABO who engages in sponsoring activity or who sponsors an ABO shall:
|5.2||Duties and Responsibilities of Platinums |
The following are some of the responsibilities and functions of a Platinum ABO:
Section 6 - Preservation of the Line of Sponsorship
|6.1||Protection of the Line of Sponsorship: |
The sale of an ownership interest in a ABOship, transferring a ABOship, requires prior approval by Amway. This approval shall be at Amway’s sole discretion.
|6.2||Individual Transfers: |
An individual transfer involves the transfer of a ABO without any of his or her sponsored ABOs. Without limiting or restricting in anyway Amway’s powers and discretion under Rule 6.1 above:
|6.3||Group Transfers: |
A group transfer involves the transfer of a ABO with all or some of his/her personally sponsored and downline of those sponsored. Without limiting or restricting in any way Amway’s powers and discretion under 6.1 above:
|6.4||Six Month Inactivity: |
An ABO who wishes to terminate (by resignation or failure to extend) his or her ABOship under his or her present Sponsor and who thereafter becomes inactive for a period of six or more consecutive months shall cease to be an authorized ABO and may, following the lapse of said inactive period, apply as a new ABO under a new Sponsor. The date on which Amway receives the letter of resignation begins the inactivity period. A person who has not renewed his/her ABOship will be considered expired and must remain inactive six months from the beginning of the following month.
|6.5||Sale of a ABOship: |
A ABO who owns a ABOship (whether or not qualified as Platinum or above may sell his or her ABOship only to another authorized ABO as prescribed by this rule. Amway requires that specific terms of sale be included in any sales agreement. In order to preserve the Line of Sponsorship, the selling ABO must offer his or her ABOship in the order of priority stated below and the ABO interested in purchasing the ABOship must meet all of the terms and conditions as set forth in these Rules. The purchased business shall remain separate from the buyer’s other Amway business and the Line of Sponsorship shall not be altered in any way as a result of the sale.
|6.6||One Amway Business Rule: |
A ABO may own, have an interest in, be a signatory on or be listed as a designee on only one ABOship, except as provided in Rules 6.6.1 – 6.6.5. Only under the following circumstances may a ABO have ownership interest in more than one ABOship:
|6.7||Mergers and Combinations of ABOships: |
No merger or combination of two or more existing ABOships by reason of intentional affirmative act on the part of the owners shall be permitted which results in the merging ABOships obtaining any level of achievement.
|6.8||Divorce, Separation, or Other Dissolution: |
Whenever a business is ordered to be separated or divided as the result of a divorce, dissolution of a corporation or partnership (where applicable), the separation or division must be accomplished in such a way as to not adversely affect the interests and/or income of the ABO in the Line of Sponsorship. During the division or separation process, neither party shall administer or operate, together or separately, any other ABOship without Amway’s express written consent.
|6.9||Disposition of a ABOship: |
If a ABO terminates his/her ABOship with Amway, or fails to apply for extension of the ABOship within the required time period, or dies without leaving heirs who are willing and able to assume responsibility for the ABOship, Amway, at its sole discretion, shall decide the future of the ABOship in accordance with Section 13.
|6.10||Non-Compete / Non-Solicitation:|
Section 7 - Non-Amway Produced Business Support Materials (BSM)
While Amway does not require anybody to purchase BSM, ABOs may decide that they can play a useful role in building a profitable business or achieving goals. BSM are entirely optional and ABOs who chooses to promote, use, sell or distribute BSM must emphasize that the purchase is strictly voluntary. All BSM utilized in building an AB or selling an Amway product must comply with the Rules of Conduct, the Business Support Materials Policy, the Digital Communication Standards and the Amway Business Policies. BSM may not be sold to non-ABOs nor can the purchase of any BSM be framed as a requirement for becoming an ABO. Amway does not endorse any BSM. At its sole discretion, Amway may review any BSM and adjudge whether or not it is suitable for use in the market. Amway’s review would be solely for the determination of compliance with its Rules of Conduct, Review Standards, Business Practices, the Digital Communication Standards and Amway Business Policies, including quality control procedures (“Quality Control”). ABOs are responsible for compliance with all laws regarding the content, production, distribution, and sale or use of BSM.
For further clarification of this Rule, refer to the Affiliates BSM Policy.
|7.1||ABO Only: |
ABO may produce BSM dealing with general subjects of a “how-to” nature; however, they must bear the legend “For Existing ABO Only – Not for use with Prospects.”
Amway reserves the right to require submission of all BSM for review and authorization at its sole discretion. As a result of such review, Amway may require that such BSM be modified and/or take other appropriate action(s).
Section 8 - Presentation of the Amway Sales and Marketing Plan
|8.1||Must not Give False Impression: |
When inviting a prospect to hear a presentation of the Amway Sales and Marketing Plan, an ABO shall neither directly or indirectly:
|8.2||First Contact with Prospects: |
It is a breach of the Rules of Conduct or the Amway Business Policies for an ABO to mislead or fail to inform a Prospect ABO the nature of the ABO activities and, therefore, at the first contact with Prospects, an ABO must:
|8.3||Sponsorship Ethics: |
In seeking participation of a prospect in the Amway Sales and Marketing Plan, the sponsoring ABO must comply with Rule 4.23 above as well as the following:
|8.4||No Exclusive Territories: |
No ABO shall represent that there are exclusive territories available. It is a breach of the terms of ABOship to make such a representation.
|8.5||No Obligation to Purchase: |
An ABO shall not require a Prospect to purchase products and/or services and/or that a deposit is required in order to participate, nor that there is a fee under the form of a training course, seminar, social event or similar activity in order to have the right to participate, except for the Amway Business Kit. It is a breach of the terms of ABOship to make such a representation.
