Amway is an endless chain my friend

Looking through Amway eyes one may imagine that Amway is not an endless chain. But reality is entirely different. Every IBO is encouraged to enroll more members under him under the notorious 6-4-3 plan of Amway. That means every IBO should enroll six persons who in turn have to enroll four more each and they in turn have to enroll three more each to complete one leg. This is what exactly the Amway has submitted to the Andhra Pradesh High Court in its affidavit. And mind it, all these 101 people are IBOs and they are also supposed to enroll more IBOs to get more commission. That is the inducement. Now tell me how it is endless chain my friend. And where do they find so many people on earth.

One thing is sure. The IBOs tend to look at everything with Amway eyes and say everything is great and normal.

It is very difficult for some to accept an expert as an expert.

These people conveniently keep silence when a pertinent question is asked and it is easy to say that it is all rubbish instead of coming to the point, my friend. What I wonder is why Amway has changed its name as Quixtar in the US?

Honourable people really worry when they face even a single criminal case. For the habitual offenders not even three are sufficient. That is their problem. Hope people understand it.

Let us be truthful and answer a straight question. How many of the 1.5 million Amway distributors in India are actually active? After losing their initial investment of Rs. 4400 they would be staying home licking the wounds.

People should realise the Mathematical impossibility of Amway scheme

It is the 'mathematical impossibility' that the Supreme Court of India recently commented upon while delivering a judgement in a similar case that of Amway. In the historical judgement, the Supreme Court stressed that it is outright cheating people in the name of pyramidical structure business and naturally attracts the provisions of Section 420 of the Indian Penal Code. The Supreme Court pointed out that the organisers of such schemes know well that it is not going to work forever and they also know that the chain is going break soon. Still, they induce the gullible to join the scheme with the promise of easy and quick rich.

The judgement was delivered on September 15, 2008 in a writ petition from the State of Kerala in India.

Referring to the mathematical impossibility, the Supreme Court of India pointed out that joining people in the chain schemes is cheating because the chain is going to break soon and the organisers of such schemes know it well. In the Amway scheme too people have to join 101 people in one leg to complete one chain and at the 13th level the whole population would exhaust and where would they go to recruit more people in the chain.

It is high time, people realised the pitfalls of such schemes and whenever they feel they are cheated they should immediately lodge a complaint with the police. Now if it is Andhra Pradesh it is to file a criminal case against such companies since the DGP issued instructions to all police stations to that effect. If anybody faces problems, they can contact Corporate Frauds Watch for help. They need not worry of filing criminal cases against their friends and relatives who got them joined in the scheme. They could directly face criminal cases against the companies for inducing them with false promises.

Corporate Frauds Watch celebrates first anniversary

It has been since one year the Corporate Frauds Watch started functioning and it has many feathers in its cap to boast of. It has thoroughly exposed the fraudulent activities of dubious companies like Amway, Herbalife, GoldQuest International and some others.

In fact, it is the Corporate Frauds Watch which filed a criminal complaint against GoldQuest International in the State of Andhra Pradesh, India. The disgraced managing director of GoldQuest International Ms Pushpam Appala Naidu was brought to book and put behind bars for cheating several thousands of the gullible all over the country. Bank accounts with several billions of rupees have been frozen. The case is pending in the criminal court and police are preparing chargesheet against the company and its directors and independent representatives.

Days would come soon the independent business owners of Amway would face the same consequences.

The Corporate Frauds Watch has brought pressure on the Andhra Pradesh State Government to issue orders restraining Amway from publishing advertisements in the media. It is a great achievement and people realised dubious activities of Amway.

Then Corporate Frauds Watch prevailed upon the Director General of Police to issue memorandum to the police officers all over the State of Andhra Pradesh to book criminal cases whenever the victims filed cases against companies like Amway which indulged in money circulation schemes in the guise of product sales and services. That is also no less achievement. Now after the memorandum was issued as many as three criminal cases were filed against Amway alone all over Andhra Pradesh. Now the independent business owners of Amway are a worried lot fearing that they might have to face criminal cases soon.

The Corporate Frauds Watch has exposed the money circulation scheme of the biggest private insurance firm Bajaj Allianz and its corporate agent Team Life Care Insurance Ltd by filing a criminal case against it. The companies have secured an interim stay order from the Andhra Pradesh High Court and the Corporate Frauds Watch is representing its client in the High Court.

In spite of the shortage of funds and manpower, the Corporate Frauds Watch has been doing so much work and we are proud of it.

Now we are happy to announce that the Corporate Frauds Watch blog has attracted attention of many all over the world and we assure our admirers that we continue to fight this evil till it is thrown out of country. GoldQuest International has received a death blow and now it is the turn of Amway and Herbalife.

