Amway Accused : "A Lottery" & "Inherently Objectionable

Dateline London: Times Online Reports Business News

"Amway, which had 39,000 selling agents in Britain during 2005-06, is “inherently objectionable”, operates as a lottery and is trading unlawfully, the Companies Court was told.

Mark Cunningham, QC, on behalf of John Hutton, the Secretary of State for Business, Enterprise and Regulatory Reform, told the court that the Government was seeking to wind up Amway in the public interest following an investigation into its business practices.

The allegations are seriously damaging to the international group, which claims to have a worldwide salesforce of more than three million people and a turnover of $6.4 billion (£3.2 billion).

The Government investigation claims to have revealed that just 10 per cent of Amway’s agents in Britain make any profit, with less than one in ten selling a single item of the group’s products.

It claims that Amway’s main activity is encouraging other people to join its salesforce so that they pay the registration fee and buy marketing materials..."

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"The British subsidiary of one of the worlds biggest marketing groups (Amway) was accused yesterday of breaking company law by selling a dream of unachievable wealth. Amway, which had 39,000 selling agents in Britain during 2005-06, is inherently objectionable, operates as a lottery and is trading unlawfully..."

News Source: Congo.com

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