High Court dismisses claims against Amway

by louabbott on May 14, 2008

Times Online – Published May 14, 2008

Amway UK cleared at the High Court of ‘dream selling’, operating an unlawful lottery and being an unlawful trading scheme

The British subsidiary of one of the world’s largest multi-level marketing groups has defeated a Government attempt to close it down after claims that it was operating unlawfully.

Amway (UK) was cleared at the High Court of “dream selling”, of operating an unlawful lottery and of being an unlawful trading scheme.

However, the company had to give several legal undertakings including not to recruit further sales agents until it had publishing details of their average earnings and to scrap its annual charge to register as a distributor.

The company, part of a worldwide group with three million sales agents and an annual turnover of $6.5billion (£3.3billion), had been the subject of a Government investigation last year.

John Hutton, the Business Secretary, attempted to force the closure of the company after investigators allegedly found that just six per cent of sales agents were earning 95 per cent of the bonus income.

But Mr Justice Norris dismissed the petition to wind up the company after hearing that it had modified its business model to address the Government’s concerns and had given a series of undertakings about its future conduct.

Read the entire article at Times Online

Also, read our company overview: Amway Facts, News and Review

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