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Amway's business model is cheating, only cheating, nothing but cheating
Amway apologists conveniently skip many questions. When the point of money circulation scheme is raised, they talk about quality of Amway products. When it is pointed out that the Central Food Laboratory and Andhra Pradesh State Food Laboratory have already conclusively proved that the quality of Amway products is not great as exaggerated by the Amway, they brag about other things.
The major question and the only question is money circulation schemes. From which pocket the Amway is paying its IBOs the sizable amounts of commission. Its website www.amwayindia.com clearly states that an IBO who enrols 102 members under his downline would earn a monthly income of Rs. 56, 500. How do they earn so much money? Don't ask. Simply become a member and find 102 sheep (bakara) to join. Bingo you are going to be a millionaire soon.
People with less intelligence and lots of greed believe these words and become members of Amway. This monster is eating away the vitals of economies of many countries and still there are no criminal complaints. The criminal cases pending against them take several years to reach a logical conclusion. Meanwhile, companies like Amway, Herbalife, Forever Living Products, Tupperware, Hindustan Uniliver Network and others continue to exploit the gullible people of many countries.
My dear fellow humans all over world throw these crooks out of your respective countries. Tell everyone you come across that the business model of these companies is nothing but cheating.
Amway apologists follow Scientology-style 'Positive' script
Shyam
With kind the permission of its author, the following extract is taken from a confidential letter I received earlier this year. At that time, I was contacted directly by some former cult adherents in the USA. One had lost a large amount of money in a counterfeit '$600 millions Investment Scheme' (ostensibly) run by Reed Slatkin (out of California), a 'Minister' in the 'Church of Scientology.' Slatkin (the eqivalent of an 'Amway Diamond') was sent to prison, but the evidence proved that he had passed at least $150 millions to a small group of preferred persons who were all fellow, core-'Scientologists.' Indeed, one of them was 'Scientology's' own tax-attorney. However, Slatkin arbitrarily defined this money as 'investment profits.' These initial beneficiaries had then passed bundles of stolen cash to various 'Scientology' associations by arbitrarily defining it as 'donations'. Obviously, the leadership of 'Scientology' insisted that they were completely unaware that any of this money was stolen, and they 'excommunicated' Slatkin ( formerly a 'Scientology' poster boy) as a liar and a thief.
This was after he confessed in court that his actions had been controlled by his own leaders in 'Scientology.' My correspondents (one of whom was part of a lawsuit seeking multi-million dollar compensation from 'Scientology') were interested in how the mystifying labyrinths of (apparently independent) corporate structures, which comprise 'Amway' and 'Scientology,' continue to isolate the wealthy bosses of these (essentially) identical cultic frauds from criminal liability.
"Read your posts on Quixtarisacult.... Wow! You guys really hit straight and hard. You see it clearly, the same twisted strategies in Quixtar and Scientology parting the faithful from their money with addictive lies then personal information to load them with guilt and shame, but did you know that Scientologists are told to get into Quixtar? Was approached five or six times myself by friends wanting to help me. They really thought Hubbard's technology and Scientology's 8 million global reach would guarantee rapid MLM network growth. Positive thinking, disconnecting from negative friends and family, controlling prospective recruits with the positive words and body language, helping others to better themselves, all makes perfect sense to a convinced Scientologist - it's so familiar - Hubbard might have invented it."
Laughably, Shyam, your resident 'Amway' apologists will follow their 'Scientology'-style 'Positive' script, and systematically (and illogically) deny that any of this is true.
The key point is illegal money circulation scheme
Corporate Frauds Watch is open for comments. Anybody can make comments and it is published without any changes. That does not mean, these Amway apologists could dictate terms.
One silly follow asks not to write on something and in another moment advises what should be the name of the blog. What these Amway adherents are actually doing is illegal business i.e. selling products at an exorbitant price and sharing the booty in the name of multilevel marketing. What these people do not realise is that a sizable amount out of the purchases made by them is going to the Amway top brass and these people are receiving only peanuts. No problem if they are happy with the peanuts. But they are inducing others also to join the scheme and making them also paupers. That is objectionable.
The main question here is the money circulation scheme. How much amount from the price of product is going to the Amway and how much is going to the downline members. If this calculation is revealed, the thieves could be caught. But this is the closely guarded secret of Amway which would never reveal it.
All Amway adherents brag like that only
Shyam
One has to laugh at the outrageous claims made by deluded 'Amway' core-adherents. However, as you know, in the end it's not funny. The poor Indian woman whom you have encountered and who was living in a shack, but behaving as though she would soon become a millionaire, doesn't surprise me in the least.
Perhaps the most bizarre 'Amway' adherent I have personally encountered was a former 'Emerald Distributor.' He had been continually presented (along with his wife) in reality-inverting 'Amway' propaganda in the UK as a shining example of 'MLM Prosperity, Freedom and Happiness.' Typically, once all his related 'Amway' expenses were deducted, he had never even managed to make his living out of 'Amway.' He apparently financed his financially-suicidal activity by borrowing. It took him almost 9 years to escape. However, despite the fact that this former 'Successful Emerald' now accepted that 'Amway' was a fraud, he tried to convince me that he had recently discovered a 'fool-proof investment strategy' to make millions out of 'financial derivatives.'
He wanted to know if I had any spare capital I wanted to invest, or if I knew wealthy people who might be interested? This was about 12 months before the Bernie Madoff scandal hit the headlines. Typically, when I challenged his latest narcissistic delusion, the former 'Emerald' resorted to 'Amway' tactics and he posed as an innocent victim. He told me that I would always be poor, because I had a 'problem with my personality.' He accused me of being a 'negative person' who wouldn't listen to what 'positive people' had to say.
Sadly, there have been many similar examples of 'Amway' victims who have lost everything in pursuit of 'Total Financial Freedom' and who have then clung to equally crazy beliefs. Indeed, it is quite common for vulnerable former adherents of cults to fall into the clutches of other charlatans bearing gifts. This perhaps explains why so many 'Scientologists' have become involved with 'Amway' and vice versa.
Masked Man's ignorance is astounding
Shyam
You will have observed that the 'Amway' Lord Haw Haw, Mr. Steadson, has managed to raise another feeble squawk. This time, his ignorance of the object of his unquestioning affection, 'Amway,' is astounding. He pretends that I can't know what I'm talking about, because the first 'Amway' product was called 'LOC (Liquid Organic Cleaner)' and was not a soap powder.
Unfortunately, for your resident masked 'Amway' propagandist, the first product peddled by Messrs. DeVos and Van Andel (using their 'Ja-Ri Corporation' and 'American Way Association' ) was originally called 'Frisk', which they later rebranded and described as an 'Exclusive Concentrated Biodegradeable Liquid Detergent'. However, at this time 'Frisk' was manufactured by the (failing) Eckle Company of Detroit Michigan. 'Frisk' was, in fact, sold by Eckle in a variety of forms including a liquid cleaner and a soap powder. In November 1959, DeVos and Van Andel bought the Eckle Company (using the 'Ja-Ri Corp.') and moved its manufacturing equipment across Michigan to the town of Ada where they rebranded it 'The Amway Manufacturing Company'. De Vos and Van Andel then dropped all varieties of 'Frisk' except the liquid cleaner which they rebranded, 'LOC'. They began to introduce a whole host of mystifying pseudo-scientific complexities around what was once a very average, simple and reasonably-priced formula, as the false justification for exorbitant price rises. Soon, 'LOC's' new presentation in 'Concentrated' form rendered exact price comparisons with traditional products almost impossible to make without complex calculations. This set the style for many of 'Amway's' (effectively) unsaleable products.
Some of the pseudo-scientific claims which De Vos and Van Andel's first followers were trained to make about 'LOC' were as ridiculous as those which the followers of Carl F. Rehnborg had been trained to make about 'Nutrilite XX.' In keeping with this absurd tradition, according to Steadson, in producing 'LOC,' DeVos and Van Andel were motivated by the altruistic desire to save the planet. How all this 'early green altruism' ties in with their perpetrating the largest tax fraud in Canadian history (estimated to have cost Canadian citizens more than C$100 millions in total), the 'Amway' Lord Haw Haw does not attempt to explain.
Amway products overpriced? OK. But IBOs earn wads of money
Amway apologists always claim that Amway products are of high quality. They know well that all these products, whether it is Nutrilite or other 100 and odd products, are sold at an exorbitant price. Still, they support the Amway India because it is offering 'total financial freedom in 2-5 years'. They are confident that they are going to enrol more members and become rich soon.
These people never disclose what exactly their income is even after several years. For instance, Trivedi did not disclose what is the income of his mother who has been into the Amway India's 'good business opportunity' for the last several years. To be precise, Trivedi also did not disclose how much he is earning and how much he is investing every month for purchasing products. If he discloses we can know how much he is losing every month and how long he will stay put.
That is the case with a sizable number of Amway IBOs. Moreover, they stoop to any level to enrol new members and to sell the overpriced products to them. A woman who approached me said that their monthly earnings crossed Rs. 68,000. But funnily, they live in a two-room shanty with all that money in hand.
That woman also told me that she is going on holiday to Caribbean Islands next summer. She is confident that she is going to enrol enough members to earn that holiday. Now these apologists deny that Amway organises holidays to their members who enrolled a large number of members.
The major question and the only question is money circulation schemes. From which pocket the Amway is paying its IBOs the sizable amounts of commission. Its website www.amwayindia.com clearly states that an IBO who enrols 102 members under his downline would earn a monthly income of Rs. 56, 500. How do they earn so much money? Don't ask. Simply become a member and find 102 sheep (bakara) to join. Bingo you are going to be a millionaire soon.
People with less intelligence and lots of greed believe these words and become members of Amway. This monster is eating away the vitals of economies of many countries and still there are no criminal complaints. The criminal cases pending against them take several years to reach a logical conclusion. Meanwhile, companies like Amway, Herbalife, Forever Living Products, Tupperware, Hindustan Uniliver Network and others continue to exploit the gullible people of many countries.
My dear fellow humans all over world throw these crooks out of your respective countries. Tell everyone you come across that the business model of these companies is nothing but cheating.
Amway apologists follow Scientology-style 'Positive' script
Shyam
With kind the permission of its author, the following extract is taken from a confidential letter I received earlier this year. At that time, I was contacted directly by some former cult adherents in the USA. One had lost a large amount of money in a counterfeit '$600 millions Investment Scheme' (ostensibly) run by Reed Slatkin (out of California), a 'Minister' in the 'Church of Scientology.' Slatkin (the eqivalent of an 'Amway Diamond') was sent to prison, but the evidence proved that he had passed at least $150 millions to a small group of preferred persons who were all fellow, core-'Scientologists.' Indeed, one of them was 'Scientology's' own tax-attorney. However, Slatkin arbitrarily defined this money as 'investment profits.' These initial beneficiaries had then passed bundles of stolen cash to various 'Scientology' associations by arbitrarily defining it as 'donations'. Obviously, the leadership of 'Scientology' insisted that they were completely unaware that any of this money was stolen, and they 'excommunicated' Slatkin ( formerly a 'Scientology' poster boy) as a liar and a thief.
This was after he confessed in court that his actions had been controlled by his own leaders in 'Scientology.' My correspondents (one of whom was part of a lawsuit seeking multi-million dollar compensation from 'Scientology') were interested in how the mystifying labyrinths of (apparently independent) corporate structures, which comprise 'Amway' and 'Scientology,' continue to isolate the wealthy bosses of these (essentially) identical cultic frauds from criminal liability.
"Read your posts on Quixtarisacult.... Wow! You guys really hit straight and hard. You see it clearly, the same twisted strategies in Quixtar and Scientology parting the faithful from their money with addictive lies then personal information to load them with guilt and shame, but did you know that Scientologists are told to get into Quixtar? Was approached five or six times myself by friends wanting to help me. They really thought Hubbard's technology and Scientology's 8 million global reach would guarantee rapid MLM network growth. Positive thinking, disconnecting from negative friends and family, controlling prospective recruits with the positive words and body language, helping others to better themselves, all makes perfect sense to a convinced Scientologist - it's so familiar - Hubbard might have invented it."
Laughably, Shyam, your resident 'Amway' apologists will follow their 'Scientology'-style 'Positive' script, and systematically (and illogically) deny that any of this is true.
The key point is illegal money circulation scheme
Corporate Frauds Watch is open for comments. Anybody can make comments and it is published without any changes. That does not mean, these Amway apologists could dictate terms.
One silly follow asks not to write on something and in another moment advises what should be the name of the blog. What these Amway adherents are actually doing is illegal business i.e. selling products at an exorbitant price and sharing the booty in the name of multilevel marketing. What these people do not realise is that a sizable amount out of the purchases made by them is going to the Amway top brass and these people are receiving only peanuts. No problem if they are happy with the peanuts. But they are inducing others also to join the scheme and making them also paupers. That is objectionable.
The main question here is the money circulation scheme. How much amount from the price of product is going to the Amway and how much is going to the downline members. If this calculation is revealed, the thieves could be caught. But this is the closely guarded secret of Amway which would never reveal it.
All Amway adherents brag like that only
Shyam
One has to laugh at the outrageous claims made by deluded 'Amway' core-adherents. However, as you know, in the end it's not funny. The poor Indian woman whom you have encountered and who was living in a shack, but behaving as though she would soon become a millionaire, doesn't surprise me in the least.
Perhaps the most bizarre 'Amway' adherent I have personally encountered was a former 'Emerald Distributor.' He had been continually presented (along with his wife) in reality-inverting 'Amway' propaganda in the UK as a shining example of 'MLM Prosperity, Freedom and Happiness.' Typically, once all his related 'Amway' expenses were deducted, he had never even managed to make his living out of 'Amway.' He apparently financed his financially-suicidal activity by borrowing. It took him almost 9 years to escape. However, despite the fact that this former 'Successful Emerald' now accepted that 'Amway' was a fraud, he tried to convince me that he had recently discovered a 'fool-proof investment strategy' to make millions out of 'financial derivatives.'
He wanted to know if I had any spare capital I wanted to invest, or if I knew wealthy people who might be interested? This was about 12 months before the Bernie Madoff scandal hit the headlines. Typically, when I challenged his latest narcissistic delusion, the former 'Emerald' resorted to 'Amway' tactics and he posed as an innocent victim. He told me that I would always be poor, because I had a 'problem with my personality.' He accused me of being a 'negative person' who wouldn't listen to what 'positive people' had to say.
Sadly, there have been many similar examples of 'Amway' victims who have lost everything in pursuit of 'Total Financial Freedom' and who have then clung to equally crazy beliefs. Indeed, it is quite common for vulnerable former adherents of cults to fall into the clutches of other charlatans bearing gifts. This perhaps explains why so many 'Scientologists' have become involved with 'Amway' and vice versa.
Masked Man's ignorance is astounding
Shyam
You will have observed that the 'Amway' Lord Haw Haw, Mr. Steadson, has managed to raise another feeble squawk. This time, his ignorance of the object of his unquestioning affection, 'Amway,' is astounding. He pretends that I can't know what I'm talking about, because the first 'Amway' product was called 'LOC (Liquid Organic Cleaner)' and was not a soap powder.
Unfortunately, for your resident masked 'Amway' propagandist, the first product peddled by Messrs. DeVos and Van Andel (using their 'Ja-Ri Corporation' and 'American Way Association' ) was originally called 'Frisk', which they later rebranded and described as an 'Exclusive Concentrated Biodegradeable Liquid Detergent'. However, at this time 'Frisk' was manufactured by the (failing) Eckle Company of Detroit Michigan. 'Frisk' was, in fact, sold by Eckle in a variety of forms including a liquid cleaner and a soap powder. In November 1959, DeVos and Van Andel bought the Eckle Company (using the 'Ja-Ri Corp.') and moved its manufacturing equipment across Michigan to the town of Ada where they rebranded it 'The Amway Manufacturing Company'. De Vos and Van Andel then dropped all varieties of 'Frisk' except the liquid cleaner which they rebranded, 'LOC'. They began to introduce a whole host of mystifying pseudo-scientific complexities around what was once a very average, simple and reasonably-priced formula, as the false justification for exorbitant price rises. Soon, 'LOC's' new presentation in 'Concentrated' form rendered exact price comparisons with traditional products almost impossible to make without complex calculations. This set the style for many of 'Amway's' (effectively) unsaleable products.
Some of the pseudo-scientific claims which De Vos and Van Andel's first followers were trained to make about 'LOC' were as ridiculous as those which the followers of Carl F. Rehnborg had been trained to make about 'Nutrilite XX.' In keeping with this absurd tradition, according to Steadson, in producing 'LOC,' DeVos and Van Andel were motivated by the altruistic desire to save the planet. How all this 'early green altruism' ties in with their perpetrating the largest tax fraud in Canadian history (estimated to have cost Canadian citizens more than C$100 millions in total), the 'Amway' Lord Haw Haw does not attempt to explain.
Amway products overpriced? OK. But IBOs earn wads of money
Amway apologists always claim that Amway products are of high quality. They know well that all these products, whether it is Nutrilite or other 100 and odd products, are sold at an exorbitant price. Still, they support the Amway India because it is offering 'total financial freedom in 2-5 years'. They are confident that they are going to enrol more members and become rich soon.
These people never disclose what exactly their income is even after several years. For instance, Trivedi did not disclose what is the income of his mother who has been into the Amway India's 'good business opportunity' for the last several years. To be precise, Trivedi also did not disclose how much he is earning and how much he is investing every month for purchasing products. If he discloses we can know how much he is losing every month and how long he will stay put.
That is the case with a sizable number of Amway IBOs. Moreover, they stoop to any level to enrol new members and to sell the overpriced products to them. A woman who approached me said that their monthly earnings crossed Rs. 68,000. But funnily, they live in a two-room shanty with all that money in hand.
That woman also told me that she is going on holiday to Caribbean Islands next summer. She is confident that she is going to enrol enough members to earn that holiday. Now these apologists deny that Amway organises holidays to their members who enrolled a large number of members.
Amway's 'great business opportunity' is only cheating
Now let us have a look at the Business model of Amway, "The Great Business Opportunity".
If anybody gets enrolled as an Independent Business Owner IBO, his performance level is three per cent provided he sells products worth 100 PV. If he sponsors six people and if each of them sells products worth 100 PV, the sponsoror's performance level reaches six per cent. If each of these six people sponsor four people each, the performance level of first sponsoror reachers 12 per cent. Again these 24 distributors sponsor three people each the performance level of the first sponsor reaches 21 per cent. At this level his gross monthly income would be Rs. 56, 925.
It is another thing that there is no compulsion to sponsor people. Then there would be no business at all. Sponsoring should be done and each sponsored person should do 100 PVs, then only the first sponsor would get Rs. 56,925 per month and the annual earning would be 6,83, 100. So, if the first sponsor is doing only 100 PVs and all his downline members are doing 100 PVs, there would be enormous income for the first sponsoror. By the way, this is what is called 'mathematical impossibility'. Nobody could find so many people on earth.
This is what was pointed out by the Andhra Pradesh High Court. The first sponsor is earning income if the downline members are doing the business. That is why this is called easy and quick money.
If this is not pyramid structure, what else is?
This is extracted from the Amway India website only.
Amway apologists incapable of facing ego-destroying reality
Shyam
To persons, such as Trivedi, Scott ('Tex') Johnson , David ('IBOFB') Steadson, et al. 'Amway' is total reality. Yet, in the final analysis, 'Amway' (short for the 'American Way' ) can only be a puerile game of make-believe. All the quantifiable evidence ( as well as common sense), reveals to us that the 'Amway' myth of 'total financial freedom in 2-5 years' is no more real than the tale of one kindly old man with a white beard, Santa Claus, delivering presents to countless millions of obedient children around the world. However, young children's unconscious acceptance of 'Santa Claus' as total reality, stems from a fictitious scenario reflected as fact by the traditional culture in which they live. Up to a certain age, children are not equipped to challenge the model of reality offered to them by authoritarian figures in their family groups; particularly, their parents. Therefore, once children have been converted to a self-gratifying false belief in 'Santa,' the truth (that they are actually being deceived by the people whom they instinctively trust and follow) is unthinkable. The scenario can then be expanded to modify children's behaviour - 'Santa' has magical powers... he can see and hear everything they do at all times... he will reward them for unquestioning belief and punish them for dissent. Only when they attain the necessary level of intellectual / pyschological development, can children begin to use their critical and evaluative faculties and come to realize that 'Santa' is merely a game of make-believe. If you think about it, many of the basic procedures and conditions which have been used to establish the 'Amway' deception are only more-sophisticated versions of those which also propagate the benign 'Santa' deception. However, the instigators of 'Amway' were anything, but benign. In deed, many of their most-deluded adherents and convincing apologists turn out to be educated adults who have simply become incapable of facing the ego-destroying reality that they've been fooled by what is merely a game of make-believe.
Although core-adherents of the 'Amway' myth are demonstrably dissociated from external reality, they are always certain that they alone represent the 'truth' and they act accordingly. This is why Shyam, I keep saying that it a pointless waste of time trying to reason with these deluded people.
In effect, we are telling a group of wide-eyed children that they will receive no presents at Xmas, because 'Santa' is a lie and their parents are liars.
Spineless, faceless, nameless Amway apologists come out in the open
It seems it has been the strategy of Amway apologists to simply deny whatever and whenever something is written against Amway. They simply, rather routinely, ask for what proof one has got for such statement. When I said Amway products are not that of great quality, immediately it was asked what was the proof, totally forgetting that necessary links were provided about the testing at the two laboratories.
The question of easy and quick money aspect of Rs. 56,500 claimed by Amway India website is just ignored. This is how these shameless apologists come to the rescue of Amway whenever it faced any critics. Instead of raising their bored voices here, they could contest the criminal case in the court of law and present their arguments to the Judges.
What is the point in trying to convince me when I have provided enough material about the judgements, et cet ra.
These spineless, nameless, faceless creatures should be thrown behind bars for supporting an illegal company. Probably that is their fear and that is why they are not coming out open.
A girl named Padma from Vijayawada told me that their monthly income is Rs. 68,000 but they live in a two-room asbestos-roofed house. Why don't they verify with their own members at Vijayawada.
Amway losers never file criminal cases because they are also part of cheating
Shyam
I'm sure your free-thinking readers will be interested to read a particularly revealing testimony given by a formerly - unquestioning 'Amway' core-adherent.
"When people ask me is Amway a cult? this is what I tell them.
We ate Amway crap believing it would bring Success!
We drank Amway crap believing it would bring Success!
We washed with Amway crap believing it would bring Success!
We cooked with Amway crap believing it would bring Success!
We drove with Amway crap believing it would bring Success!
We brushed our teeth with Amway crap believing it would bring Success!
We dressed in Amway crap believing it would bring Success!
My wife put Amway crap on her face believing it would bring Success!