1.5 million Amway distributors doing unauthorised business

Amway claims that it has 1.5 million distributors all over India. However, it never reveals the fact that these distributors have no sales tax registration and they never pay any tax to the Government on the goods they purportedly force rather than sell to the gullible. My learned friend should know that these are not valid sale transactions as they are illegal. In a purchase the consumer should get a receipt in his name for the goods he purchased. Not a single distributor gives receipt and in fact does not 'sell' these products. They only try to force their friends and relatives to take them. And after sometime they face humiliations from their friends and relatives. Still, they are not ashamed of their act. They are trained not to be ashamed of their deeds and moreover they were told to treat their friends or relatives as their enemies if they do not fall in line.

What these distributors do not realise that they are helping a fraudulent company to take away sizeable amount of their earnings. For the ex-factory price of Rs. 16, the Amway distributors are selling Glister toothpaste for Rs. 120. How much amount of that Rs. 120 is pocketed by Amway and how much is going to the downline members? If this question is answered everything will be clear.

More later.

In India one cannot purchase Amway products directly

I am glad my friend responded to allow me to put forward the point. I do not know from which country my 'learned' friend is responding, in India, no one can purchase Amway products without becoming a member and it is a fact. I have personally gone to the distributor point and they refused to sell me the products. They directed me to go to one of the IBOs who harassed me to become a member first so that I can earn a lot of money. Moreover, the IBOs do not give any receipt for the products purchased. What kind of business model is this my friend? One can shut one's eyes and pretend that everything is normal. But the reality is otherwise.

My friend does not answer to the earlier queries about how the Amway is cheating the Government by not paying taxes and illegally sharing the booty. For instance, the Amway is paying the tax to the government on the ex-factory price of Rs. 16 with regard to Glister toothpaste but selling it to people for Rs. 120. Who is sharing the Rs. 104 and what tax they are paying on this amount. This is only an example. There are products of high value and several lakhs of rupees of tax is evaded. Is this the great business model my friend?

In respect to the business model of Amway, my dear friend, the Andhra Pradesh High Court described this business model as illegal and the Supreme Court of India also confirmed it. Criminal cases are pending against this fraudulent company. Still, the company and self-centred IBOs think of lining their pockets without considering the large number of fellow citizens.

Three cheers my friend stop cheating your fellow human beings.

More later about the unethical practices of IBOs and the Amway.

Unjust enrichment model of Amway

Unjust enrichment is one thing no civilised society allows anywhere in the world. That is exactly the area of operation the Amway India Enterprises has undertaken. The modus operandi is simple. Charge the customers for not services they are offered and, lo behold! you are out to make several millions in a jiffy.

If anybody wants to purchase any goods, what is the necessity of becoming a member of that company? But Amway demands membership fee to purchase its products.

The Amway claims that it has 15 lakh members all over the country. It has already collected Rs. 1800 as membership fee from each member. That means 1.5 million X Rs. 1800 = 2.7 billion rupees is the amount the Amway has pocketed since it launched its operations in India. If this is not unjust enrichment, what else is?

Not only the monetary loss people are suffering. Families are collapsing and social relations are destroying due to the strategy of Amway. The Amway brainwashes its members to treat anybody who does not join the scheme as enemy. So a man treats his wife as an enemy if she does not agree to be in Amway business. This is the dangerous part of its operations and that is why Amway should close its operations forever.

So is the case with Herbalife and V-Can Network, ebiz.com, Apple FMCG, RCM and so many other fraudulent companies. It is high time people realised the evil designs of these companies and come out of the dangerous web.

Save happy families from product selling money circulation schemes

It is really pity that people are not realising the pitfalls they are falling in, in the name of multilevel marketing, referral marketing, networking. More than 90 per cent of people who join these schemes have lost their money and surprisingly they blame themselves for their failure instead of learning that the scheme itself is illegal. One may claim that it is providing employment to many but in fact that only a handful of people are being benefited and a sizable number of losing their hard-earned money. Those who line their pocket with people's monies express anguish over the movement against such fraudulent companies.

The other day, I met a housewife at Hyderabad. Her name is Nirmala (name not changed). First she tried to defend the Amway scheme. But after a brief cajole, she spilled the beans. I talked to her into telling the truth, only truth, nothing but truth. She revealed that her family is purchasing Amway products worth Rs. 4, 000 every month but actually receiving Rs. 1,400 only as commission. (Generally, Amway distributors lie that they are earning several thousands of rupees as commission every month). That is a huge loss for a middle class family. She tried to sell the products to the family friends and relatives. Their response has turned to hostile soon and now every one of them when approached is shutting the door on their face. It is that humiliation she cannot digest and she has been trying hard to reason with her husband to leave this 'business' (as if it is a business). But he is not relenting and is insisting that they are going to become millionaires soon. For the last four years they have been into this and for the last two years she is trying in vain to convince her husband to realise the reality. This is the fate of several hundreds and thousands of families across the country. These fraudulent companies are not only wreaking havoc on the economy but also destroying the families. The second one is more dangerous than the first one. My friend Mr Paul (obviously a pseudonym), who commented in this blog, is yet to realise this and I wish he overcomes the awe and lies of Amway and accept the reality.