A casual glance at Amway India web site reveals more than one wanted. It opens with 'Amway we're listening' slogan. It claims many things but the catchy points are 'This is where reams turn into reality' and 'Live the Amway opportunity'. The 'advertisement' prominently displays that 'The Amway sales and marketing plan gets even better'. Better for whom? That is the question one has to ponder.
The 'ad' also claims that the new plan is a low risk, low start-up cost business opportunity that is open to everyone. It also claims that it provides a flexible opportunity to build your business through retailing of products and building a network of other people who are engaged in the same activities.
The 'ad' also illustrates how Amway's sales and marketing plan works. In the example one the IBO has to purchase products worth unspecified amount and the IBO has also presumably two or three friends who are 'interested' in buying products, then the IBO would earn Rs. 3,900 per month. But the 'ad ' did not disclose how much the IBO has to invest to purchase products. The 'ad' also claims that it is easier to find more than two or three customers which would boost the IBO's earnings. What it won't say is that it is nearly impossible to find even one customer. This is the actual experience of many IBOs who joined enthusiastically.
Let us move on to the next example. If the IBO sponsored four persons as IBOs the earnings of the IBO would be Rs. 6,150. Once again the 'ad' would not disclose who much money is needed to invest to earn Rs. 6,150 per month.
In the third example, the IBO has sponsored four other persons and and all the four have sponsored other persons (unspecified number) as their downline IBOs, and it is presumed everyone is buying the same amount of products every month, then the first IBO's earnings would be a whopping 56,500 per month.
What the 'ad' won't tell is what is the entry fee to become IBO and what is the price of starter kit if there is one.
Earning Rs. 56,500 is really a great inducement to become IBO and after joining only the person realizes that it is impossible to sell the products, let alone sponsor downline members. This is what is described by the Supreme Court of India as 'mathematical impossibility' in Kuriachan Chacko case. It also stated in the same case that it must be evident for any discerning mind that this scheme cannot work unless more and more subscribers join. The promoters very well knew that it is certain that the scheme was impracticable and unworkable making tall promises which the makers of the promises knew full well that it could not work successfully. It could work for some time in that "Paul can be robbed to pay Peter" but ultimately when there is a large mass of Peters, they will be left in the lurch without any remedy as they would by then have been deceived and deprived of their money. If it is so, it could be said to be a case for application of Section 420 (cheating) read with 34 (joint liability) of IPC of course at this stage.