Tuesday, November 27, 2007

Amway UK to be Shutdown? Part 1

Amway UK is being taken to the High Court by Britain's DBERR (Department of Business, Enterprise and Regulatory Reform) which was formerly known as Department of Trade and Industry (DTI). The DBERR is Australia's equivalent to the ACCC (Australian Competition and Consumer Commission) and the USA's FTC (Federal Trade Commission).

To those who have been following the Amway/DBERR case, this news will be of no surprise. However, for the benefit of any new readers, as there have been so many developments and elements to the case, too many of which to post here!, we recommend you visit http://www.mlmleads.eu/ which provides an abundant amount of information regarding the case, all in chronological order.

To outline the case briefly though, basically the DBERR conducted an investigation of Amway UK, and some of it's AMO's (Amway Motivational Organisations) namely Britt World Wide (BWW), IBS and Network 21 and raised serious concerns as to how the business was being promoted, it's business practices and the misrepresentations that were being made. So serious were the allegations, the DBERR lodged a petition to wind-up the company. In response to this, Amway sanctioned it's entire UK sales force and has since made major changes to it's business over the last six months, in the hope of satisfying the DBERR that it had addressed it's complaints and thus prevent the petition to wind-up the company from proceeding. It didn't work, the case to shutdown Amway went to court yesterday.

Although the Amway UK business makes up only a tiny percentage of Amway's revenue, a drop in the ocean really, the ramifications are far more reaching and it could very well be the beginning of the end of the Amway business on a global scale, including Australia.

The following news article covers the the first day of the court proceedings. The DBERR is certainly not backward in coming forward with their claims and revelations as a result of their investigation.


Some pretty shocking stuff eh?

There's a lot to take in, so we'll discuss the contents of the article in detail and how this relates to the Australian Amway experience in Part 2. Stay tuned!

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