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Rules of Conduct

Section 1 - Introduction Section 8 - Presentation of the Amway Sales & Marketing Plan
Section 2 - Definitions Section 9 - Use of the Amway Trade Name, Trademarks and Copyrighted Materials
Section 3 - Becoming an ABO Section 10 - Death and Inheritance
Section 4 - Responsibilities and Obligations of All ABOs Section 11 - Breach of Contract; Procedures
Section 5 - Responsibilities and Obligations of All Sponsors/Platinums Section 12 - Breach of Contract; Sanctions
Section 6 - Preservation of the Line of Sponsorship Section 13 - International Review Panel
Section 7 - Business Support Materials (BSM) Section 14 - Disposition of Terminated or Non-Renewed ABOship

 

SECTION 3 - BECOMING AN ABO

3.1 ABO Application Form and Business Kit:
To become a duly authorised ABO capable of merchandising Amway’s products and services and sponsoring other ABOs, an applicant must apply for authorization from Amway by completing and signing the ABO Application Form and obtain the Amway Business Kit. The completed ABO Application must be sent to Amway immediately, and accepted by Amway as authorised in accordance with the provisions of Section 3.3. No ABO shall present the Amway Business Opportunity as anything other than a business opportunity available to Malaysia and Brunei citizens.
3.2 Husband and Wife ABO:
Individuals who are husband and wife shall, upon acceptance by Amway, be authorised as one ABOship. A person whose spouse is an authorised ABO shall not be eligible to apply as an authorised ABO of another ABOship.
3.2.1 Amway may at its sole discretion terminate the ABOship if Amway is of the opinion (which opinion shall be final) that any act of the ABO and/or his/her spouse (whether or not the spouse is a registered partner) is found to be in contravention of any of the Rules of Conduct of Amway.
3.2.2 If two ABOs, each of whom owns and operates an ABOship in different or same Lines of Sponsorship (neither of which is at the Platinum or above level), become married to each other, one ABOship must be terminated. If either member of the newly married couple has attained the status of Platinum or above, then the newly married couple may operate both ABOships, each of which will, however, be operated in its original Line of Sponsorship. The ABO must notify Amway as soon as possible.
3.2.3 In a husband and wife ABOship, if a spouse resigns from Amway for any reason pursuant to the Rules of Conduct herein, Amway shall be entitled to terminate the ABOship of the remaining spouse without assigning any reasons. Amway may however allow the remaining spouse to continue operating the ABOship in which event the remaining spouse and resigning spouse shall be subject to these Rules of Conduct and to such other terms and conditions which Amway may deem fit to impose.
3.2.4 Husbands with more than one legal wife can elect only one wife for the husband and wife partnership, subject to appropriate local legislation. Subsequent wives who wish to be ABOs must be sponsored under this husband/wife partnership.
3.3 Requirements:
Without limiting any of Amway’s rights, the following are requirements for becoming an ABO or renewing an ABOship:
3.3.1 Must be at least 18 years of age.
3.3.2 Must not be the spouse of a currently authorised ABO unless he/she qualifies under 3.2.2.
3.3.3 Must not have been terminated for breach of contract under a previous ABOship or ABOship with another Amway affiliate.
3.3.4 Must comply with Section 6.4 of these Rules of Conduct if the applicant previously operated under an ABOship that was terminated or expired (and has not been renewed).
3.3.5 Must not be an employee of a direct selling company at the time of the initial application or during the term of his/her authorization as an ABO.
3.3.6 Must be a Malaysian or Brunei citizen or resident duly authorised by the relevant authority to conduct business in Malaysia or Brunei.
3.3.6.1 Must reside within the country where the business is being registered, if this is the person’s first Amway business in any market where Amway operates. The company retains the discretion to allow registration beyond the restriction.
3.3.7 Must not be a person serving an imprisonment sentence or otherwise confined to any correctional institution or have a previous conviction record for an offence relating to production (and/or) trading of counterfeit goods, false advertisement, illegal conduct of business, tax evasion (or) deception of customers, or an offence relating to deceptive appropriation of assets, abuse of trust to appropriate assets (or) unlawful possession of assets.
3.4 Acceptance or Rejection of ABO Application or Renewal:
Amway reserves the right to accept or reject any ABO Application. Likewise, Amway reserves the right to refuse any Renewal request and can revoke the ABOship if an ABO’s activities have not been in accordance with the Rules of Conduct or if the ABO is not in Good Standing or has not complied with the requirements of Section 3.3.
3.5 ABOs Operated through a Legal Entity:
A party to an ABO Contract may apply to Amway to operate the ABOship through a legal entity, provided it complies with certain requirements and conditions, including where legally feasible, the entity’s sole purpose is the operation of the Amway Business Opportunity. Contact Amway for current information. The person signing the ABO Contract on behalf of a legal entity must be an authorised representative of that legal entity and must personally meet the qualifications set forth in Section 3.3. A legal entity may be required to submit, in addition to other documents, proof of existence and qualification to conduct the activities anticipated in the ABO Contract, proof of compliance with applicable registration requirements, a document (such as an Authorisation for Legal Entity Form) containing various information about and agreements of both the legal entity and the founders and management of the legal entity, or such other similar information and documentation as Amway may request.
3.6 Date of Authorization:
The date of authorization as an ABO is when the ABO Application has been processed and accepted by Amway.
3.7 Prohibited Sponsoring Practices:
A sponsor shall not impose on a Prospect, nor any ABO, as a condition to receiving from the Sponsor assistance in the development of such person’s ABOship, conditions such as:
