SECTION 4 - RESPONSIBILITIES AND OBLIGATIONS OF ALL ABOS

4.1

Abide by the Amway Business Policies/Amendments/Duty of Good Faith:
At all times, ABOs must adhere strictly to the guidelines, procedures and policies stated in the Amway Business Policies of which these Rules of Conduct are a part, in addition to the Amway Sales & Marketing Plan, and, in each case, any amendments made to such from time to time. All ABOs are charged with the duty of good faith and fair dealing under the terms of the ABO Contract.

4.1.1

Cooperation with Investigations:
ABOs shall cooperate in any investigation undertaken by Amway into activities that are potentially in contravention of his/her ABOship or the ABOship of another ABO.

4.2

Cross Group Buying or Selling/Supplying:
No ABO shall engage in cross-group buying or selling/supplying. “Cross group buying and selling/supplying” occurs when an ABO sells or supplies Amway distributed or supplied products and/or services to another ABO who is not personally sponsored and downline of those sponsored, down to the next Platinum.

4.2.1

An ABO must only purchase Amway products and services and Amway BSM directly from his/her Sponsor, or Amway.

4.2.2

An ABO must not sell or supply Amway products and services to another ABO who is not personally sponsored and downline of those sponsored, down to the next Platinum.

4.3

Retail Stores:

4.3.1

No ABO shall permit Amway products or services to be sold or displayed in retail establishments whose main purpose is the sale of products and services to the public, including, but not limited to places like schools, fairs, shops, flea markets, auctions, kiosks, or military bases; nor shall he or she permit any Amway products or services to appear in such locations even if the products or services are not for sale. No promotional material related to Amway products or services or Amway literature shall be displayed in retail establishments.

4.3.2

ABOs are not allowed, on their own or utilising non-ABO third parties, to sell or promote Amway products or services in any digital retail property which has the primary purpose of selling products or services to the public. No Amway products or services are allowed to appear in these properties even if the products or services are not for sale.

4.3.3

An ABO who works in or owns a retail store must operate his or her ABOship separately and apart from the retail store. Such ABOs must secure customers for his/her Amway business in the same manner as ABOs who have no connection with a retail store and otherwise abide by Rule 4.3. Other types of retail establishments, which are not technically stores, such as barber shops, beauty shops, or professional offices, etc., likewise may not be used to display Amway products, information about Amway services, or promotional material related to Amway products or services or Amway literature.

4.3.4

In the online environment, ABOs are allowed to blend and leverage their non-Amway communities and businesses, promote and sell Amway products, and prospect contacts made through that business or community, only in accordance with the Digital Communications Standards.

4.4

Truthful and Accurate:
No ABO shall make any offer to sell any Amway products or services which are not accurate and truthful as to the price, grade, quality, performance and availability. ABOs shall not:

4.4.1

Make exaggerated product claims not authorised by Amway with regards to Amway’s products or products distributed by Amway;

4.4.2

In any way whatsoever, represent Amway incorrectly with regard to prices, quality, standards, grades, contents, style or model, place of origin or availability of Amway’s products or products distributed by Amway;

4.4.3

State that Amway’s products or products distributed by Amway are backed, approved, or present any features as regards to yield, accessories, uses or benefits that they do not have; or

4.4.4

Act or present in any way whatsoever Amway, its products or the products Amway distributes, in a fraudulent manner or promote products that do not belong to Amway as if they did.

4.5

Repackaging:
ABOs may not repackage products, change the content of products or otherwise change or alter any of the packaging labels of Amway products or services.

4.6

Written Sales Receipt:
An ABO who takes and/ or delivers an order in person shall deliver to the customer at the time of sale, a written and dated order or receipt which shall: (a) describe the product(s) sold, (b) state the price charged, and (c) give the name, address, and telephone number of the selling ABO.

4.7

Satisfaction Guarantee:
Whenever a customer requests the Satisfaction Guarantee service within the stated guarantee period, an ABO shall immediately offer the individual his/her choice of a: (a) full refund; (b) exchange for a like product; or (c) full credit towards the purchase of another product.

4.7.1

ABOs shall advise Amway of any complaint regarding the Satisfaction Guarantee from a customer and provide copies of all correspondence and details of all conversations regarding the complaint as requested.

4.7.2

ABOs are not authorised to make any type of offer or compromise or render Amway liable for any complaint or product return.

4.7.3

ABOs will be held strictly liable for claims they make which exceed the terms of the Satisfaction Guarantee and shall indemnify and hold Amway harmless for claims made to that effect.

