Saturday, 1 June 2013

Amway's products prices inflated, says Indian Express report

Amway sells G & H Body Shampoo and G & H Lotion 250 ml through its ABOs (Amway 
Business Owners) for Rs 395 each. Believe it or not, the real prices of these 
products are just Rs 51.49 and Rs 34.19 respectively.

A list of 119 products marketed by Amway, that was seized by the Crime Branch 
Economic Offences Wing, during the raid at the firm’s offices in Kochi recently, 
clearly exposes this. The list comprises the product code, name, real price and 
selling price of products.

“Almost all the products are sold up to ten times more than their original prices. 
It has been revealed that around 49.75 per cent of the price paid by the end 
consumer goes as incentives or commission to ABOs in the up line of the market 
chain. We suggest the public to cross-check the prices of Amway products with 
those of similar products of other companies. In spite of any value addition, the 
products are heavily priced,” said P A Valsan, SP, Economic Offences Wing of the 
Crime Branch.

What’s more surprising is that only a few of the products marketed by Amway are 
brought from abroad. “Most of the products are outsourced from various Indian 
companies including Sarvotham Care and Naiza Laboratories in Himachal Pradesh, 
Soft Gel Health Care, Chennai, Aura Personal Products, Utharanchal, Aero Pharma, 
Mumbai, Fiabila Limited, Raigarh, Avalon Cosmetics, Mumbai and the KLF Nirmal 
coconut oil based at Irinjalakuda. In short, Amway procures products from domestic 
companies and sells them here at six to ten-fold prices,” said DySP P P 
Sadanandan, who has done extensive research into money chain frauds in the 

He is also the investigating officer in the Tycoon Empire money chain case. 
Police said the generation plan being followed by Amway is the most dangerous of 
all the multi-level marketing plans in terms of the percentage of people losing 
money in the scheme. “Anyone can sponsor any number of persons as his direct down 
line. The unlimited facilitation of enrollment and staircase commission structure 
makes the plan arithmetically infeasible.

No comments: