Tuesday, 26 February 2013

Amway India faces rough weather at National Consumer Commission

The month of February, it seems, is a very bad month for Amway. On February 20th, Amway India faced very embarrassing situation in the Circuit Bench of National Consumer Disputes Redressal Commission at Hyderabad.
Let us recall the background to the consumer case against Amway India.
Vijayawada-based Consumers' Guidance Society collected data about the products being marked by Amway India its its dubious business model. The Society found out that the Andhra Pradesh State Food Laboratory tested the products of Amway India but never publicised the details of its findings.
The Society using the weapon of Right to Information Act obtained the information regarding the product analysis of Amway India.
Finally, the Andhra Pradesh State Food Laboratory was compelled to release its findings on the products of Amway India. In a shocking revelation, it was found that many of Amway products were adulterated, misbranded.
Armed with the report of Andhra Pradesh State Food Laboratory, Consumers' Guidance Society filed a consumer case in the Vijayawada Consumer Forum. After hearing arguments of both the parties, the Consumers Forum at Vijayawada ordered payment of Rs. one lakh in fine and withdraw the products from the market.
The Amway India preferred an appeal in the State Consumer Redressal Forum at Hyderabad. The State Forum also confirmed the district forum's judgement.
Then Amway India appealed in the National Forum at New Delhi. As Consumers' Guidance Society is a public-spirited organisation, the Amway India was ordered to pay the expenses to secretary Dr Ch Divakar Babu and joint secretary Shyam Sundar to travel to Delhi.
The National Commission admitted the petition and the next hearing had fallen on February 20th. However, the National Commission held its circuit bench at Hyderabad on February 20th giving the Consumers' Guidance Society a chance to place its arguments before the National Commission.
The counsel for Amway India tried in vain to establish that the products of Amway India were very good and the report of State Food Laboratory was not reliable.
However, Secretary of Consumers' Guidance Society Dr Divakar Babu pulled out its armour the High Court judgement which dismissed the plea of Amway India regarding the products issue and the Supreme Court also dismissed its special leave petition. The copies of the judgments were presented to the National Commission.
The counsel for  Amway India changed the arguments immediately and appealed to the National Commission to refer the matter to the larger bench of the National Commission.
However, since the Society is public-spirited, the Amway :India was ordered to pay expenses to the forthcoming visit to Delhi to present its arguments in the National Commission.
Had the counsel not put forward the plea for the larger bench to hear the matter, the National Commission would have dismissed it.
Anyway, we look forward to present the case in the National Commission on the next date.


raghubere said...

Good job sir, pls note that amway is selling insurance products of max newyork (in the name of amsure),selling ins by person who doesnt hold a valid licence is against law, here they may say that the amway india is the corporate agent and all its distributors are lead generators and thus the source of policies may be legal, but in this type of selling the the policies are missold or may be bought in exxageration, ofcourse TLC was also doing the same thing.

Shyam Sundar said...

Raghu, Max New York Life Insurance is also the member of Indian Direct Selling Association. I have already filed a criminal case against TLC and Bajaj Allianz Life Insurance for indulging in illegal sale of life insurance policies under multilevel marketing model and they filed a writ petition in the AP High Court. But I could successfully filed the criminal case after a victim approached me.
If we could find a victim who could complain against Amsure, one more criminal case could be filed against the fraudulent company.

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Trying to understand what does "misbranded" mean in the article?

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