1. Home
  2. Policy & Terms - Rules of Conduct: Section 6

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 6 - PRESERVATION OF THE LINE OF SPONSORSHIP

6.1 Protection of the Line of Sponsorship:
The sale of an ownership interest in an ABOship, or transferring an ABOship, requires prior approval by Amway. This approval shall be at Amway’s sole discretion.
6.1.1 The transfer of an ABO, with or without his/her personally sponsored downlines and downlines of those personally sponsored downlines, moves the sponsorship of that ABOship from one ABO to another.
6.1.2 When an ABOship is sold, such ABOship shall remain in the same position in the Line of Sponsorship.
6.1.3 Transfers may not be used to strategically or artificially restructure any part of the Line of Sponsorship.
6.2 Individual Transfers:
An individual transfer involves the transfer of an ABO without any of his/her sponsored ABOs. Without limiting or restricting in anyway Amway’s powers and discretion under Section 6.1:
6.2.1 Any ABO who wants to change Sponsors must submit a written request to Amway accompanied by (1) a written release signed by all ABOs upline up to and including the first qualified Platinum or above, and (2) a written acceptance from the new Sponsor and new Platinum or above. The written acceptance from the new Sponsor and Platinum or above confirms that they will incur all responsibilities of the transferring ABO.
6.2.2 Amway will also contact any International Sponsor and International Leadership Bonus recipients and will allow 30 days for comment.
6.3 Group Transfers:
A group transfer involves the transfer of an ABO with all or some of his/her personally sponsored and downline of those sponsored. Without limiting or restricting in any way Amway’s powers and discretion under Section 6.1:
6.3.1 An ABO who wishes to transfer to a different Sponsor with all or part of his/her personally sponsored downlines and downline of those personally sponsored downlines, must submit a written request to Amway accompanied by the written consent from all downline ABOs, who wish to transfer, down to the first ABO who is qualified at the Platinum or above level and all upline ABOs who are qualified at the Platinum or above level up to and including the first ABO who is qualified at the Emerald or above level.
6.3.1.1 If the first upline ABO who is qualified at a formal award level is a qualified Emerald or above, written consent must be received from the next ABO who is qualified at the Platinum or above level who is upline from that Emerald.
6.3.1.2 Amway will then notify the first qualified upline Diamond and allow 14 days for comment.
6.3.2 The transfer request must be accompanied by written consent of all those ABOs, including those internationally sponsored, who the transferring ABO wishes to take with him/her and the written acceptance of the ABO in the Line of Sponsorship to which the requester wants to be transferred.
6.3.2.1 Amway will also contact any International Sponsor and International Leadership Bonus recipient and will allow 30 days for comment.
6.3.3 No ABO currently recognised by the company as a Group Leader (e.g. Silver Sponsor, Gold Producer, Platinum, or Ruby, etc.) can be transferred with his/her personally sponsored and downline of those sponsored under this Section.
6.3.3.1 A former Group Leader ABO may be transferred with his/her personally sponsored and downline of those sponsored only if more than two full years have elapsed since the last month in which the ABO was recognised as such, provided there has been compliance with the procedures outlined above..
6.4 Six Months Inactivity:
An ABO who wishes to terminate (by resignation or failure to extend) his or her ABOship under his or her present Sponsor and who thereafter becomes inactive for a period of six or more consecutive months shall cease to be an authorized ABO and may, following the lapse of said inactive period, apply as a new ABO under a new Sponsor. The date on which Amway receives the letter of resignation begins the inactivity period. A person who has not renewed his/her ABOship will be considered expired and must remain inactive for six months from the beginning of the following month.
6.4.1 To sponsor an ABO under this Rule, the applicant must complete a new ABO Contract which may be obtained from Amway. If evidence of activity during the six-month period is substantiated, Amway will refuse to honour the sponsorship under the new Sponsor. The right of an ABO to contest the sponsorship of a former ABO who is now sponsored under a different Sponsor ceases when two years have elapsed since the date Amway accepted the application under the new Sponsor.