We fed our children Amway crap believing it would bring Success.
We fed the dog Amway crap believing it would bring Success!
We wiped our crap with Amway crap believing it would bring Success!
We talked Amway crap believing it would bring Success!
We never took a break from Amway believing it would bring Success!
We never counted our losses believing it would lead to Success!
We went to every Amway meeting and bought all the tapes and books believing it would bring Success!
We shut out everyone who criticized Amway believing it would lead to Success!
We only talked to people who had swallowed the same Amway crap believing it would bring Success!
Amway brainwashes you to keep smiling and believing that everything Amway offers is good and will make you a Winner and everything that is not Amway is bad and will keep you a Loser. It's only when you get clear of Amway that you realize that your life in Amway was crap and that Amway is for Losers!
Thats why Amway is a cult "!!!
I think that this angry fellow just about covers everything, but, interestingly, he's never filed a criminal complaint, and, what's more, he doesn't intend to, because he also realizes that he tried to cheat his friends and relatives.
If anybody gets enrolled as an Independent Business Owner IBO, his performance level is three per cent provided he sells products worth 100 PV. If he sponsors six people and if each of them sells products worth 100 PV, the sponsoror's performance level reaches six per cent. If each of these six people sponsor four people each, the performance level of first sponsoror reachers 12 per cent. Again these 24 distributors sponsor three people each the performance level of the first sponsor reaches 21 per cent. At this level his gross monthly income would be Rs. 56, 925.
It is another thing that there is no compulsion to sponsor people. Then there would be no business at all. Sponsoring should be done and each sponsored person should do 100 PVs, then only the first sponsor would get Rs. 56,925 per month and the annual earning would be 6,83, 100. So, if the first sponsor is doing only 100 PVs and all his downline members are doing 100 PVs, there would be enormous income for the first sponsoror. By the way, this is what is called 'mathematical impossibility'. Nobody could find so many people on earth.
This is what was pointed out by the Andhra Pradesh High Court. The first sponsor is earning income if the downline members are doing the business. That is why this is called easy and quick money.
If this is not pyramid structure, what else is?
This is extracted from the Amway India website only.
Amway apologists incapable of facing ego-destroying reality
Shyam
To persons, such as Trivedi, Scott ('Tex') Johnson , David ('IBOFB') Steadson, et al. 'Amway' is total reality. Yet, in the final analysis, 'Amway' (short for the 'American Way' ) can only be a puerile game of make-believe. All the quantifiable evidence ( as well as common sense), reveals to us that the 'Amway' myth of 'total financial freedom in 2-5 years' is no more real than the tale of one kindly old man with a white beard, Santa Claus, delivering presents to countless millions of obedient children around the world. However, young children's unconscious acceptance of 'Santa Claus' as total reality, stems from a fictitious scenario reflected as fact by the traditional culture in which they live. Up to a certain age, children are not equipped to challenge the model of reality offered to them by authoritarian figures in their family groups; particularly, their parents. Therefore, once children have been converted to a self-gratifying false belief in 'Santa,' the truth (that they are actually being deceived by the people whom they instinctively trust and follow) is unthinkable. The scenario can then be expanded to modify children's behaviour - 'Santa' has magical powers... he can see and hear everything they do at all times... he will reward them for unquestioning belief and punish them for dissent. Only when they attain the necessary level of intellectual / pyschological development, can children begin to use their critical and evaluative faculties and come to realize that 'Santa' is merely a game of make-believe. If you think about it, many of the basic procedures and conditions which have been used to establish the 'Amway' deception are only more-sophisticated versions of those which also propagate the benign 'Santa' deception. However, the instigators of 'Amway' were anything, but benign. In deed, many of their most-deluded adherents and convincing apologists turn out to be educated adults who have simply become incapable of facing the ego-destroying reality that they've been fooled by what is merely a game of make-believe.
Although core-adherents of the 'Amway' myth are demonstrably dissociated from external reality, they are always certain that they alone represent the 'truth' and they act accordingly. This is why Shyam, I keep saying that it a pointless waste of time trying to reason with these deluded people.
In effect, we are telling a group of wide-eyed children that they will receive no presents at Xmas, because 'Santa' is a lie and their parents are liars.
Spineless, faceless, nameless Amway apologists come out in the open
It seems it has been the strategy of Amway apologists to simply deny whatever and whenever something is written against Amway. They simply, rather routinely, ask for what proof one has got for such statement. When I said Amway products are not that of great quality, immediately it was asked what was the proof, totally forgetting that necessary links were provided about the testing at the two laboratories.
The question of easy and quick money aspect of Rs. 56,500 claimed by Amway India website is just ignored. This is how these shameless apologists come to the rescue of Amway whenever it faced any critics. Instead of raising their bored voices here, they could contest the criminal case in the court of law and present their arguments to the Judges.
What is the point in trying to convince me when I have provided enough material about the judgements, et cet ra.
These spineless, nameless, faceless creatures should be thrown behind bars for supporting an illegal company. Probably that is their fear and that is why they are not coming out open.
A girl named Padma from Vijayawada told me that their monthly income is Rs. 68,000 but they live in a two-room asbestos-roofed house. Why don't they verify with their own members at Vijayawada.
Amway losers never file criminal cases because they are also part of cheating
Shyam
I'm sure your free-thinking readers will be interested to read a particularly revealing testimony given by a formerly - unquestioning 'Amway' core-adherent.
"When people ask me is Amway a cult? this is what I tell them.
We ate Amway crap believing it would bring Success!
We drank Amway crap believing it would bring Success!
We washed with Amway crap believing it would bring Success!
We cooked with Amway crap believing it would bring Success!
We drove with Amway crap believing it would bring Success!
We brushed our teeth with Amway crap believing it would bring Success!
We dressed in Amway crap believing it would bring Success!
My wife put Amway crap on her face believing it would bring Success!
We fed our children Amway crap believing it would bring Success.
We fed the dog Amway crap believing it would bring Success!
We wiped our crap with Amway crap believing it would bring Success!
We talked Amway crap believing it would bring Success!
We never took a break from Amway believing it would bring Success!
We never counted our losses believing it would lead to Success!
We went to every Amway meeting and bought all the tapes and books believing it would bring Success!
We shut out everyone who criticized Amway believing it would lead to Success!
We only talked to people who had swallowed the same Amway crap believing it would bring Success!
Amway brainwashes you to keep smiling and believing that everything Amway offers is good and will make you a Winner and everything that is not Amway is bad and will keep you a Loser. It's only when you get clear of Amway that you realize that your life in Amway was crap and that Amway is for Losers!
Thats why Amway is a cult "!!!
I think that this angry fellow just about covers everything, but, interestingly, he's never filed a criminal complaint, and, what's more, he doesn't intend to, because he also realizes that he tried to cheat his friends and relatives.
About Amway
Amway adherents use thought-stopping ritual jargon
Shyam
It is even more fascinating to observe how the 'Amway' Lord Haw Haw , Mr. Steadson, and his heel-clicking little band of reality-denying chums, are disturbed when faced with the use of accurate deconstructed language to reveal the 'Amway' fraud. After all, they seem to spend the majority of their time trying to keep it occulted behind a wall of thought-stopping ritual jargon. Steadson is now arrogantly flapping on his perch attempting to give us orders about which words we can, and cannot, use. His latest devious tactic is to pretend that what we are saying is completely unintelligible to everyone, but this presupposes that we are unaware of what he is trying to do. To anyone with fully-functioning critical and evaluative faculties, it is perfectly clear what we are saying. However, to anyone whose mind has been castrated by the 'Amway' mob, then what we are asking them to think, is unthinkable, because thinking is not allowed in 'Amway.'
All totalitarian movements control their subjects behaviour by ritualizing their means of thought (i.e. their words and images). Self-evidently, the 'Amway' mob have their own parallel jargon and imagery which is constantly repeated in their propaganda. The ritualization of language has long been recognised as a means of short-circuiting an individual's capacity to think. The made-up word, 'Amway' (short for 'American way'), is itself a perfect example of thought-stopping ritual jargon, but then, so is the technical-sounding term, 'Multilevel Marketing.'
The leaders of pernicious cults like 'Amway' and 'Scientology' seek to control all information entering not only their adherents’ minds, but also that entering the minds of casual observers. This is achieved by constantly denigrating all external sources of information whilst constantly repeating the group’s reality-inverting key words and images, and/ or by the physical isolation of adherents. Cults leaders systematically categorize, condemn and exclude as unenlightened, negative, impure, absolutely evil, etc. all free-thinking individuals and any quantifiable evidence challenging the authenticity of their imaginary scenarios of control. In this way, the minds of cult adherents can become converted to accept only what their leadership arbitrarily sanctions as enlightened, positive, pure, absolutely righteous, etc. Consequently, adherents habitually communicate amongst themselves using their group’s thought-stopping ritual jargon, and they find it difficult, if not impossible, to communicate with negative persons outside of their group whom they falsely believe to be a suppressive threat to redemption in whatever mythical future Utopian existence their leaders peddle.
IBOFB is contemptible liar and criminal too
Shyam
Fascinating how 'Amway's' Internet Lord Haw Haw, Mr. Steadson, is now desperately squirming and squawking as he shifts his ground.
First of all, the poor boy pretended that the 'Amway' myth (that 'anyone can achieve Total Financial Freedom in 2-5 years by exactly duplicating a Proven Plan of recruitment and self-consumption') is itself a myth invented by 'Amway' critics. He then accepted that it has been peddled within 'Amway' , but he claimed that it has nothing whatsoever to do with the 'Amway' organization. Finally, Steadson pretended that the 2-5 year Plan has been rarely peddled within 'Amway' and not by anyone employed by 'Amway' or with the approval of the organization.
In the adult world of quantifiable reality, the internet is alive with the damning evidence that all 'Amway' core-adherents have been obliged to pay through the nose for the dubious privilege of being indoctrinated to duplicate an economically-suicidal, and illegal, 2-5 year plan of recruitment and self-consumption. The deluded Indian fellow, Laddu Gurugabelli, with a pathetic (apparently Independent) Website propagating the scripted 'Amway' myth, is a perfect example. The predictable claims that the bosses of the 'Amway' mob have neither profited massively from this illegal activity nor have they been aware of its general presence with 'Amway', are demonstrable lies which are part of a pattern of their own racketeering activity.
Self-evidently, Mr. Steadson is a contemptible liar and criminal who is the de facto agent of contemptible liars and criminals. Again, each time Mr. Steadson squawks from the 'Amway' script, he is merely pushing himself and his de facto masters closer to a prison cell.
Realilty-denying Amway apologists
Shyam
Again, your resident, intellectually-castrated 'Amway' apologists continue to deny reality in their own particular styles. In defense of their group-related alter egos, they systematically insist that all the quantifiable evidence that 'Amway is a fraud and a cult, is itself a lie' and that 'anyone criticizing 'Amway' is a stupid, isolated person who cannot know what he/she is talking about.'
Since the instigation of the 'Amway' mob more than 50 years ago, tens of millions of individuals around the globe have been churned through a premeditated closed-market swindle promoted as a 'Business Opportunity.' A significant minority of these individuals have fallen victim to secondary, advanced fee fraud. Core-'Amway' adherents have undergone a nightmarish personality transformation and recklessly dissipated all their mental, physical and financial resources to the benefit of the bosses of the 'Amway' mob whom they continue to trust and follow no matter what suffering this entailed.
Your free-thinking readers will have observed that the intensely annoying narcissistic characteristics which unite 'Amway' core-adherents are self-evident. Indeed, they are the same as those which unite core-'Scientologists' (or any other totalistic believers for that matter):
- grandiose sense of their own and their group's importance.
- preoccupation with fantasies of their own and their group's unlimited success, power, etc.
- the belief that what they and their group offers is special and unique, and can only be understood by other special people like themselves.
- excessive admiration of their group and the requirement that others admire it and them also.
- total lack of empathy with non-group members.
- belief that outsiders are envious of them and their group.
- arrogant disposition.
- strong sense of their own and their group's entitlement.
- belief that it is perfectly justifiable for them and their group to take advantage of others to achieve their own ends.
The abundant evidence that 'Amway' apologists exhibit all these narcissistic characteristics is contained in the remorseless, inarticulate comments which they continue to post on the Net. Tellingly, when faced with this incontrovertible analysis, the classic reaction of cultists is to project their own narcissistic characteristics on to those who are making the analysis.
IBOFB is caught lying once again
Shyam
The masked 'Amway' Lord Haw Haw (Mr. 'IBOFB' Steadson) is once again caught lying through his teeth on your Blog on behalf of the bosses of the 'Amway' mob. This is hardly surprising since Steadson's Internet propaganda is part of a pattern of racketeering activity. He is the de facto agent of an organized crime group who promotes and shields fraud and who habitually obstructs justice.
Just 10 seconds google searching for 'Amway 2-5 years' and I came up with an Indian 'Amway' core-adherent running his own Website http://www.laddug.multiply.com/
This deeply-deluded individual can be contacted at:
laddu_gurugabelli@yahoo.com
telephone 970 300 5423
The following is a direct quotation taken from his crack-pot Website: 'It require 2-5 years hard work, and then you can become financially free.'
Now where do you suppose this typical, Indian 'Amway' core- adherent got that idea from ?
Amway apologists claim there would be business without purchasing products
It is really wonderful and hilarious to learn there would be business without purchasing products. This is enough to assess the mental capability of these Amway apologists. The rider is if the members do not purchase products they are not entitled to claim commission. Is it not compulsion? The affidavit filed by Amway India in the Andhra Pradesh High Court claimed that the members must purchase products worth Rs. 2000 every month otherwise they are not entitled for commission.
Basing on the State Food Laboratory report, the Krishna District Consumer Forum imposed Rs one lakh fine on Amway India. Is it not enough quantifiable evidence to show the inferior quality of products?
Anyway the nitwit apologist did not say how much amount his mother is earning every month after so long in the 'Proven Business Opportunity' of Amway.
It is true no one is guilty unless it is proved otherwise in the court of law. Addressing this aspect, kindly see what the Andhra Pradesh High Court stated in this connection.
"Sri B Adinarayana (Counsel for Amway India) contended that even assuming that the police are satisfied that the petitioners (Amway India) are indulging in money circulation scheme, they cannot interfere with the business of the petitioner till the criminal court after a full fledged trial holds the petitioners guilty of the offence alleged against them. We have carefully considered this submission of the learned counsel. It is a well settled principle of criminal jurisprudence that no person shall presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the learned counsel for the petitioners (Amway India) that till the conclusion of the criminal case the police have no power to interfere with the business activities of the petitioners. Section 7 of Act (Prize Chits & Money Circulation Schemes (Banning) Act, 1978) empowers the police officer not below the rank of an officer in charge of a police station to that effect."
So the Amway India's business model is a money circulation scheme and is illegal.
Amway is not a proven business opportunity but cheating
Now let us have a look at Direct Selling. The Amway, the mother of all scams, claims that it is direct selling that is beneficial to the consumers. They claim that there is little or no advetisements for its products. It's another matter that now they are advertising heavily through elctronic and print media.
If a product is sold to the customers directly, the customer would sure reap benefits as it avoids a lot of intermediaries -- stockists, wholesale dealers, retail dealers. But in the case of Amway, it is different. Inspite of the claim, there are a large number of Intermediaries in the name of IBOs. Each one of them collect huge percentage of commission at each and every level. So, naturally the end-consumer ends in paying a hefty price for all the products. To cover its cheating of exorbitant price of its products, Amway claims that its products are of high quality which is a hoax. What the gullible people do not realise is that they are paying high price for the products and getting peanuts in the name of commission.
My dear fellow humans all over world! Listen carefully! These Amway apologists keep on boasting that this is a 'GOOD, PROVEN BUSINESS OPPORTUNITY'. But in fact, this is not. It is a closed market swindle and you end up buying products at an exorbitant price. It is not at all a good, proven business opportunity but outright cheating to empty your pockets and a crime under provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
Save your money, enjoy it with your family and if you have excess money there are lot of poor people who need help. Don't give away your hard-earned money to these crooks like Amway.
Amway's Proven Business Opportunity is a camouflaged closed-market swindle
Shyam
As ever, what the bosses of the 'Amway' mob, and their bleating little flock of Internet propagandists, steadfastly pretend to be reality and what can be proved to have been occurring within their criminogenic organization (for more than 50 years), are two completely different things.
The 'Amway' Lord Haw Haw (Mr. Steadson) first indignantly squawks that, in 10 years, he's never personally encountered the 'Amway' myth of 'total financial freedom is 2-5 years' being propagated by 'Amway' itself. Although he is forced to accept that there has been at least one video of a naughty 'Amway Diamond' preaching the '2-5 year Plan' removed from Youtube, Steadson now steadfastly pretends that the existence of the 'Amway' myth is actually a myth invented by me. Amazingly, the 'Amway' Lord Haw Haw then goes on to claim that he knows persons who have achieved 'total financial freedom' in 'Amway', one in less than one year and another in two decades.
Just before writing this comment, I took a brief look and found 32, 200 (thirty two thousand two hundred) hits when I Google -Searched 'Amway 2-5 years'.
In the adult world of quantifiable reality, the bosses of the 'Amway' mob have used their so-called 'Proven Business Opportunity' (which is a camouflaged closed-market swindle) as the bait to attract vulnerable persons into an allied advanced fee fraud in which victims are peddled mythical places in a secure, future, Utopian existence. This puerile fiction only exists in the form of pretty words and images which are constantly fed to the 'Amway' faithful. In order to keep this minority of core-victims enslaved for as long as possible, they have been told by the even smaller minority who occupy the higher echelons of the 'Amway' paramilitary hierarchy (and who are schills) that, 'although some persons take less than one year and some decades, 2-5 years is the average amount of time it takes to achieve total financial freedom.' All 'Amway' whistle blowers testify that this is so.
At the beginning of the 'Dateline' NBC programme (which again exposed the 'Amway/Quixtar' fraud several years back), 15, 000 unquestioning and tearful 'Amway' adherents were filmed in an American convention hall being showered with fake dollars. Many had travelled, or queued, all night to attend and they were hovering between exhaustion and hysteria. An 'Amway Diamond' was filmed screaming his typical mantra to the receptive congregation:
'This is the Best Business Opportunity in the World, Period! Period!
This frightening event (which had generated several millions dollars) was a hybrid mixture of rock concert and 'Nazi' rally. Each one of the crowd had paid hundreds of dollars to attend what was only an orgy of deluded self-gratification. For, by 'Amway's' own figures, not one of these 15, 000 hopefuls will have made an overall profit out of 'Amway' and not one will be involved with the organization today.
Shyam
It is even more fascinating to observe how the 'Amway' Lord Haw Haw , Mr. Steadson, and his heel-clicking little band of reality-denying chums, are disturbed when faced with the use of accurate deconstructed language to reveal the 'Amway' fraud. After all, they seem to spend the majority of their time trying to keep it occulted behind a wall of thought-stopping ritual jargon. Steadson is now arrogantly flapping on his perch attempting to give us orders about which words we can, and cannot, use. His latest devious tactic is to pretend that what we are saying is completely unintelligible to everyone, but this presupposes that we are unaware of what he is trying to do. To anyone with fully-functioning critical and evaluative faculties, it is perfectly clear what we are saying. However, to anyone whose mind has been castrated by the 'Amway' mob, then what we are asking them to think, is unthinkable, because thinking is not allowed in 'Amway.'
All totalitarian movements control their subjects behaviour by ritualizing their means of thought (i.e. their words and images). Self-evidently, the 'Amway' mob have their own parallel jargon and imagery which is constantly repeated in their propaganda. The ritualization of language has long been recognised as a means of short-circuiting an individual's capacity to think. The made-up word, 'Amway' (short for 'American way'), is itself a perfect example of thought-stopping ritual jargon, but then, so is the technical-sounding term, 'Multilevel Marketing.'
The leaders of pernicious cults like 'Amway' and 'Scientology' seek to control all information entering not only their adherents’ minds, but also that entering the minds of casual observers. This is achieved by constantly denigrating all external sources of information whilst constantly repeating the group’s reality-inverting key words and images, and/ or by the physical isolation of adherents. Cults leaders systematically categorize, condemn and exclude as unenlightened, negative, impure, absolutely evil, etc. all free-thinking individuals and any quantifiable evidence challenging the authenticity of their imaginary scenarios of control. In this way, the minds of cult adherents can become converted to accept only what their leadership arbitrarily sanctions as enlightened, positive, pure, absolutely righteous, etc. Consequently, adherents habitually communicate amongst themselves using their group’s thought-stopping ritual jargon, and they find it difficult, if not impossible, to communicate with negative persons outside of their group whom they falsely believe to be a suppressive threat to redemption in whatever mythical future Utopian existence their leaders peddle.
IBOFB is contemptible liar and criminal too
Shyam
Fascinating how 'Amway's' Internet Lord Haw Haw, Mr. Steadson, is now desperately squirming and squawking as he shifts his ground.
First of all, the poor boy pretended that the 'Amway' myth (that 'anyone can achieve Total Financial Freedom in 2-5 years by exactly duplicating a Proven Plan of recruitment and self-consumption') is itself a myth invented by 'Amway' critics. He then accepted that it has been peddled within 'Amway' , but he claimed that it has nothing whatsoever to do with the 'Amway' organization. Finally, Steadson pretended that the 2-5 year Plan has been rarely peddled within 'Amway' and not by anyone employed by 'Amway' or with the approval of the organization.
In the adult world of quantifiable reality, the internet is alive with the damning evidence that all 'Amway' core-adherents have been obliged to pay through the nose for the dubious privilege of being indoctrinated to duplicate an economically-suicidal, and illegal, 2-5 year plan of recruitment and self-consumption. The deluded Indian fellow, Laddu Gurugabelli, with a pathetic (apparently Independent) Website propagating the scripted 'Amway' myth, is a perfect example. The predictable claims that the bosses of the 'Amway' mob have neither profited massively from this illegal activity nor have they been aware of its general presence with 'Amway', are demonstrable lies which are part of a pattern of their own racketeering activity.
Self-evidently, Mr. Steadson is a contemptible liar and criminal who is the de facto agent of contemptible liars and criminals. Again, each time Mr. Steadson squawks from the 'Amway' script, he is merely pushing himself and his de facto masters closer to a prison cell.
Realilty-denying Amway apologists
Shyam
Again, your resident, intellectually-castrated 'Amway' apologists continue to deny reality in their own particular styles. In defense of their group-related alter egos, they systematically insist that all the quantifiable evidence that 'Amway is a fraud and a cult, is itself a lie' and that 'anyone criticizing 'Amway' is a stupid, isolated person who cannot know what he/she is talking about.'
