Compliance Center

Zero Tolerance Policy

ZERO TOLERANCE POLICY REGARDING UNAUTHORISED ABO ACTIVITY IN UNOPENED MARKETS

IMPORTANT! AMWAY Business Owners (ABOs) considering expanding their businesses internationally must not conduct unauthorised activities in markets not yet opened by Amway. Penalties for unauthorised activities can seriously jeopardise your current and future businesses.


The Rules 3.16 Zero Tolerance states that:
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/she is not authorised 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 unauthorised activity may result in, without prejudice to any rights and remedies otherwise available, the immediate suspension of the ABO’s rights.


Amway is currently open in the following countries and territories.
Anguilla, Antigua, Argentina, Aruba, Australia, Austria, Azores, Bahama Islands, Barbados, Barbuda, Belgium, Bermuda, Bonaire, Botswana, Brazil, British Virgin Islands (includes Virgin Gorda, Tortola, Anegada, Jost Van Dyke, Peter Island), Brunei, Bulgaria, Caicos Islands, Canada, Cayman Islands (Grand Cayman, Cayman Brac, Little Cayman), Ceuta, Channel Islands (Guensey & Jersey), Chatham Islands, Chile, China, Colombia, Costa Rica, Croatia, Curacao, Czech Republic, Denmark, Dominica, Dominican Republic, El Salvador, England, Estonia, Finland, France, Germany, Greece, Grenada, Grenadines, Guadeloupe, Guatemala, Guernsey, Guyana, Haiti, Hebrides Islands, Honduras, Hong Kong, Hungary, India, Indonesia, Ireland, Islas Baleares (Balearic Islands), Islas Canarias (Canary Islands), Isle of Man, Isle of Wight, Italy, Jamaica, Japan, Kazakhstan, Latvia, Lithuania, Macau, Madeira Islands, Malaysia, Martinique, Melilla, Mexico, Montserrat, Namibia, Netherlands, Nevis, New Zealand, Norway, Panama, Philippines, Poland, Portugal, Puerto Rico, Reunion, Romania, Russia, Saba, Shetland Islands, Singapore, Slovak Republic, Slovenia, South Africa, South Korea, Spain, St. Eustatius, St. Kitts (f.k.a. St. Christopher), St. Lucia, St. Maarten, St. Vincent, Sweden, Switzerland, Taiwan, Thailand, Tobago, Tortola, Trinidad, Turkey, Turks Island, Ukraine, United Kingdom (Northern Ireland, Scotland, Wales), United States, Uruguay, U.S. Virgin Islands, Venezuela, Vietnam.

 

Under Zero Tolerance Policy, for Amway is currently open in the following countries and territories. Please refer the list from this link: http://globalnews.amway.com/amway-profile

*Direct selling is currently not permitted in China. Since 1998 Amway China has operated under a special license permitting sales through shops with salesmen.


ABOs are encouraged to contact Amway to ensure that they have up-to-date information on the procedures for international sponsoring. Additionally, ABOs should become aware of and uphold the laws and regulations of each market, as well as understand and be considerate of social and cultural customs.

 

NOTICE

AMWAY HAS ADOPTED A ZERO TOLERANCE POLICY THAT PROHIBITS ANY ABO ACTIVITY IN MARKETS
THAT HAVE NOT BEEN OFFICIALLY OPENED BY AMWAY


Amway defines "ABO activity" as any activity which is designed to promote or build the Amway business. All ABOs are prohibited from visiting a new market country for the purpose of interesting one or more prospective ABOs in the Amway business. Amway does not permit holding meetings (even one-on-one meetings) in any country prior to the announcement of the launch date and launch plans.

Prospecting by web sites directed at the unopened market is also considered as inappropriate ABO activity.

It is highly inappropriate and a violation of the "spirit" of these rules to educate a non-ABO about the Amway Opportunity and to then encourage the prospective ABO to return to his native country for the purpose of generating interest prematurely.

In the event that Amway officially launches a new market, Amway will announce the opening of the market through official corporate communications. Such communications will announce the date of launch, indicate what pre-launch activity is permitted, and provide other information critical for successful ABO participation. If Amway has not officially opened a market, no ABO activity is authorised with respect to that market.

Any mention in the media of Amway's public relations efforts or of legal notices that Amway is required to file in a new market must not be interpreted as the official announcement of Amway's intention to open a new market.