6.4.2 Definition of Inactivity: Inactivity for purposes of this rule shall mean that during the period of inactivity, the ABO shall be completely inactive, which means such ABO:
6.4.2.1 Shall not have purchased products or services of Amway as an ABO for personal use (although he or she may do so as a customer);
6.4.2.2 Shall not have sold or supply any products or services of Amway except pursuant to the “buy-back” policy, shall not have engaged in any phase of a product sale/purchase (e.g. taking an order, making a delivery, or accepting payment);
6.4.2.3 Shall not have presented the Amway Sales & Marketing Plan to any Prospect;
6.4.2.4 Shall not have filed an Intent to Continue for the extension of his/her ABOship; and
6.4.2.5 Shall not have attended any recruiting, training, or motivational meeting conducted by any ABO or any Amway-sponsored meetings.
6.4.2.6 For purposes of this Rule, the following shall NOT constitute activity and do not, therefore, interrupt the running of the six-month inactivity period so long as the former ABO is otherwise inactive:
6.4.2.6.1 Procuring and/or submitting a written request for transfer;
6.4.2.6.2 Filing a request for the review of an Amway decision by an International Review Panel; or
6.4.2.6.3 Directing an inquiry to Amway as to the status of his/her ABOship.
6.4.2.7 During the inactive period, the former ABO must not participate in any activity under another ABOship in the name of his/her parents, siblings, or others or he/she shall be determined as “active” for the purposes of this Section.
6.4.2.8 When either a husband or wife is an ABO, both must fulfil the six-month inactivity requirements before one can be sponsored again as an ABO.
6.4.2.9 If the ABO who is changing Sponsors under this rule also has any internationally sponsored ABOs, the ABO’s internationally sponsored ABOs are forfeited once the six-month inactivity period has begun.
6.4.2.10 If the ABO who is changing Sponsors under this rule also owns Amway businesses in other markets, he/she must elect one of them to be the International Sponsor of his/her new ABOship when completing the new ABO Contract.
6.4.3 Two Years Inactivity: An ABO who transfers to or who following six or more months of inactivity applies for sponsorship under a Sponsor in a different Line of Sponsorship pursuant to the provisions of this rule, may not be sponsored by any ABO who was previously above him/her in the original Line of Sponsorship up to and including the first ABO qualified at the Platinum or above level, or below him/her in his/her former personally sponsored and downline of those sponsored, down to and including the first ABO qualified at the Platinum or above level, unless at least two years have elapsed since the termination of his/her ABOship.
6.4.4 An ABO who transfers to, or who, following six or more months of inactivity, is sponsored under a Sponsor in a different Line of Sponsorship pursuant to the provisions of this rule, shall have no right to sponsor in the new Line of Sponsorship any ABOs who were previously above him/her in the original Line of Sponsorship up to and including the first ABO qualified at the Platinum or above level, or below him/her in his/her former personally sponsored and downline of those sponsored, down to and including the first ABO qualified at the Platinum or above level. However, an ABO who has been inactive for a period of two years following his/her resignation may be sponsored by any sponsor, including his/her former Sponsor who may have since been transferred to or sponsored by a different Sponsor.
6.4.5 An ABO who has declared inactivity in one market may continue to operate as an ABO in any other market in which he/she has an ABOship, during the terms of his/her inactivity in the other markets.
6.4.6 A formerly fostered sponsored ABO may sponsor again subject to paragraphs 6.4.1, 6.4.2, 6.4.3, and 6.4.4 and the following conditions:
6.4.6.1 At the time of application, the former ABO must specify whether or not he/she wishes to be internationally and foster sponsored again, and
6.4.6.2 A former ABO may not be personally sponsored by a Sponsor who was previously above him/her in the original line of foster sponsorship up to and including the first ABO qualified at the Platinum or above level, or below him/her in his/her original Line of Sponsorship down to and including the first ABO qualified at the Platinum or above level unless two or more years have elapsed since the termination of his/her ABOship.
6.4.7 Corrective Action: If any provisions to this rule are violated, Amway may take corrective action, which may include, but is not limited to, the termination of the violating ABO’s ABOship, and transfer of his/her former personally sponsored and downline of those sponsored and/or the Business Volume generated during the period of violation to the appropriate Line of Sponsorship.
