In spite the feigned innocence of the Independent Business Owners of Amway, there would be no business at all without enrollment. Some IBOs put forward an absurd argument that enrollment would result in losing their business. If they enroll more members each member would purchase compulsorily products worth Rs. 2000 to maintain minimum PV. That way, the sponsor would also get additional income on downline member's turnover.
An IBO would never earn Rs. 62, 150 unless he ensures there are 102 members his downline. That is what the sales and marketing plan of Amway India clearly states in its website. And among these 102 members, everyone would be on hot pursuit of enrolling more members to achieve that income. That is why it is called a vicious circle. They would be chasing the mirage to quench their thirst.
When it is a clear case of cheating under Section 420 of IPC and attracts the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978, (PCMC Act) these crooks pretend that it is a direct selling and wants a separate legislation to legalise the nefarious business activities.
Indians are fortunate that there is a powerful legislation like PCMC Act, 1978 to file criminal cases against this type of fraudulent companies. However, few people are coming forward to file complaints with the police.
Let us look at the reasons for their inaction. Firstly, they are introduced into these schemes by their own friends and relatives which deters them from complaining against their sponsors. However, they never trust them again in their life time. Secondly, the victims are discouraged due to the attitude of the police when they go to them to lodge complaints. This aspect is addressed as far as Andhra Pradesh is concerned. Thirdly, many people resign that it is their fate they lost money in a business transaction. They never realise that it is not a business at all but a fraud. Fourthly and very importantly, these people are not aware that it is a crime to join and make others join in such schemes. They never join such schemes if they know that it is a crime. Out of ignorance of the law and the propaganda that it is a good business opportunity by these unscrupulous crooks, they join such schemes. Moreover, these crooks keep on saying that it is his fault that he could not bring in more people, otherwise it would be a wonderful business opportunity. This is nothing but blame-the-victim policy. A friend of mine who has been an advocate for three decades confided that he was not aware of the law, otherwise he would have never joined in such schemes. How could anybody expect the common man to be aware of the law, when a senior advocate is not aware of it?
These are the basic reasons behind the flourishing of these crooks all over world.
My dear fellow humans all over world! Do not fall for the sweet talk of these crooks. You may end up losing your hard-earned money as well as the relations with your own people. Beware of these crooks!