Since the instigation of the 'Amway' mob more than 50 years ago, tens of millions of individuals around the globe have been churned through a premeditated closed-market swindle promoted as a 'Business Opportunity.' A significant minority of these individuals have fallen victim to secondary, advanced fee fraud. Core-'Amway' adherents have undergone a nightmarish personality transformation and recklessly dissipated all their mental, physical and financial resources to the benefit of the bosses of the 'Amway' mob whom they continue to trust and follow no matter what suffering this entailed.
Your free-thinking readers will have observed that the intensely annoying narcissistic characteristics which unite 'Amway' core-adherents are self-evident. Indeed, they are the same as those which unite core-'Scientologists' (or any other totalistic believers for that matter):
- grandiose sense of their own and their group's importance.
- preoccupation with fantasies of their own and their group's unlimited success, power, etc.
- the belief that what they and their group offers is special and unique, and can only be understood by other special people like themselves.
- excessive admiration of their group and the requirement that others admire it and them also.
- total lack of empathy with non-group members.
- belief that outsiders are envious of them and their group.
- arrogant disposition.
- strong sense of their own and their group's entitlement.
- belief that it is perfectly justifiable for them and their group to take advantage of others to achieve their own ends.
The abundant evidence that 'Amway' apologists exhibit all these narcissistic characteristics is contained in the remorseless, inarticulate comments which they continue to post on the Net. Tellingly, when faced with this incontrovertible analysis, the classic reaction of cultists is to project their own narcissistic characteristics on to those who are making the analysis.
IBOFB is caught lying once again
Shyam
The masked 'Amway' Lord Haw Haw (Mr. 'IBOFB' Steadson) is once again caught lying through his teeth on your Blog on behalf of the bosses of the 'Amway' mob. This is hardly surprising since Steadson's Internet propaganda is part of a pattern of racketeering activity. He is the de facto agent of an organized crime group who promotes and shields fraud and who habitually obstructs justice.
Just 10 seconds google searching for 'Amway 2-5 years' and I came up with an Indian 'Amway' core-adherent running his own Website http://www.laddug.multiply.com/
This deeply-deluded individual can be contacted at:
laddu_gurugabelli@yahoo.com
telephone 970 300 5423
The following is a direct quotation taken from his crack-pot Website: 'It require 2-5 years hard work, and then you can become financially free.'
Now where do you suppose this typical, Indian 'Amway' core- adherent got that idea from ?
Amway apologists claim there would be business without purchasing products
It is really wonderful and hilarious to learn there would be business without purchasing products. This is enough to assess the mental capability of these Amway apologists. The rider is if the members do not purchase products they are not entitled to claim commission. Is it not compulsion? The affidavit filed by Amway India in the Andhra Pradesh High Court claimed that the members must purchase products worth Rs. 2000 every month otherwise they are not entitled for commission.
Basing on the State Food Laboratory report, the Krishna District Consumer Forum imposed Rs one lakh fine on Amway India. Is it not enough quantifiable evidence to show the inferior quality of products?
Anyway the nitwit apologist did not say how much amount his mother is earning every month after so long in the 'Proven Business Opportunity' of Amway.
It is true no one is guilty unless it is proved otherwise in the court of law. Addressing this aspect, kindly see what the Andhra Pradesh High Court stated in this connection.
"Sri B Adinarayana (Counsel for Amway India) contended that even assuming that the police are satisfied that the petitioners (Amway India) are indulging in money circulation scheme, they cannot interfere with the business of the petitioner till the criminal court after a full fledged trial holds the petitioners guilty of the offence alleged against them. We have carefully considered this submission of the learned counsel. It is a well settled principle of criminal jurisprudence that no person shall presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the learned counsel for the petitioners (Amway India) that till the conclusion of the criminal case the police have no power to interfere with the business activities of the petitioners. Section 7 of Act (Prize Chits & Money Circulation Schemes (Banning) Act, 1978) empowers the police officer not below the rank of an officer in charge of a police station to that effect."
So the Amway India's business model is a money circulation scheme and is illegal.
Amway is not a proven business opportunity but cheating
Now let us have a look at Direct Selling. The Amway, the mother of all scams, claims that it is direct selling that is beneficial to the consumers. They claim that there is little or no advetisements for its products. It's another matter that now they are advertising heavily through elctronic and print media.
If a product is sold to the customers directly, the customer would sure reap benefits as it avoids a lot of intermediaries -- stockists, wholesale dealers, retail dealers. But in the case of Amway, it is different. Inspite of the claim, there are a large number of Intermediaries in the name of IBOs. Each one of them collect huge percentage of commission at each and every level. So, naturally the end-consumer ends in paying a hefty price for all the products. To cover its cheating of exorbitant price of its products, Amway claims that its products are of high quality which is a hoax. What the gullible people do not realise is that they are paying high price for the products and getting peanuts in the name of commission.
My dear fellow humans all over world! Listen carefully! These Amway apologists keep on boasting that this is a 'GOOD, PROVEN BUSINESS OPPORTUNITY'. But in fact, this is not. It is a closed market swindle and you end up buying products at an exorbitant price. It is not at all a good, proven business opportunity but outright cheating to empty your pockets and a crime under provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
Save your money, enjoy it with your family and if you have excess money there are lot of poor people who need help. Don't give away your hard-earned money to these crooks like Amway.
Amway's Proven Business Opportunity is a camouflaged closed-market swindle
Shyam
As ever, what the bosses of the 'Amway' mob, and their bleating little flock of Internet propagandists, steadfastly pretend to be reality and what can be proved to have been occurring within their criminogenic organization (for more than 50 years), are two completely different things.
The 'Amway' Lord Haw Haw (Mr. Steadson) first indignantly squawks that, in 10 years, he's never personally encountered the 'Amway' myth of 'total financial freedom is 2-5 years' being propagated by 'Amway' itself. Although he is forced to accept that there has been at least one video of a naughty 'Amway Diamond' preaching the '2-5 year Plan' removed from Youtube, Steadson now steadfastly pretends that the existence of the 'Amway' myth is actually a myth invented by me. Amazingly, the 'Amway' Lord Haw Haw then goes on to claim that he knows persons who have achieved 'total financial freedom' in 'Amway', one in less than one year and another in two decades.
Just before writing this comment, I took a brief look and found 32, 200 (thirty two thousand two hundred) hits when I Google -Searched 'Amway 2-5 years'.
In the adult world of quantifiable reality, the bosses of the 'Amway' mob have used their so-called 'Proven Business Opportunity' (which is a camouflaged closed-market swindle) as the bait to attract vulnerable persons into an allied advanced fee fraud in which victims are peddled mythical places in a secure, future, Utopian existence. This puerile fiction only exists in the form of pretty words and images which are constantly fed to the 'Amway' faithful. In order to keep this minority of core-victims enslaved for as long as possible, they have been told by the even smaller minority who occupy the higher echelons of the 'Amway' paramilitary hierarchy (and who are schills) that, 'although some persons take less than one year and some decades, 2-5 years is the average amount of time it takes to achieve total financial freedom.' All 'Amway' whistle blowers testify that this is so.
At the beginning of the 'Dateline' NBC programme (which again exposed the 'Amway/Quixtar' fraud several years back), 15, 000 unquestioning and tearful 'Amway' adherents were filmed in an American convention hall being showered with fake dollars. Many had travelled, or queued, all night to attend and they were hovering between exhaustion and hysteria. An 'Amway Diamond' was filmed screaming his typical mantra to the receptive congregation:
'This is the Best Business Opportunity in the World, Period! Period!
This frightening event (which had generated several millions dollars) was a hybrid mixture of rock concert and 'Nazi' rally. Each one of the crowd had paid hundreds of dollars to attend what was only an orgy of deluded self-gratification. For, by 'Amway's' own figures, not one of these 15, 000 hopefuls will have made an overall profit out of 'Amway' and not one will be involved with the organization today.
Forever Living Amway business
Forever Living Products business model a la Amway
Recently, there was an invitation from Forever Living Products business meeting. The speakers at the meeting said that it was a good business opportunity. They also said that anybody could become a member by paying Rs. 10 and get an identification number. Then they could purchase products from the company at a discount and sell the same to make good profit. The key point here is all the products are exorbitantly priced. The toothpaste alone costs Rs. 220. Who would buy a toothpaste at such a price. Other products also are equally highly priced. The members are offered a huge discount of 45 per cent. The members are free to enrol members and there is no compulsion. If they enrol they get commission on their business too. Here comes the money circulation scheme. More members they enrolled they get more commission on their business also. They get discount of 45 per cent and depending upon the number of members they get commission of varied percentage. Now what is the original cost of products and how much the company is making on the maxim retail price of the products. If this is not money circulation scheme what else.
What is the relationship between Ram and Sita?
After reading thoroughly Ramayana, the great Indian epic, one nitwit finally asked what is the relationship between Rama and Sita. Trivedi just now asked after arguing in this blog several weeks, what is money circulation scheme. He could have gone to older blogs to read what is money circulation scheme and which enactment covers it and what is the punishment.
This type of nitwits are found through out world. That is why this type of fradulent companies have been hoodwinking people and lining their pockets for several decades. If one company is closed, several other crooks raise their ugly heads to cheat the gullible. That is why I make it a point to bring awareness among people not to fall prey to these monsters who are out to steal your hard-earned money.
But greedy people who want to become rich overnight never hesitate to cheat their own friends and relatives in the name of 'proven business opportunity'.
Amway's business model is money circulation scheme
Shyam
In respect of 'Amway,' the term 'Direct Selling' is a ritualized inversion of quantifiable reality. Core-'Amway' adherents, such as your naive young friend , Trivedi, are constantly told that they are involved in the 'Direct Selling Industry'. They are also constantly told that they are 'IBOs' ( 'Independent Business Owners.' ) Self-evidently, all this thought-stopping 'commercial' jargon has been maliciously introduced to control the reality of 'Amway' adherents and that of casual observers. Trivedi has apparently swallowed so much of this hypnotic drive that he is now unable to think, or communicate, using accurate deconstructed terms. Indeed, it would be a very interesting excercise for Trivedi to sit down and attempt to explain on paper exactly what he believes he is involved in, but without using any of his habitual '100% Positive Amway' terminology.
Unfortunately, Trivedi is currently unable to face the fact that 'Amway' core-adherents are the de facto slaves of billionaire American racketeers. They are unpaid proselytizers for an economic pseudo-science, commonly referred to as 'MLM' ('Multilevel Marketing'), but which is actually a camouflaged closed-market swindle or money circulation scheme. The evidence for this, which is staring Trivedi in the face, are his own 'Amway' accounts.
In the adult world of quantifiable reality, for more than 50 years, virtually no products have ever been retailed by 'Amway' adherents to non-'Amway' adherents, and no one (not even 'Amway's' aggressive echelon of attorneys) can refute this simple fact. No matter how you divide up the money in any closed system of economic exchange, it is an absolute impossibility for the majority of its contributing participants to receive a profit. Anyone claiming the contrary is a liar, and lying to people in order to take their money is fraud which is a form of theft.
Amway apologists conveniently skip many a question
Amway apologists conveniently skip the aspect of the question that from whose pocket the Amway pays for the foreign jaunts of the IBOs. The IBOs get only peanuts and sizable amount is pocketed by Amway worldwide. A small part of the money pocketed by the Amway is spent for foreign jaunts of the IBOs.
People who lost money in the scam of Amway never prefer to file a criminal complaint because they are introduced by their kith and kin. They think that they have already lost money why lose relationship too. But the crucial point is that they never trust the person who introduced them into the 'proven business opportunity'. That is why it is all the more dangerous and damaging to the social fabric of the civil society. That does not mean the crime had never taken place.
Amway apologists also conveniently skip the question why the Consumers Forum of Krishna district, Andhra Pradesh slapped a fine of Rs. 1 lakh on the basis of Andhra Pradesh State Food Laboratory Report. Instead, they simply attempt to discredit the lab report. But people know well about the tactics of these crooks.
My dear fellow humans all over world! Throw these crooks out from your respective countries.
Intellectually castrated Amway apolgoists
Shyam
The arrogance of your little band of resident 'Amway' apologists is again self-evident. They remain convinced that I am addressing them directly when, quite obviously, I am addressing all my comments to you and to your free-thinking readers.
Typically, when these unquestioning 'Amway' adherents can't follow what I am saying, because they have been intellectually castrated by a totalitarian cult, they systematically retreat into their group-delusion of absolute moral and intellectual supremacy. They have been conditioned never to consider that there might be something radically wrong with their ego-building, controlled model of reality.
Indeed, the puerile and abusive comments of Mr. 'Tex' Johnson put me in mind of members of the 'Ku Klux Klan' from the 1920s, or proponents of the Apartheid regime in S. Africa. In both these cases, a fictitious scenario of absolute moral and intellectual authority was used by wicked imbeciles to justify criminal activity.
One need not wait till the end of trial to say Amway's business model is illegal
Young people, these days, are very anxious to become rich as early as possible to enjoy life while they are still young. It could be understood. To achieve that goal, they could choose a lawful business or study hard to become a professional. Those who can't do these both naturally become anti-social elements. That is what happened with these Amway apologists.
Youngman Trivedi raised a point. He said, "besides this ur point against amway regarding money circulation scheme its like considering court giving final verdict regarding murder and accusing of murder both as same."
It is true no one is guilty unless it is proved otherwise in the court of law.
Addressing this aspect, the Andhra Pradesh High Court refused to agree to it. Just read the following.
"Sri B Adinarayana (Counsel for Amway India) contended that even assuming that the police are satisfied that the petitioners (Amway India) are indulging in money circulation scheme, they cannot interfere with the business of the petitioner till the criminal court after a full fledged trial holds the petitioners guilty of the offence alleged against them. We have carefully considered this submission of the learned counsel. It is a well settled principle of criminal jurisprudence that no person shall presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the learned counsel for the petitioners (Amway India) that till the conclusion of the criminal case the police have no power to interfere with the business activities of the petitioners. Section 7 of Act (Prize Chits & Money Circulation Schemes (Banning) Act, 1978) empowers the police officer not below the rank of an officer in charge of a police station to that effect."
So the Amway India's business model is a money circulation scheme and is illegal.
Recently, there was an invitation from Forever Living Products business meeting. The speakers at the meeting said that it was a good business opportunity. They also said that anybody could become a member by paying Rs. 10 and get an identification number. Then they could purchase products from the company at a discount and sell the same to make good profit. The key point here is all the products are exorbitantly priced. The toothpaste alone costs Rs. 220. Who would buy a toothpaste at such a price. Other products also are equally highly priced. The members are offered a huge discount of 45 per cent. The members are free to enrol members and there is no compulsion. If they enrol they get commission on their business too. Here comes the money circulation scheme. More members they enrolled they get more commission on their business also. They get discount of 45 per cent and depending upon the number of members they get commission of varied percentage. Now what is the original cost of products and how much the company is making on the maxim retail price of the products. If this is not money circulation scheme what else.
What is the relationship between Ram and Sita?
After reading thoroughly Ramayana, the great Indian epic, one nitwit finally asked what is the relationship between Rama and Sita. Trivedi just now asked after arguing in this blog several weeks, what is money circulation scheme. He could have gone to older blogs to read what is money circulation scheme and which enactment covers it and what is the punishment.
This type of nitwits are found through out world. That is why this type of fradulent companies have been hoodwinking people and lining their pockets for several decades. If one company is closed, several other crooks raise their ugly heads to cheat the gullible. That is why I make it a point to bring awareness among people not to fall prey to these monsters who are out to steal your hard-earned money.
But greedy people who want to become rich overnight never hesitate to cheat their own friends and relatives in the name of 'proven business opportunity'.
Amway's business model is money circulation scheme
Shyam
In respect of 'Amway,' the term 'Direct Selling' is a ritualized inversion of quantifiable reality. Core-'Amway' adherents, such as your naive young friend , Trivedi, are constantly told that they are involved in the 'Direct Selling Industry'. They are also constantly told that they are 'IBOs' ( 'Independent Business Owners.' ) Self-evidently, all this thought-stopping 'commercial' jargon has been maliciously introduced to control the reality of 'Amway' adherents and that of casual observers. Trivedi has apparently swallowed so much of this hypnotic drive that he is now unable to think, or communicate, using accurate deconstructed terms. Indeed, it would be a very interesting excercise for Trivedi to sit down and attempt to explain on paper exactly what he believes he is involved in, but without using any of his habitual '100% Positive Amway' terminology.
Unfortunately, Trivedi is currently unable to face the fact that 'Amway' core-adherents are the de facto slaves of billionaire American racketeers. They are unpaid proselytizers for an economic pseudo-science, commonly referred to as 'MLM' ('Multilevel Marketing'), but which is actually a camouflaged closed-market swindle or money circulation scheme. The evidence for this, which is staring Trivedi in the face, are his own 'Amway' accounts.
In the adult world of quantifiable reality, for more than 50 years, virtually no products have ever been retailed by 'Amway' adherents to non-'Amway' adherents, and no one (not even 'Amway's' aggressive echelon of attorneys) can refute this simple fact. No matter how you divide up the money in any closed system of economic exchange, it is an absolute impossibility for the majority of its contributing participants to receive a profit. Anyone claiming the contrary is a liar, and lying to people in order to take their money is fraud which is a form of theft.
Amway apologists conveniently skip many a question
Amway apologists conveniently skip the aspect of the question that from whose pocket the Amway pays for the foreign jaunts of the IBOs. The IBOs get only peanuts and sizable amount is pocketed by Amway worldwide. A small part of the money pocketed by the Amway is spent for foreign jaunts of the IBOs.
People who lost money in the scam of Amway never prefer to file a criminal complaint because they are introduced by their kith and kin. They think that they have already lost money why lose relationship too. But the crucial point is that they never trust the person who introduced them into the 'proven business opportunity'. That is why it is all the more dangerous and damaging to the social fabric of the civil society. That does not mean the crime had never taken place.
Amway apologists also conveniently skip the question why the Consumers Forum of Krishna district, Andhra Pradesh slapped a fine of Rs. 1 lakh on the basis of Andhra Pradesh State Food Laboratory Report. Instead, they simply attempt to discredit the lab report. But people know well about the tactics of these crooks.
My dear fellow humans all over world! Throw these crooks out from your respective countries.
Intellectually castrated Amway apolgoists
Shyam
The arrogance of your little band of resident 'Amway' apologists is again self-evident. They remain convinced that I am addressing them directly when, quite obviously, I am addressing all my comments to you and to your free-thinking readers.
Typically, when these unquestioning 'Amway' adherents can't follow what I am saying, because they have been intellectually castrated by a totalitarian cult, they systematically retreat into their group-delusion of absolute moral and intellectual supremacy. They have been conditioned never to consider that there might be something radically wrong with their ego-building, controlled model of reality.
Indeed, the puerile and abusive comments of Mr. 'Tex' Johnson put me in mind of members of the 'Ku Klux Klan' from the 1920s, or proponents of the Apartheid regime in S. Africa. In both these cases, a fictitious scenario of absolute moral and intellectual authority was used by wicked imbeciles to justify criminal activity.
One need not wait till the end of trial to say Amway's business model is illegal
Young people, these days, are very anxious to become rich as early as possible to enjoy life while they are still young. It could be understood. To achieve that goal, they could choose a lawful business or study hard to become a professional. Those who can't do these both naturally become anti-social elements. That is what happened with these Amway apologists.
Youngman Trivedi raised a point. He said, "besides this ur point against amway regarding money circulation scheme its like considering court giving final verdict regarding murder and accusing of murder both as same."
It is true no one is guilty unless it is proved otherwise in the court of law.
Addressing this aspect, the Andhra Pradesh High Court refused to agree to it. Just read the following.
"Sri B Adinarayana (Counsel for Amway India) contended that even assuming that the police are satisfied that the petitioners (Amway India) are indulging in money circulation scheme, they cannot interfere with the business of the petitioner till the criminal court after a full fledged trial holds the petitioners guilty of the offence alleged against them. We have carefully considered this submission of the learned counsel. It is a well settled principle of criminal jurisprudence that no person shall presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the learned counsel for the petitioners (Amway India) that till the conclusion of the criminal case the police have no power to interfere with the business activities of the petitioners. Section 7 of Act (Prize Chits & Money Circulation Schemes (Banning) Act, 1978) empowers the police officer not below the rank of an officer in charge of a police station to that effect."
So the Amway India's business model is a money circulation scheme and is illegal.
Another racketeer a la Amway style
Another racketeer a la Amway style
Recently, another racketeer entered the Indian market with yet another scheme. This is time, the racketeers targeted women. Every woman, particularly from middle class and upper middle class purchases sanitary napkins. Winalite, a USA-based company launched its product LoveMoon sanitary napkins in India. They have chosen the network marketing and are target ting women. Now, women are being approached to become member of the scheme by paying Rs. 4,400 and she would be given 16 sanitary napkins. She can use them for herself and sell to others. What is more, she has to recruit five members and they in turn have to recruit five members each. So, the chain system started.
Rings any bell. Yes. This is the duplicate business model of Amway India. That is why I branded Amway as the mother of all scandals.
Now, these women, out of overzeal to recruit more women, do not hesitate to rope in their friends and relatives and wives of their husband's subordinates into the business. Eventually, the endless chain breaks somewhere, leading to the great rupture in the society.
My dear sisters all over world! Just reject this offer of easy and quick money business model. It is going make you lose all your money and lead to broken relationships. Just say NO.
Amway apologist regurgitates sugar-coated poison
Shyam
Some of your readers must now be wondering if the naive young character, Trivedi, who keeps making his pathetic scripted interjections on your Blog, really exists. For how is it possible that any adult can thoughtlessly continue to regurgitate this endless stream of sugar-coated poison carefully-prepared by the 'Amway' Ministry of Truth?
The answer to is, of couse, that the poor fellow still needs to remain living in the closed-logic 'Amway Dream' world where only unquestioning believers in 'Multilevel Marketing' can achieve its promised Utopia of 'Total Financial Freedom .' In the classic 'Amway' fashion, Trivedi will have almost certainly been trained to fix a poster depicting his 'Dream' (usually, an exotic and macho sports car) in a prominent place in his home, and to focus completely on this (so-called) 'motivational image' for an extended period each day. The 'Amway' myth systematically categorizes and condemns anyone challenging its authenticity as a 'Dream Stealer.' Indeed, one of the most-peddled books within 'Amway' is entitled, 'Don't Let Anyone Steal Your Dream' - a typical instruction manual in how to stop thinking critically, disguised as 'Motivation/Self-Betterment.'
Sadly, down the years, all the vulnerable people who have swallowed this sugar-coated poison -and focused all their attention (and effort) on their guided 'Amway Dreams' (ignoring the common-sense warnings of their friends and relations) whilst handing their money to the billionaire 'Amway' bosses - might as well have been praying to the 'God Mammon.'
