Amway (ie)

What is Direct Selling?

Direct Selling is the marketing of products and services directly to consumers in a person to person manner, generally in their homes or the homes of others or other places away from permanent retail locations. Direct sales typically occur through explanation or demonstration by salespersons normally referred to as Direct Sellers. (Source:  Federation of European Direct Selling Associations)

In 2007 Direct Selling generated an annual turnover of close to 111 billion US $ worldwide. (source: WFDSA , international statistics - 2008)

Advantages of Direct Selling

Direct selling provides a customer with an opportunity to study the product in detail, to test it and form his/her own opinion about it in a convenient place and in a convenient time. All products are delivered directly to the consumer.

Direct Sellers have an opportunity to establish their own business, acquire new knowledge, as well as develop some business management skills. Direct Selling is flexible, so the hours, skill and effort devoted can be tailored to meet individual needs. The amount earned depends on the time, effort and energy that they put in.

Amway and the Direct Selling Associations (DSAs)

Amway’s international reputation is reflected in the membership of its local companies in national DSAs around the world, including the Amway (UK) Ltd’s membership in the United Kingdom Direct Selling Association (UK DSA) and the Direct Selling Association Ireland (DSAI), which provides every ABO with a further means of reassurance.

DSA Code of Practice 

European Direct Selling Codes of Practice, including the Codes of Conduct of the UKDSA and DSAI are based on the World Federation of Direct Selling Association’s code, and modelling the European Codes on the WFDSA principles has proved to be invaluable in gaining recognition for the industry. 

The UK DSA and DSAI Codes of Practice, to which Amway adheres in its business practices,  provides among other things that Member Companies shall:

a. Ensure that their sales people clearly identify the company and the products they sell and act with integrity in their sales presentations.  Amway requires its ABOs to clearly state that they are Amway Business Owners, and that a presentation or a meeting will be about Amway’s Products and/or the Amway Business Opportunity.

b. Offer Clients a 14 day cooling off period (from the date of order or registration as an ABO) in which any order or registrations may be cancelled and any deposit refunded.  This is otherwise known as a “right of withdrawal”.  Amway goes beyond these requirements and the requirements of other consumer protection legislation for the industry.  The Amway Customer Satisfaction Guarantee and its Buy-Back Policy for ABOs provides further protection for both ABOs and customers.

c. Comply with the judgement of the DSA’s independent Code Administrator in respect to any consumer complaint.

Legitimate Direct Selling vs. Illegal Pyramid Schemes

‘Pyramid schemes’ are fraudulent and dangerous consumer traps. Unfortunately, their existence can harm the reputation of companies such as Amway. Unlike legitimate Direct Selling, illegal pyramid schemes lure people into investing in seemingly lucrative schemes with the promise of easily earned riches, but the schemes generally do not deliver on the promises and ultimately collapse with participants who enter later losing most if not all of the money they have invested in the scheme.

What are ‘pyramid schemes’?

Typically, pyramid schemes are based on the principle that those people joining at the bottom of the pyramidal structure are obliged to pay a sum of money to be able to join, and this sum is distributed among those at the top. In order for an individual to recuperate the often considerable, initial investment and make a profit, a large number of new participants, each making an initial investment, is required. Eventually the numbers required to maintain the ’growth’ becomes impossible to achieve and the pyramid collapses.

The promoters of illegal pyramid schemes seek to give them the appearance of a legitimate direct selling business – often including some product element in the scheme to create the illusion that money is made through the sale of products, rather than through the introduction of new investors. For example, to join an illegal pyramid (selling) scheme, individuals may be obliged to buy a heavy amount of products which often cannot be resold. 

Pyramid schemes, including those which disguise themselves as selling models, are illegal in most countries in Europe. Amway supports the introduction, at the European level, of consumer safeguards against illegal pyramid schemes.