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All businesses, including Amway Independent Businesses, are responsible for fair and ethical trading activities. Consumer protection legislation encourages business people to be truthful and ensure that relationships between businesses and consumers are even-handed by prohibiting a wide range of false, misleading and unfair conduct. The law states that a business must not do things that actually mislead or deceive, or are likely to mislead and deceive. These legal obligations are refl ected in Amway's Rules of Conduct.

The words 'mislead' and 'deceive' generally mean to lead into error and include such things as: lying to someone; giving them the wrong impression or leading them to an incorrect conclusion; leaving out important information and making claims that are inaccurate. Whether or not you intended to mislead or deceive is irrelevant. The principle covers all commercial dealings including sales and marketing presentation, products and service descriptions, representations, packaging, negotiations, contractual provisions and advertising. Other unfair practices such as making false representations, the use of coercion or harassment, and the sale of unsolicited goods and services, are also prohibited.

If the relevant laws are broken, the responsible business could be sued. Potential penalties include fines, damages, injunctions, undertakings and any order the court believes to be appropriate. Amway's Rules of Conduct forbid a range of conduct that is unfair, misleading or deceptive including but not limited to the following.

Rule 4.8 states that IBOs must comply with all applicable laws, regulations and codes. Specifically, IBOs must not conduct any activity that could jeopardise the reputation of the IBO and/or Amway.

Some helpful suggestions are:
  • Attempt to eliminate any suggestion of deception in the conduct of your business, particularly when prospecting potential IBOs or customers. The question 'Is this Amway?' should always be answered affirmatively.
  • Do not represent the retailing of products as unimportant or unprofitable. Ideally, you should try to achieve a balance between sponsoring and retailing.
  • Amway represents a genuine business opportunity. It is not a wholesale buying club. You should not recruit prospects on the basis that they need only purchase for themselves and will benefit from having others do the same.
  No IBO shall engage in any deceptive or unlawful trade practice: Rule 4.9 This Rule outlines the responsibilities that Amway expects its IBOs to diligently comply with. The Rule stipulates that illegal or unlawful business practice creates grounds for the suspension, termination or non-renewal of an Amway IBO's independent business.

IBOs shall not misrepresent the benefits or obligations of being a Distributor:
  • Be particularly careful when mentioning the income potential of Amway IBOs, for example you must not imply that a person can get rich by doing very little. You should also make certain that the income potential of the Amway business is consistent with Amway's guidelines.
  • Take care not to misrepresent the tax advantages of the Amway business.
  • Never imply that IBOs are obliged to: sponsor others to become IBOs; become 100% users or regularly purchase Amway products; or spend a specified amount of time conducting their business.
  • Never imply that IBOs must acquire business support materials (BSM) such as books and tapes. BSM are optional and refundable.
  • Never suggest that certain religious or political views are required to succeed in Amway.
Take care to read and familiarise yourself with the relevant Amway Rules. Complying with these rules should ensure that you do not breach consumer protection laws, however as an Amway Independent Business Owner you have the responsibility to ensuring that you do comply with relevant laws, regulations and codes.