4.8

Compliance with Applicable Laws, Regulations, Codes and Requirements:
ABOs shall comply with all laws, regulations, codes and requirements that apply to the operation of their ABOship wherever their business may be conducted. ABOs must not conduct any activity that could jeopardize the reputation of the ABO and/or Amway. Upon request, ABOs shall forthrightly provide any information requested about an ABO’s activities or any other activities known by the ABO (even with respect to other ABOs). In all such communications with Amway, the ABO shall act with absolute candour and good faith.

4.8.1

ABOs shall provide any and all information or documents which Amway deems necessary for the purposes of compliance with any applicable laws, regulations, codes and regulatory requirements. These may include without limitation, personal identification details, bank account information/payment information, tax identification numbers and other forms of documentation or information.

4.8.2

ABOs shall cooperate with Amway in a forthright manner. If the ABO fails to provide the required information or documents, Amway is entitled to take any steps or sanctions it deems fit at its sole discretion to secure compliance with this obligation. This may include without limitation, the withholding of bonuses and/or other payments.

4.9

Deceptive or Unlawful Trade Practices:
No ABO shall engage in any deceptive or unlawful trade practice.

4.9.1

No ABO shall engage in and/or promote any program that requires a group of participants to subscribe and/or contribute monies at regular intervals to a common fund for the primary purpose of purchasing Amway products, including but not limited to a kootu fund arrangement.

4.10

Unlawful Business Enterprises or Activities:
An ABO shall not operate any illegal or unlawful business enterprise, engage or participate in any illegal or unlawful business activity.

4.11 Professionalism:
An ABO shall at all times conduct himself/herself in a courteous and considerate manner and shall not engage in any high-pressure tactics, but shall make a fair presentation of Amway products or services, or the Amway Sales & Marketing Plan, when and where appropriate.

4.12

ABO Relationship:
No ABO shall represent that he/she has any employment relationship with Amway or any of its affiliated companies and/or other ABO.

4.12.1

ABOs shall not give a false representation as to the nature of the relationship between Amway and its ABOs, or make any representation, except in accordance with the explanation given in the Amway Business Manual and Amway Business Policies or other official literature of Amway. An ABO is required to indemnify Amway for the costs, damages or prejudice stemming from such false representation, including any legal fees Amway may have incurred.

4.12.2

ABOs shall not imply that they are employees of Amway, nor shall they refer to themselves as “agents,” “managers,” or “company representatives”, nor shall they use such terminology or descriptive phrases on their stationery or other printed materials.

4.12.3

ABOs may not use their business cards to create the impression that they are in an employment relationship with Amway.

4.13

Franchises and Territories:
No ABO shall represent to anyone that there are exclusive franchises or territories available under the Amway Sales & Marketing Plan.

4.14

Other Selling Activities:
Except as provided in the Digital Communications Standards, ABOs may not take advantage of their knowledge of or association with other ABOs, including their knowledge resulting from or relating to the Line of Sponsorship, in order to promote and expand other business ventures. Such conduct constitutes an unwarranted and unreasonable interference with the business contracts of other ABOs and Amway.

4.14.1

ABOs shall not solicit, directly or indirectly, other ABOs in order to sell, offer to sell, or promote other products, services, or business opportunities not offered or marketed by Amway. This Rule also applies to investments, securities and loans, regardless of their source.

4.14.2

ABOs shall not sell, offer to sell, or promote any other business opportunities, products, or services in connection with the Amway Sales & Marketing Plan.

4.15

Interference in another ABO’s ABOship; Inducement:
It is a breach of the Rules of Conduct or the Amway Business Policies for an ABO to:

4.15.1

Interfere or attempt to interfere with another ABO’s ABOship; or

4.15.2

Induce or attempt to induce another ABO to change his/her Line of Sponsorship, to transfer or abandon his/her ABOship, or to sponsor or not sponsor a particular Prospect; or

4.15.3

Induce or attempt to induce another ABO to deny training, education, motivation or other support to a downline ABO; or

4.15.4

Induce or attempt to induce another ABO to breach any Rules of Conduct or the Amway Business Policies.

4.15.5

Promote events outside of his or her own group or organization without the written consent of his or her immediate upline Platinum and Diamond, and the Platinums and Diamonds of the other group or organization to which the event is promoted. Leaders should ensure event promotions, if any, are strictly within their own organisation unless the required consents are obtained.

4.16

Exporting Amway’s Products:
No ABO may export or import, or sell to others who import or export, Amway’s products from any other country in which Amway has established operations, into any country regardless of whether or not Amway is doing business in that country. ABOs may, however, take Amway products across borders for personal use, with the following limitations:

4.16.1

The ABO is visiting another country and personally places the product order in that country.

4.16.2

The ABO physically picks up/receives the products in one country and personally carries the products to another country. There may be no couriers, shipping companies, or freight forwarders involved.

