Sunday 5 July 2009

Amway scheme is a scam nevertheless

First it is a lie. Then it is ignorance. What Next? The Swindlers always come out with new epithets.
The writ petition against Amway pointed out that the Amway India is still advertising in the media though the Andhra Pradesh State Government issued an order GOMS No 178 of September 15, 2008, restraining it to do so.
The writ petition also pointed out when a corporate entity is charged with a crime, can it continue the same crime time and again. It also appealed to the Hon'ble AP High Court to direct the government to discharge its duty. Section 7 of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 empowers the police to enter, search and seize on mere suspicion of any money circulation scheme.
Here in this case, the Andhra Pradesh CID has filed a criminal case against Amway India and also filed the charge sheet against it in the Chief Metropolitan Magistrate Court, Nampally, Hyderabad. So, it is clear that the Amway India indeed indulged in the illegal money circulation scheme. Still, if the company continued its activities under the pretext of New Plan, the police should stop the company from indulging in such act. That is exactly what writ petition asked the court.
Delivering the judgment in WP No. 20470 and 20471 of 2006 decided 19-07-2007 {2007 (4) ALT 808 (D.B.)}, the Division Bench of AP High Court in the para No. 49 stated "It is a well settled principle of criminal jurisprudence that no person shall be presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the learned counsel for the petitioners that till the conclusion of the criminal case the police have no power to interfere with the business activities of the petitioners."
This is exactly what the writ petition stated and appealed to the court to interfere in the illegal money circulation scheme of Amway.
Each Amway member has to find at least four members each to support its business. Isn't this a pyramid scheme? Where do they find so many people. The Supreme Court of India in a recent case {Kuriachan Chacko and others (2008) 8 SCC} said that it is mathematically impossible and the scheme organisers have been knowingly inducing people to become members and that attracts the provisions of Section 420 of Indian Penal Code, i.e. cheating.
Let us calculate later the expenditure of purchasing Amway products and how much the members actually earn.

2 comments:

IBOFB said...

Again you you show your ignorance -

Each Amway member has to find at least four members each to support its business. Isn't this a pyramid scheme?

Is this ignorance or lying? I've no idea, you tell me. Each Amway memeber does not "have to find at least four members". That's completely false. Indeed, most Amway members don't do anything at all! If they want to make any money though, what they have to have is people buying and using the products. This can be done through recruiting ZERO people, and simply dealing with personal customers. Or it could be done by recruiting 1, 2, 3, 4 or a thousand people who also help you generate volume.

AFAIK, "pyramid scheme" isn't defined anywhere in Indian law, however in other parts of the world where it is defined, a pyramid scheme is a setup where you get paid for recruiting people into "the scheme", and they also have the same "opportunity". Money is made not by sale of products to end users, but through recruiting.

In contrast, in Amway, how much do you make if you "recruit" 10 million people? ZERO.

In the Kuriachan Chacko case, the only way money could be made was through recruiting people. New recruitment was required to make money. After petitioning by ignorant zealots similar to yourself, Amway UK was taken to court by a government department there. Of it's own violition, Amway suspended all sponsoring for a period of 18 months or so. There was zero recruitment. Nevertheless, millions of pounds of Amway products continued to be bought and sold, and many people continued to earn significant incomes from their Amway businesses.

That would be impossible with a pyramid scheme or money circulation scheme.

The Andhra Pradesh court was correct though - if Amway was operating as you (and others) allege, then it would be illegal. That's why they stated the police should continue their investigation.

The truth of the matter is that Amway doesn't operate that way at all. Why you persist in the fantasy that it does is beyond me, it's really not that difficult to understand.

John said...

A page taken right out of the jornalist handbook. as long as the story seems truthful and sounds like it adds up you will gain readers.

when people post this kind of nonsense when obviously Amway has been here for 50 years through many accusations how can it not get shut down? here is an Idea, It must be a leagal operating business.