In the adult world of quantifiable reality, if we set up a simple money circulation scheme, where we persuade 6 people to pay us $200 per month by telling them that 'if they recruit 6 more $200 monthly contributors, who then recruit 6 more $200 monthly contributors, etc., ad infinitum, they can soon retire on a percentage of the take,' we would be breaking the law. However, if we persuade the same 6 people to pay us $200 per month by telling them the identical lies, but (at the same time) give them boxes of (effectively) worthless merchandise and record all these pointless transactions as 'sales,' then, according to Trivedi, 'this is a perfectly viable and legal Direct Selling Scheme.'
Perhaps, in order to stimulate his snoozing critical and evaluative faculties, we should ask Trivedi if he can first accept that:
- major organized crime groups exist ?
- it is possible for the bosses of a major organized group to camouflage and sustain a money circulation scheme (or pyramid scam) by steadfastly pretending that (effectively) worthless merchandise is 'good-value' and that illegal payments are 'sales' ?
Clueless Amway apologists are real cheats
This is for waking up Clueless Amway apologist. Of course, a pretending person could not be woken up. In a nutshell, in the case of (2008) 8 SCC 2008), Kuriachan Chacko and others .. Versus State Of Kerala, The Supreme Court of India categorically stated why a multilevel marketing or network marketing is a crime of cheating under Section 420 of Indian Penal Code.
"The promoters of the scheme very well knew that it is certain that the Scheme was impracticable and unworkable making tall promises which the makers of the promises knew fully well that it could not work successfully. It could work for some time in that "Paul can be robbed to pay Peter" but ultimately when there is a large mass of Peters, they will be left in the lurch without any remedy as they would by then have been deceived and deprived of their money. If it is so. It could be said to be a case for application of Section 420 read with Section 34 IPC. of course, at this stage. (Paras 47 and 41)"
The same is the case with business model of Amway. These Clueless Amway apologist could not clarify why he is supporting a fraudulent company and what is his stake in it. These faceless, nameless, dishonest people have no right to question the authenticity of court judgements.
My humble appeal to people all over world is to throw these fraudulent companies like Amway, Tupperware, Herbalife, Forever Living Products, MyVideoTalk and so many others.
Clueless Amway apologists have no point to prove their case
The clueless Amway apolgoist proved once again that he does not have any thinking brain. It is not me or Brear who is saying the business model of Amway India is an illegal money circulation scheme. It was the Andhra Pradesh High Court conclusively proved that the business model is nothing but money circulation scheme following the writ petition filed by Amway India. The High Court also directed the police to file the criminal case and take it to logical conclusion. These pigheaded Amway apologists cannot say anything but only are trying to discredit the writings of Brear and me.
But my readers are well aware of the cunning ways of these apologists and they laughing it off.
My fight against these fraudulent companies would continue whatever these chicken-brained write because of my transparent blog.
I reiterate my appeal to my fellow human beings all over world to throw such fraudulent companies out of their respective countries. Do not fall prey to these cheating schemes and lose the hard-earned money.
Amway apologists exhibit intellectual castration
Shyam
Frightening isn't it, the effect of cultic, intellectual castration - as exhibited by your tiny flock of resident 'Amway' apologists?
Every (previously-rational) person who has lost money to the 'Amway' bosses down the years, would never have done so had they been given access to the truth that is (effectively) impossible to sell 'Amway' products or to make a net-profit from 'Amway'. Despite these undisputed facts, young Trivedi remains totally hypnotised by the comic-book propaganda that 'Amway' produces millionaires, because the whole world is clamouring to get its hands on all those wonderful cheap 'Amway' products.
In the sad little, narcissistic world according to Mr. 'Tex' Johnson, 'everyone is an idiot except him'. It's quite ironic that he is completely unaware that, originally, the word 'idiot' didn't have a pejorative sense. Given Johnson's puerile and abusive track-record, it is about as likely that I would accept an invitation to talk with 'Tex' : as Nelson Madela volunteering to be seen to associate with a hooded, core-adherent of the 'Ku Klux Klan' (for fear of being called a 'chicken.')
Amway's Masked man starts squawking again
Shyam
I observe that Lord Haw Haw, Steadson, has raised his masked head again to squawk. This time he put his foot in his beak and surpassed himself in his capacity to invert quantifiable reality and systematically categorize the truth and truth-tellers as 'lies' and 'liars'.
No one can dispute that, for decades, the 'Amway' Ministry of Truth has proudly proclaimed 'millions of Independent Business Owners' world-wide (including '450 000 in India') conducting 'multi-billion dollar sales.' However, since (according to 'Amway's' own figures) around 50% of these people never renewed their annual contracts, this means that down the years tens of millions of individuals have been quietly churned through the ever-shifting 'Amway' system. Again, no one (not even the 'Amway' Lord Haw Haw) disputes that, for 50 years, virtually no 'Amway' products have been retailed to anyone who is not an agent of 'Amway' and that the overwhelming majority of people who have signed a contract with 'Amway' have received not one cent of overall profit from the operation of a so-called 'Amway Business.' On the contrary, involvement with 'Amway' has cost them money.
Despite the efforts of the 'Amway' mob's echelon of attorneys to maintain the organization's absolute monopoly of information, the Internet (particularly e-bay) is constantly infested with thousands of former 'Amway' adherents trying to unload (effectively) unsaleable 'Amway' rubbish at a fraction of the controlled price which they originally paid for it. However, in a desperate attempt to prove that 'Amway' is not an unviable, and illegal, closed-market (a money circulation scheme camouflaged by banal, but grossly-overpriced, products), Steadson has revealed himself to be a complete twit. In fact, judging by this latest ridiculous performance, I can't believe that the billionaire bosses of the 'Amway' mob will allow him to continue for much longer. For Steadson now boasts that the vast majority of all the tens of millions of transient contributors to the 'Amway' closed-market whom, for 50 years, the 'Amway' Ministry of Truth have proudly proclaimed as 'Independent Business Owners' weren't actually in 'Business' at all, they were really 'customers.' Unfortunately for Steadson, it never said that in their 'Amway' contracts. All these tens of millions of people were all arbitrarily and maliciously defined as 'Business Owners' by the billionaire bosses of the 'Amway' mob in order to avoid investigation and criminal prosecution under US federal laws prohibiting closed market swindles a.k.a. pyramid scams. Thus, the 'Amway' Lord Haw Haw has painted himself into a corner where he has been obliged to accept that decades of 'Amway Business Owner Contracts' were lies.
In other words, Steadson has just inadvertently broadcast to the world that the bosses of the 'Amway' mob have been committing crime for 50 years, because lying to people in order to take their money is fraud which is a form of theft.
The 'Amway' Lord Haw Haw will, of course, now compound his offence by totally denying what he has said whilst accusing me of 'ranting, twisting his words and denying reality.'
Amway fraud, one of the biggest scandals
Shyam
I observe that your naive young friend, Trivedi, now wants to know from where in the world comes the conclusion that 'Amway' has insufficient external revenue to pay the majority of its contributing participants (a profit)? Although the poor boy still feels obliged to refer to the victims of the 'Amway' scam as 'IBOs (Independent Business Owners )' -, a reality-inverting term invented by skilled racketeers to hide their crime. (Remember, in 1920s Chicago the 'Mobs' referred to their protection rackets as 'Selling Insurance' and their victims as 'Policy Holders' )
Trivedi, not even 'Amway's' own lawyers dispute the simple fact that, for more than 50 years, there have been virtually no 'Amway' products retailed to persons who are not agents of 'Amway.' In order to maintain this situation, production distribution and exchange in the 'Amway' economic system has been centrally-controlled from Ada Michigan. This (effectively) hermetic system has had no real source of external revenue whatsoever and has been, therefore, completely unviable and illegal. Given half a century of damning evidence, coupled with the capacity to use one's critical and evaluative faculties, no other conclusion can be drawn. Tellingly, all the decades of impressive 'sales figures' issued by the 'Amway' Ministry of Truth, deliberately never made any distinction between economically-incestuous internal sales to the organization's own agents and economically-healthy external retail sales to non-agents. However, in the 1970s, US Federal Trade Commission economists finally established (after years of scratching their heads) that 70% is the necessary minimum level of genuine retail sales to non-agents which any direct selling scheme must consistently maintain, in order for it to be viable and legal. 'Amway' had long-since been investigated by FTC agents who found that the percentage of genuine 'Amway' retail sales to non-adherents in the USA hadn't even achieved double figures. In order to avoid immediate closure and criminal investigation, and prosecution under federal anti-pyramid schemes legislation, the 'Amway' bosses simply pretended affinity with US federal agents. In 1979, they put up their hands in court and drafted a 'rule' which appeared to make it (henceforth) mandatory for all American 'Amway' agents to retail 70% of there own purchases in order for them to receive commission payments from 'Amway,' but, laughably, this rule has never been enforced. The FTC has recently turned a blind eye to 'Amway' and to other copy-cat frauds, because huge amounts of stolen 'MLM' cash have found their way into the coffers of the Republican party.
Trivedi, an unviable closed-market can be reduced to the following simple explanation which even the average 10 year old child can understand, but apparently you still don't want to accept:
If 10 people each put 10 coins on a table, no matter how you divide up the resulting 100 coins there is no way (unless you are a superhuman who can suspend the laws of physics and who can create more coins miraculously), that a majority of the contributors can receive more coins than they started with.
The whole of the fiercely-complex, so-called 'Amway Compensation Plan' (in which contributing participants of the closed 'Amway' market are offered escalating payments depending on how many more contributing participants they recruit) is just mathematical hocus-pocus designed to shut down the critical and evaluative faculties of 'Amway' victims and casual observers. What the bosses of the 'Amway' mob have got away with for more than 50 years is essentially what Bernie Madoff got away with for two decades. They have peddled infinite shares in their victims' own finite money. Madoff called his closed-market victims, 'Investors', the 'Amway' bosses call them 'IBOs'. Unlike the Madoff scam, the 'Amway' scam has never collapsed, because more and more people have continued to be churned through it and because the accurate deconstructed explanation has remained beyond the understanding of the both victims and law enforcement agents.
The 'Amway' fraud remains (potentially) one of the biggest scandals in American history. Fortunately, there are far too many people now around the world who understand exactly how it works, for it to remain hidden for much longer.
So far Trivedi, your little role in all of this is nothing to be proud of.
Amway has insufficient external revenue to pay majority of IBOs
Shyam
The recent deluge of scripted protestations raining upon your Blog from the 'Amway' Ministry of Truth, via the castrated mind of young Trivedi, is yet more damning evidence of how effective cultic groups are at exploiting individuals by ritualizing their means of thought. When this wide-eyed fellow fell for the 'Amway' myth, he obviously didn't have the beginings of a clue as to what the essential identifying characteristic of a mathematically impossible (and, therefore, illegal) money circulation scheme is. However, this is nothing to be ashamed of, because very few people do.
That said, young Trivedi appears to be a classic mark for the 'Amway' racketeers, in that his own ego will now not allow him to admit that he was just another greedy little twit (without two rupees to scratch his backside) who was easily seduced by 'Amway's' reality-inverting, pretty words and images constantly depicting a future, secure, Utopian existence where no one works, but every happy couple wears his and hers Rolex watches, drives his and hers luxury cars and lazes beside the pool in their spotless mansions.
All Trivedi has to do to glimpse the ugly reality lurking behind this puerile comic-book fantasy, is just go and look on e-bay (in the UK, USA, Australia, etc.) where he will see thousands of (untouched) banal 'Amway' products being offered at prices which are a fraction of those being gathered by the billionaire bosses of the 'Amway' mob. This effectively unsaleable wampum is constantly being unloaded on e-bay by twits like Trivedi who once fell for the 'Amway' myth and who were deceived into buying grossly-overpriced products and attempting to recruit their friends and relations to do the same, ad infinitum, in the false belief that this 'Proven Plan of Duplication' would lead to 'Total Financial Freedom.'
Participants in the illegal 'Amway' money circulation scheme might as well have been given boxes of fresh-air in return for their payments.
This brings us back to the simple fact that, for more than 50 years, virtually no 'Amway' products have been retailed by 'Amway' adherents to non-'Amway' adherents. Thus, the only real money entering the parallel 'Amway' economy has come from 'Amway's' own non-salaried commission agents. No matter how this finite quantity of money has been divided up by the all-powerful bosses of the 'Amway' mob, the majority of 'Amway's' powerless participants have not received a profit, because it was a mathematical impossibility for them to do so.
Notice Trivedi, not even 'Amway's' lawyers attempt to dispute this.
The essential identifying characteristic of an illegal money circulation scheme is that it has insufficient external revenue to pay the majority of its contributing participants a profit.
Recently, another racketeer entered the Indian market with yet another scheme. This is time, the racketeers targeted women. Every woman, particularly from middle class and upper middle class purchases sanitary napkins. Winalite, a USA-based company launched its product LoveMoon sanitary napkins in India. They have chosen the network marketing and are target ting women. Now, women are being approached to become member of the scheme by paying Rs. 4,400 and she would be given 16 sanitary napkins. She can use them for herself and sell to others. What is more, she has to recruit five members and they in turn have to recruit five members each. So, the chain system started.
Rings any bell. Yes. This is the duplicate business model of Amway India. That is why I branded Amway as the mother of all scandals.
Now, these women, out of overzeal to recruit more women, do not hesitate to rope in their friends and relatives and wives of their husband's subordinates into the business. Eventually, the endless chain breaks somewhere, leading to the great rupture in the society.
My dear sisters all over world! Just reject this offer of easy and quick money business model. It is going make you lose all your money and lead to broken relationships. Just say NO.
Amway apologist regurgitates sugar-coated poison
Shyam
Some of your readers must now be wondering if the naive young character, Trivedi, who keeps making his pathetic scripted interjections on your Blog, really exists. For how is it possible that any adult can thoughtlessly continue to regurgitate this endless stream of sugar-coated poison carefully-prepared by the 'Amway' Ministry of Truth?
The answer to is, of couse, that the poor fellow still needs to remain living in the closed-logic 'Amway Dream' world where only unquestioning believers in 'Multilevel Marketing' can achieve its promised Utopia of 'Total Financial Freedom .' In the classic 'Amway' fashion, Trivedi will have almost certainly been trained to fix a poster depicting his 'Dream' (usually, an exotic and macho sports car) in a prominent place in his home, and to focus completely on this (so-called) 'motivational image' for an extended period each day. The 'Amway' myth systematically categorizes and condemns anyone challenging its authenticity as a 'Dream Stealer.' Indeed, one of the most-peddled books within 'Amway' is entitled, 'Don't Let Anyone Steal Your Dream' - a typical instruction manual in how to stop thinking critically, disguised as 'Motivation/Self-Betterment.'
Sadly, down the years, all the vulnerable people who have swallowed this sugar-coated poison -and focused all their attention (and effort) on their guided 'Amway Dreams' (ignoring the common-sense warnings of their friends and relations) whilst handing their money to the billionaire 'Amway' bosses - might as well have been praying to the 'God Mammon.'
In the adult world of quantifiable reality, if we set up a simple money circulation scheme, where we persuade 6 people to pay us $200 per month by telling them that 'if they recruit 6 more $200 monthly contributors, who then recruit 6 more $200 monthly contributors, etc., ad infinitum, they can soon retire on a percentage of the take,' we would be breaking the law. However, if we persuade the same 6 people to pay us $200 per month by telling them the identical lies, but (at the same time) give them boxes of (effectively) worthless merchandise and record all these pointless transactions as 'sales,' then, according to Trivedi, 'this is a perfectly viable and legal Direct Selling Scheme.'
Perhaps, in order to stimulate his snoozing critical and evaluative faculties, we should ask Trivedi if he can first accept that:
- major organized crime groups exist ?
- it is possible for the bosses of a major organized group to camouflage and sustain a money circulation scheme (or pyramid scam) by steadfastly pretending that (effectively) worthless merchandise is 'good-value' and that illegal payments are 'sales' ?
Clueless Amway apologists are real cheats
This is for waking up Clueless Amway apologist. Of course, a pretending person could not be woken up. In a nutshell, in the case of (2008) 8 SCC 2008), Kuriachan Chacko and others .. Versus State Of Kerala, The Supreme Court of India categorically stated why a multilevel marketing or network marketing is a crime of cheating under Section 420 of Indian Penal Code.
"The promoters of the scheme very well knew that it is certain that the Scheme was impracticable and unworkable making tall promises which the makers of the promises knew fully well that it could not work successfully. It could work for some time in that "Paul can be robbed to pay Peter" but ultimately when there is a large mass of Peters, they will be left in the lurch without any remedy as they would by then have been deceived and deprived of their money. If it is so. It could be said to be a case for application of Section 420 read with Section 34 IPC. of course, at this stage. (Paras 47 and 41)"
The same is the case with business model of Amway. These Clueless Amway apologist could not clarify why he is supporting a fraudulent company and what is his stake in it. These faceless, nameless, dishonest people have no right to question the authenticity of court judgements.
My humble appeal to people all over world is to throw these fraudulent companies like Amway, Tupperware, Herbalife, Forever Living Products, MyVideoTalk and so many others.
Clueless Amway apologists have no point to prove their case
The clueless Amway apolgoist proved once again that he does not have any thinking brain. It is not me or Brear who is saying the business model of Amway India is an illegal money circulation scheme. It was the Andhra Pradesh High Court conclusively proved that the business model is nothing but money circulation scheme following the writ petition filed by Amway India. The High Court also directed the police to file the criminal case and take it to logical conclusion. These pigheaded Amway apologists cannot say anything but only are trying to discredit the writings of Brear and me.
But my readers are well aware of the cunning ways of these apologists and they laughing it off.
My fight against these fraudulent companies would continue whatever these chicken-brained write because of my transparent blog.
I reiterate my appeal to my fellow human beings all over world to throw such fraudulent companies out of their respective countries. Do not fall prey to these cheating schemes and lose the hard-earned money.
Amway apologists exhibit intellectual castration
Shyam
Frightening isn't it, the effect of cultic, intellectual castration - as exhibited by your tiny flock of resident 'Amway' apologists?
Every (previously-rational) person who has lost money to the 'Amway' bosses down the years, would never have done so had they been given access to the truth that is (effectively) impossible to sell 'Amway' products or to make a net-profit from 'Amway'. Despite these undisputed facts, young Trivedi remains totally hypnotised by the comic-book propaganda that 'Amway' produces millionaires, because the whole world is clamouring to get its hands on all those wonderful cheap 'Amway' products.
In the sad little, narcissistic world according to Mr. 'Tex' Johnson, 'everyone is an idiot except him'. It's quite ironic that he is completely unaware that, originally, the word 'idiot' didn't have a pejorative sense. Given Johnson's puerile and abusive track-record, it is about as likely that I would accept an invitation to talk with 'Tex' : as Nelson Madela volunteering to be seen to associate with a hooded, core-adherent of the 'Ku Klux Klan' (for fear of being called a 'chicken.')
Amway's Masked man starts squawking again
Shyam
I observe that Lord Haw Haw, Steadson, has raised his masked head again to squawk. This time he put his foot in his beak and surpassed himself in his capacity to invert quantifiable reality and systematically categorize the truth and truth-tellers as 'lies' and 'liars'.
No one can dispute that, for decades, the 'Amway' Ministry of Truth has proudly proclaimed 'millions of Independent Business Owners' world-wide (including '450 000 in India') conducting 'multi-billion dollar sales.' However, since (according to 'Amway's' own figures) around 50% of these people never renewed their annual contracts, this means that down the years tens of millions of individuals have been quietly churned through the ever-shifting 'Amway' system. Again, no one (not even the 'Amway' Lord Haw Haw) disputes that, for 50 years, virtually no 'Amway' products have been retailed to anyone who is not an agent of 'Amway' and that the overwhelming majority of people who have signed a contract with 'Amway' have received not one cent of overall profit from the operation of a so-called 'Amway Business.' On the contrary, involvement with 'Amway' has cost them money.
Despite the efforts of the 'Amway' mob's echelon of attorneys to maintain the organization's absolute monopoly of information, the Internet (particularly e-bay) is constantly infested with thousands of former 'Amway' adherents trying to unload (effectively) unsaleable 'Amway' rubbish at a fraction of the controlled price which they originally paid for it. However, in a desperate attempt to prove that 'Amway' is not an unviable, and illegal, closed-market (a money circulation scheme camouflaged by banal, but grossly-overpriced, products), Steadson has revealed himself to be a complete twit. In fact, judging by this latest ridiculous performance, I can't believe that the billionaire bosses of the 'Amway' mob will allow him to continue for much longer. For Steadson now boasts that the vast majority of all the tens of millions of transient contributors to the 'Amway' closed-market whom, for 50 years, the 'Amway' Ministry of Truth have proudly proclaimed as 'Independent Business Owners' weren't actually in 'Business' at all, they were really 'customers.' Unfortunately for Steadson, it never said that in their 'Amway' contracts. All these tens of millions of people were all arbitrarily and maliciously defined as 'Business Owners' by the billionaire bosses of the 'Amway' mob in order to avoid investigation and criminal prosecution under US federal laws prohibiting closed market swindles a.k.a. pyramid scams. Thus, the 'Amway' Lord Haw Haw has painted himself into a corner where he has been obliged to accept that decades of 'Amway Business Owner Contracts' were lies.
In other words, Steadson has just inadvertently broadcast to the world that the bosses of the 'Amway' mob have been committing crime for 50 years, because lying to people in order to take their money is fraud which is a form of theft.
The 'Amway' Lord Haw Haw will, of course, now compound his offence by totally denying what he has said whilst accusing me of 'ranting, twisting his words and denying reality.'
Amway fraud, one of the biggest scandals
Shyam
I observe that your naive young friend, Trivedi, now wants to know from where in the world comes the conclusion that 'Amway' has insufficient external revenue to pay the majority of its contributing participants (a profit)? Although the poor boy still feels obliged to refer to the victims of the 'Amway' scam as 'IBOs (Independent Business Owners )' -, a reality-inverting term invented by skilled racketeers to hide their crime. (Remember, in 1920s Chicago the 'Mobs' referred to their protection rackets as 'Selling Insurance' and their victims as 'Policy Holders' )
Trivedi, not even 'Amway's' own lawyers dispute the simple fact that, for more than 50 years, there have been virtually no 'Amway' products retailed to persons who are not agents of 'Amway.' In order to maintain this situation, production distribution and exchange in the 'Amway' economic system has been centrally-controlled from Ada Michigan. This (effectively) hermetic system has had no real source of external revenue whatsoever and has been, therefore, completely unviable and illegal. Given half a century of damning evidence, coupled with the capacity to use one's critical and evaluative faculties, no other conclusion can be drawn. Tellingly, all the decades of impressive 'sales figures' issued by the 'Amway' Ministry of Truth, deliberately never made any distinction between economically-incestuous internal sales to the organization's own agents and economically-healthy external retail sales to non-agents. However, in the 1970s, US Federal Trade Commission economists finally established (after years of scratching their heads) that 70% is the necessary minimum level of genuine retail sales to non-agents which any direct selling scheme must consistently maintain, in order for it to be viable and legal. 'Amway' had long-since been investigated by FTC agents who found that the percentage of genuine 'Amway' retail sales to non-adherents in the USA hadn't even achieved double figures. In order to avoid immediate closure and criminal investigation, and prosecution under federal anti-pyramid schemes legislation, the 'Amway' bosses simply pretended affinity with US federal agents. In 1979, they put up their hands in court and drafted a 'rule' which appeared to make it (henceforth) mandatory for all American 'Amway' agents to retail 70% of there own purchases in order for them to receive commission payments from 'Amway,' but, laughably, this rule has never been enforced. The FTC has recently turned a blind eye to 'Amway' and to other copy-cat frauds, because huge amounts of stolen 'MLM' cash have found their way into the coffers of the Republican party.