4.16.3

If the ABO has a Multiple Business in the country visited, the order cannot be placed as a customer order for an overseas customer.

4.16.4

The products are for the ABO’s personal use only.

4.16.5

The products may not be resold, distributed, or given away under any circumstances.

4.16.6

The products ordered must not be available in the ABO’s home market.

4.16.7

Durables (e.g. water treatment systems, air treatment systems) may not be carried from one market to another under any circumstances.

4.16.8

The ABO order must not be for more than a reasonable amount of product; under USD$1,000.00 annually, not including any products that may be purchased and carried personally while attending a Leadership Seminar in another market. This personal use exclusion is limited to a reasonable amount of product: under $1,000 USD annually, not including any products that may be purchased and carried personally while on an incentive trip in another market, whether or not there is PV/BV on the products.

4.16.9

The personal use exclusion may not be used as a business-building strategy.

4.17

Retail Effort Rule:
Amway pays bonuses under the Amway Sales & Marketing Plan based on sales to end consumers. For an ABO to be entitled to bonuses and/or qualifications under the Amway Sales & Marketing Plan, that ABO’s purchases must be consumed or sold to end consumers within a reasonable period as determined by Amway. Amway reserves the right to deny all qualifications, awards and rewards if in Amway’s sole judgment, the ABO’s purchases are not in compliance with this rule.

4.17.1

Amway does not require stock keeping or purchase of inventory. ABOs may not purchase or counsel other ABOs to purchase products for any purpose other than the provision of such products to end consumers.

4.18

Digital Communications:
Digital Communications as used in these Rules means electronic transmissions (generally by computer or mobile device) of text, data, images, video, voice and other information including, without limitation, any posts or publications made available within the digital space, including emails, videos, live streaming, podcasts, blog posts, mobile applications (apps), advertising, forums, webpages, and through any social media or messaging platform, e.g. Facebook®, Instagram®, Line®, Snapchat®, Telegram®, Twitter®, WeChat®, WhatsApp® or YouTube®.

The Rules apply to ABO Digital Communications regarding Amway, the Amway opportunity, Amway products and services (directly or indirectly), or when the digital communications constitute BSM as defined under the Rules and BSM Policy. Since the digital space is unique, Amway has established the Digital Communications Standards (DCS) to ensure that ABO Digital Communications are in compliance with the Rules. The DCS are incorporated into and made a part of these Rules, and ABOs must comply with the DCS. A copy of the currently applicable DCS is available upon request from Amway.

4.19

Fundraising:
No ABO shall use Amway products in conjunction with any type of fundraising activity. Fundraising includes but is not limited to the solicitation for the purchase of Amway products or services based on the representation that all, or some, of the gains, proceeds, bonuses, or profits generated by such sale will benefit a particular group, organisation or cause.

4.20

Amway Sales and Marketing Plan Manipulation:
No ABO shall manipulate the Amway Sales & Marketing Plan or award volume in any way which results in the payment of Bonuses or other awards and recognition that have not been earned in accordance with the terms of the Amway Sales & Marketing Plan and/or the Amway Business Manual. In this regard, the strategic and artificial structuring of an Amway Line of Sponsorship for the purpose of depth building, whether or not there are relationships between those who are sponsored and those who sponsor, is considered to be manipulation and an unacceptable business practice. Amway at its sole discretion will determine what constitutes manipulation of the Amway Sales & Marketing Plan.

4.21

Personal/Business Information Update:
All ABOs are responsible for communicating any updates or changes to their personal information (e.g. name, address, telephone numbers, email address, marital status, etc.) or business information (e.g. change of business status, etc.) to Amway.

4.21.1

Additional Information: ABOs shall provide any and all additional information required by Amway. These may include without limitation, personal identification details, bank account/payment information, tax identification numbers and other forms of documentation or information for the purposes of compliance with any applicable laws, regulations, codes, and regulatory requirements as may be required from time to time.

4.22

Proprietary Information:
In addition to the provisions contained in Section 9 of the Rules of Conduct, pertaining to the use of the Amway trade name, trademarks and copyrighted materials, Amway’s confidential and proprietary business information including, by way of example and without limitation, Line of Sponsorship information (i.e. information compiled by Amway that discloses or relates to all or part of the specific arrangement of sponsorship within the Amway business, including, without limitation, ABO lists, sponsorship trees, and all ABOs or Amway business information generated there from, in its present and future forms), business information, manufacturing and product development plans, business plans, and ABO sales, earnings and other financial information, etc., constitute commercially advantageous, unique, and proprietary trade secrets and business secrets of Amway which it keeps proprietary and confidential and treats as trade secrets and business secrets and constitute “Proprietary Information” subject to the ABO Contract.

