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Legal ease

Where did you get
those names?


From time to time Amway's attention is drawn to cases where Amway Independent Business Owners employed by others may have used material acquired during their employment to establish a list of names for prospecting purposes.

IBOs should note that the law relating to the use of personal information protects information provided in confidence by one person to another. In an employer-employee relationship the protected information covers any material acquired in the course of employment.

All employees are required by law to serve their employer 'faithfully' during their employment. Even if there is no written contract, employees are obligated not to damage the interests of the employer by divulging or using any information, including customer names, that came to them during the course of their employment.

This duty of good faith prevents the use or disclosure of any information while the employment relationship remains on foot. It also precludes employees making deliberate attempts to obtain or memorise material even if they do not plan to use the information until after the employment relationship has ended.

When employees leave their jobs a new set of duties arise. They may then be able to use certain information, provided that:

    
  •   information is not classified as 'secret';    
  •   was properly acquired; and    
  •   they did not agree to a contractual term which restricts their post-employment freedom.    
 
In this context employees may, in certain circumstances, rely on their recollections concerning the needs and names of their former customers in order to compete for the business of those customers.

Employees who break the laws concerning use of personal information not only run the risk of dismissal but may also face the prospect of legal action for damages and an account of profits accrued as a result of the breach.

Play it safe. Be careful how you source names for prospecting. Do not use information gained in the course of your employment unless your employer has given you permission to do so.

If you have any questions please contact the Amway Business Relations Department.