MLM News

Tag: amway

  • Modicare, Amway, DXN and K-Link are cutting down their operations in Kerala

    Modicare, Amway, DXN and K-Link are cutting down their operations in Kerala

    Companies such as Modicare, Amway, DXN and K-Link have finally decided to decrease their presence at Kerala. One the biggest reason for doing so is due to authorities continuous harassment faced by their distributors and company officials.  A lot has changed after the arrest of Amway India Chairman and CEO William Pinckney.

    Authorities of the IDSA, which represents all the top direct sellers in the India, said distributors of many these business are being questioned by the state police at routine periods.

    “In case the situation does not improve for the operational feasibility aspects, few of them may consider to stop operating in the state of Kerala,” Chavi Hemanth, secretary-general at the IDSA.

    She also said,”The Indian Direct Selling Association is trying their level best to convince the government to provide a safe environment, where direct selling distributors can perform their regular business activities without getting harassed by the authorities”.

    According to Indian Direct Selling Association, the 4 southern states contributed 39 per cent to the Rs 6,385-crore direct selling industry in 2011-12, and some companies get up to 40 per cent of their profits from Kerala.

    Right now in India there is no specific law to control the direct selling industry and most Direct Sellers fear that.

    The biggest shock came when the Kerala police arrested and booked Amway India Chairman and CEO William S Pinckney and 2 business directors under Prize Chits and Money Circulation Schemes (Banning) Act.

    Earlier this year, American direct selling cosmetics firm Mary Kay completely stopped their operations in India citing lack of policy and law.

    A Modicare speaker stated the home-grown direct seller is dealing with business difficulties in Kerala due to unclear steps taken by different authorities. “A clear direction from the central Government on this front is much-needed for the growth of direct selling market.

    Amarnath Sen Gupta, IDSA chairman and Indian head of Malaysian direct seller DXN, stated the organization is constantly working out with the Kerala government, adding that the decision to continue operations in the state will depend upon exactly what regulation the government introduces. Companies that had active business in Kerala include Amway, Modicare, Tupperware, K-Link, DXN and Hindustan Unilever.

  • No more freeze on Amway offices : Kozhikode Court

    No more freeze on Amway offices : Kozhikode Court

    AMWAY India who is dealing with a case in Kerala, where lot of outlets closed, got a relief on Friday when the Kozhikode district court gave orders to unseal its warehouses and offices in Ernakulam, Thrissur, Kozhikode and Kannur. The relief came when AMWAY gave a bank warranty of Rs 1 crore.

    The chief judicial magistrate court, Kozhikode, had earlier disregarded an application for the very same on March 25. The company submitted a modification request at the area court on April 24 stating the goods secured are disposable and that because of search, seizure and office closing, the local business at these regions had come to a dead stop.

    The economic offences Crime Division, Kozhikode, searched the offices and godowns of Amway in the four areas on November 9 in 2012. Sealing them the exact same day and a case was registered against the directors of the firm under Prize Chits and Money Circulation Schemes (banning) Act after obtaining a grievance from Vishalakshy, a local of Kunnamangalam in Kozhikode, that alleged dishonest by the firm. Amway India’s Chief Executive Officer William Scott Pinckney and two of his directors were detained by the Criminal offense Division on May 27 and permit off on bail the next day.

    Vishalakshy, in her grievance, alleged that from September 2010 onwards, two persons, Ashokan and Firoz, generated her to sign up with multi level marketing company, Amway and on different times collected Rs 2.5 lakh and also yet another Rs. 50,000 for taking an insurance plan. However she could not sell the Amway products and the money was not returned.

  • Sify CEO Kamal Nath Receives Warrant In Amway Fraud Case

    Sify CEO Kamal Nath Receives Warrant In Amway Fraud Case

    The Economic Offences Wing of the Kozhikode Crime Branch has charged Kamal Nath, CEO of Sify Technologies, as an accused in the Amway multilevel marketing fraud case for continuing to provide its services to Amway in spite of receiving a warning letter from the Crime Branch three months ago, reports New Indian Express.

    The report also states that the Crime Branch had pointed out in its warning letter that Amway has engaged in money chain business and so Sify should stop its services to the company. However, in its reply Sify had stated that they were only engaged in a bone fide business with Amway. On these grounds, a warrant has been issued against Nath by the Chief Judicial Magistrate Court in Kozhikode on being charged under section 109 (abetment) of the Indian Penal Code and also being listed as the 14th accused in the Amway case.

    Originally, a case against Amway was filed based on a complaint received from Vishalakshi of Chathamangalam.

    Another Case of Intermediary Liability?

    It appears to be a case of intermediary liability as the report states that Sify continued providing its services on the basis of  bona fide agreement with Amway. However, since the Crime Branch had provided them with a warning 3 months prior to the issue of the warrant, the company is being held responsible. It seems that the technology company is being taken to task due to their client’s wrong doings. However it is not clear if the wrong doings of Amway are directly related to malpractices using the services provided by Sify Technologies. This is not the first case of intermediary liability in India.

    Although the nature of the case was different, earlier in November 2012, Internet Service Providers were also held liable for copyright infringement on the internet by the Madras High Court. In this case, the court had ruled that the submission made by ISPs that they cannot prevent “future wrongs” of piracy of content is not correct, and their apprehensions about the inability to “enforce or implement the order of this court are unfounded. The court found the contention that websites host both infringing as well as non infringing content “unmeritorious”.

    It is also worth noting that the Information Technology Act 2008 has amended the definition of intermediary liability by including the Telecom service providers, internet service providers, web-hosting service providers, search engines, online-payment sites, online auction sites, online market places and cyber cafes as reported by Mondaq

    Source: www.medianama.com

  • Transparent guidelines must regulate the MLM business in India

    Multi-level Marketing (NETWORK MARKETING) company Amway, which distributes its items through contacts with ordinary people, instead of through stores and superstores, is under the government’s scanner. The issue is whether the American giant, and numerous other companies like it, serve as a Ponzi scheme, each distributor getting rewards including more representatives to the network

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