Friday, 19 November 2010

Sikkim police warn people of Amway India

For the benefit of the new readers of our BLOG, the notice of the crime branch of Sikkim State Government, Indian Union, warning people about the imminent danger of joining money circulation schemes in general and Amway India in particular is reproduced.

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R.O. NO. 735/IPR/PUB/07-08 (I) Dt. 4/2/08.

Crime Branch

State Police Headquarter Department

Gangtok

NOTICE

It is notified for the information of the public in General that the Amway India Enterprises started their business operation in India in May, 1998. It deals with various consumer goods like tooth paste, soaps and other products like Nutralites etc. These products are camouflaged to cover up their money circulation schemes. This company is into the recruitment of members and the sale of products is only incidental to the main activity of recruitment and payment of commission. Through a promise of quick and easy money this company has succeeded in duping the gullible public in India. The activities of this company are akin to money circulation schemes, which in India are expressedly banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

In the year 2006, a case was registered against Amway and its distributors by CID/Andhra Pradesh on a specific complaint on 24/09/06 vide Crl. Case No. 10/2006 U/S 385/420 IPC and Section 4, 5 & 6 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

The Division Bench of High Court of Andhra Pradesh vide order dated 19/07/2007, delivered a landmark and path breaking judgment holding that the scheme of Amway India Enterprises is nothing but money circulation scheme. Later, Amway challenged the High Court order through Special Leave Petition in the Apex Court of India, which was dismissed on 14/08/2007 by the Supreme Court.

As discovered by CID, E.O.W. (Economic Offences Wing) Andhra Pradesh, Amway India Enterprises is a founder member of Indian direct selling association (IDSA) which is an association of different companies having similar modus operandi purportedly multilevel marketing just as the Amway Scheme. All these companies viz. Avon Beauty Products, Tupperware, Modicare, Oriflame India etc. including Amway India Enterprises are carrying on the business thereby violating the provision of Section 2(C) of Prize Chits and Money Circulation Scheme (Banning) Act, 1978. This view was endorsed by the Apex Court in dismissing against Amway special leave petition.

Thus, the business being carried out and carried on by the above companies by misleading/misguiding the innocent people have appeared to be illegal in the eyes of the law of the land and hence adequate publicity is given to the public in General for their awareness.

Sr. Superintendent of Police

Crime Branch, CID,

Gangtok.

R.O. NO. 729/IPR/PUB/07-08(III) Dt. 5/2/08

22 comments:

IBOFB said...

Shyam, could you translate that date for me? It reads to me as being from nearly 3 years ago, but clearly you wouldn't be wasting your readers time on something so outdated would you?

Oh but wait ... you posted the same thing this time last year, 2009

Ahh ... but maybe I'm mistaken ... could it be??? .... nooo ... not possible! .... here it is again, virtually the same post in 2008!

So what's been happening in say ... 2010, Shyam? I guess Amway posts 27% growth in north-east just isn't the kind of news you're interested in?

Shyam Sundar said...

It is proved once again you don't read anything properly IBOFB. It is prominently written 'reproduced'.
What do you want prove?
Claims! Tall claims! You claim that that turnover has gone up by 27%. But sadly the number of subscribers has remained at 4.5 lakh from 2007. LoL

IBOFB said...

Shyam,

You claim that money is made by recruiting people, which should mean if the number of "subscribers" has remained constant, the turnover must have remained constant.

How do you explain this discrepancy?

IBOFB said...

Oh, and btw, we already know from your inability to understand the Amway brochure that your english isn't the best, but even your first post on this topic was "reproduced" as you were reproducing the notification.

"republished" might be a better term to use, but even then it's not clear.

What is clear is that you are so desperate to attack amway that you are republishing things that are years outdated.

rocket said...

What's also clear is that David Steadson AKA IBOFB is so desperate to defend Amway that he's dishonest about it and pretends rules don't exist.

You have a sad existence, Dave.

Shyam Sundar said...

It is once again proved that you cannot comprehend simple English. I have written that you are claiming 27 per cent increase. A claim may not be true. Amway India is notorious for claiming many things. It claims that the IBOs could earn Rs. 62,500 on recruiting 102 persons downline. Is it true? IF it is true, then it is a pyramid scheme. If not, it is only a claim.

Shyam Sundar said...

The claim IBOFB has shown is made by Amway India in a press meet. Generally, the journalists are carried away by the statements made by the company officials. No journalist ever cross checks whether the statement is true or not. They just believe and file the news.

IBOFB said...

Shyam, why is it you believe Amway's published number of IBOs is truthful and accurate, but numbers they supply on sales is not?

If they're lying (and I'd note that in a number of countries they are publicly listed) then why not lie about both?

Shyam Sundar said...

That is exactly my question. Why? Yet you did not mention anything about 6-4-3 model which earns Rs. 62,500 on recruiting 102 persons downline.Is it true? If it is true, it is a pyramid scheme.

IBOFB said...

No it's not true Shyam. You've already had it explained to you, but you have decided you wish to remain ignorant.

rocket said...

Once you are able to comprehend a retail sales rule, you could then be taken seriously Steadson.

