Sunday, 15 November 2009

Apple FMCG cheated people like Amway is doing

Here is the another instalment of the Madras High Court judgment.

"The Apple FMCG in its petition submitted that earlier 45 per cent of the sale amount was distributed as commission but presently it is increased to 65 per cent of the sale price. That means the goods which are worth only Rs.35 are sold at Rs. 100 and this Rs. 35 covers not only the price of the goods, but also expenditure involves for the administration of the company. Of course, the court cannot interfere with the fixation of the price. Anybody is free to fix any price and it is for the customers to accept or not. ut, it is not an ordinary sale of goods. The persons are lured to become a distributor only on the hope or expectation that he may get more money by e\way of commission if he sells the products similarly toothers. Of course, manypersons are earning lot of commission inthis manner. This chain is likely to progress for sometime. At one point of time the progress of the chain will stop. On that day persons who buy the product may not find any further distributor to purchase from them. By the time, the company would have earned enormous profit. But a very large number of persons would be left cheated."
This is enough, it seems, to liken the business scheme of Apple FMCG with that of Amway to showcase how the latter is cheating the people all over world.


IBOFB said...

I have read the judgement, and it seems to declare the entire system of product distribution in a capitalistic society to be illegal.

Which would be amusing if it wasn't so shockingly ignorant.

Shyam Sundar said...

IBOFB, you showed once again your allegiance to Amway. Accept reality, youngman. Continuous denial does serve no purpose. Anyway, how can anybody expect some rational thinking from a hardcore Amway adherent.

Legal Scan said...

Not surprisingly, IBOFB is silent over the sharing of 65 per cent of the sale price by the members which means the product cost is only 35 per cent. If it is not outright cheating, the IBOFB should disclose how it is beneficial to the retail purchaser. Thus the retail purchaser is now induced to become a member so that the chain could continue. And the chain would break at some point of time. That is why it is called money circulation scheme and illegal. These crooks call the intelligent and wise judges 'shockingly ignorant'. If this is not arrogant what else is?