This is getting serious Latest news....As my very first email quoted.
i truly believe this to be war on the system lords. I really believe
Amway Quixtar are resolute in finishing the expensive systems.
Dear Demetrius,
Please find attached a note from the desk of Jim Payne, Executive
Vice President and Managing Director of Quixtar and Amway.
Over the past three weeks, many of you have raised questions
regarding the allegations made by the DTI (Department of Trade &
Industry), which have led to subesequent changes and actions by Amway
UK. It's a time of change for Amway UK. The measures that we have
put in place were our first response to the DTI. The note from Jim
outlines the most recent developments with regards to our on-going
dialogue with the DTI and I would urge you to read this carefully.
There are a number of rumours circulating as a result of the court
hearing on 21st May. It's our intention to share information with
you when we can and to be as open and transparent as we can be. We
are giving you the facts here.
Over the next few day's you will be receiving communication from my
team with regard to training which was also referenced in my letter
of 4 May. We have a great team of people here who are willing to
help you with any queries that you have. Please pick up the phone
and speak to us if you have any concerns.
Your support and committment to the Amway Business is noticed now
more that ever. We have faced many challenges over the years in a
number of markets, which, with our IBO's, we have overcome and worked
through, just as we will now in the UK with your support.
Jim Paynes' note to you today demonstrates that our senior executives
world-wide are 100 % committed to the future of the Amway UK/RoI
business and we will emerge from this as a stronger business with an
even stronger opportunity.
With my very best regards,
Ben Woodward
Branch Manager - UK and RoI
24 May 2007
A note from the desk of Jim Payne
Executive Vice President & Managing Director of Quixtar & Amway
We would like to update you on events in the United Kingdom, where
Amway,
Network 21 and Britt World Wide are involved in a legal dispute with
the UK's
Department of Trade and Industry.
What's happening
Following an investigation that lasted more than a year, DTI last
month issued
individual petitions against each of the three companies, claiming
each was
engaged in "objectionable" practices.
The DTI's petitions initiated civil court proceedings, which, if
successful, could
lead to the closing of each company's business operations in the UK.
We are obviously disappointed that the DTI felt the need to take us
to court. We
certainly do not agree with all their claims.
But most important, we intend to address the problems that may exist
in the UK
and around the world so that no government ever sees the need to step
in again.
What it means
The heart of the DTI's position, as we understand it, is that the
business
opportunity is promoted by incorporated and unincorporated
organizations in a
manner that does not reflect the financial rewards people are likely
to earn when
they participate in the Amway business.
The DTI also objects to the manner and frequency in which meetings
and BSMs
are promoted by the sales organizations in conjunction with the Amway
business
opportunity.
Amway's fault, according to the petition, lies in our failure to take
sufficient action
to prevent these abuses from occurring.
Following a first court hearing on May 21, 2007, the DTI's case is
now scheduled
to be heard by the Court later this year.
At that hearing, the Court ordered DTI to set out its case in more
detail so that
Amway, Network 21 and Britt know precisely what is being alleged.
Each
company will have the opportunity to respond to the claims and to
submit
evidence.
What's ahead
Though the trial is still months away, Amway has already offered
important
"undertakings" to the Court, which we believe address the DTI's
principal
concerns. These undertakings make it clear that Amway will stand
accountable
for the experiences people have when they join the Amway business.
In shortened form, they are:
• Prohibiting business support materials that are not authorized and
distributed by Amway.
• Prohibiting meetings where an entry fee is charged, unless Amway
has
approved the meeting and its content.
• Imposing a moratorium on the registration of new IBOs for 120 days,
then
introducing a revised registration policy.
• Providing the DTI 21 days' notice before restarting the
registration of
IBOs.
• Amway will not implement any policy that requires payment of a
registration fee prior to the hearing of the petition.
• Amway has also volunteered to inform the DTI of any violations of
the
corrective measures, and the action that Amway will take in response
to
the violations.
Once the business review in the UK has been completed and a new mode
of
operation has been devised, we will inform the DTI of the details. If
the DTI is
satisfied that their concerns have been addressed, then Amway will
invite the DTI
to end its legal action. If the DTI is not willing to agree to this,
then the matter will
be decided by the Court.
One further note. We have already weighed in against "spin" from tool
companies. We have read the complaints. These problems are not
Amway's
alone. Comments that suggest otherwise are wrong, plain and simple.
Conclusions
We fully intend to provide business reforms in the UK and in any
other market
where we see that business practices can be improved. A promised
global
review of practices is underway, and we are on track to release its
findings next
month.
We are holding ourselves accountable to deliver on what we promise.
We expect all our business partners to deliver as well.
There have been enough of these disappointments. They are serious
distractions
to the operations of the company, embarrassments to the many IBOs and
Amway markets that provide exemplary service to the public, and a
threat to the
company's long-term health.
Change is on the way.
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