Trivedi, an unviable closed-market can be reduced to the following simple explanation which even the average 10 year old child can understand, but apparently you still don't want to accept:
If 10 people each put 10 coins on a table, no matter how you divide up the resulting 100 coins there is no way (unless you are a superhuman who can suspend the laws of physics and who can create more coins miraculously), that a majority of the contributors can receive more coins than they started with.
The whole of the fiercely-complex, so-called 'Amway Compensation Plan' (in which contributing participants of the closed 'Amway' market are offered escalating payments depending on how many more contributing participants they recruit) is just mathematical hocus-pocus designed to shut down the critical and evaluative faculties of 'Amway' victims and casual observers. What the bosses of the 'Amway' mob have got away with for more than 50 years is essentially what Bernie Madoff got away with for two decades. They have peddled infinite shares in their victims' own finite money. Madoff called his closed-market victims, 'Investors', the 'Amway' bosses call them 'IBOs'. Unlike the Madoff scam, the 'Amway' scam has never collapsed, because more and more people have continued to be churned through it and because the accurate deconstructed explanation has remained beyond the understanding of the both victims and law enforcement agents.
The 'Amway' fraud remains (potentially) one of the biggest scandals in American history. Fortunately, there are far too many people now around the world who understand exactly how it works, for it to remain hidden for much longer.
So far Trivedi, your little role in all of this is nothing to be proud of.
Amway has insufficient external revenue to pay majority of IBOs
Shyam
The recent deluge of scripted protestations raining upon your Blog from the 'Amway' Ministry of Truth, via the castrated mind of young Trivedi, is yet more damning evidence of how effective cultic groups are at exploiting individuals by ritualizing their means of thought. When this wide-eyed fellow fell for the 'Amway' myth, he obviously didn't have the beginings of a clue as to what the essential identifying characteristic of a mathematically impossible (and, therefore, illegal) money circulation scheme is. However, this is nothing to be ashamed of, because very few people do.
That said, young Trivedi appears to be a classic mark for the 'Amway' racketeers, in that his own ego will now not allow him to admit that he was just another greedy little twit (without two rupees to scratch his backside) who was easily seduced by 'Amway's' reality-inverting, pretty words and images constantly depicting a future, secure, Utopian existence where no one works, but every happy couple wears his and hers Rolex watches, drives his and hers luxury cars and lazes beside the pool in their spotless mansions.
All Trivedi has to do to glimpse the ugly reality lurking behind this puerile comic-book fantasy, is just go and look on e-bay (in the UK, USA, Australia, etc.) where he will see thousands of (untouched) banal 'Amway' products being offered at prices which are a fraction of those being gathered by the billionaire bosses of the 'Amway' mob. This effectively unsaleable wampum is constantly being unloaded on e-bay by twits like Trivedi who once fell for the 'Amway' myth and who were deceived into buying grossly-overpriced products and attempting to recruit their friends and relations to do the same, ad infinitum, in the false belief that this 'Proven Plan of Duplication' would lead to 'Total Financial Freedom.'
Participants in the illegal 'Amway' money circulation scheme might as well have been given boxes of fresh-air in return for their payments.
This brings us back to the simple fact that, for more than 50 years, virtually no 'Amway' products have been retailed by 'Amway' adherents to non-'Amway' adherents. Thus, the only real money entering the parallel 'Amway' economy has come from 'Amway's' own non-salaried commission agents. No matter how this finite quantity of money has been divided up by the all-powerful bosses of the 'Amway' mob, the majority of 'Amway's' powerless participants have not received a profit, because it was a mathematical impossibility for them to do so.
Notice Trivedi, not even 'Amway's' lawyers attempt to dispute this.
The essential identifying characteristic of an illegal money circulation scheme is that it has insufficient external revenue to pay the majority of its contributing participants a profit.
Amway pyramid is crumbling
Amway pyramid is crumbling
Here is the summary prepared by Pyramid Scheme Alert for 2009 reproduced to inform our readers.
Thirty years ago, Amway narrowly escaped an FTC prosecution to shut it down for pyramid fraud. Since then, it has been a rogue corporation on a global rampage, fleecing tens of millions with its hallmark "endless chain" income promise. Amway is the largest multi-level marketing (MLM) scheme in the world, and the prototype of nearly all the others. Signs compellingly point toward its end time and threaten the future of all other "endless chain" fraudsters. In the latest developments, the publication of Eric Scheibeler's first-person account of business opportunity fraud at Amway, Merchants of Deception has prompted Pyramid Scheme Alert to ask the Direct Selling Association to investigate its largest member. The DSA has referred it to its "Code of Ethics Administrator" who in turn wrote that he has referred to it Amway's own "Code of Ethics Administrator." Referencing the material in Merchants of Deception, Pyramid Scheme Alert also asked the US Attorney General, Eric Holder, to open an investigation. Some highlights of Amway's long rap sheet are summarized:
· Amway received a huge fine for tax fraud in Canada, the largest ever levied at that time.
· CBS 60 Minutes and NBC Dateline have done devastating exposés of Amway-related deception in recruitment and income promises.
·One state in India has brought criminal fraud case against Amway.
· Prosecutors in England came within a hair of driving Amway out of the UK. A judge decided to allow it to continue to operate, but he imposed two fatal restrictions on it: lowered prices and no more "tools" business. Price gouging and foisting phony "motivation" CDs and seminars on new recruits to fund the "Top Guns" are pillars of Amway's model.
·In the USA, Amway was prosecuted by the State of Wisconsin that found that 99% of all distributors were losing money. This is exactly the same loss rate the UK officials calculated that English consumers suffered every year for 30 years!
·In North America today Amway is the target of large class action cases brought by distributors in the US, charging that Amway is a fraud. A second similar case has been brought in Canada.
·Despite threats and lawsuits, consumers have published multiple websites detailing deception, false income claims, bogus testimonials, and massive consumer losses.
·Amway's extensive political lobbying and influence-buying, especially its close ties to the Bush Administration, and the conflicts of interest with officials have been exposed.
·Amway is in multiple litigations to stop its distributors from moving to other MLMs. The MLM scheme, Monavie, has pulled away thousands of former Amway distributors, including a number of top gun recruiters.
·Some of Amway's former "top gun" distributors have gone public and admitted in court cases that Amway is an illegal pyramid scheme, with a near 100% dropout rate, and that less than 5% of its products are ever retailed. This means that Amway's profits come directly and almost totally from the lost investments of the salespeople, not from sales to the public. They also admit that the high incomes and lavish lifestyles of the upline that are paraded in front of new recruits to demonstrate that Amway "works" are in fact a fraud. The money actually comes from selling the recruits "motivation and training" tools, not from earning commissions on Amway sales.
·Amway's multi-tiered business model has now been banned in China, closing off its last geographic market to continue the pyramid expansion.
Amway has taken extreme, evasive maneuvers, to cloud the truth and throw regulators, the media and consumer activists off its track.
·It has massively recruited outside the USA where regulations in some countries don't exist, are poorly enforced, or will not outlaw a US-based scheme for political reasons.
·It has also aggressively attacked whistle blowers with lawsuits. It has sued even small-time distributors who dared to leave and try to work for other MLMs.
·Amway changed its name to Quixtar, which it said was a a subsidiary of another new name, "Alticor." Many consumers unwittingly joined the "new" company not realizing it was still just Amway.
·Now, in yet another evasive maneuver, the company has yet another new name, Amway Global, and is running TV ads claiming to be "household name" and a "direct seller." In fact virtually no consumers buy Amway products other than the salespeople, and those purchases are not driven by demand or even brand awareness but rather are tied to Amway's misleading income promises.
Despite the diversions, escapes and disguises, the truth keeps doggedly following Amway. Now, the most famous Amway whistle blower - Eric Scheibeler - survived Amway's lawsuits and has told his inside story in a full length book, which is attracting media attention.
Based on the revelations in Scheibeler's book, Pyramid Scheme Alert has sent formal requests to the president of the Direct Selling and its Ethics Division asking for an investigation of Amway. The DSA has responded that it is taking the matter up with Amway.
A formal request has also been sent to the Attorney General, Eric Holder, asking for federal inquiry into the facts and allegations in the book. FTC officials have also been asked to investigate.Pyramid Scheme Alert will maintain its "Amway Watch" in 2010, and will report on responses of the Department of Justice, Federal Trade Commission, legal actions in India, enforcement in England, class action suits in the USA and Canada, the Direct Selling Association's actions, and media investigations.
Amway's business model is illegal
Here is an e-mail reproduced here for the benefit of our valued readers.
"I too was brainwashed and lied to for two years. I lost many friends, some that I had known my whole life. I accumulated a mass amount of debt that I would tell myself would be paid when I went Diamond. Needless to say, I filed bankruptcy and my credit was screwed for several years. Financially, my life has never been the same. Before AMWAY, I was a 25-year old single dad earning handsome salary. Today I make just enough to get by and live a very simple life. My sponsor was a childhood friend who I still keep in touch with. Other Friendships were not so fortunate.
I would estimate that the whole Amway experience cost me several thousands in two years. Not to mentiion, the money I blew to try to impress people that I was on my way to financial freedom. What a joke! I applaud you for what you are doing!"
Amway apologists might say that he was a loser. But they refuse to accept that they are also losers. Like Teacher Nirmala's husband they too strongly believe that they are going to become rich even though they did not make any money since the beginning and nothing in near future.
Amway's business model is a money circulation scheme disguised in the name of selling products. It's a pyramid structure sales model which had already left several millions all over India and other countries penniless. But many victims prefer to remain silent for obvious reasons. That is the forte of this monster.
My appeal to fellow humans all over world is not to fall prey to the scheming business model of Amway.
IBOFB part of Amway's racketeering activities
Shyam
We have here on your Blog the extraordinary Xmas spectacle of the masked 'Amway' Lord Haw Haw, Mr. Steadson (who finds himself unable deny that, for 50 years, virtually no 'Amway' products have been sold to persons who are not agents of 'Amway' and that, as a result , the overwhelming majority of 'Amway' agents have not made a profit out of 'Amway,' because this was a mathematical impossibility), reciting the latest chapter of the 'Amway' fairy-tale to the ever-changing flock of wide-eyed 'Amway' believers.
Steadson now steadfastly pretends that the overwhelming majority of insolvent 'Amway' commission agents who were arbitrarily defined by their annual 'Amway' contracts as 'Independent Business Owners,' were actually only retail customers of 'Amway' who weren't participating in the 'Amway Business' at all. Unfortunately for Steadson, for decades, 'Amway's' own propaganda has boasted completely the reverse.
I don't know about you, Shyam, but I have been given unlimited access to piles of unwanted 'Amway' wampum by various destitute adherents. One former 'Emerald' had an entire garage full of it (which he'd acquired over a period of 10 years). Another former UK distributor had stock-piled 'Nutrilite' vitimins which she'd forked-out about $50 per jar for. Then, of course, there are all those people with their $1000 sets of ridiculous 'Amway' cooking pans. The Internet (particularly, e-bay) is constantly infested with former 'Amway' adherents trying to unload all this (effectively) unsaleabe junk at a fraction of the fixed-price they originally paid for it. Yet, tellingly, according to 'Amway's' reality-inverting propaganda all products have a 'money-back guarantee.'
The point is that, since the original 'MLM' scam, 'Nutrilite,' was first challenged in the USA, the banal products which 'MLM' victims pay through the nose to acquire (in the deluded belief that 'buying and recruiting is the proven plan for success'), are merely an elaborate diversion. The 'MLM' scam remains essentially the same; diguise illegal internal payments as 'sales' and, in return, supply the victims with some neatly-packaged (but cheaply-produced) merchandise, or service, which doesn't obviously fall foul of laws concerning misbranding. This is how the perpetrators of these frauds have camouflged their crimes for more than half a century.
The 'Amway' Lord Haw Haw's filthy little role in all of this, comprises attempting to character-assassinate free-thinking individuals like you, me, Robert Fitzpatrick, Eric Scheibeler, Scott Larsen, etc., (who are trying to stop the spread of this type of fraud). He is also attempting to prevent existing 'Amway' victims, like Trivedi, from confronting external reality and approaching law enforcement agents, legislators, journalists, with complaint.
Steadson is knowingly participating in a pattern of major racketeering activity as defined by the US Federal Racketeer Influenced Corrupt Organizations Act of 1970 and clarified by various US Supreme Court judgements.
David Brear
IBOFB bids to hide behind his dear old mother
Shyam
I observe that the 'Amway' Lord Haw Haw, Mr. Steadson, has again opened his fat beak to squawk and put his foot in it.
Despite what he claims not to have said, the gormless twit has previously broadcast to the world that the overwhelming majority of insolvent 'Amway' commission agents who are arbitrarily defined in their comic-book 'Amway Distributor Contracts' as 'Independent Business Owners' are 'retail customers of Amway' as well. So, by the same absurd logic, the overwhelming majority of people whom Steadson now steadfastly pretends to be 'retail customers of Amway' are also insolvent commission agents of 'Amway'. Apparently, 'Amway UK Ltd.' (on the advice of its lawyers) has now officially redefined its insolvent commission agents as 'customers' to avoid the possibility of criminal investigation and prosecution for having fronted a pyramid scam (with insufficient external revenue) for 34 years. Thus, when Steadson says he has 'dozens of customers' what he's really saying is, that he has recruited more 'Amway' adherents. However, we only have his word for that.
Who the hell does Steadson think he's fooling with all this mind-numbing, puerile drivel?
In the adult world of quantifiable reality, it doesn't matter in the slightest what reality-inverting title the bosses of the 'Amway' mob hang round the necks of their victims. The tens of millions of people who have signed contracts with 'Amway' down the years, and abandoned the organization, have all lost money in a premeditated closed-market swindle which has generated billions of dollars for a handful of racketeers and served as the gateway to an even larger advanced fee fraud.
Steadson's latest intellectually-feeble post, in which he attempts to hide behind a typically wholesome 'Amway' image of his dear old 'mother' - a shining example of a satisfied 'Amway' customer of 30 years standing - is laughable.
David Brear
Posted by Shyam Sundar at 20:57
6 comments:
IBOFB said...
Brear's getting a little testy .... not one to celebrate Christmas huh David?
So let's see what "redefinition" is going on here .... all I'm doing is calling people who buy products for their own personal use "retail customers" ... exactly the same definition pretty much any tax authority in the world uses!
I'm also saying that someone who is simply buying products, is not selling them, and is not trying to recruit people ... is nothing more than a customer!
Oh yeah, that's just crazy thinking! :-/
And when I said personal customers I explictly meant people who bought from me, not from Amway. They have signed no contract with anyone. Does that make them "Amway adherents"? Sure - they love the products from Amway.
Of course, in Brearyland that automatically makes them suspect.
But I notice neither Brear nor Shyam actually answered the question I posed (Surprise!)
What Amway products have you actually tried, Brear, Shyam?
Thursday, December 24, 2009 12:43:00 AM
Tex said...
ibofb,
Not one to celebrate Christmas?
Look in the mirror, you're an atheist! LOL
And your name is also David!LOL
AND Jesus came from "The House of David!" LOL
You also ignored my post on the previous thread that shows how weak your argument is, as usual.
Thursday, December 24, 2009 9:30:00 AM
dtytrivedi said...
i know they have not even tried. they know the price of the glister and at max they consider andhra food state lab results as conclusion that nutrilite is selling products at exorbitant price with no value.
Thursday, December 24, 2009 10:07:00 AM
dtytrivedi said...
these people don't understand that amway gave 30% of its sales revenue on the basis of the business structure and business volume.
And in the next post brear write
"tens of millions) did not receive an overall profit from the operation of a so-called 'Amway Business', because this was a mathematical impossibility"
they think that becoming amway distributor means buying the shares of amway!!!
very silly isn't it.
yet after saying this; these guys will not answer, instead they will nickname me like lobster, spineliness creature and tell some behavioral and psychological symptoms like "castrated mind ", "ego-inflating and reality-inverting".
there is no or little reply regarding the point and these guys will keep on writing biography on me and other amway supporters.
well, that doesn't make any sense.
if i am wrong then check the next reply or post from these guys u will notice the same sort of reply.
Amway has been lining its own pocket with its schemes
Let us have a glance at a part of the Andhra Pradesh High Court's judgement:
As is evident from the contentions advanced on behalf of the petitioners as noted earlier, the petitioners have taken the stand that there is no quick or easy money involved in the scheme and that the money which the sponsor member gets does not depend on any event or contingency relative or applicable to the enrollment of the members into the scheme. But on a careful analysis of the true nature of the scheme as explained above, it is quite apparent that one of the components of the income earned by a sponsor member is the commission which is calculated not only on the personal PV of the sponsor member, but also from the PV earned by all the remaining 102 members falling within his group. There is, therefore, no gainsaying that a substantial part of the income which the first sponsor member of the group gets depends on the event or contingency relative or applicable to the enrollment of members into the scheme. This conclusion can be tested by a further analysis of the income figures given in the earlier paragraph. Supposing the sponsor member at the top does not introduce any member and if he merely sells the products given to him, he gets an income of Rs.12,420/-. If he sponsors only six people and they in turn do not sponsor any member, then he will get an additional income of Rs.23,760/-. If those six members whom he sponsored again sponsor four members each, he will get a further income of Rs.1,14,480/- and if the 24 members sponsor three members each, he will get a further sum of Rs.6,83,300/-. Thus the money which the member at the top of the line gets depends upon the members whom he enrolls or the members enrolled by him enroll. (Para 28).
From the aforementioned discussion, it is proved that the scheme provides for easy/quick money to its distributors. The first ingredient is thus satisfied (Para 30).
When it is crystal clear that it is money circulation scheme and is out to cheat my fellow humans all over world, how can anyone remain passive not to tell everyone about the cheating of this fraudulent company. That is why I appeal people all over world not to fall prey to the pyramid schemes or money circulation schemes of the companies like Amway, Herbalife, Hindustan Unionlever Network, Forever Living Products, Tupperware and others.
Posted by Shyam Sundar at 22:07
10 comments:
dtytrivedi said...
u know shyam, the main thing is 'if'
which u don't understand if doesnot mean that one is compelled to do the business in the same way it is proposed.
i can also prove my point by putting if.
like the sponsor does not do 100 pv. or if sponsor is not able to sponsor 6 people
Tuesday, December 22, 2009 11:51:00 PM
dtytrivedi said...
the main thing is if, through this if i can prove anything right and any thing wrong.
Tuesday, December 22, 2009 11:52:00 PM
dtytrivedi said...
This post has been removed by the author.
Wednesday, December 23, 2009 12:12:00 AM
dtytrivedi said...
when shyam says that examples are meant be followed.
A joke comes to my mind often when i read this. But today i couldn't myself to share with u all.
there was a guy who followed the same way of thinking of what shyam was following. One day he had an interview
Interviewer :For proving that u have good vocabulary,give me the opposite words for instance. (for e.g and there he followed the same policy, examples are meant to be strictly followed case)
guy : Ok
Interviewer : Made in India
guy : Destroyed in Pakistan
Interviewer : Good… Keep it Up
guy : Bad…. Put it Down
Interviewer : Maxi-Mum
guy : Mini Dad
Interviewer : Enough! Take your Seat (example is over)
guy : Insufficient! Don’t take my seat
Interviewer : Idiot! Take your seat
guy : Clever! Don’t take my seat
Interviewer : I say you get out!
guy : You didn’t say I come in
Interviewer : I reject you!
guy : You appoint me
Amway's retail/wholesale price list maliciously fabricated
Shyam
I observe that the poor little lobster, Trivedi, is still happily basking in the initial warmth of the 'Amway' cooking pot. However, the previously unquestioning creature has now posed a question, albeit it written in thought-stopping 'Amspeak' .
Roughly translated into plain English, Trivedi wants to know :
Why, if no 'Amway' products have ever been sold to non-'Amway' agents, have the 'Amway' bosses introduced a range of different prices for their products to 'Amway' agents and to non-'Amway' agents?
The simple answer to Trivedi's question is:
Reality-inverting documents like 'Amway's Retail/Wholesale Price List' have been maliciously fabricated by the bosses of a major organized crime group to contininue to deceive their victims (like you) and casual observers (like journalists, legislators and regulators) into believing that 'Multilevel Marketing' has authentic external retail customers and is, therefore, economically viable for its participants, when all the independent quantifiable evidence proves so-called 'MLM Schemes' to be premeditated closed-market swindles in heavy disguise!
No Amway products sold to persons who are not agents
Shyam
Interesting isn't it, that no one (not even the 'Amway' Lord Haw Haw, Mr. Steadson) refutes the simple facts that for more than 50 years virtually no 'Amway' products have been sold to persons who are not agents of the organization and that, as a result, virtually no 'Amway' agent has received an overall profit from the operation of a so-called 'Amway Business,' because this was a mathematical impossibility. Yet, the essential defining characteristic of an illegal money circulation scheme, or pyramid scam, is that it has insufficient external revenue to pay the overwhelming majority of its contributing participants a profit.
Trying to save young Trivedi from himself is a pretty thankless task. The inflexible boy is like a cold and lonely little lobster that has been invited to join a group of friendly lobsters basking in a bath of pleasantly-warm, lightly-salted water. Unfortunately, the poor creatures don't possess the intellectual capacity to realize that they are actually in a cooking pot on a stove, or that they have absolutely no control over the future temperature of the water. For unless they climb out of their welcoming 'bath,' the heat is going to be gradually increased until they are all boiled alive and served up as more nourishment for a party of obese and insatiable American diners .
According to his ego-inflating and reality-inverting 'Amway Distributor Contract', Trivedi is an 'Independent Business Owner.' However, according to Lord Haw Haw Steadson, the overwhelming majority of all the tens of millions of individuals who, down the years, have signed one of these comic-book 'Amway' documents and lost money, haven't acually been in business at all, they were only 'customers.'
In the adult world of quantifiable reality, Trivedi and his self-deluding 'Amway' associates are the equivalent of brainless crustacea ignorant of the truth that they are on a rich man's menu.