Until then, you're just sayin' stuff.

And none of it means anything to anyone but you.

Joecool said...

In a system (which are many) that still teaches "buy from yourself", the only way to make a profit is a continuous and endless chain of recruiting. What is the emphasis of most business building IBOs? Righto, sponsoring downline.

IBOFB said...

Rocket, as well as a coward you're a @£$%& idiot. Just sayin. I've said it before, but here it is again. Amway's retail sale rule (which I full well understand and have pointed out many times does NOT include downline volume) has NOTHING to do with whether a sale is legally considered a retail sale or not.

Simple way of checking - ask yourself if sales tax is payable on the transaction. If yes, it's a retail sale.

@JoeCool continues to spread myths. If we ignore the Amway retail sales rule, which he has chosen to do, and take an IBO who "recruits" other IBOs, all of whom simply buy at a discount and have no interest in earning money. If (again, retail sales rule aside) that generates more than 150PV for the originating IBO, then he will earn a bonus. If in following months the same thing happes with no recruiting at all that IBO will continue to earn a bonus.

Got that Shyam, JoeCool? The IBO will continue to make money without anyone recruiting anybody!

Shyam would have us believe this simply doesn't happen. A cursory understanding of the Amway business model shows this is exactly what happens. Why? Because bonuses are based on product sales, not on recruiting.

Shyam Sundar said...

By holding out attractive commission on the business turned out by the downline members, the scheme provides for sufficient inducements for its members to chase for the new members in their hot pursuit to make quick/easy money.
Even though the scheme per se does not stipulate that each distributor has to maintain the minimum required business level, prescription of minimum level of 50 PV to qualify for getting commission is sufficient inducement for the members to relentlessly strive for maintaining the PV level at or above the said minimum levels.
This is nothing but money circulation scheme. What is there not to understand unless you close your eyes and think everything is fine?

Joecool said...

Again, IBOFB trying to get technical and ignore the reality. What is the emphasis of open meetings? It sure isn't to get people to sell Amway stuff. It's to recruit downline. For the groups (many or most) who teach "buy from yourself", the only way to make more than $10 a month is to recruit downline and plenty of them, all of whom will duplicate what you do. That's the reality but IBOFB has drank too much kool aid and cannot understand the reailty.

IBOFB said...

Shyam, how do you reconcile the claim that -

"prescription of minimum level of 50 PV to qualify for getting commission is sufficient inducement for the members to relentlessly strive for maintaining the PV level at or above the said minimum levels."

with the indisputable reality that the vast vast majority of members do not do this?

The real life evidence does not support the claim. Why do you so passionately believe in something when the evidence so clearly shows it to be wrong?

Joecool said...

The evidence is crystal clear that in the buy from yourself model, you can't make any serious money without adding many many downlines. It is why there are recruitment meetings going on all the time.

rocket said...

Haa!

"Why do you so passionately believe in something when the evidence so clearly shows it to be wrong?"

Right back atcha about Amway in General Steadson, you twit. Took you long enough to come up with something to say.

Retail sales are critical in business. The fact that you don't acknowledge this and make excuses for yourself and others who operate cinbtrary to this tells everyone all they need to know about your business acumen.

I know what you're saying, but you know what I'm saying too. My perspective isn't as hard to explain as yours.

The reason for that is because I am foolishly relying on common sense.

Try it sometime!

I won't resort to name calling. I don't need to.

Everyone knows you're an arrogant braying jackass.

Joecool said...

Rocket, spot on. It's clear to most people that Amway just is not a good opportunity. When more than 99% of people fail at it, how can it be labeled as a viable opportunity.

IBOFB makes a feeble claim that not enough people follow the system properly, but that is hogwash. Even people who religiously follow the system still end up with miserable results.

The evidence is there that most IBOs do not sell enough items to even cover the cost of their monthly voicemail subcription.

Despite the overwhelming evidence that the Amway opportunity doesn't work, IBOFB ignores the evidence and promotes Amway, an opportunity that even IBOFB is apparently not able to make work for him.

pawan kanojia said...

I PERSONALLY BLIVE THAT....AMWAY IS A GOOD OPPORTUNITY FOR ALL PEOPLE WITH THE COMBINATION OF BRIT WORLD WIDE EDUCATION SYSTEM ...THROUGH THIS WE CAN CHANGE OUR LIFE.....I DON'T KNOW WAT PEOPLE THINK ABOUT IT...BUT CHANGE ME A LOT INTERNALLY OR EXTERNALLY.....EDUCATION SYSTEM TEACH US ABOUT A GOOD RELATION WITH OUR FAMILY AND SOCIET...AND ITS PRODUCTS ARE TOXIC FREE....WICH IS GOOD FOR OUR ENVIRONMENT

pawan kanojia said...

JUST THINK....22 BILLIONAIRE OUT OF HUNDRED COMING FROM AMWAY...SO WAT WRONG IN IT

Shyam Sundar said...

Ninety nine per cent of IBOs are dropped every year. It is a racket. The highest judiciary in the country held that the business model of Amway is illegal. What else do you want?