Kerala police Claims: Amway sells products at higher rates

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In a recent investigation done by Kerala police, they came across facts that Amway is selling their products at a very high price, that basically includes individual care and Health care products through their direct selling method.

Amway sells G & H Body Shampoo and G & H Lotion 250 ml with its ABOs (Amway Distributors) for Rs 395 each. Believe it or not, the genuine costs of these products are just Rs 51.49 and Rs 34.19 respectively.

Amway market a list of 119 products, that was taken by the Crime Branch Economic Offences Wing, during the raid at the company’s workplaces in Kochi recently, plainly exposes this.

The list comprises the product code, name, real rate and asking price of items.

What’s even more unexpected is that only a few of the items marketed by Amway are brought from abroad. “Many of the items are outsourced from various Indian companies consisting of Sarvotham Care and Naiza Laboratories in Himachal Pradesh, Soft Gel Healthcare – Chennai, Aura Personal Products – Uttaranchal, Aero Pharma – Mumbai, Fiabila Limited – Raigarh, Avalon Cosmetics – Mumbai and the KLF Nirmal coconut oil based at Irinjalakuda.

In a Simply language, Amway procures products from domestic companies and sells them at six to ten-fold costs,” stated Dy SP P.P Sadanandan, who has done considerable research into money chain scams in the country.

Authorities said the generation strategy being followed by Amway is the most hazardous of all the multi-level marketing plans in regards to the percentage of individuals losing money in the scheme.

Anybody can sponsor any number of individuals as his direct down line. The endless assistance of enrolment and staircase commission structure makes the plan arithmetically infeasible.

It is true that lot of people in the direct selling market felt these items can get at a really low rate when compare to Amway rates. Amway preparing to bring even more products.

However after these cases, can Amway offer the items at normal rates or higher rates? Amway suppliers can state anything but the fact is, these products are expense when compare to standard market.

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