Tuesday, 5 April 2011

Amway apologists conveniently ignore the latter letter by Consumer Affairs Secretary

Often Amway apologists quote the letter written by secretary, consumer affairs, Government of India which is blatantly misused.
 They conveniently or out of ignorance never mention the follow up letter written by the same department on 23-09-2003. It is herewith being produced verbatim for the convenient of our free-thinking readers as well as ignorant or cunning members of MLM companies.

F.No. 21/(22)/IT/2001
Government of India
Ministry of Consumer Affairs, Food & Public Distribution
Dept of Consumer Affairs

Shastri Bhavan, New Delhi
Dated 23.09.2003
Ms. Sunitha Kalla,
 Dy Director General & Joint Secretary
Ministry of Finance, Dept of Revenue,
Central Economic Intelligence Bureau
6th Floor, B Wing Janpath Bhavan
Janpath, New Delhi

    Subject:  Applicability of the Provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978  to pyramid marketing structure/schemes - Regarding.
      I am directed to refer to your D.O. Letter No. 301/15/200-CEIB (Pt-II) dated 22nd September 2003 addressed to Shri Wajahat Habibullah, Secretary (Consumer Affairs) on the subject mentioned above and to say that this department was considering the issue of direct selling/network/multi-level marketing as an alternative form of marketing of goods and the entire issue was looked from that angle. However, subsequent feed back/response have showed that companies using pyramid structured marketing techniques too sell their products putting forth their schemes based on the clarification issued vide D.O. letter of even no dated th 31st March, 2003 claiming that their activities also do not fall within the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. It is clarified that this Department's clarification of even number dated 31st March, 2003 does not cover pyramid structured marketing schemes. That area also does not fall within the purview of this Department.

This is issued with the approval of Secretary (CA).

Yours faithfully
Alice Chacko
Under Secretary of Govt of India

Copy to : Chief Secretaries of all States and Union Territories.

The letter of Consumer Secretary was annulled by this letter on the reference of Central Economic Intelligence Bureau, Government of India. 
Still, the nameless and faceless Developmentfuture refer the same annulled letter. Probably, he was misguided by his bosses. 

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