ACTIVITIES NOT AUTHORISED AT ANY TIME

Amway has adopted a Zero Tolerance Policy for unauthorised activity in unopened markets. Below is a list of behaviour/activity that would be subject to the Zero Tolerance Policy no matter whether such activity takes place in an unopened market or in a market that has been officially launched by Amway. The Corporation reserves the right to take immediate action and or deny acceptance of an Application in the new market or apply other sanctions on any ABO once it receives a verifiable complaint.

1. ABOs cannot solicit other ABOs from outside their Line of Sponsorship or Personal Group to sign under or to provide prospects in a new market. To do so is a direct violation of the contract between Amway and its ABOs, and the Rules of Conduct or Commercial Principles applicable in an ABO's market. Amway encourages ABOs to follow their original line of sponsorship when applying for authorisation in a new market.
   
2. The importation, use, or sale of any privately produced literature, tapes or other such Business Support Materials (including the use of web sites, e-mail and other electronic means of advertisement or communication) in relation to the Amway business not previously reviewed by Amway for use in a/each specific market is unauthorised. Authorisation in one market does not automatically serve as authorisation for use in ALL and especially new or unopened markets.
   
3. The importation of any Amway product into a market for any reason including sales, demonstration, or display is strictly prohibited. Importation of products and promotional materials without proper import licenses, registrations, and labeling may subject the violating ABO and Amway to substantial fines, imprisonment, and confiscation of materials and product and undermines the reputation and goodwill associated with the Amway trademarks and brand. It may also seriously jeopardise Amway's ability to open a market in the future, or to offer its full range of products.
   
4. Advertising for prospective ABOs in the new market in any format is prohibited both in the new market and in the ABO's home market. This includes flyers, bulletin boards, misuse of business cards, publication of meeting schedules, and seeking media coverage. ABOs cannot participate in "blind prospecting" by using phone books, professional society membership lists, etc. Under no circumstances may ABOs use mass communication methods such as spam (unsolicited email), television merchandising channels or computer networks to advertise the Amway opportunity.
   
5. ABOs may neither state nor imply that they are employees or representatives of Amway Corporation or any of its affiliated companies, nor may they say that they are the exclusive representative of Amway in any particular country.
   
6. No ABO-produced "pre-applications" or any similar documents which appear to commit a prospective ABO to join a particular line of sponsorship are authorised. "Lead Forms", which are used only for a ABO's internal use to collect information about prospective ABOs, must NEVER be utilised as "pre-applications" and are not legally binding. The lead form must not be signed by the prospective ABO and a copy must not be left with the prospect. The Lead Form and its use must never appear to commit or obligate the prospect in any manner.
   
7. Prospective ABOs who are residents of non-Amway markets should not be invited to any ABO-sponsored or company-sponsored functions organised in either Amway- or non-Amway markets.
   
8. Showing the Amway Sales Plan, importing, selling Amway produced, or provided products in an unopened market not permitted.


PENALTIES FOR UNAUTHORISED ACTIVITY IN NON-AMWAY MARKETS

PENALTIES MAY INCLUDE ANY ACTION DEEMED APPROPRIATE BY AMWAY. CORRECTIVE ACTIONS MAY RANGE FROM RE-EDUCATION OF AN OFFENDING GROUP AND/OR, DENYING ACCEPTANCE/PROCESSING OF AN APPLICATION IN THE NEW MARKET, AND/OR SUSPENSION TO TERMINATION OF THE VIOLATOR'S BUSINESS. CORRECTIVE ACTION MAY NEGATIVELY IMPACT THE VIOLATOR'S ANNUAL BONUSES, AWARD RECOGNITION AND OTHER REWARDS SUCH AS GIP, NON-CASH AWARDS AND FAA.

1. Complaints of improper activity are to be submitted in writing to the appropriate Sales Department (Business Conduct & Rules and ABO Business Relations) staff for review and handling on a case-by-case basis. Amway may, at its discretion, follow up on any reported activity to make a determination of its accuracy and viability.
   
2. Penalties may include any action deemed appropriate by Amway up to and including denying an application for the new market, suspension or termination. Amway may sanction rewards and recognition derived from unauthorised activities in an unopened market and may prohibit the offending ABOs from entering into new markets.
   
3. In the event of termination action, the appeal rights as granted by the Enforcement Procedures in the Rules of Conduct, Commercial Principles or applicable policies in an Amway affiliate may be invoked by the ABO.
   
4. Platinums are responsible for ensuring that all ABOs in their organisations who are involved in international markets understand these Rules. It is the responsibility of each ABO to abide by this Policy.
   
5. Violators may be required to provide Amway with a mailing list, complete with names and addresses, of all persons solicited/contacted by him or her as prospective ABOs as the result of unauthorised activity.