https://corporatefraudswatch.blogspot.com/2008/07/amways-half-truths-and-outright-lies.html
Amway’s half truths and outright liesThe turnover of Amway India has come down to Rs. 100 crore as against the earlier year’s Rs. 800 crore and it has been announced by the very CEO of Amway India in a press conference and it was widely published in all newspapers. He also said that the Amway has been changing the course of business in India and is planning open spas all over India to boost the business. It cannot be assumed that all newspapers published imaginary figures announced by the CEO of the company.
And it is not true that upline members do not receive any commission by the sales of downline people. That is the exact business model of Amway and it is the crux of the major income both to the company and the upline members.
In the case of Rajan, it has been clearly stated that through his personal group--and who formed this group other than downline members--he gets an additional wholesale markups between 6% to 21%. As per his personal sales he gets 30% commssion and nobody would believe that he would personally sell all the products going home after home and make millions since there is no shop registered under Shops and Establishments Act.And it has been agreed that out of sales from downline members he gets 4% commission. That is what has been said that the upline members receive commission from the sales of downline members and actually that is the money circulation scheme prohibited under certain laws in India. The exorbitant price is the central point and from that price only money is generated and is circulated.
Rs. 150, 000 dollars is sixty millions in India mind it and it is certainly lot of money and not all members make that amount because it is virtually impossible to enroll so many members. In the multilevel marketing, at the tenth level the population of India that is one billion would be covered and there would be none to enroll.
In summary,
1) Profit earned through sale of products by downline members.
2) Every members who enrolls new members gets 45 points and that is the incentive.
3) Amway India sales have substantially dwindled according to Amway CEO.
4) Several Amway products were found to be misbranded, adulterated and overpriced.
It is high time the Amway wound up its operations in India and start looking for greener pastures elsewhere in the third world.