I believe that it was Samuel Butler who wrote:
'Man is the only animal that can remain on friendly terms with the victims he intends to eat until he eats them.'
Here is the summary prepared by Pyramid Scheme Alert for 2009 reproduced to inform our readers.
Thirty years ago, Amway narrowly escaped an FTC prosecution to shut it down for pyramid fraud. Since then, it has been a rogue corporation on a global rampage, fleecing tens of millions with its hallmark "endless chain" income promise. Amway is the largest multi-level marketing (MLM) scheme in the world, and the prototype of nearly all the others. Signs compellingly point toward its end time and threaten the future of all other "endless chain" fraudsters. In the latest developments, the publication of Eric Scheibeler's first-person account of business opportunity fraud at Amway, Merchants of Deception has prompted Pyramid Scheme Alert to ask the Direct Selling Association to investigate its largest member. The DSA has referred it to its "Code of Ethics Administrator" who in turn wrote that he has referred to it Amway's own "Code of Ethics Administrator." Referencing the material in Merchants of Deception, Pyramid Scheme Alert also asked the US Attorney General, Eric Holder, to open an investigation. Some highlights of Amway's long rap sheet are summarized:
· Amway received a huge fine for tax fraud in Canada, the largest ever levied at that time.
· CBS 60 Minutes and NBC Dateline have done devastating exposés of Amway-related deception in recruitment and income promises.
·One state in India has brought criminal fraud case against Amway.
· Prosecutors in England came within a hair of driving Amway out of the UK. A judge decided to allow it to continue to operate, but he imposed two fatal restrictions on it: lowered prices and no more "tools" business. Price gouging and foisting phony "motivation" CDs and seminars on new recruits to fund the "Top Guns" are pillars of Amway's model.
·In the USA, Amway was prosecuted by the State of Wisconsin that found that 99% of all distributors were losing money. This is exactly the same loss rate the UK officials calculated that English consumers suffered every year for 30 years!
·In North America today Amway is the target of large class action cases brought by distributors in the US, charging that Amway is a fraud. A second similar case has been brought in Canada.
·Despite threats and lawsuits, consumers have published multiple websites detailing deception, false income claims, bogus testimonials, and massive consumer losses.
·Amway's extensive political lobbying and influence-buying, especially its close ties to the Bush Administration, and the conflicts of interest with officials have been exposed.
·Amway is in multiple litigations to stop its distributors from moving to other MLMs. The MLM scheme, Monavie, has pulled away thousands of former Amway distributors, including a number of top gun recruiters.
·Some of Amway's former "top gun" distributors have gone public and admitted in court cases that Amway is an illegal pyramid scheme, with a near 100% dropout rate, and that less than 5% of its products are ever retailed. This means that Amway's profits come directly and almost totally from the lost investments of the salespeople, not from sales to the public. They also admit that the high incomes and lavish lifestyles of the upline that are paraded in front of new recruits to demonstrate that Amway "works" are in fact a fraud. The money actually comes from selling the recruits "motivation and training" tools, not from earning commissions on Amway sales.
·Amway's multi-tiered business model has now been banned in China, closing off its last geographic market to continue the pyramid expansion.
Amway has taken extreme, evasive maneuvers, to cloud the truth and throw regulators, the media and consumer activists off its track.
·It has massively recruited outside the USA where regulations in some countries don't exist, are poorly enforced, or will not outlaw a US-based scheme for political reasons.
·It has also aggressively attacked whistle blowers with lawsuits. It has sued even small-time distributors who dared to leave and try to work for other MLMs.
·Amway changed its name to Quixtar, which it said was a a subsidiary of another new name, "Alticor." Many consumers unwittingly joined the "new" company not realizing it was still just Amway.
·Now, in yet another evasive maneuver, the company has yet another new name, Amway Global, and is running TV ads claiming to be "household name" and a "direct seller." In fact virtually no consumers buy Amway products other than the salespeople, and those purchases are not driven by demand or even brand awareness but rather are tied to Amway's misleading income promises.
Despite the diversions, escapes and disguises, the truth keeps doggedly following Amway. Now, the most famous Amway whistle blower - Eric Scheibeler - survived Amway's lawsuits and has told his inside story in a full length book, which is attracting media attention.
Based on the revelations in Scheibeler's book, Pyramid Scheme Alert has sent formal requests to the president of the Direct Selling and its Ethics Division asking for an investigation of Amway. The DSA has responded that it is taking the matter up with Amway.
A formal request has also been sent to the Attorney General, Eric Holder, asking for federal inquiry into the facts and allegations in the book. FTC officials have also been asked to investigate.Pyramid Scheme Alert will maintain its "Amway Watch" in 2010, and will report on responses of the Department of Justice, Federal Trade Commission, legal actions in India, enforcement in England, class action suits in the USA and Canada, the Direct Selling Association's actions, and media investigations.
Amway's business model is illegal
Here is an e-mail reproduced here for the benefit of our valued readers.
"I too was brainwashed and lied to for two years. I lost many friends, some that I had known my whole life. I accumulated a mass amount of debt that I would tell myself would be paid when I went Diamond. Needless to say, I filed bankruptcy and my credit was screwed for several years. Financially, my life has never been the same. Before AMWAY, I was a 25-year old single dad earning handsome salary. Today I make just enough to get by and live a very simple life. My sponsor was a childhood friend who I still keep in touch with. Other Friendships were not so fortunate.
I would estimate that the whole Amway experience cost me several thousands in two years. Not to mentiion, the money I blew to try to impress people that I was on my way to financial freedom. What a joke! I applaud you for what you are doing!"
Amway apologists might say that he was a loser. But they refuse to accept that they are also losers. Like Teacher Nirmala's husband they too strongly believe that they are going to become rich even though they did not make any money since the beginning and nothing in near future.
Amway's business model is a money circulation scheme disguised in the name of selling products. It's a pyramid structure sales model which had already left several millions all over India and other countries penniless. But many victims prefer to remain silent for obvious reasons. That is the forte of this monster.
My appeal to fellow humans all over world is not to fall prey to the scheming business model of Amway.
IBOFB part of Amway's racketeering activities
Shyam
We have here on your Blog the extraordinary Xmas spectacle of the masked 'Amway' Lord Haw Haw, Mr. Steadson (who finds himself unable deny that, for 50 years, virtually no 'Amway' products have been sold to persons who are not agents of 'Amway' and that, as a result , the overwhelming majority of 'Amway' agents have not made a profit out of 'Amway,' because this was a mathematical impossibility), reciting the latest chapter of the 'Amway' fairy-tale to the ever-changing flock of wide-eyed 'Amway' believers.
Steadson now steadfastly pretends that the overwhelming majority of insolvent 'Amway' commission agents who were arbitrarily defined by their annual 'Amway' contracts as 'Independent Business Owners,' were actually only retail customers of 'Amway' who weren't participating in the 'Amway Business' at all. Unfortunately for Steadson, for decades, 'Amway's' own propaganda has boasted completely the reverse.
I don't know about you, Shyam, but I have been given unlimited access to piles of unwanted 'Amway' wampum by various destitute adherents. One former 'Emerald' had an entire garage full of it (which he'd acquired over a period of 10 years). Another former UK distributor had stock-piled 'Nutrilite' vitimins which she'd forked-out about $50 per jar for. Then, of course, there are all those people with their $1000 sets of ridiculous 'Amway' cooking pans. The Internet (particularly, e-bay) is constantly infested with former 'Amway' adherents trying to unload all this (effectively) unsaleabe junk at a fraction of the fixed-price they originally paid for it. Yet, tellingly, according to 'Amway's' reality-inverting propaganda all products have a 'money-back guarantee.'
The point is that, since the original 'MLM' scam, 'Nutrilite,' was first challenged in the USA, the banal products which 'MLM' victims pay through the nose to acquire (in the deluded belief that 'buying and recruiting is the proven plan for success'), are merely an elaborate diversion. The 'MLM' scam remains essentially the same; diguise illegal internal payments as 'sales' and, in return, supply the victims with some neatly-packaged (but cheaply-produced) merchandise, or service, which doesn't obviously fall foul of laws concerning misbranding. This is how the perpetrators of these frauds have camouflged their crimes for more than half a century.
The 'Amway' Lord Haw Haw's filthy little role in all of this, comprises attempting to character-assassinate free-thinking individuals like you, me, Robert Fitzpatrick, Eric Scheibeler, Scott Larsen, etc., (who are trying to stop the spread of this type of fraud). He is also attempting to prevent existing 'Amway' victims, like Trivedi, from confronting external reality and approaching law enforcement agents, legislators, journalists, with complaint.
Steadson is knowingly participating in a pattern of major racketeering activity as defined by the US Federal Racketeer Influenced Corrupt Organizations Act of 1970 and clarified by various US Supreme Court judgements.
David Brear
IBOFB bids to hide behind his dear old mother
Shyam
I observe that the 'Amway' Lord Haw Haw, Mr. Steadson, has again opened his fat beak to squawk and put his foot in it.
Despite what he claims not to have said, the gormless twit has previously broadcast to the world that the overwhelming majority of insolvent 'Amway' commission agents who are arbitrarily defined in their comic-book 'Amway Distributor Contracts' as 'Independent Business Owners' are 'retail customers of Amway' as well. So, by the same absurd logic, the overwhelming majority of people whom Steadson now steadfastly pretends to be 'retail customers of Amway' are also insolvent commission agents of 'Amway'. Apparently, 'Amway UK Ltd.' (on the advice of its lawyers) has now officially redefined its insolvent commission agents as 'customers' to avoid the possibility of criminal investigation and prosecution for having fronted a pyramid scam (with insufficient external revenue) for 34 years. Thus, when Steadson says he has 'dozens of customers' what he's really saying is, that he has recruited more 'Amway' adherents. However, we only have his word for that.
Who the hell does Steadson think he's fooling with all this mind-numbing, puerile drivel?
In the adult world of quantifiable reality, it doesn't matter in the slightest what reality-inverting title the bosses of the 'Amway' mob hang round the necks of their victims. The tens of millions of people who have signed contracts with 'Amway' down the years, and abandoned the organization, have all lost money in a premeditated closed-market swindle which has generated billions of dollars for a handful of racketeers and served as the gateway to an even larger advanced fee fraud.
Steadson's latest intellectually-feeble post, in which he attempts to hide behind a typically wholesome 'Amway' image of his dear old 'mother' - a shining example of a satisfied 'Amway' customer of 30 years standing - is laughable.
David Brear
Posted by Shyam Sundar at 20:57
6 comments:
IBOFB said...
Brear's getting a little testy .... not one to celebrate Christmas huh David?
So let's see what "redefinition" is going on here .... all I'm doing is calling people who buy products for their own personal use "retail customers" ... exactly the same definition pretty much any tax authority in the world uses!
I'm also saying that someone who is simply buying products, is not selling them, and is not trying to recruit people ... is nothing more than a customer!
Oh yeah, that's just crazy thinking! :-/
And when I said personal customers I explictly meant people who bought from me, not from Amway. They have signed no contract with anyone. Does that make them "Amway adherents"? Sure - they love the products from Amway.
Of course, in Brearyland that automatically makes them suspect.
But I notice neither Brear nor Shyam actually answered the question I posed (Surprise!)
What Amway products have you actually tried, Brear, Shyam?
Thursday, December 24, 2009 12:43:00 AM
Tex said...
ibofb,
Not one to celebrate Christmas?
Look in the mirror, you're an atheist! LOL
And your name is also David!LOL
AND Jesus came from "The House of David!" LOL
You also ignored my post on the previous thread that shows how weak your argument is, as usual.
Thursday, December 24, 2009 9:30:00 AM
dtytrivedi said...
i know they have not even tried. they know the price of the glister and at max they consider andhra food state lab results as conclusion that nutrilite is selling products at exorbitant price with no value.
Thursday, December 24, 2009 10:07:00 AM
dtytrivedi said...
these people don't understand that amway gave 30% of its sales revenue on the basis of the business structure and business volume.
And in the next post brear write
"tens of millions) did not receive an overall profit from the operation of a so-called 'Amway Business', because this was a mathematical impossibility"
they think that becoming amway distributor means buying the shares of amway!!!
very silly isn't it.
yet after saying this; these guys will not answer, instead they will nickname me like lobster, spineliness creature and tell some behavioral and psychological symptoms like "castrated mind ", "ego-inflating and reality-inverting".
there is no or little reply regarding the point and these guys will keep on writing biography on me and other amway supporters.
well, that doesn't make any sense.
if i am wrong then check the next reply or post from these guys u will notice the same sort of reply.
Amway has been lining its own pocket with its schemes
Let us have a glance at a part of the Andhra Pradesh High Court's judgement:
As is evident from the contentions advanced on behalf of the petitioners as noted earlier, the petitioners have taken the stand that there is no quick or easy money involved in the scheme and that the money which the sponsor member gets does not depend on any event or contingency relative or applicable to the enrollment of the members into the scheme. But on a careful analysis of the true nature of the scheme as explained above, it is quite apparent that one of the components of the income earned by a sponsor member is the commission which is calculated not only on the personal PV of the sponsor member, but also from the PV earned by all the remaining 102 members falling within his group. There is, therefore, no gainsaying that a substantial part of the income which the first sponsor member of the group gets depends on the event or contingency relative or applicable to the enrollment of members into the scheme. This conclusion can be tested by a further analysis of the income figures given in the earlier paragraph. Supposing the sponsor member at the top does not introduce any member and if he merely sells the products given to him, he gets an income of Rs.12,420/-. If he sponsors only six people and they in turn do not sponsor any member, then he will get an additional income of Rs.23,760/-. If those six members whom he sponsored again sponsor four members each, he will get a further income of Rs.1,14,480/- and if the 24 members sponsor three members each, he will get a further sum of Rs.6,83,300/-. Thus the money which the member at the top of the line gets depends upon the members whom he enrolls or the members enrolled by him enroll. (Para 28).
From the aforementioned discussion, it is proved that the scheme provides for easy/quick money to its distributors. The first ingredient is thus satisfied (Para 30).
When it is crystal clear that it is money circulation scheme and is out to cheat my fellow humans all over world, how can anyone remain passive not to tell everyone about the cheating of this fraudulent company. That is why I appeal people all over world not to fall prey to the pyramid schemes or money circulation schemes of the companies like Amway, Herbalife, Hindustan Unionlever Network, Forever Living Products, Tupperware and others.
Posted by Shyam Sundar at 22:07
10 comments:
dtytrivedi said...
u know shyam, the main thing is 'if'
which u don't understand if doesnot mean that one is compelled to do the business in the same way it is proposed.
i can also prove my point by putting if.
like the sponsor does not do 100 pv. or if sponsor is not able to sponsor 6 people
Tuesday, December 22, 2009 11:51:00 PM
dtytrivedi said...
the main thing is if, through this if i can prove anything right and any thing wrong.
Tuesday, December 22, 2009 11:52:00 PM
dtytrivedi said...
This post has been removed by the author.
Wednesday, December 23, 2009 12:12:00 AM
dtytrivedi said...
when shyam says that examples are meant be followed.
A joke comes to my mind often when i read this. But today i couldn't myself to share with u all.
there was a guy who followed the same way of thinking of what shyam was following. One day he had an interview
Interviewer :For proving that u have good vocabulary,give me the opposite words for instance. (for e.g and there he followed the same policy, examples are meant to be strictly followed case)
guy : Ok
Interviewer : Made in India
guy : Destroyed in Pakistan
Interviewer : Good… Keep it Up
guy : Bad…. Put it Down
Interviewer : Maxi-Mum
guy : Mini Dad
Interviewer : Enough! Take your Seat (example is over)
guy : Insufficient! Don’t take my seat
Interviewer : Idiot! Take your seat
guy : Clever! Don’t take my seat
Interviewer : I say you get out!
guy : You didn’t say I come in
Interviewer : I reject you!
guy : You appoint me
Amway's retail/wholesale price list maliciously fabricated
Shyam
I observe that the poor little lobster, Trivedi, is still happily basking in the initial warmth of the 'Amway' cooking pot. However, the previously unquestioning creature has now posed a question, albeit it written in thought-stopping 'Amspeak' .
Roughly translated into plain English, Trivedi wants to know :
Why, if no 'Amway' products have ever been sold to non-'Amway' agents, have the 'Amway' bosses introduced a range of different prices for their products to 'Amway' agents and to non-'Amway' agents?
The simple answer to Trivedi's question is:
Reality-inverting documents like 'Amway's Retail/Wholesale Price List' have been maliciously fabricated by the bosses of a major organized crime group to contininue to deceive their victims (like you) and casual observers (like journalists, legislators and regulators) into believing that 'Multilevel Marketing' has authentic external retail customers and is, therefore, economically viable for its participants, when all the independent quantifiable evidence proves so-called 'MLM Schemes' to be premeditated closed-market swindles in heavy disguise!
No Amway products sold to persons who are not agents
Shyam
Interesting isn't it, that no one (not even the 'Amway' Lord Haw Haw, Mr. Steadson) refutes the simple facts that for more than 50 years virtually no 'Amway' products have been sold to persons who are not agents of the organization and that, as a result, virtually no 'Amway' agent has received an overall profit from the operation of a so-called 'Amway Business,' because this was a mathematical impossibility. Yet, the essential defining characteristic of an illegal money circulation scheme, or pyramid scam, is that it has insufficient external revenue to pay the overwhelming majority of its contributing participants a profit.
Trying to save young Trivedi from himself is a pretty thankless task. The inflexible boy is like a cold and lonely little lobster that has been invited to join a group of friendly lobsters basking in a bath of pleasantly-warm, lightly-salted water. Unfortunately, the poor creatures don't possess the intellectual capacity to realize that they are actually in a cooking pot on a stove, or that they have absolutely no control over the future temperature of the water. For unless they climb out of their welcoming 'bath,' the heat is going to be gradually increased until they are all boiled alive and served up as more nourishment for a party of obese and insatiable American diners .
According to his ego-inflating and reality-inverting 'Amway Distributor Contract', Trivedi is an 'Independent Business Owner.' However, according to Lord Haw Haw Steadson, the overwhelming majority of all the tens of millions of individuals who, down the years, have signed one of these comic-book 'Amway' documents and lost money, haven't acually been in business at all, they were only 'customers.'
In the adult world of quantifiable reality, Trivedi and his self-deluding 'Amway' associates are the equivalent of brainless crustacea ignorant of the truth that they are on a rich man's menu.
I believe that it was Samuel Butler who wrote:
'Man is the only animal that can remain on friendly terms with the victims he intends to eat until he eats them.'
Welcome to Amway: The Continuing Story
When you think of the Amway business, what comes to mind? Salesmen running door-to-door to sell their soap (the 1950's)? Professionals looking to expand their network marketing business (the 1970's)? Professionals building an interactive distribution business (the 1980's)? Every-day people joining a "home shopping delivered to your door" service (the mid 1990's)? "A unique [online] destination... an enhanced opportunity for independent business owners." (mid 1999)? In reality, the Amway Corporation is the number one Multi-Level Marketing (MLM) business in the world: both in number of distributors and in annual sales revenues. It certainly seems like everyone knows somebody who "did the business" or used the products. And, unless you were a distributor, you probably can NOT name someone who was successful at the Amway business. With stories and rumors of overzealous distributors, the Amway business has been called everything from a pyramid scheme to a cult. Is the Amway Corporation really in the business to move products along a chain of distributors, or has it evolved into something more? Do distributors draw new people in with the false promise of more money, more free time, or a way to start their own "Internet-based business" (the draw of the Quixtar business)? Or is Amway really the "wave of the future": a new system of distribution that is far beyond normal retailing? I have put together information gathered from a variety of sources for you to make your own decision about Amway.
Let me first say that most of the material in these pages refers to the line of distributors and their support/ training system (the "Amway Motivational Organizations" or AMO's), not to the Amway Corporation itself. Yes, there are some good distributors, but most of the public has heard the horror stories: the "bait and switch" approach of a distributor inviting people to go bowling only to attend an Amway meeting instead. For the most part, distributors don't engage in this kind of behavior anymore- they use more subtle techniques.
For the new distributor, or if you are considering joining the Amway business, please take the time to read the definitive "Glossary of People, Events, Terms, and Things Found in the Amway Business" to learn some of the language. If you have left the Amway business and are interested in taking action of your own, I have some suggestions in the section "How to Take Action." To learn about the "Home Shopping" Service, read "Automatic Replenishment Program/ Home Shopping: Secrets Revealed." To learn about "business opportunity meetings," read "Inside Open Meetings." For an analysis of the cult allegations raised against the Amway business, please read "Is Amway a Cult? An Analysis." For the relationship between Amway and Quixtar, read ".News About Amway's 'E-Commerce' Internet Strategy" On each of the pages, any colored, underlined word is a hyper-link to the "Terms" page for easier reference.
Deceptions, Misrepresentations, and Half-Truths found in the Amway BusinessHere are some that I have found so far. If there are more to add or if you wish to debate any of these issues (with supporting evidence), please let me know.
Unlike traditional retail outlets, Amway does not use middlemen to move their products. See answer.
Also, unlike traditional retail outlets, Amway does not advertise their business opportunity on the TV or radio. By not advertising this way, Amway creates a large amount of money that is made available to distributors in the form of bonus checks. See answer.
Amway "deals with over 2,000 major manufacturers, most of which are "Fortune 500" companies" (actual quote from a distributor). Or, Amway "does business with" 90% of the "Fortune 500" companies. See answer.
Distributors can save 30% off the retail price of products by shopping through the Amway catalogs. See answer.
Distributors use the Profiles of Success to show off the people who have become successful in the Amway business.See answer.
Diamonds have a wonderful lifestyle since they have lots of free time. See answer.
By building an Amway business, a person can earn enough money to have a completely debt-free lifestyle. See answer.
The statement "Amway does not use retail stores to sell its products" has become untrue. In July of 1998, Amway was forced to open retail stores or be forced out of China.See answer.
Amway's "Canadian Tax Fraud Scandal"- was Amway the victim of Canada's Revenue Department or guilty of the largest criminal fine in Canadian history? See answer.
Since Amway's "D&B rating is the best you can get" (actual quote from a distributor), a person should join the business. See answer.
"ha, ha. Amway did $7 billion in revenue" (an actual quote from an e-mail). Amway's 1997/1998 revenues were not even close to this number.See answer.
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The first statement, that "Amway does not use middlemen to move their products," is untrue since (until recently) distributors ordered products through their sponsor to their sponsor to their sponsor to their Direct, who orders from the RDC. Products are then delivered from the RDC to the Direct to the distributor to that distributor on down the line to the last distributor. Payment of product is also made in this way: you pay your sponsor who pays his sponsor, etc. Granted, there is no cost-markup along the line, but is this really the elimination of middlemen?
