UK dismisses claims against Amway

Grand Rapids press is reporting that the UK governments claims against Amway have been dismissed by the court hearing the case. The full report

Amway can stay in England.

A judge in the United Kingdom has dismissed government claims against Amway's operations there, saying major reforms last year fixed faults in its business model.

The ruling clears Amway UK, a part of Ada-based Alticor Inc., of the threat of expulsion from the country, one of Amway's oldest international markets.

Spokesman Rob Zeiger said the ruling was a "solid validation" of reforms implemented by the company to head off regulatory actions last year.

"The company takes the action seriously and continues to review business practices around the world to avoid such regulatory threats in the future," Zeiger said today from England.

"We are determined not to leave things in the future to the courts to tell us to change the way we do business. We need to listen better to what the market wants."

English regulators clamped down on Amway over concerns the company was more focused on selling training materials and less on selling retail products to consumers.

Regulators said the company and its distributors also misrepresented potential earnings from participating in Amway.

Changes introduced last year in the UK in an effort to fend off the court action that led to the ruling included banning non-Amway approved motivational events and materials.

It is unclear exactly what changes were crucial to the dismissal of the case, however my sources tell me it is unlikely that the banning of non-Amway approved events and materials is a part of this. Amway lawyers are reportedly analysing the decision for it's implications, both in the United Kingdom and abroad.

This is great news for Amway Business Owners everywhere, and in particular in the United Kingdom and Ireland. It's my belief this market is a sleeping giant of the Amway world and the path to success there is now wide open. I am particularly encouraged by Rob Zeiger's comments that Amway will in future listen closer to the market andbe more proactive in implementing changes to keep our business model thriving.

 

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