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There are several Rules of Conduct that are a source of ongoing enquiry from IBOs. Questions asked typically relate to the interpretation or the purpose of the Rules. This month we look at two rules that have generated much discussion. Rules 4.3.2, 8.3.11, 9.7 and 9.8 relate to promotional activities. Essentially these rules restrict, and in some cases prohibit, a number of activities that other, non Amway, small businesses may indeed utilise to a degree, vis, advertising, letter box drops, telephone canvassing campaigns, mass mailings or similar promotions. Commonly, IBOs question the rationale for restricting and prohibiting such activities. The reasons are essentially fourfold. Personal interaction |
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 The
Amway business is people based. It depends on and revolves around personal
contact and relationships. Impersonal methods of communication and promotion
are therefore generally discouraged or, in certain cases, prohibited.Flooding the Markets There are thousands of IBOs throughout the country. Were all permitted to advertise or to promote the Amway business using letter box drops, mass mailings etc, there would be real danger of flooding the marketplace. Consumer Protection Laws There are strict laws in this country which prohibit misleading conduct and a number of sharp practices. Unless, IBOs are well versed in these laws it is possible that statements innocently made, in a pamphlet or newspaper advertisement for example, may in fact be construed as contrary to the law. Advertising and related promotional activities are therefore only approved in the extraordinary case where Amway believes no risk or misinterpretation can or will occur. Level Playing Field Amway stands by the principles of maintaining a level playing field for all IBOs, ie a system that does not advantage any particular IBO. We believe that Rules 4.3.2, 8.3.11, 9.7 and 9.8 support and reinforce this standard. IBOs often ask whether it is permissible to advertise activities if the Amway name were not to be mentioned. The answer is no, it makes no difference whether or not reference is made to the Amway name, the promotional activities referred to in the rules are prohibited. Indeed, failure to mention the Amway name may, in certain circumstances be construed to be misrepresentative and a breach of other Rules of Conduct as well as of consumer protection laws. Amway nevertheless recognises that there is a need to promote the business on a broad scale. From time to time the company engages in advertising and promotional activities that will benefit the whole community of Independent Businesses. In your enthusiasm to build your Amway business you should remember the responsibilities that accompany the benefits of Amway Independent Businesses. These responsibilities are documented in the Amway Rules of Conduct. Reading, familiarising yourself with and complying with these rules and following the advice of the company should ensure that you do not do anything that may contravene consumer protection laws. If you have any questions please contact Amway Business Relations Department. |
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