Amway UK Update

The BERR court case against Amway UK begins today. Over on, the following email from Amway about the case was published last week. It looks like the outcome should be known within about 3 weeks. The letter indicates that over 6,4 IBOs have already transitioned to the new business model. This is more than half of the approximately 12, that reportedly renewed at the end of last Amway financial year. Given the circumstances I believe this is an excellent result and a great vote of confidence in Amway UK. The letter indicates that Amway UK believes the business model changes they have made have addressed the concerns of the DTI and thus the case is unwarranted. I agree. It’s my feeling that BERR does however want to "make a statement" through this case, and is thus continuing to pursue it. I would be extremely surprised if Amway UK was shutdown – indeed stunned.

From Amway UK –

We naturally want to make every effort to keep you informed about the court action that has been initiated by the Government Department for Business Enterprise and Regulatory Reform (BERR), formerly the DTI.

The judge will start hearing evidence in court on Monday (26th November) and the case is expected to conclude by 18th December or possibly a few days earlier.

Firstly, we want to reinforce that we are entering a strong defence of the BERR action. As you know, we moved swiftly to make changes to the business model and respond to BERR’s concerns, and our lawyers will argue that bringing this action now is unwarranted and fails to recognise the changes that have been made.

Because the case is in court, there are limits to what we can say and we intend to keep communication to the necessary minimum before the result is known.

For instance, we are not intending to communicate directly with ABOs about the case before the outcome, which would run the risk of causing unnecessary speculation. For your information, our call centre is receiving a very low level of enquiries about the case and we do not see any advantage in raising concerns where there are none.

We intend to provide you and ABOs with a full report on the outcome of the case once it is known, and to advise you of any action that may be necessary as a result.

Until that time, we are asking you, as our Leaders, to treat this communication with discretion and to use your own judgement about whether to communicate it to ABOs in your group who have asked for information or reassurance. We do not expect you to communicate this update proactively to your downline.

All of us want to get on with running our business and I’d like to take this opportunity to thank each and every one of you for your support since the EXPO and our new mode of operation.

We’ve just received the figures for our first trading month which show an exceptional sales performance. ABO-ship transitions are now in excess of 6,4 and growing daily. Initial November numbers indicate strong growth over October.

These positive figures are the evidence that you and your groups are already making the new retail model work successfully. In terms of your support right now, where it counts is out in the field “at the Sharp End” – letting your groups know about the success of the new model and helping them move forward and transition.

Once again on behalf of all of us here at M.K. a big thank you for all your support.

Kind Regards

Tom Denham
General Manager & Director Amway UK/RoI Limited

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