Sunday 7 August 2011

Police shut down Amway India all over Kerala

Kerala police conducted raids on the nine premises of Amway India in Kerala following criminal cases against the multilevel marketing company filed by several persons at three places - Kannur, Wynad and Thrissur.
Police conducted raids on the premises of Amway India at Thirvunanthapuram, Kollam, Kottaaym, Kochi, Kozhicode, Thrissur, Palakkad, Wynad and Kannur in the Indian southern State of Kerala.
There have been several complaints against this fraudulent company of indulging in money circulation scheme in the name of selling products. This fraudulent company has been offering a 'good business opportunity' to become rich in 3-5 years.
The website of Amway India offers its members a monthly of Rs. 62,500 if they succeed in enrolling 102 members downline of each member with the business model of 6-4-3. That means every member has to enroll six members and in turn these six members has to enroll four members each and these four members has to enroll three members each to complete one cycle. If the cycle is completed the first member would earn every month Rs. 62,500 without any personal effort.
In effect, the business of Amway India has been completely shut down for the time being in this Arabian coastal cash-rich State of India.
It may be recalled that Andhra Pradesh High Court has already held that the business model of Amway India is illegal and police have powers to stop such business. And when the Amway  India preferred a special leve petition in the Supreme Court of India, the Apex Court upheld the judgement of Andhra Pradesh High Court. Still, the fraudulent  company is still practising the same business model for quite sometime on the pretext that there were no complaints.
The Madras High Court in the Apple FMCG case held that for the simple reason that there were no complaints the business model would become legitimate. A crime is a crime whether there were complaints or not.

204 comments:

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Unknown said...

I got in touch with a person in USA who is an Indian trying to settle here in US. He is constantly trying to recruit people in his network for Amway.

Why I feel it is fraud:

1) It creates ZERO value (Just keep a stone, fix a price for it. Circulate the stone in the same scheme, people will make money)

2) All Amway dealers CONSTANTLY claim, it is LEGAL in so many countries INCLUDING USA etc. Strip club is legal in USA. Will these dealers claim that it is LEGAL ONLY in USA, so it is okay in India ? !

3) IT has been successful for 15 yrs, so it will be successful for ever- THIS IS ABSOLUTE FOOLISH STATEMENT. THERE ARE N number of business that was successful in past, but terribly failed after a point.

WITH THE BOOM OF E COMMERCE (FLIPKART, AMAZON ETC), Mouth to Mouth advertising and selling will disappear very soon which is the CORE of AMWAY

Shyam Sundar said...

Dear Aarti, I do not know which way life would become better by purchasing Amway products. If we are not spending money to middlemen, the products should come cheaper. It is exactly opposite. I have studied enough about the company. Why you are assuming that I did not study the facts. Please you study the AP high court judgement which stated that the Amway business model attracts the provisions of the existing laws in India. Even the Supreme Court of India confirmed it later.

Shyamsundar said...

Hi Shyam you are doing a great job man I appreciate it.

Unknown said...

Hi

I like to highlight few points here::

Amway business is free to join

No one force you or snatch money from you to buy products

Amway offer refund policy for products even after using it

There are thousands of people doing this business.
In that list, there are many who manupulate the company business model and cheat others for their short term benifits.
And if you come across such people, report it to amway and they take action.

Every year there are many ABO that amway had cancelled registration for doing business in wrong way.

Just like you buy products from any other fmcg, you buy from amway.

Some people say products are over priced. What is defination of over priced? In today's market we get every product of daily use for different rates. Some buy cheaper and some buy expensive one. It is individual call.

You talk about some figures of making money are hyped. Well that is all Maths and those figures tell the maximum possible in a certain way.
But yes, not many or everyone could stick to that and make that much money. There is difference is reality. But that is not cheating.
For example: when a person joines a good college, the college managment might say that our students get admission in big mnc and earn lot. But it ia not possible with everyone.

Many people said that this is not MLM. Well yes, becoz like other MLM it doesnt force you to put a fixes amount, it doesnt force you to have defined number of legs to run business, it doesnt give you compensation when someone join, it does have products, real products that you buy and use in daily life.




This amway business is big and one has to learn about it before he invest. But there are some frauds who bring bad name to company and cheat or make false promises.

About aligations in court and case filed in police station, well there can be many reasons for it and cannot blaim the company for same.

Be more alert and do research before investing weather it is amway or not.

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