The rights, duties and responsibilities of all Amway Independent Business Owners are detailed within the Amway Rules of Conduct. From time to time these Rules are reviewed and modified to reflect and keep pace with a dynamic marketplace and the changing needs of IBOs. The Rules have been amended, with the new Rules of Conduct being effective 1 September 2007. Together with this Amagram, you receive an insert outlining the changes to the Rules and the reasons for such changes. This month we will look at the structure of the new Rules of Conduct, and shall briefly explain each of the sections. Agreement to be Bound Upon being registered as an IBO, and by renewing each year, IBOs agree to be bound by the Rules of Conduct and any amendments made to them. Code of Ethics for Amway Independent Business Owners This section outlines the basic expectations that Amway Southern Africa has of its IBOs, and specifically notes that IBOs are required to observe "not only the letter but also the spirit of the Rules." Introduction This section puts the document in context; it alerts IBOs to the fact that the Rules of Conduct is actually the contract between Amway and its IBOs. Definitions This section defines key terms and ensures that terminology used throughout the Rules is clear and understood by all IBOs. Becoming an IBO Rule 3 explains that Amway sets and maintains high standards for admittance and renewal of an IB; it also says that an IBO is an independent contractor and that the degree of involvement in the Amway business is solely up to the IBO. Responsibilities and Obligations of all IBOs While IBOs are independent contractors they also have a responsibility to ensure that they comply with consumer protection legislation and other legislative requirements when operating their southern African IB. This section seeks to protect the Amway businesses of existing IBOs by prohibiting IBOs from conducting their businesses in any way which could bring about risk to Amway's reputation, and to the reputation of other IBOs.   Responsibilities and Obligations of all Sponsors Sponsorship permits an IBO contracted to Amway to expand his/her business to maximise income. In the same way that the sponsor looks to the upline for support, so will he/she have responsibilities in respect of his/her downline including training and motivation. Preservation of the Lines of Sponsorship The Line of Sponsorship is the integral part of an Amway business; as such IBOs are required to ensure that approval is received from Amway prior to any change to the LOS being made. Non-Amway Produced Business Support Materials Some IBOs offer for sale to other IBOs a variety of non-Amway produced business support materials. The manner in which BSM may be used with prospective IBOs and IBOs is detailed in this section. In particular this section makes it clear that the sale, purchase and use of BSM is entirely optional and voluntary and that the content of BSM must comply with the Rules of Conduct. Presentation of the Amway Sales and Marketing Plan The Amway Sales and Marketing Plan sets out the system of Amway commissions and noncash awards. It also clearly details Amway's guidelines and procedures for presentation of the plan to prospective IBOs. The guidelines have been formulated so as to ensure compliance with consumer protection legislations to ensure fair and equitable marketing in southern Africa. This section summarises essential do's and don'ts in that regard. Use of the Amway Trade Name, Trademarks and Copyrighted Materials This section acknowledges that the name Amway and all of Amway's trade marks, logos, domain name, insignia etc are valuable property and that no person including IBOs may publicly display or otherwise use those names, without Amway's written approval. Death and Inheritance If an IBO dies their interest in the IB shall be passed on to a co-owner of the IB, if no co-owner exists Amway will dispose of the IB in accordance with the Rules. Breach of Contract; Procedures, Sanctions This section outlines the ways in which Amway will investigate a breach of the Rules of Conduct and complaints received from IBOs. Sanctions Amway IBOs have a responsibility to protect and present the Amway business in a manner which complies with these Rules. This section identifies the actions available to Amway where an IBO commits a serious breach of these Rules. Disposition of Terminated or Non-Renewed IBO Contract An IBO may abandon, sell or dissolve their IB; this section identifies the manner in which an IBO can do this in compliance with the Rules. Appeal Process In the event of a dispute between an IBO and Amway, this section provides for the appointment of an independent mediator or arbitrator, under the auspices of the Arbitration Foundation of Southern Africa, to mediate or to hear and resolve contentious issues. If you have any queries please contact the Amway Business Relations Department.