In the absence of legislation regulating the direct selling industry, some authorities mistakenly believe that direct selling companies are covered under Prize Chits and Money Circulation Schemes (Banning) Act which does not distinguish between genuine direct selling companies like Amway India and illegal pyramid schemes.
Therefore the PCMCS Act passed in 1978, needs to be amended since the direct selling industry entered India in the early 90s.
Amway costs nothing to join with no need to purchase a starter kit and commissions are paid only on sale of products and not on merely recruiting people, unlike illegitimate pyramid schemes.
Further, all Amway products have money back guarantee and are returnable within 30 days of purchase. Illegitimate pyramid schemes have no such offers.
The article is misleading on Special Leave petition being dismissed by Supreme Court since it fails to mention that Supreme Court directed the Andhra Pradesh police to complete their investigation “uninfluenced by any observation made by the High Court.” The Police have filed their report and the matter is pending trial in the Metropolitan Magistrate court.
Contrary to Dr Gladstone article, Amway is not a listed entity in US but operates using the direct selling model with very stringent direct selling and consumer protection regulations in the USA, UK, Malaysia, Singapore, etc. The company maintains highest levels of probity, corporate governance and consumer protection standards. In India, we comply with Companies Law Act regulations. Our turnover and profits are documented with the government.
Amway is a 55 year old, US $ 11 billion, manufacturer and direct seller operating in over 108 countries with over 1000 patents and another 900 pending. The company offers over 140 quality products in India of which Nutrilite is the world’s No. 1 selling vitamins and dietary supplement. Over 700 scientists across 65 research centres, work globally on inventions and discoveries for Amway’s brands.
(The writer is the National Head – Corporate Communications & CSR, Amway India)
