Amway UK - Berr outlines their case

The Times Online has outlined the case that BERR has brought against Amway in court in the UK today. In summary -

1. Just 10% of agents make any profit
2. Less than 10% sell a single product
3. Amway's main activity is encouraging people to join so that they pay the registration fee and buy marketing materials
4. Amway attracts people by "offering “substantial financial rewards or easy money”"
5. Only 6 per cent of agents bought Amway products to sell on
6. the vast majority of products offered by Amway were overpriced even before retail markup was added
7. 71 per cent of agents made no income from Amway in the year 2005-06
8. 90 per cent had made a loss after paying the £18 fee to renew their registration
9. One marketing presentation authorised by Amway offered the opportunity for a “small secondary income or an income which would rank in the top 2 per cent of money earners.”
10. Such money “is being achieved in the same time it takes to study for a degree”.
11. Amway’s own records showed that only Trevor and Jackie Lowe, and Jerry and Mandy Scriven among its agents earned more than the £78,000 required to place them in the top 2 per cent of earners, the court was told.
12. Amway’s records showed that of the 25,000 agents operating at that time, just 37 made more than £25,000 a year.
13. 39,000 agents working for Amway
14. 27,000 (71%) had no income
15. 11,410 (30%) earned something
16. 7,492 (of the 11,410) received average of £13.53 per year
17. 101 agents received 75 per cent of bonuses
18. £116K paid to top earner Trevor Lowe
19. 26 number of years Mr Lowe was an agent

More information and analysis on The Truth About Amway

BERR (DTI) petitions for winding up of Amway (UK) Limited

The court date has been set, November 19, 2007. All the latest is on the truth about amway