Easy/quick money Amway India style

The Andhra Pradesh High Court further points out how the easy/quick money is made by Amway India Enterprises.

Under the head easy/quick money and it being dependent on enrollment of members the judgment says the following points.

a) A substantial sum of Rs. 1800 out of Rs. 4400 is credited direct to the account of Amway. It is stated on behalf of the company in the Writ Petition that it enrolled 4,50,000 distributors all over India. Taking this as correct, a sum of Rs. 81 crore is appropriated by the company at the time of enrollment of the members itself.This cannot but be stated 'easy/quick money' got by it from the so called distributors/member de hors any service.

b) The terms and conditions of 'Distribution Renewal form' supplied by Amway shows as Annexure-3 read as follows:

Condition No. 3: "The distributorship agreement if not renewed by Amway shall stand terminated on December 31 or on expiry of one year from the date of distributorship, as the case may be."

Condition No12: "The Renewal of subscription fee including Block Renewal subscription fee is non-refundable."

Condition 14: Renewal of subscription fee is mandatory to continue with business and maintain your position in line of sponsorship."

Thus from 4,50,000 distributors the company would get a sum of Rs. 45 crore (4,50,000x995) per annum on completion of every year which can only be stated to be "easy/quick money" sans any service to the distributors/members.

c) To enable him to get the so called commission @ 3 per cent every month, the IBO has to distribute/purchase/sell products worth Rs. 2,000 of Amway every month or else he will not be eligible to get any commission or continue as member in the scheme. Thus each member is forced/induced/lured to purchase the products worth Rs. 2,000 every month to keep his chance of getting commission alive. Thus, "Amway" would automatically get a business of the quantum of Rs. 1080 crore (4,50,000x2,000x12 months) per annum which would yield an astronomical profit and it cannot but be stated as easy/quick money without any service to the distributors/members irrespective of whether they sell the products or not, though the company may conveniently refer it as 'turnover by sale of products'.

Is this sufficient for Amway apologists to get a slap in the face? Shame on these people to continue in the business. After all, swindlers are never ashamed of their activities. They are 'proud' of swindling.

Let us explore more in the next instalment.