In a majority of groups, however; distributors have enrolled in a service called ARP. Using this service, distributors can both order products and receive their bonus checks directly from Amway. This service, then, can be seen to eliminate the middlemen, but keep in mind that not all groups have authorized their distributors to order this way. There are still a number of groups who have not transferred to this service.
Also, the distribution of tools has not changed- they are still 100% distributed by middlemen. If you need to purchase a particular audio tape, you must order it from your sponsor who orders it from his sponsor, etc. Payment is made the same way. Of course, no one below the level of Profit-Sharing Direct is making any money in this chain, but there is still time and labor involved. But, from the level of Diamond to Profit-Sharing Direct, each distributor adds his own mark-up to the audio tapes. This raises the price of each tape from the manufacturing cost of less than $1.00 to a final, selling cost of $6.00 or $7.00.
What would happen if each distributor below the Profit-Sharing Direct did the same thing? Would the person at the very end of the line have to pay $10.00 for a single tape? Remember, unlike the Amway products, tapes have no value outside of the business. The last distributor in the line can not resell the tapes to a retail customer. So, then, when is this considered an illegal pyramid business? Of course, distributors don't count the tools system as having "middlemen" since tools are not produced by Amway, but produced by the AMO's.
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The second statement told by distributors that "Amway does not advertise on the TV or radio" is now 100% FALSE. According to the December, 1997 Amagram:
"Amway and distributors in Sacramento, California, and Raleigh/ Durham, North Carolina, teamed up for a new phase in image advertising last year, and the success of those inaugural regional campaigns means more blitz ads are scheduled for 1998. The objective of the first two campaigns was to determine whether sales and sponsoring could be improved with a focused advertising effort. The answer was yes on both counts after the TV, radio, billboard, and print messages about the Amway business opportunity appeared." (emphasis mine)
Where does Amway get the money to pay for this advertising? Does this mean there will be less money available for distributors' bonus checks? Or will it mean less of an increase in the bonus checks in the coming years? Will their campaign start to spread to other markets besides Sacramento and Raleigh/ Durham? The tough question is this: why does the world's largest MLM business, with its "explosive growth," feel the need to advertise their business opportunity on the TV and radio? If MLM is indeed the "wave of the future," why advertise like non-MLM companies? I though Amway always prided itself on only using "word of mouth advertising." And since the article states that both sales and sponsoring were improved by the advertising, why even have the distributors go through the trouble of contacting people? Just place more advertising on the TV and radio and save the distributors a LOT of hard work.
To be fair, though, Amway has been advertising its Double X and Nutrilite products on TV during basketball games. They have also been advertising in magazine print ads (such as Time, Newsweek, Money, etc.) asking people to learn more about the products and corporation. But they have never advertised the Amway business opportunity on TV or radio before.
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Over and over, distributors claim that Amway "deals with 2,000 companies, most of which are "Fortune 500" companies"- a statement which is only partially true. Why do distributors exaggerate this number? To make the Amway business look more reputable or more diverse in its product offering?
First, a basic fact: home cleaners, personal care items, etc. are only available in the Amway-brand label, without competition from any other manufacturers. You will NOT see Tide-brand laundry cleaner or Prell-brand shampoo or Ivory-brand soap or Crest-brand toothpaste. (As a side note, you'll never see Tide or Crest ever offered in an Amway catalog- those products are manufactured by their biggest competitor: Procter & Gamble.) Does Amway do this because their products are so much better than everyone else's or does Amway enjoy its monopoly over its distributors?
Yes, Amway does do business with over 2,000 major manufactures like Panasonic, Coca-Cola, Braun, and others. But, these companies have merely let Amway sell their products through the various catalogs. This is the sum total of the relationship between the companies. A number of these companies have written letters stating their corporate policy: "Amway is only a reseller of our products and no joint venture or partnership of any kind should be implied." (quote paraphrased) Of course, it makes perfect business sense: if you had access to Amway's (claimed) 3 million distributors, who would buy and sell your products instead of your competitor's, would your company be interested? But why do distributors (especially speakers at Open meeting) continue to claim that Amway has "joint-ventured" with these companies?
The misrepresentation can easily be spotted in the second half of the above statement. If you assume the words "most of which" to mean 'a majority of the total,' this would translate into 51% or more of the total number. In turn, this becomes 51% of 2,000 companies which would equal over 1,000 total. By definition, there are only 500 "Fortune 500" companies. Therefore, there is no way that "most of" the 2,000 companies Amway deals with are "Fortune 500" companies.
Along the same argument, many distributors have claimed that Amway does business with 90% of the "Fortune 500" companies. This translates into 450 out 500 companies (90% of 500). If you were to look at the actual listing of the "Fortune 500" companies published yearly, there are quite a number that would not be able to even do business with Amway. These include: software manufacturers, oil companies, and other non-consumer-product companies. Then, how many "Fortune 500" companies does Amway have the ability to deal with? I don't know the actual number, but a number of critics have placed the estimate around 20-25%. The percentage is smaller when talking about the actual number of companies whose products are in the Amway catalogs. This is very different than the 90% claimed by distributors.
As a side note, I have made a list of every company found in the following: the sales & marketing plan, the 1998 "Spring & Summer" catalog, and the 1997-1998 "Personal Shopper" catalog (Amway's main catalog). Click here to go to that page. If you count how many companies I have listed, the total comes to just over 450. Now, keep in mind that I have not counted the companies in any of the other catalogs such as: the "Steak" catalog, the "Major Appliance" catalog, the "Christmas" catalog or the "Office Supply" catalog. Also keep in mind that most of the companies' products found in the "RDC/ Service Center" catalog can also be found in the "Personal Shopper" catalog. And, also keep in mind that the products found in the "Coreline/ Products & Services" catalog are ONLY Amway-brand. The conclusion is this: if I have found only 450 companies in the main catalogs, can there be another 1,550 companies in the secondary catalogs I have missed? Or is the claim, "Amway deals with 2,000 companies," just another deception by distributors?
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Almost every distributor claims that "by becoming an Amway distributor, you can save 30% off retail price" by purchasing items in the Amway catalogs instead of the local store. In reality, there is evidence that distributors actually pay about 40% MORE for products. And don't forget the postage costs to have the items "conveniently" shipped to your house. Rather than debate this issue, I am going to refer you to entire web page dedicated to this one lie. Click here to go to The Amway distributors little white lie page.
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I will start this section by saying that Amway does not condone nor allow the use of the Profiles of Success as an aid in sponsoring. Second, the incomes in the Profiles of Success are grossly misrepresented. As a number of lawsuits contend, Diamonds make a vast amount of their "Amway income" from the sale of tools. Therefore, for distributors to claim that the lifestyle shown in the Profiles of Success is typical, is nothing more than a lie. By using the Profiles of Success, distributors can lead prospects to believe that they too can have the wealthy lifestyle of the Diamonds. And if prospects need a "moving" version, the Diamond will probably have a "lifestyle" video produced at the same time his Profiles of Success information is created.
According to sources who have worked with some Diamonds, many items shown in the pictures are completely fraudulent. A number of the cars were leased or even borrowed- instead of owned. In one case, the big home behind the Diamond was actually the house he had just sold, but the picture implied that the house was his. Boats and motor homes may be rented for the photo shoots as well. Why go to these lengths for a few pictures or a video? The fabulous lifestyle shown in the pictures will lend more credibility to the Amway business- "If all these people are making money, then it must be a good business."
Chances are good that most distributors are not aware of these facts. Chances are good that many Directs are not aware of these facts. Since they have not been taught otherwise, these distributors strongly believe that the material items surrounding the Diamonds have been purchased with only Amway bonus checks. Ask yourself this question: can a Diamond making around $115,000 afford the numerous cars, the large house, or other material goods. Chances are, he can MORE than afford them if he makes over $115,00 + $916,000 a year. (These figures are from the See how much money upline distributors really make page.)
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Contrary to what most distributors believe (and teach others), Diamonds do not have lots of free time. According to one critic, Diamonds "have the LEAST amount of free time." Instead of "retiring," a Diamond's time is spent motivating and working his group, speaking at meetings and functions, and traveling to company seminars and upline meetings. My own Diamond would tell stories about how his upline would call him to tell him to change his plans- they were going on a trip. And if he declined the "invitation," would the tools bonus stop? How can you plan your life if you worry your upline could change those plans at the last minute? Is this the "great life of freedom" distributors always talk about? Another critic had personally witnessed his Diamonds leaving their children to speak at yet another function. Those Diamonds even missed Christmas with their children in pursuit of the speaking fees. It makes a person wonder what Diamonds feel is more important: spending time with their children or continually pursuing the money? And these are the same people who tell distributors to keep building the Amway business so they will have more time to spend with their own children.
There have even been allegations that Diamonds have to continually "kiss up" to their upline to insure the tools money doesn't stop. Yes, "kissing up" to your boss may take place in the corporate world, but if you don't like your boss, you can get a new job. What can Diamonds do for a living if they quit the Amway business- assuming, of course, that they can quit? First of all, it is almost unheard of for a Diamond to leave the Amway business. By the time people have reached that level, they have grown accustomed to the constant edification and worship from their downline. If they were to leave the Amway business, they would become just another employee. What would happen to their ego then? Also, most Diamonds have given up control of their business to their support staff- either by choice or because that's what "expected" of a Diamond. Therefore, a lot of Diamonds may have lost any business skills they once had. What would happen if they applied for a "real job" then? This could be the reason Diamonds tell distributors it is so terrible to leave the business- they couldn't survive themselves!
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Whenever a person is approached to build an Amway business, distributors represent that, by building an Amway business, a person can achieve a "debt-free" lifestyle. By building the business, the person will have more than enough money to pay off ALL their bills: mortgage payments, car payments, credit card bills, and any loan payments. When the bills are paid, the person will be completely debt-free.
It is my contention that a person can never truly have a 100%; quot;debt-free" lifestyle. There will ALWAYS be monthly bills that create debt, even temporarily, such as the telephone bill, the utility bill, or the cable bill. Yes, these bills are completely paid within a month, but for that time, there is still debt.
A more accurate statement would be to say that a person could make enough money to have an almost debt-free lifestyle. Instead, though, distributors lead people to believe that all their debt will disappear if they work long enough at building the business. (Never mind the fact that some critics contend that building an Amway business creates more debt than it cures.)
I know that this point may be "nit-picking," but it is "one more thing" that adds to the overall picture of the Amway distributors. They make so many claims that it becomes hard to tell which are true, which are "bending the truth," and which are just lies.
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Ever since Amway was created, its distributors prided themselves on the fact that they were "unique" or "different"-- they didn't need retail stores to sell Amway's products. Going door-to-door or recruiting neighbors or contacting strangers was always enough. Until July, 1998, that is.
Due to pressures against the MLM industry, Amway agreed to the Chinese government's decision that all MLM business were to switch to retail-selling or leave China. Following behind such other MLM companies as Avon and Mary Kay, Amway converted its distribution centers into retail stores. Customers are now free to purchase products without using a distributor.
According to an article in the July 22, 1998 issue of the Orlando Sentinel:
"Amway Corp. will be allowed to sell dish soap, window cleaner and other products in China. But the sales won't solely be through its door-to-door suppliers. Under a new system, Chinese customers will be able to shop at Amway retail stores, which are currently used as distribution centers. They will also be able to buy products from their distributors. In April, the Chinese government banned Amway Asia Pacific Ltd. and other direct marketers from door-to-door sales. Authorities were concerned such sales would promote illegal activity, including smuggling, the state-run news agency said. Under the deal, customers who pay a fee will be eligible for bonuses on the products they purchase, the same way Amway salespeople in other parts of the world receive bonuses. Customers who pay the fee can also join the sales force."
And from the July 22, 1998 issue of the South China Morning Post:
Amway said its operations had resumed in 14 provinces and four cities, employing about 1,300 employees, about 100 less than when it closed on April 22, when Beijing announced a blanket direct-selling ban.
It plans to combine retail outlets with a team of sales representatives, expected to be the group who previously conducted direct marketing.
For a fee, clients can become privileged customers, enabling them to buy products at a discount.
"The company is only allowed to sell to the product's end user, meaning it retains legal right to the product and it cannot be sold to the sales person," [spokesman Mr. Herbert] Ho said.
"No direct marketing is permitted at all, so we have to be very clear about the new rules," Mr Ho said.
However, at one Beijing retail outlet, sales people appeared to be in some confusion over the regulations.
Mr Ho said the activity this former sales representative described was improper, as sales people were not allowed to buy products before selling them.
However, he said that problems or confusion about the new company rules that might arise would be resolved easily, as the new rules of operation had been clearly announced and all prices were fixed and prominently displayed.
He said that former sales representatives would have to get used to the new rules.
Beijing banned direct marketing following the discovery of widespread abuses, fraud and illegal schemes - such as pyramid selling - and declared the market was not yet ready for it.
To compound matters, Amway President Dick DeVos flat-out lied to the press:
From the HONG KONG, July 20, 1998 /PRNewswire/:
We are honored to be the first company so approved for business resumption by the national government and are gratified by the trust and confidence which the Chinese government has in Amway's ability to train, develop and manage a responsible and effective sales team." (emphasis mine)
Compare this with an earlier June, 1998 South China Morning Post:
"Avon Receives Approval to Resume Operations in China [on] Friday, June 5, 1998 10:01 AM"
From the NEW YORK, June 5, 1998 /PRNewswire/:
"Avon Products, Inc. (NYSE: AVP) announced that it has received today Chinese governmental approval to resume operations in China as a wholesale and retail business, and anticipates being operational by June 15 [1998]."
How can Amway be "the first company so approved for business resumption" when Avon was approved by the Chinese government almost 3 weeks earlier, and then started operations 1 full week before Amway? Are DeVos' statements merely "spin-doctoring" (to explain a potentially disastrous situation) or outright lying? And if the president of a corporation lies about its operations, does that really inspire the public's trust? For Amway, DeVos should do whatever he can to improve Amway's tarnished public-image.
To clarify the situation, Dexter Yager made these statements in a public-relations announcement:
"Amway China is viewed as a normal retail sales company with "Sales Representatives" and "Sales Managers" working for the company in approved areas of China. Amway is not viewed as a "special business opportunity" with "independent business distributors" building a personal business." (emphasis mine)
"The China and Hong Kong markets are now two separate, individual markets with no [line-of-sponsorship] links."
"Amway will conduct retail sales to anyone that enters an Amway shop and asks to purchase product."
"Amway no longer uses distributors. Amway now has employees and customers..."
"It will no longer be necessary to purchase an Amway Starter Kit- 700 RMB ($85.00 USD) to join the Amway business in China."
What happens if Amway's sales increase due to this shift to retail selling? Would Amway decide that they could further increase its profits by doing the same in the United States? Could this be the end of Amway's distributor force- are distributors really needed if retail stores can sell more products? Or could this mean that Amway will take control of the products, leaving distributors free to concentrate on selling tools to build their own "motivational" businesses? Then again, this whole point could be moot when Amway's Internet-based, "sister company," Quixtar, starts to fully operate.
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Almost every distributor has heard the rumors, but not many know the entire truth behind the Amway/ Canada tax case. Distributors learn the "Amway-accepted" version of the story- a version that tells how Amway was a victim of complex tax and tariff regulations and how, in a show of "ethics," founders Rich DeVos and Jay VanAndel "generously" returned to Canada to face the charges against them.
"From Promises to Keep, by Charles Paul Conn
The twenty-five million-dollar fine to which you refer was a result of a customs dispute between Amway and Revenue Canada, the branch of the Canadian government which collects tariffs. The dispute was a complicated one which began in the 1970's, when Amway first began shipping products from its manufacturing plant in Michigan across the international boundary to its distributors in Canada.
By the time all this legal maneuvering was over, tens of millions of dollars were at stake, and the fine, when it was levied, was a very large one. Even in Canadian dollars, twenty-five million is plenty."
Yes, the dispute was "complicated," since the government would later find out that the Amway Corporation had created "dummy" companies to circumvent the import laws. The government also discovered that Amway had created these companies willfully, for a number of reasons. Conn's "Amway-approved" version is an extreme watered-down version of what actually happened. In fact, DeVos and VanAdel were almost extradited by the Canadian government if they failed to face the criminal charges against Amway.
"From Amway And Canada- The Judges Report, Gaylen J. Baker, The Reformed Journal, September 1994.
On November 10, 1983, before Chief Justice Evans of the Supreme Court of Ontario, the Amway Corporation and Amway of Canada Ltd. pleaded guilty to charges of criminal fraud and paid a C$25,000,000 fine, the largest ever imposed in Canada. The crime was tax evasion. The Canadian court upheld the government's claim that by means of fake and fictitious invoices and price lists and the creation of a dummy corporation, the Amway companies had defrauded Canada out of amounts in excess of $28,000,000."
Make no mistake about the court's conclusion: Amway was found guilty of willfully, fraudulently, and criminally cheating the Canadian government out of millions of dollars.
To read more information about this story, please go to The Canadian Tax Fraud Scandal (reprinted from Sidney Schwartz's "Amway: The Untold Story" website). This article goes into much more detail than can fit into this section.
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What is "D&B?" It stands for the Dun & Bradstreet company, a financial company that rates the credit risk of corporations. This rating is used to determine whether or not a corporation should be lent money. Now, I can't say if Amway's D&B rating is good or bad because the Corporation does not release that information to the public (which includes Amway distributors). (I am assuming Amway's rating is excellent since distributors make a point of stressing how the Corporation is "debt-free." And, since Amway is "debt-free," no one should have to lend them money. Doesn't this mean their D&B rating is irrelevant?)
To further this point, I'll let Amway's Business Manual speak for itself:
Business Regulation 3: Use of Dun & Bradstreet Reports Is Prohibited
Dun & Bradstreet financial reports and ratings are not to be used in the course of sponsoring new distributors. All Dun & Bradstreet financial reports and ratings are confidential, reserved for the exclusive use of subscribers. Using such reports and ratings in sponsoring could result in Dun & Bradstreet refusing to rate Amway in the future.
While using these reports and ratings is prohibited, we encourage you to stress Amway's financial soundness in your sponsoring efforts.
I wonder what would Amway do if they found distributors were using Dun & Bradstreet ratings in Open meetings? Probably nothing. But, what would Dun & Bradstreet do to Amway if they discovered distributors were promoting Amway's rating as a way to further bolster Amway's "financial soundness?" Look at the last sentence of the first paragraph: "Using such reports... could result in Dun & Bradstreet refusing to rate Amway in the future." I suppose distributors are counting on the fact that Dun & Bradstreet will never find out.
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Recently, I received a short e-mail from a distributor "laughing" at me due to the fact that he claims Amway's revenues were around $7 billion for the 1997/1998 fiscal year. On October 26, 1998, Amway announced its official figures. Please note that the word "revenue" is not mentioned at all, but is referred to as "estimated retail sales":
AMWAY ANNOUNCES ESTIMATED RETAIL SALES OF $5.7 BILLION
ADA, Mich., Oct. 26, 1998 -- Amway Corp. today announced global estimated retail sales of $5.7 billion for the fiscal year ended Aug. 31, 1998, a decline of more than 18 percent from estimated retail sales of $7 billion the previous year. [emphasis mine]
This figure represents the combined results at estimated retail for the 49 affiliate markets supported by privately owned Amway Corporation and its publicly traded sister companies - Amway Asia Pacific Ltd. and Amway Japan Limited - which announced their annual sales separately during the past 10 days.
"Fiscal 1998 was a challenging year," stated Amway Chairman Steve Van Andel. "Nearly half of our business is in Asian markets where economic upheaval resulted in weak consumer demand. Our revenues were further reduced when translated from weak Asian currencies back into strong U.S. dollars."
"We've enjoyed phenomenal growth, including double-digit increases during the early and mid 1990s," said Amway President Dick DeVos. "We remain confident in the fundamentals of the Amway business and we're finding new ways to energize our business through the products and the business opportunity we offer our distributors and customers. Because of what we've accomplished in the face of many challenges, fiscal 1998 remains one of our best years ever."
NOTE: Before I critique this announcement, a point should be made: The Amway Corporation refers to its $5.7 billion and $7 billion figures as ESTIMATED RETAIL SALES. The Corporation never refers to these figures as REVENUE. And, as so many people are quick to point out, a vast majority of Amway's products are sold at "distributor" prices, not "retail" prices. Therefore, are these figures actually inflated by the "distributor savings" of 30%?
In the announcement, DeVos calls "fiscal 1998... one of [Amway's] best years ever." This is certainly putting a "spin" on the information. If Amway did, indeed, "[enjoy] double-digit increases during the... 1990s," how can a year that produced "a decline of more than 18 percent" be considered one of their best? Or is DeVos implying that Amway was expecting to show a bigger loss?
Distributors are always quick to point out, "How many other companies increased their sales revenue $500 million in one year, like Amway did?" (Referring to Amway's estimated retail sales increase from $6.3 billion in 1996 to $6.8 billion in 1997.) Well, I should ask them, "How many other companies decreased their retail sales $1.1 billion in one year, like Amway did?" And I wonder if the speakers at Open Meetings will change their speeches to reflect this new figure- Amway's estimated retail sales are no longer "almost $7 billion," but are now "less than $6 billion." And why do I have the feeling that they will neglect to mention the 18% drop, as well?
Let me first say that most of the material in these pages refers to the line of distributors and their support/ training system (the "Amway Motivational Organizations" or AMO's), not to the Amway Corporation itself. Yes, there are some good distributors, but most of the public has heard the horror stories: the "bait and switch" approach of a distributor inviting people to go bowling only to attend an Amway meeting instead. For the most part, distributors don't engage in this kind of behavior anymore- they use more subtle techniques.
For the new distributor, or if you are considering joining the Amway business, please take the time to read the definitive "Glossary of People, Events, Terms, and Things Found in the Amway Business" to learn some of the language. If you have left the Amway business and are interested in taking action of your own, I have some suggestions in the section "How to Take Action." To learn about the "Home Shopping" Service, read "Automatic Replenishment Program/ Home Shopping: Secrets Revealed." To learn about "business opportunity meetings," read "Inside Open Meetings." For an analysis of the cult allegations raised against the Amway business, please read "Is Amway a Cult? An Analysis." For the relationship between Amway and Quixtar, read ".News About Amway's 'E-Commerce' Internet Strategy" On each of the pages, any colored, underlined word is a hyper-link to the "Terms" page for easier reference.
Deceptions, Misrepresentations, and Half-Truths found in the Amway BusinessHere are some that I have found so far. If there are more to add or if you wish to debate any of these issues (with supporting evidence), please let me know.
Unlike traditional retail outlets, Amway does not use middlemen to move their products. See answer.
Also, unlike traditional retail outlets, Amway does not advertise their business opportunity on the TV or radio. By not advertising this way, Amway creates a large amount of money that is made available to distributors in the form of bonus checks. See answer.