6.5 Sale of an ABOship:
An ABO who owns an ABOship, whether or not qualified as Platinum or above may sell his/her ABOship only to another authorized ABO as prescribed by this rule. Amway requires that specific terms of sale be included in any sales agreement. In order to preserve the Line of Sponsorship, the selling ABO must offer his/her ABOship in the order of priority stated below and the ABO interested in purchasing the ABOship must meet all of the terms and conditions as set forth in these rules. The purchased business shall remain separate from the buyer’s other Amway business and the Line of Sponsorship shall not be altered in any way as a result of the sale.
6.5.1 The first option to purchase belongs to his/her International Sponsor, who retains throughout the sales negotiations to sell the ABOship the right to acquire the same by meeting the price and conditions of any bona fide offer received by and deemed acceptable to the Seller;
6.5.2 The second option to purchase belongs to his/her local Foster Sponsor so long as the first option has not been exercised. In the event the selling ABO has no International Sponsor, the local Sponsor retains throughout the sale negotiations to sell the ABOship the right to acquire same by meeting the price and conditions of any bona fide offer received by and deemed acceptable by the Seller;
6.5.3 The third option, exercisable so long as the first or second options above have not been exercised, belongs to any one of the Seller’s personally sponsored ABOs;
6.5.4 The fourth option, exercisable so long as the first, second, or third options have not been exercised, belongs to any qualified Platinum or above either up or down the Line of Sponsorship to the next qualified Diamond;
6.5.5 The final option, exercisable so long as the first, second, third, or fourth options have not been exercised, belongs to any qualified Emerald at that time.
6.5.6 All purchasing ABOs must be in good standing as determined by Amway. All sales (except the price) must be reviewed and approved by Amway before they become final. Amway reserves the right to approve all sales at its own discretion. No changes in ownership will be implemented and no change of title of the business shall be made final until the sales agreement has been received and approved by Amway and a final executed copy of the sales agreement is provided to Amway for its records.
6.5.7 If the ABO wishes to sell his/her ABOship under terms and conditions different from those of his/her first offer, the ABOship must be once again be offered for sale under the revised terms and conditions in accordance with the order of priority indicated above.
6.5.8 All purchasing ABOs must meet the following criteria as reasonably determined by Amway. Failure to meet the following criteria will act as if the offer to purchase was revoked or the option to purchase was never exercised:
6.5.8.1 Possesses sufficient expertise in the business so as to demonstrate a complete and accurate understanding of the Amway Sales & Marketing Plan and the Amway Business Opportunity;
6.5.8.2 Possesses a complete and accurate understanding of the Rules of Conduct and demonstrate a willingness to abide by them;
6.5.8.3 Possesses adequate resources to operate the seller’s ABOship and to provide necessary training and support;
6.5.8.4 Possesses an understanding of any relevant market factors that may impact the operation of the seller’s ABOship; and,
6.5.8.5 Is not currently engaged in any dispute or possess any conflict which may impact their ability to operate the seller’s ABOship.
6.5.9 Monthly Performance Bonuses accruing to the business after the date of sale will be paid to the new owners. Annual Bonuses (such as Emerald and Diamond Bonuses) shall be paid as specified in the Sales Agreement as authorised by Amway. All awards previously awarded to the business will not be transferred to the new owners. Qualification for awards for the business will be determined only by activities occurring after the date of sale.
6.6 One Amway Business Rule:
An ABO may own, have an interest in, be a signatory on or be listed as a designee on only one ABOship, except as provided in Section 6.6.1 – 6.6.5. Only under the following circumstances may an ABO have ownership interest in more than one ABOship:
6.6.1 Where two ABOs marry and one or both have attained the Platinum or above level prior to marriage pursuant to Section 3.2.2;
6.6.2 Where an existing ABOship purchases another ABOship pursuant to Section 6.5;
6.6.3 Where an ABO (transferor), in order to facilitate the transfer of his/her ABOship in the event of his/her death, requests to assign the ABOship to another existing ABO pursuant to Section 10; or,
6.6.4 Where an existing ABO inherits an ABOship pursuant to Section 10;
6.6.5 In the event an ABO owns or has an ownership interest in two or more ABOships pursuant to this rule, Amway shall continue to recognize such ABOships as separate ABOships and will only recognise them as separate, individual ABOships for all purposes including, for award and Bonus purposes.