3.7.1 Purchase any specified amount of products or services.
3.7.2 Maintain a specified minimum inventory.
3.7.3 Purchase any non-Amway produced “starter,” “decision,” or other “pack” or “kit”.
3.7.4 Purchase literature, audio-visual aids or other materials.
3.7.5 Purchase tickets for and/or attend or participate in rallies, seminars or other meetings.
3.8 Term and Expiration:
Unless the term is renewed in accordance with Section 3.9 of the Rules of Conduct and the Amway Business Policies, an ABOship expires or may be terminated in accordance with its terms. As specified in the ABO Contract, unless earlier terminated by an ABO or Amway, the ABOship shall expire on the one year anniversary of his/her original application.
3.8.1 Buy-Back Rule: Upon expiration or voluntary termination of the ABO Contract, an ABO may apply to Amway to return unsold inventory of Amway products that he/she may possess, provided such products are in new, unused and original condition. Amway will repurchase such products at the cost for which the ABO purchased such Amway products from Amway, according to the existing policy (please refer to Business Manual). In the event that the ABOship is terminated for an ABO’s breach, Amway shall have discretion as to the repurchase of products under the Buy Back Rule.
3.9 Renewal:
An ABOship may be renewed at the discretion of Amway provided the ABO is not in violation or breach of Amway’s Rules and Policies and terms of the ABO Contract in any market. To be eligible for extension, an ABO must submit (annually) a notice to Amway requesting that the ABOship be renewed (annually). If accepted by Amway, any extension of the term of the ABO Contract and Amway’s Rules and Policies shall be effective from the date of extension and concluding 12 months thereafter. The terms of such extension shall be the terms and conditions of the ABO Contract in effect at the time of extension. Without limiting Amway’s discretion to deny extension of an ABOship, the following shall automatically disqualify an ABO from extension of his/her ABOship.
3.9.1 The ABO was operating in a manner that was contrary to the reputation and interests of Amway; or
3.9.2 The ABO did not comply with or is in breach of the ABOship within the 12 months preceding the period for which extension is sought; or
3.9.3 Failure to meet the requirements outlined in Section 3.3 of these Rules of Conduct.
3.9.4 Late Renewal: Amway is not obliged to restore the ABO’s sponsoring relationship(s) with downline ABO(s) and/or APC(s) if it accepts an ABO’s late renewal. Further, upon the expiry of the grace period for non-renewal, the ABO’s right to any bonuses and/or other payments will be forfeited, regardless of when the ABO’s right arose.
3.10 Termination:
An ABO may terminate the ABOship at any time by providing Amway with a written notice of termination at Amway’s address. Amway may terminate the ABOship at any time by providing the ABO with a written notice of termination at his/her specific address if he/she fails to comply with the Amway Business Policies, including the Amway Rules of Conduct, the Amway Sales & Marketing Plan and other policies maintained by Amway and which have been incorporated into the ABO Contract.
3.11 Invitations Limited to Husband and Wife only:
Invitations for business seminars, incentive trips and other events organised by Amway will only be extended to the authorised ABO and the legal and registered spouse per ABOship. These individuals shall be listed on Amway’s records.
3.11.1 However, Amway, in its sole discretion, may extend invitations to two other individuals per ABOship instead of the husband and wife referenced in Rule 3.11, provided it is done in accordance with the policy on Second Generation Attendance and Treatment at Non-Cash-Awards Events.
3.12 Conspiracy; Inducement to Breach:
An ABO shall not conspire with any other person to breach or induce a breach of any Rules of Conduct or the Amway Business Policies or to induce or attempt to induce another ABO to breach any of the Rules of Conduct or the Amway Business Policies. Any such activity shall constitute a breach of the Rules of Conduct or the Amway Business Policies.
3.13 Exceeding Scope of Authorization:
An ABO shall not exceed the scope of authorisations granted pursuant to the ABO Contract. Any such activity shall constitute a breach of the ABO Contract.
3.14 Representations and Warranties:
An ABO shall not make any false representation or statement to Amway, nor induce Amway to enter into an ABO Contract under false pretenses, nor breach any representation or warranty implied in this contract or by law. Any such activity shall constitute a breach of the Rules of Conduct or the Amway Business Policies.
3.15 Multiple Breaches:
It is a breach of the Rules of Conduct or the Amway Business Policies for an ABO to allow any breach to remain uncorrected following notification from Amway of the existence of the same, or to have multiple simultaneous, serial or repeating breaches of the Rules of Conduct or the Amway Business Policies.
3.16 Unauthorized Amway Business Owner Activity in Unopened Markets:
Each ABO has an ABO Contract that authorizes the ABO to engage in activities within the countries and territories described in that ABO Contract (“Opened Market”). Any activity taken in furtherance of an Amway business in any country or territory other than an “Opened Market” is considered “Unauthorized Activity” and is strictly forbidden. No ABO shall conduct unauthorized activities in markets Amway has not opened (also refer to the Unauthorized ABO Activity in Unopened Markets Policy, available on the website).
3.17 Circumvention of the Rules of Conduct:
In case of any attempt to circumvent or act against the intent and spirit of the Rules of Conduct, Amway may at any time take corrective action at its discretion.
3.17.1 All ABOs shall be subject to the Enforcement Procedure which is set out in the Business Manual provided that Amway expressly reserves the right to terminate, at any time and with immediate effect, the authorization of an ABO who shall have provided false information in the Application or who shall have accepted authorisation as an ABO in violation of these Rules or who shall have conducted himself/herself in a manner that in Amway’s opinion brings the Amway Sales & Marketing Plan into disrepute.

 

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