4.22.1

Amway is the exclusive owner of all Proprietary Information, which is derived, compiled, configured, and maintained by Amway. The ABO acknowledges all Proprietary Information is owned by Amway through the considerable expenditure of time effort and resources.

4.22.2

ABOs are granted a personal, non-exclusive, non-transferable and revocable right by Amway to use Proprietary Information only as necessary to facilitate their Amway Business as contemplated under the Rules of Conduct, the Confidentiality Policy and other terms and conditions of the ABO Contract. Amway reserves the right to deny or revoke this right, upon reasonable notice to the ABO stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of Amway, such is necessary to protect the confidentiality or value of Proprietary Information.

4.22.3

All ABOs shall maintain Proprietary Information in strictest confidence, and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain its confidentiality.

4.22.4

An ABO shall not compile, organise, access, create lists of, or otherwise use or disclose Proprietary Information except as authorized by Amway. An ABO shall not disclose Proprietary Information to any third party, or use Proprietary Information in connection with any other businesses.

4.22.5

Use or disclosure of Proprietary Information, other than as authorised by Amway, shall cause significant and irreparable harm to Amway, and Amway may claim appropriate compensation for damages as well as demand an ABO refrain from the harmful conduct as well as seek any other remedies under applicable laws.

4.22.6

In case of disclosure of Proprietary Information, voluntary or not, by an ABO to any third person, the ABO should immediately notify Amway about that fact and take necessary measures in order to (a) prevent further disclosure by such third party and (b) oblige such third party to sign a confidentiality and nondisclosure agreement for the benefit of Amway and under no less stringent terms that those provided within Section 4.22.

4.22.7

An ABO shall promptly return any and all Proprietary Information or any copy to Amway upon resignation, expiration, failure to renew, denial of extension or termination of his/her ABOship and shall refrain from any further use.

4.22.8

The confidentiality obligations set out in Section 4.22 shall survive during the term of the ABO Contract as well as after the date of its expiration or termination by any cause.

4.23

Presentation Rules:
The content of the presentations which include or support the promotion of the retailing of Amway products and services, or the Amway Sales & Marketing Plan, must otherwise be in accordance with the following:

4.23.1

ABOs shall not:

a)

exaggerate income representations by relating it to or incorporating it with other income and suggesting that it is the result of building the Amway business;

b)

substitute group or non-Amway organisational identity for the Amway business. The Amway business must always be clearly identified without any ambiguity to the participants during the course of the presentation;

c)

advocate, imply or give the impression that success can be achieved through promoting personal consumption with no requirement to sell or promote inappropriate product usage and/or claims;

d)

promote one’s Line of Sponsorship, affiliation or group in any manner that will give rise to or likely to give rise to resentment by or cause any detriment to others;

e)

misrepresent whether directly or indirectly and by whatever means the relationship of the ABO to Amway, for example, suggesting or implying that Amway is “just a supplier”, or that the ABO represents a business opportunity of which “Amway is a part”, or that the ABO “outsources” administrative support to Amway, etc.;

f)

promote any other business opportunity other than the Amway Business or solicit any participants to attend meetings for the purpose of presenting another business opportunity at any time; or,

g)

use the meeting as a platform to promote or advocate religious, political and/or personal social beliefs.

4.23.2

Personal reflections on the following are not appropriate:

a)

social and cultural issues;

b)

preferences regarding specific political views, parties, candidates or elected officials.

4.23.3

Discussions must only relate to ethics and positive attitudes that will assist and encourage the ABO and Amway’s products, services and business.

4.23.4

Income representations, whether direct or implied, must reflect a realistic income potential from participation in the Amway Sales & Marketing Plan.

4.23.5

ABO statements about the Amway Business Opportunity and Amway Sales & Marketing Plan must be truthful, accurate, and not misleading, and shall be made in accordance with the QAS and these Rules of Conduct.

4.24

Activity Outside Malaysia/Brunei or Activity Outside The Market Where The ABO Is Registered:
ABOs who engage, directly or indirectly, in any activity related to the Amway business in a jurisdiction outside of Malaysia/Brunei must do so in a manner that complies with the letter and spirit of the applicable laws, regulations, and rules, policies and procedures of the Amway affiliate in that jurisdiction, regardless of whether they are registered ABOs in that jurisdiction. Failure to do so shall be a breach of the ABO Contract.

4.25

Advertising:
An ABO may not present the Amway Business Plan or solicit participation in the Amway Business Plan through any broadcast communication methods including mass mailings, telemarketing, national or international advertising, radio, television, facsimile services, or any other means by which personal contact with a Prospect is not present. Advertising is allowed in a limited context as described in the Digital Communication Standards.