6.7 Mergers and Combinations of ABOships:
No merger or combination of two or more existing ABOships by reason of intentional affirmative act on the part of the owners shall be permitted which results in the merging ABOships obtaining any level of achievement.
6.7.1 Only those mergers or combinations resulting from failure to file a Notice of Intent to Renew form, termination, resignation, death (with no designation of succession by heirs), or some involuntary event or cause beyond the control of any of the owners, shall be permitted, provided, however, that the merging business has fewer than two (2) qualified legs. A permissible merger and combination must not be implemented until same has been reviewed and approved by Amway.
6.7.2 Under no circumstances will Amway approve a merger which results in an ABO attaining a higher award level.
6.8 Divorce, Separation, or Other Dissolution:
Whenever a business is ordered to be separated or divided as the result of a divorce, dissolution of a corporation or partnership (where applicable), the separation or division must be accomplished in such a way as to not adversely affect the interests and/or income of the ABO in the Line of Sponsorship. During the division or separation process, neither party shall administer or operate, together or separately, any other ABOship without Amway’s express written consent.
6.8.1 Divorce: Upon divorce of a married couple one of whom is a signatory to an ABO Contract, Amway shall continue to recognise the signatory to the ABO Contract as the ABO and shall pay Bonuses and grant awards and rewards to such ABO only. Amway will continue to treat the ABOship as a single entity and for the purposes of this contract the individuals formerly married are still bound by Section 3.2, 3.11, and 4.14 as they deal with spousal issues. Any arrangements between divorced spouses with respect to proceeds from an Amway Business of one of the spouses must be handled by the divorcing spouses. Absent the express written consent of Amway, no arrangements shall be made to divide proceeds or to share awards or rewards between divorced spouses.
6.8.2 Dissolution of a Legal Entity Operating an ABOship: Absent the express written agreement of Amway to the contrary, prior to dissolution of a legal entity that is a signatory to an ABO Contract, the ABO Contract may be assigned to the authorised representative of the legal entity who signed the ABO Contract originally on behalf of the company, or the ABOship may be sold in accordance with Section 6.5 of the Rules of Conduct. The failure to either assign the ABO Contract to the authorised representative or to sell the ABOship in accordance with Section 6.5 of the Rules of Conduct shall result in abandonment of the ABOship in accordance with Section 14 of the Rules of Conduct.
6.9 Disposition of an ABOship:
If an ABO terminates his/her ABOship with Amway, or fails to apply for extension of the ABOship within the required time period, or dies without leaving heirs who are willing and able to assume responsibility for the ABOship, Amway, at its sole discretion, shall decide the future of the ABOship in accordance with Section 14.
6.10 Non-Compete/Non-Solicitation:
(a) Non-Compete:
An ABO, who is or has qualified at the level of Platinum or above, shall not, during the existence of his/her contract of ABOship with Amway, and for a period of 6 months after the termination of his/her contract of ABOship with Amway, engage in or carry on any business or service, either directly or indirectly, which may be considered to be in competition with or similar to the businesses of Amway, whether for his/her own account, or for the account of any other person in Malaysia and Brunei.
(b) Non-Solicitation:
An ABO shall not, during the existence of his/her contract of ABOship with Amway, and for a period of 24 months after the termination of his/her contract of ABOship with Amway, whether for his/her own account, or for the account of any other person in Malaysia and Brunei, solicit, induce, attempt to solicit, attempt to induce, or otherwise entice away from Amway, any of its ABO in Malaysia and Brunei.

 

COMPLIANCE →
 
POLICY & TERMS →
 		 AMWAY PRIVACY NOTICE → ABO REGISTRATION → PERSONAL INFORMATION →