Save happy families from product selling money circulation schemes

It is really pity that people are not realising the pitfalls they are falling in, in the name of multilevel marketing, referral marketing, networking. More than 90 per cent of people who join these schemes have lost their money and surprisingly they blame themselves for their failure instead of learning that the scheme itself is illegal. One may claim that it is providing employment to many but in fact that only a handful of people are being benefited and a sizable number of losing their hard-earned money. Those who line their pocket with people's monies express anguish over the movement against such fraudulent companies.

The other day, I met a housewife at Hyderabad. Her name is Nirmala (name not changed). First she tried to defend the Amway scheme. But after a brief cajole, she spilled the beans. I talked to her into telling the truth, only truth, nothing but truth. She revealed that her family is purchasing Amway products worth Rs. 4, 000 every month but actually receiving Rs. 1,400 only as commission. (Generally, Amway distributors lie that they are earning several thousands of rupees as commission every month). That is a huge loss for a middle class family. She tried to sell the products to the family friends and relatives. Their response has turned to hostile soon and now every one of them when approached is shutting the door on their face. It is that humiliation she cannot digest and she has been trying hard to reason with her husband to leave this 'business' (as if it is a business). But he is not relenting and is insisting that they are going to become millionaires soon. For the last four years they have been into this and for the last two years she is trying in vain to convince her husband to realise the reality. This is the fate of several hundreds and thousands of families across the country. These fraudulent companies are not only wreaking havoc on the economy but also destroying the families. The second one is more dangerous than the first one. My friend Mr Paul (obviously a pseudonym), who commented in this blog, is yet to realise this and I wish he overcomes the awe and lies of Amway and accept the reality.

Beware! Amway to hire one lakh more victims all over India

Amway India Enterprises's managing director and CEO William S Pinckney at a media meet at Chennai announced that AmwayIndia Enterprises is going to add one lakh more distributors to its large fleet of 15 lakh distributors. However, he fails to mentions how many of the 15 lakh distributors are active and actually doing business. The statistics say that many of them stopped purchasing products after burning their fingers without realising that the fault lies in the business model of the Amway. The self-styled FMCG giant claims that it has a turnover of Rs. 1,218 crore in 2007-08 and hopes to increase its business volume by 25 per cent this fiscal.

One can infer that it is on an aggressive promotion of its cheating business of money circulation scheme in the guise of product sales. It claims that it is direct selling and no one can go to any of its distribution points and purchase good directly from there.

William Pinckney also fails to mention that three more criminal cases were filed against Amway India Enterprises in Andhra Pradesh. And they are on a panickey mood on how to contain these criminal cases. The company did not clarify why it is not pursuing to face the criminal cases in the court of law. Probably, it is afraid that the verdict would come against them once again like in the Andhra Pradesh High Court and the Supreme Court of India.

One more criminal case against Amway at Vijayawada

The Governorpet police of Vijayawada city filed a criminal case against Amway India Enterprises following a judicial court order on Friday i.e. 13-02-2009. It is the third criminal case against Amway India Enterprises. However, there is another criminal case filed against the company's distributors at Nacharam Police station in Hyderabad.

The Amway has been marketing its products in a multilevel marketing system which in fact is a money circulation scheme and the Andhra Pradesh High Court already confirmed to that effect after a lengthy hearing on Writ petition filed by Amway India Enterprises. Even after the High Court judgment and criminal case pending in a court of law against its scheme, the Amway India has been blatantly conducting its operations through its distribution points through out India. Its independent business owners have still been inducing the gullible with huge profits if they enrol more members into the scheme.

In the instant case, the doctor against whom the criminal case was booked, has been prescribing Amway products to his patients without feeling any guilty. Some IBOs even mentioned in this BLOG sometime back that it is unethical on the part of the doctor to sell products to the patients.

Criminal case filed against Amway at Chikkadapally police station

After a long gap, a criminal case was filed against Amway India Enterprises by the Chikkadapally police station on February 12. One Mr Srinivasa Reddy of Chikkadapally lodged a complaint with the police about the fraudulent modus operandi of Amway India Enterprises after an attempt was made on him to become the member of a money circulation scheme being run by Amway India Enterprises in the guise of sale of products. But the police refused to register the case stating that they were busy with so many crimes. The aggrieved Mr Reddy approached the Nampally Chief Metropolitan Magistrate who issued orders directing the police to register the case and proceed with investigation.

This is only the second case against Amway India Enterprises being the first one registered against the company way back in 2005. The criminal case is still pending in the Nampally Chief Metropolitan Magistrate court. Meanwhile, the Andhra Pradesh State Government issued orders on September 15, 2008 restraining Amway India Enterprises from publishing any advertisement in any media. Still, the Amway India is continuing their advertisement blitzkreig. Now another case is booked against the company.

One has to wait and watch what would now the company do.