Amway UK & Ireland Update

We thought you would appreciate an update which we believe will answer some of your questions that we have been hearing over the past few weeks.

SIP/NCA
Firstly, the SIP/NCA qualification criteria has been a topic frequently raised in discussions with leaders recently. Concerns have been expressed about IBOs' general ability to complete the required new sponsored volume for this fiscal year as a result of the non sponsoring activity. We would like to inform you that modifications will be made to the current SIP/NCA programme in order to address achievable qualification. Our aim is to provide you with full details of this modification by the end of June.

SPONSORING
We have also received questions regarding sponsoring both locally and internationally and how international sponsoring can be accomplished by UK/RoI IBOs. Perhaps the easiest and simplest way to answer this question is to say that no sponsoring or prospecting activity can take place on UK or Irish soil. Should you be visiting another country, you are most free to build your business in that market according to that local market's requirements. Likewise, no prospecting of any kind can take place locally, including building groups that will join when sponsoring activity can commence.

ROADSHOWS
We announced earlier in May that Amway would get out on the road and visit all IBOs across the UK/RoI during the month of June. We are now in a position to confirm the dates of these events. We will begin with a Platinum and above meeting which will take place on Saturday, 23rd June. The roadshow which will be available for all IBOs will begin on Saturday, 3th June and will be expected to cover locations across the UK/RoI over the course of two to three weeks. Full details of the venues and dates will be provided to you as soon as these are confirmed.

We thank you for your continued patience and support.

Yours Sincerely

Ben Woodward
Branch Manager – UK/RoI

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Amway UK & Ireland update

The Amway Media Blog has a new post up giving more information on the situation in the United Kingdom. What we now know is that the parties involved in the DTI investigation are Network TwentyOne, Britt World Wide, and Amway. Amway saysthat it's their understanding that –

The heart of the DTI’s position, as we understand it, is that the business opportunity is promoted by incorporated and unincorporated organizations in a manner that does not reflect the financial rewards people are likely to earn when they participate in the Amway business.

The DTI also objects to the manner and frequency in which meetings and BSMs are promoted by the sales organizations in conjunction with the Amway business opportunity.

My first thought is that to the best of my knowledge, objecting to how often somebody markets something doesn't have much of a legal basis :-). Interestingly, at the court hearing on Monday, the court –

ordered DTI to set out its case in more detail so that Amway, Network 21 and Britt know precisely what is being alleged. Each company will have the opportunity to respond to the claims and to submit evidence.

So apparently the court didn't think the DTI had done this clearly to date. My guess is the DTI probably repeated many of the critics talking points about "average income" and "negative sum game" and such. These are very simplified and naive criticisms of the business and given access to decent statistics, which hopefully Amway and the systems have, such concerns may be alleviated.

From the perspective of the individual IBO, the following points are probably what matters most. Amway has undertaken to –

  • Prohibiting business support materials that are not authorized and distributed by Amway.
  • Prohibiting meetings where an entry fee is charged, unless Amway has approved the meeting and its content.
  • Imposing a moratorium on the registration of new IBOs for 12 days, then introducing a revised registration policy.
  • Providing the DTI 21 days’ notice before restarting the registration of IBOs.
  • Amway will not implement any policy that requires payment of a registration fee prior to the hearing of the petition.
  • Amway has also volunteered to inform the DTI of any violations of the corrective measures, and the action that Amway will take in response to the violations.

Quite obviously this dramatically changes the "independence" of IBOs, especially given the extremely broad definition of Business Support Materials.

The definition of Business Support Materials 'BSMs') is intended to be interpreted broadly and includes, by way of example:
printed materials, audio-video and multimedia productions, internet-based products and services, extra Amway recognition and award systems, meetings and other events, and other materials or equipment used to support information or sale of Amway products or services, as ell as coupons, vouchers, tickets or standing order/subscription programs relating to any of the foregoing.

Over on mlmleads.eu, Demetrius has an update on a letter from Amway UK –

From: InfoCenter-UK@amway.com [mailto:InfoCenter-UK@amway.com]
Sent: 22 May 27 11:52
To: undisclosed-recipients:
Subject: Cancellation of Open Meetings/Seminars and Events

Please note this communication has been sent in the following order to all Diamonds, Emeralds and Platinums.

Dear Leaders

Re: Cancellation of Open Meetings/Seminars and Events

Further to Amway’s recent communications issued on the 4th May 27, we kindly request that you provide us with the following information:
· A list of all Open Meetings, Seminars and any other form of meeting that have been scheduled and/or cancelled.
· Time, location and date of past, present and future Open Meetings, Seminars and any other form of meeting that has been scheduled.
· Confirmation in writing that all scheduled future meetings have been cancelled and all money has been refunded.

Further to the above we are aware that some IBOs wish to hold product training events in replace of Open Meetings. Please be advised that such an event must be authorized prior to being carried out. In compliance with Amway’s current ban on Prospecting and Promotion, Sale and Distribution of BSM we confirm that under no circumstances can non-IBOs attend this event, nor can you show or make any reference to the Amway Sales and Marketing Plan or Promote, Sell or Distribute BSM. Also no entry fee or other form of attendance charge can be made.

Should you wish to carry out a Product Training Event please email tracy_clark@amway.com with all relevant information in connection with the proposed event. The above information will allow us to speed up the authorization process in the future.

We expect your response to this request no later than Monday 28th May 27.

Yours Sincerely

Julie Dodd
Business Conduct Co-ordinator
European Business Conduct 

Aside from the sponsoring moratorium being extended to 4 months, this means an IBO can't even recommend a good business book to their group, or hold a meeting somewhere and just share the costs with their downline. All would be "illegal" according to the new Amway rules. This isn't just a UK issue, similar strict policies are being implemented elsewhere.

This is not the Amway I signed up for. 

Now, there are things that I think need to be changed, and I've been working on some suggestions which I think would be relatively simple to implement but would make a dramatic difference to how our business is perceived, in particular in regards to IBO profitability, apparently the major concern of the DTI. After nearly a decade of discussing, analyzing, researching, and debating the business on the 'net, I think I have a pretty good understanding of what's right and wrong with what we do. That, and the promised comments from "System Balance" coming soon. There's so much going on it's hard to know what to focus on! 

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