Sunday, 12 September 2010

Amway shows more earnings to induce more persons into the scheme

Suddenly, Amway India has revised the earnings of the IBO who enroll four other persons and these four persons enroll other persons (number not specified). In its latest advertisement on its website, Amway India shows the monthly earnings of the first IBO at Rs. 62, 150. Earlier, it was only Rs. 56, 500.
Earlier, the retail profit margin on the IBO's personal business was Rs. 10,000. Now it is shown as Rs. 11,000. Likewise, the net commission earned by the IBO was Rs. 46,500 and now it is Rs. 51, 150. Also, the total group commission was Rs. 1,05, 000 and now it is Rs. 1,15,500. Earlier, the total turnover was shown as 5,00,000 BV and now it is shown as 5,50,000 BV. With this jugglery of numbers they are showing more earnings to the IBOs.
It is nothing but to induce new members to join the scheme by showing more earnings.
Its business kit is now available at Rs. 995 of course without any products. Amway is offering an all products handbook, a set of two CDs giving information on all the business aspects, and a product CD. Presumably, this covers the subscription fee as these CDs and book would not cost Rs. 995. The advertisement is silent over the renewal fee but that might come later.
The advertisement also states that to start the Amway business one needs to buy the business kit and be sponsored by an already existing Amway business owner. In essence, this is the enrollment which was explicitly banned by the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.


dtytrivedi said...

dear shyam,

Have you seen the definition of pyramid scheme made by

3.Chinese Prohibition of Chinese Pyramid selling Regulations
4.Australian Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010

The list is very big. I think you should go through it.

And then refer to Prize Chits and Money Circulation Scheme (Banning) Act,1978

I am sure you understand English as you accuse others of not understanding plain English. Let us see what you understand.

Shyam Sundar said...

I live in India and I am concerned with Indian laws only. Under the PCMC Act, the Amway India's business model is illegal and it is proved in the Andhra Pradesh High Court. Mind it, PCMC Act is an all India enactment.

dtytrivedi said...

I Feel very sorry for you. Here I am showing some few examples where these developed countries have made changes in their legislation by adding definition of pyramid scheme and you are saying that you are only concerned with Indian laws.

That is why IDSA is lobbying with Indian government to introduce a law.

The real problem is vagueness of Indian law when it comes to defining pyramid scheme in Prize Chits and Money Circulation Scheme (Banning) Act,1978.

I am quite sure that if people like you are more in Numbers that there Indian law would be way behind.

If cyber crime introduced cyber laws then why not in this case.

Shyam Sundar said...

Really I pity you. There is no proof that you are striking it rich in the 'great business opportunity' after all these years. Still, you hang around in the belief that you are going to become rich in near future. People like you are only making the criminals richer. You never realise your real situation. What can I else do other than pitying you?

dtytrivedi said...

if it was the case then why are u not considering the laws of other countries.

Remember shyam that birth of direct selling didn't took place in India.

Direct selling was prevailing in many countries before it came to India.

Many countries have much lower crime rates then our country has. So when you speak of criminals think twice atleast. You are saying as if India is only concerned regarding pyramid and money circulation schemes.

One country can be wrong but you cannot neglect majority of developed economies where there is a separate law for mlm and pyramid scheme.

Shyam Sundar said...

So far as India is concerned there is no proof that people are making money in MLM schemes. There are a sizable number of losers and it is the companies which have been striking it rich.
India is a wiser country than other countries and that is why it has introduced a wonderful enactment called Prize Chits & Money Circulation Schemes (Banning) Act, 1978. There is no pointing in making a separate enactment for direct selling which is nothing but cheating. Open your eyes Trivedi. Come to reality. They are only cheating gullible people like you. You are blindly believing whatever they fed you. That is why I pity you.

dtytrivedi said...

i am amazed by your response, the countries like Singapore where The original Multi-Level Marketing and Pyramid Selling (Prohibition) Act was first passed in 1973. In June 2000, Parliament approved an amendment to the Act to widen the definition of pyramid selling to catch all business schemes that were multi-level in nature.

And here shyam Says that Prize Chits and Money Circulation Scheme (Banning) Act,1978 of India is full proof, woww.....

clearly I can see your level of your understanding.

Simply by saying that 'India is a wiser country than other countries' with no base to the arguement does not make Prize Chits and Money Circulation Scheme (Banning) Act,1978 full proof.

Shyam its time to look around...

You have already demonstrated your knowledge by saying India is better than the other countries in this case.

Legal Scan said...

Not only India wiser country, it has been established that our judiciary is more matured.

dtytrivedi said...

ok then I am asking you both do you any information regarding any investigation conducted which makes conclusion which shyam made
"So far as India is concerned there is no proof that people are making money in MLM schemes".

Well in case of Europe Consumer affairs There is a Study which has been produced by an outside contractor for the Directorate General for Health and Consumer Protection and represents the contractors views on the matter.

Is there any document prepared by any higher authority which makes conclusion.
"o far as India is concerned there is no proof that people are making money in MLM schemes. There are a sizable number of losers and it is the companies which have been striking it rich. "

Legal Scan said...

Just read the latest judgement of the Supreme Court of India about the pyramid schemes.