Section 9 - Use of the Amway Trade Name, Trademarks and Copyrighted Materials
This rule has been developed to maintain the integrity of Amway’s intellectual property and to ensure that the AMWAY brand will be available exclusively for the Amway Business. In addition, Amway has implemented a corporate identity program that requires the correct and consistent use of the Amway corporate logo, no matter where it appears. Therefore, no alterations to the approved logotype are allowed. Upon request, Amway will provide an example of the approved logotype and color specifications.
|9.1||Misuse and Misappropriation: |
ABOs shall not misuse or misappropriate Amway’s trademarks or other intellectual property or proprietary information. It is a breach of the ABO Contract for a ABO to use any trademarks or other intellectual property or proprietary information belonging to or licensed to Amway except in accordance with the applicable terms, conditions and procedures set forth in the ABO Contract, including the Amway Rules and Policies.
|9.2||Imprinted banners/signs for Meetings/Events: |
If an ABO is at the Platinum level or above, and desires to conduct a meeting or event in which the Amway name will be displayed in public, the ABO must first obtain prior written approval from Amway for such use of the Amway name (A public meeting is one where prospects may attend). The ABO shall provide a written request to Amway for each meeting; such request shall include a description of the proposed banners/signs, their size, materials to be used for banner/signs and location.
|9.3||Imprinted Checks and Business Cards: |
Provided that a ABO is otherwise in full compliance with the Rules of Conduct and all other provisions of the ABO Contract, a ABO may use the AMWAY name (but not the AMWAY trademark, logo or any other trademarks, trade names, or service marks belonging to or licensed to Amway), on his imprinted checks and business cards provided that name is used in one of the following ways with no deviation:
|9.4||Promotional Literature, Stationery, Premiums, etc.: |
ABOs shall not produce or procure from a source other than Amway any item bearing the Amway name or logo or any trademarks, trade names or service marks belonging to or licensed to Amway.
Section 10 - Death and Inheritance
|10.1||Death and Inheritance: |
Upon the death of an ABO, the ABO’s interest in the ABOship may be passed on to a relative or other designated person, subject to the laws on succession and Amway’s acceptance of the assignment of the ABOship pursuant to Rule 3. Therefore, the original ABO must make proper arrangements during their lifetime for the orderly and legal transfers of ownership of their ABOship to their heirs. This is to ensure that downline ABOs will continue to receive proper service, training and motivation. In the event that the heirs do not take steps to take over the ABOship, the ABOship may be deemed abandoned in accordance with 13.1. When a ABOship is deemed abandoned, the heirs shall have no further rights in the ABOship. Amway may then move up the Line of Sponsorship to the next qualified sponsor unless such a movement increases the number of 21% legs of the upline sponsor in which case the ABOship shall be designated as a placeholder.
Section 11 - Breach of Contract; Procedures
Waiver of Claims:
An ABO waives any and all claims against Amway arising out of or in respect to any action that Amway takes under the ABOship and/or this Rule. An ABO who is terminated, de-sponsored or has other action taken as a result of a violation of the Rules of Conduct or the Amway Business Policies shall have no claim against Amway arising out of or with respect to the termination or de-sponsorship.
Section 12 - Breach of Contract; Sanctions
In the event Amway at it sole discretion determines that there has been a breach of the Rules of Conduct or the Amway Business Policies by a ABO, Amway may take one or more of the following actions:
|12.2||No Waiver: |
The failure of Amway to take any action upon learning of a breach or potential breach shall not constitute a waiver of Amway’s rights to assert such a breach in the future. The failure of a ABO to take any action upon learning of a breach shall not constitute a waiver of any other rights or remedies that may be available under applicable law.
Amway reserves the right to determine the specific terms of each Suspension on a case by case basis. In the event of any breach of contract by a ABO, Amway may take action to suspend some or all of the ABO’s privileges under the ABOship, including but not limited to:
|12.4||Actions on Termination: |
Upon termination for any cause whatsoever, the ABO shall:
Section 13 - Disposition of Terminated or Non-Renewed ABOship
When a ABOship is terminated or not renewed, the ABOship is considered abandoned, and the signatory to the ABO Contract shall have no further rights in the ABOship. Amway may Assign or Dissolve the ABOship, pursuant to Rule 13.1.1 and Rule 13.1.2, the right to operate an Amway business in the former ABO’s position in the Line of Sponsorship to another ABO, or may remove such position in the Line of Sponsorship, in its sole discretion. In exercising its prerogative hereunder, Amway may elect to employ one of the following methods or any other method permissible by law, and may unilaterally modify and amend the ABOship of any affected ABO to change their Sponsor and the Line of Sponsorship as may be necessary to implement such decision:
|13.2||No Limitation on Amway: |
Amway, however, is in no way limited to any of the above methods of disposition of an Amway business and may exercise complete discretion as to methods and/or timing of disposition.