Amway "deals with over 2,000 major manufacturers, most of which are "Fortune 500" companies" (actual quote from a distributor). Or, Amway "does business with" 90% of the "Fortune 500" companies. See answer.
Distributors can save 30% off the retail price of products by shopping through the Amway catalogs. See answer.
Distributors use the Profiles of Success to show off the people who have become successful in the Amway business.See answer.
Diamonds have a wonderful lifestyle since they have lots of free time. See answer.
By building an Amway business, a person can earn enough money to have a completely debt-free lifestyle. See answer.
The statement "Amway does not use retail stores to sell its products" has become untrue. In July of 1998, Amway was forced to open retail stores or be forced out of China.See answer.
Amway's "Canadian Tax Fraud Scandal"- was Amway the victim of Canada's Revenue Department or guilty of the largest criminal fine in Canadian history? See answer.
Since Amway's "D&B rating is the best you can get" (actual quote from a distributor), a person should join the business. See answer.
"ha, ha. Amway did $7 billion in revenue" (an actual quote from an e-mail). Amway's 1997/1998 revenues were not even close to this number.See answer.
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The first statement, that "Amway does not use middlemen to move their products," is untrue since (until recently) distributors ordered products through their sponsor to their sponsor to their sponsor to their Direct, who orders from the RDC. Products are then delivered from the RDC to the Direct to the distributor to that distributor on down the line to the last distributor. Payment of product is also made in this way: you pay your sponsor who pays his sponsor, etc. Granted, there is no cost-markup along the line, but is this really the elimination of middlemen?
In a majority of groups, however; distributors have enrolled in a service called ARP. Using this service, distributors can both order products and receive their bonus checks directly from Amway. This service, then, can be seen to eliminate the middlemen, but keep in mind that not all groups have authorized their distributors to order this way. There are still a number of groups who have not transferred to this service.
Also, the distribution of tools has not changed- they are still 100% distributed by middlemen. If you need to purchase a particular audio tape, you must order it from your sponsor who orders it from his sponsor, etc. Payment is made the same way. Of course, no one below the level of Profit-Sharing Direct is making any money in this chain, but there is still time and labor involved. But, from the level of Diamond to Profit-Sharing Direct, each distributor adds his own mark-up to the audio tapes. This raises the price of each tape from the manufacturing cost of less than $1.00 to a final, selling cost of $6.00 or $7.00.
What would happen if each distributor below the Profit-Sharing Direct did the same thing? Would the person at the very end of the line have to pay $10.00 for a single tape? Remember, unlike the Amway products, tapes have no value outside of the business. The last distributor in the line can not resell the tapes to a retail customer. So, then, when is this considered an illegal pyramid business? Of course, distributors don't count the tools system as having "middlemen" since tools are not produced by Amway, but produced by the AMO's.
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The second statement told by distributors that "Amway does not advertise on the TV or radio" is now 100% FALSE. According to the December, 1997 Amagram:
"Amway and distributors in Sacramento, California, and Raleigh/ Durham, North Carolina, teamed up for a new phase in image advertising last year, and the success of those inaugural regional campaigns means more blitz ads are scheduled for 1998. The objective of the first two campaigns was to determine whether sales and sponsoring could be improved with a focused advertising effort. The answer was yes on both counts after the TV, radio, billboard, and print messages about the Amway business opportunity appeared." (emphasis mine)
Where does Amway get the money to pay for this advertising? Does this mean there will be less money available for distributors' bonus checks? Or will it mean less of an increase in the bonus checks in the coming years? Will their campaign start to spread to other markets besides Sacramento and Raleigh/ Durham? The tough question is this: why does the world's largest MLM business, with its "explosive growth," feel the need to advertise their business opportunity on the TV and radio? If MLM is indeed the "wave of the future," why advertise like non-MLM companies? I though Amway always prided itself on only using "word of mouth advertising." And since the article states that both sales and sponsoring were improved by the advertising, why even have the distributors go through the trouble of contacting people? Just place more advertising on the TV and radio and save the distributors a LOT of hard work.
To be fair, though, Amway has been advertising its Double X and Nutrilite products on TV during basketball games. They have also been advertising in magazine print ads (such as Time, Newsweek, Money, etc.) asking people to learn more about the products and corporation. But they have never advertised the Amway business opportunity on TV or radio before.
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Over and over, distributors claim that Amway "deals with 2,000 companies, most of which are "Fortune 500" companies"- a statement which is only partially true. Why do distributors exaggerate this number? To make the Amway business look more reputable or more diverse in its product offering?
First, a basic fact: home cleaners, personal care items, etc. are only available in the Amway-brand label, without competition from any other manufacturers. You will NOT see Tide-brand laundry cleaner or Prell-brand shampoo or Ivory-brand soap or Crest-brand toothpaste. (As a side note, you'll never see Tide or Crest ever offered in an Amway catalog- those products are manufactured by their biggest competitor: Procter & Gamble.) Does Amway do this because their products are so much better than everyone else's or does Amway enjoy its monopoly over its distributors?
Yes, Amway does do business with over 2,000 major manufactures like Panasonic, Coca-Cola, Braun, and others. But, these companies have merely let Amway sell their products through the various catalogs. This is the sum total of the relationship between the companies. A number of these companies have written letters stating their corporate policy: "Amway is only a reseller of our products and no joint venture or partnership of any kind should be implied." (quote paraphrased) Of course, it makes perfect business sense: if you had access to Amway's (claimed) 3 million distributors, who would buy and sell your products instead of your competitor's, would your company be interested? But why do distributors (especially speakers at Open meeting) continue to claim that Amway has "joint-ventured" with these companies?
The misrepresentation can easily be spotted in the second half of the above statement. If you assume the words "most of which" to mean 'a majority of the total,' this would translate into 51% or more of the total number. In turn, this becomes 51% of 2,000 companies which would equal over 1,000 total. By definition, there are only 500 "Fortune 500" companies. Therefore, there is no way that "most of" the 2,000 companies Amway deals with are "Fortune 500" companies.
Along the same argument, many distributors have claimed that Amway does business with 90% of the "Fortune 500" companies. This translates into 450 out 500 companies (90% of 500). If you were to look at the actual listing of the "Fortune 500" companies published yearly, there are quite a number that would not be able to even do business with Amway. These include: software manufacturers, oil companies, and other non-consumer-product companies. Then, how many "Fortune 500" companies does Amway have the ability to deal with? I don't know the actual number, but a number of critics have placed the estimate around 20-25%. The percentage is smaller when talking about the actual number of companies whose products are in the Amway catalogs. This is very different than the 90% claimed by distributors.
As a side note, I have made a list of every company found in the following: the sales & marketing plan, the 1998 "Spring & Summer" catalog, and the 1997-1998 "Personal Shopper" catalog (Amway's main catalog). Click here to go to that page. If you count how many companies I have listed, the total comes to just over 450. Now, keep in mind that I have not counted the companies in any of the other catalogs such as: the "Steak" catalog, the "Major Appliance" catalog, the "Christmas" catalog or the "Office Supply" catalog. Also keep in mind that most of the companies' products found in the "RDC/ Service Center" catalog can also be found in the "Personal Shopper" catalog. And, also keep in mind that the products found in the "Coreline/ Products & Services" catalog are ONLY Amway-brand. The conclusion is this: if I have found only 450 companies in the main catalogs, can there be another 1,550 companies in the secondary catalogs I have missed? Or is the claim, "Amway deals with 2,000 companies," just another deception by distributors?
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Almost every distributor claims that "by becoming an Amway distributor, you can save 30% off retail price" by purchasing items in the Amway catalogs instead of the local store. In reality, there is evidence that distributors actually pay about 40% MORE for products. And don't forget the postage costs to have the items "conveniently" shipped to your house. Rather than debate this issue, I am going to refer you to entire web page dedicated to this one lie. Click here to go to The Amway distributors little white lie page.
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I will start this section by saying that Amway does not condone nor allow the use of the Profiles of Success as an aid in sponsoring. Second, the incomes in the Profiles of Success are grossly misrepresented. As a number of lawsuits contend, Diamonds make a vast amount of their "Amway income" from the sale of tools. Therefore, for distributors to claim that the lifestyle shown in the Profiles of Success is typical, is nothing more than a lie. By using the Profiles of Success, distributors can lead prospects to believe that they too can have the wealthy lifestyle of the Diamonds. And if prospects need a "moving" version, the Diamond will probably have a "lifestyle" video produced at the same time his Profiles of Success information is created.
According to sources who have worked with some Diamonds, many items shown in the pictures are completely fraudulent. A number of the cars were leased or even borrowed- instead of owned. In one case, the big home behind the Diamond was actually the house he had just sold, but the picture implied that the house was his. Boats and motor homes may be rented for the photo shoots as well. Why go to these lengths for a few pictures or a video? The fabulous lifestyle shown in the pictures will lend more credibility to the Amway business- "If all these people are making money, then it must be a good business."
Chances are good that most distributors are not aware of these facts. Chances are good that many Directs are not aware of these facts. Since they have not been taught otherwise, these distributors strongly believe that the material items surrounding the Diamonds have been purchased with only Amway bonus checks. Ask yourself this question: can a Diamond making around $115,000 afford the numerous cars, the large house, or other material goods. Chances are, he can MORE than afford them if he makes over $115,00 + $916,000 a year. (These figures are from the See how much money upline distributors really make page.)
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Contrary to what most distributors believe (and teach others), Diamonds do not have lots of free time. According to one critic, Diamonds "have the LEAST amount of free time." Instead of "retiring," a Diamond's time is spent motivating and working his group, speaking at meetings and functions, and traveling to company seminars and upline meetings. My own Diamond would tell stories about how his upline would call him to tell him to change his plans- they were going on a trip. And if he declined the "invitation," would the tools bonus stop? How can you plan your life if you worry your upline could change those plans at the last minute? Is this the "great life of freedom" distributors always talk about? Another critic had personally witnessed his Diamonds leaving their children to speak at yet another function. Those Diamonds even missed Christmas with their children in pursuit of the speaking fees. It makes a person wonder what Diamonds feel is more important: spending time with their children or continually pursuing the money? And these are the same people who tell distributors to keep building the Amway business so they will have more time to spend with their own children.
There have even been allegations that Diamonds have to continually "kiss up" to their upline to insure the tools money doesn't stop. Yes, "kissing up" to your boss may take place in the corporate world, but if you don't like your boss, you can get a new job. What can Diamonds do for a living if they quit the Amway business- assuming, of course, that they can quit? First of all, it is almost unheard of for a Diamond to leave the Amway business. By the time people have reached that level, they have grown accustomed to the constant edification and worship from their downline. If they were to leave the Amway business, they would become just another employee. What would happen to their ego then? Also, most Diamonds have given up control of their business to their support staff- either by choice or because that's what "expected" of a Diamond. Therefore, a lot of Diamonds may have lost any business skills they once had. What would happen if they applied for a "real job" then? This could be the reason Diamonds tell distributors it is so terrible to leave the business- they couldn't survive themselves!
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Whenever a person is approached to build an Amway business, distributors represent that, by building an Amway business, a person can achieve a "debt-free" lifestyle. By building the business, the person will have more than enough money to pay off ALL their bills: mortgage payments, car payments, credit card bills, and any loan payments. When the bills are paid, the person will be completely debt-free.
It is my contention that a person can never truly have a 100%; quot;debt-free" lifestyle. There will ALWAYS be monthly bills that create debt, even temporarily, such as the telephone bill, the utility bill, or the cable bill. Yes, these bills are completely paid within a month, but for that time, there is still debt.
A more accurate statement would be to say that a person could make enough money to have an almost debt-free lifestyle. Instead, though, distributors lead people to believe that all their debt will disappear if they work long enough at building the business. (Never mind the fact that some critics contend that building an Amway business creates more debt than it cures.)
I know that this point may be "nit-picking," but it is "one more thing" that adds to the overall picture of the Amway distributors. They make so many claims that it becomes hard to tell which are true, which are "bending the truth," and which are just lies.
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Ever since Amway was created, its distributors prided themselves on the fact that they were "unique" or "different"-- they didn't need retail stores to sell Amway's products. Going door-to-door or recruiting neighbors or contacting strangers was always enough. Until July, 1998, that is.
Due to pressures against the MLM industry, Amway agreed to the Chinese government's decision that all MLM business were to switch to retail-selling or leave China. Following behind such other MLM companies as Avon and Mary Kay, Amway converted its distribution centers into retail stores. Customers are now free to purchase products without using a distributor.
According to an article in the July 22, 1998 issue of the Orlando Sentinel:
"Amway Corp. will be allowed to sell dish soap, window cleaner and other products in China. But the sales won't solely be through its door-to-door suppliers. Under a new system, Chinese customers will be able to shop at Amway retail stores, which are currently used as distribution centers. They will also be able to buy products from their distributors. In April, the Chinese government banned Amway Asia Pacific Ltd. and other direct marketers from door-to-door sales. Authorities were concerned such sales would promote illegal activity, including smuggling, the state-run news agency said. Under the deal, customers who pay a fee will be eligible for bonuses on the products they purchase, the same way Amway salespeople in other parts of the world receive bonuses. Customers who pay the fee can also join the sales force."
And from the July 22, 1998 issue of the South China Morning Post:
Amway said its operations had resumed in 14 provinces and four cities, employing about 1,300 employees, about 100 less than when it closed on April 22, when Beijing announced a blanket direct-selling ban.
It plans to combine retail outlets with a team of sales representatives, expected to be the group who previously conducted direct marketing.
For a fee, clients can become privileged customers, enabling them to buy products at a discount.
"The company is only allowed to sell to the product's end user, meaning it retains legal right to the product and it cannot be sold to the sales person," [spokesman Mr. Herbert] Ho said.
"No direct marketing is permitted at all, so we have to be very clear about the new rules," Mr Ho said.
However, at one Beijing retail outlet, sales people appeared to be in some confusion over the regulations.
Mr Ho said the activity this former sales representative described was improper, as sales people were not allowed to buy products before selling them.
However, he said that problems or confusion about the new company rules that might arise would be resolved easily, as the new rules of operation had been clearly announced and all prices were fixed and prominently displayed.
He said that former sales representatives would have to get used to the new rules.
Beijing banned direct marketing following the discovery of widespread abuses, fraud and illegal schemes - such as pyramid selling - and declared the market was not yet ready for it.
To compound matters, Amway President Dick DeVos flat-out lied to the press:
From the HONG KONG, July 20, 1998 /PRNewswire/:
We are honored to be the first company so approved for business resumption by the national government and are gratified by the trust and confidence which the Chinese government has in Amway's ability to train, develop and manage a responsible and effective sales team." (emphasis mine)
Compare this with an earlier June, 1998 South China Morning Post:
"Avon Receives Approval to Resume Operations in China [on] Friday, June 5, 1998 10:01 AM"
From the NEW YORK, June 5, 1998 /PRNewswire/:
"Avon Products, Inc. (NYSE: AVP) announced that it has received today Chinese governmental approval to resume operations in China as a wholesale and retail business, and anticipates being operational by June 15 [1998]."
How can Amway be "the first company so approved for business resumption" when Avon was approved by the Chinese government almost 3 weeks earlier, and then started operations 1 full week before Amway? Are DeVos' statements merely "spin-doctoring" (to explain a potentially disastrous situation) or outright lying? And if the president of a corporation lies about its operations, does that really inspire the public's trust? For Amway, DeVos should do whatever he can to improve Amway's tarnished public-image.
To clarify the situation, Dexter Yager made these statements in a public-relations announcement:
"Amway China is viewed as a normal retail sales company with "Sales Representatives" and "Sales Managers" working for the company in approved areas of China. Amway is not viewed as a "special business opportunity" with "independent business distributors" building a personal business." (emphasis mine)
"The China and Hong Kong markets are now two separate, individual markets with no [line-of-sponsorship] links."
"Amway will conduct retail sales to anyone that enters an Amway shop and asks to purchase product."
"Amway no longer uses distributors. Amway now has employees and customers..."
"It will no longer be necessary to purchase an Amway Starter Kit- 700 RMB ($85.00 USD) to join the Amway business in China."
What happens if Amway's sales increase due to this shift to retail selling? Would Amway decide that they could further increase its profits by doing the same in the United States? Could this be the end of Amway's distributor force- are distributors really needed if retail stores can sell more products? Or could this mean that Amway will take control of the products, leaving distributors free to concentrate on selling tools to build their own "motivational" businesses? Then again, this whole point could be moot when Amway's Internet-based, "sister company," Quixtar, starts to fully operate.
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Almost every distributor has heard the rumors, but not many know the entire truth behind the Amway/ Canada tax case. Distributors learn the "Amway-accepted" version of the story- a version that tells how Amway was a victim of complex tax and tariff regulations and how, in a show of "ethics," founders Rich DeVos and Jay VanAndel "generously" returned to Canada to face the charges against them.
"From Promises to Keep, by Charles Paul Conn
The twenty-five million-dollar fine to which you refer was a result of a customs dispute between Amway and Revenue Canada, the branch of the Canadian government which collects tariffs. The dispute was a complicated one which began in the 1970's, when Amway first began shipping products from its manufacturing plant in Michigan across the international boundary to its distributors in Canada.
By the time all this legal maneuvering was over, tens of millions of dollars were at stake, and the fine, when it was levied, was a very large one. Even in Canadian dollars, twenty-five million is plenty."
Yes, the dispute was "complicated," since the government would later find out that the Amway Corporation had created "dummy" companies to circumvent the import laws. The government also discovered that Amway had created these companies willfully, for a number of reasons. Conn's "Amway-approved" version is an extreme watered-down version of what actually happened. In fact, DeVos and VanAdel were almost extradited by the Canadian government if they failed to face the criminal charges against Amway.
"From Amway And Canada- The Judges Report, Gaylen J. Baker, The Reformed Journal, September 1994.
On November 10, 1983, before Chief Justice Evans of the Supreme Court of Ontario, the Amway Corporation and Amway of Canada Ltd. pleaded guilty to charges of criminal fraud and paid a C$25,000,000 fine, the largest ever imposed in Canada. The crime was tax evasion. The Canadian court upheld the government's claim that by means of fake and fictitious invoices and price lists and the creation of a dummy corporation, the Amway companies had defrauded Canada out of amounts in excess of $28,000,000."
Make no mistake about the court's conclusion: Amway was found guilty of willfully, fraudulently, and criminally cheating the Canadian government out of millions of dollars.
To read more information about this story, please go to The Canadian Tax Fraud Scandal (reprinted from Sidney Schwartz's "Amway: The Untold Story" website). This article goes into much more detail than can fit into this section.
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What is "D&B?" It stands for the Dun & Bradstreet company, a financial company that rates the credit risk of corporations. This rating is used to determine whether or not a corporation should be lent money. Now, I can't say if Amway's D&B rating is good or bad because the Corporation does not release that information to the public (which includes Amway distributors). (I am assuming Amway's rating is excellent since distributors make a point of stressing how the Corporation is "debt-free." And, since Amway is "debt-free," no one should have to lend them money. Doesn't this mean their D&B rating is irrelevant?)
To further this point, I'll let Amway's Business Manual speak for itself:
Business Regulation 3: Use of Dun & Bradstreet Reports Is Prohibited
Dun & Bradstreet financial reports and ratings are not to be used in the course of sponsoring new distributors. All Dun & Bradstreet financial reports and ratings are confidential, reserved for the exclusive use of subscribers. Using such reports and ratings in sponsoring could result in Dun & Bradstreet refusing to rate Amway in the future.
While using these reports and ratings is prohibited, we encourage you to stress Amway's financial soundness in your sponsoring efforts.
I wonder what would Amway do if they found distributors were using Dun & Bradstreet ratings in Open meetings? Probably nothing. But, what would Dun & Bradstreet do to Amway if they discovered distributors were promoting Amway's rating as a way to further bolster Amway's "financial soundness?" Look at the last sentence of the first paragraph: "Using such reports... could result in Dun & Bradstreet refusing to rate Amway in the future." I suppose distributors are counting on the fact that Dun & Bradstreet will never find out.
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Recently, I received a short e-mail from a distributor "laughing" at me due to the fact that he claims Amway's revenues were around $7 billion for the 1997/1998 fiscal year. On October 26, 1998, Amway announced its official figures. Please note that the word "revenue" is not mentioned at all, but is referred to as "estimated retail sales":
AMWAY ANNOUNCES ESTIMATED RETAIL SALES OF $5.7 BILLION
ADA, Mich., Oct. 26, 1998 -- Amway Corp. today announced global estimated retail sales of $5.7 billion for the fiscal year ended Aug. 31, 1998, a decline of more than 18 percent from estimated retail sales of $7 billion the previous year. [emphasis mine]
This figure represents the combined results at estimated retail for the 49 affiliate markets supported by privately owned Amway Corporation and its publicly traded sister companies - Amway Asia Pacific Ltd. and Amway Japan Limited - which announced their annual sales separately during the past 10 days.
"Fiscal 1998 was a challenging year," stated Amway Chairman Steve Van Andel. "Nearly half of our business is in Asian markets where economic upheaval resulted in weak consumer demand. Our revenues were further reduced when translated from weak Asian currencies back into strong U.S. dollars."
"We've enjoyed phenomenal growth, including double-digit increases during the early and mid 1990s," said Amway President Dick DeVos. "We remain confident in the fundamentals of the Amway business and we're finding new ways to energize our business through the products and the business opportunity we offer our distributors and customers. Because of what we've accomplished in the face of many challenges, fiscal 1998 remains one of our best years ever."
NOTE: Before I critique this announcement, a point should be made: The Amway Corporation refers to its $5.7 billion and $7 billion figures as ESTIMATED RETAIL SALES. The Corporation never refers to these figures as REVENUE. And, as so many people are quick to point out, a vast majority of Amway's products are sold at "distributor" prices, not "retail" prices. Therefore, are these figures actually inflated by the "distributor savings" of 30%?
In the announcement, DeVos calls "fiscal 1998... one of [Amway's] best years ever." This is certainly putting a "spin" on the information. If Amway did, indeed, "[enjoy] double-digit increases during the... 1990s," how can a year that produced "a decline of more than 18 percent" be considered one of their best? Or is DeVos implying that Amway was expecting to show a bigger loss?
Distributors are always quick to point out, "How many other companies increased their sales revenue $500 million in one year, like Amway did?" (Referring to Amway's estimated retail sales increase from $6.3 billion in 1996 to $6.8 billion in 1997.) Well, I should ask them, "How many other companies decreased their retail sales $1.1 billion in one year, like Amway did?" And I wonder if the speakers at Open Meetings will change their speeches to reflect this new figure- Amway's estimated retail sales are no longer "almost $7 billion," but are now "less than $6 billion." And why do I have the feeling that they will neglect to mention the 18% drop, as well?
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