Conduct and Taxation | Amway Hong Kong

The Rules of Conduct (“Rules” or “ROC”) define and establish:

(1)  Certain principles to be followed in the development and maintenance of an Amway Business.

(2)  The rights, duties, and responsibilities of each Amway Business Owner (“ABO”).

The terms and conditions of this relationship are set forth in:

(1)  The Amway ABO Contract.

(2)  The Business Manual, which include these Rules of Conduct.

(3)  Other official Amway literature or communications.

While the Rules primarily define relationships between Amway and ABOs, they also concern relationships among ABOs. Its objectives are,

• To ensure an equal opportunity for ABOs through ethical and responsible business conduct.
• To protect and build a conducive environment for a long-term and profitable Amway Business.
• To promote unity and harmony among ABOs.
• To preserve the benefits of the Amway Sales & Marketing Plan equitably for all ABOs.

From time to time, the contents of these documents are changed. Amway will notify the ABOs of such changes in a timely manner in official Amway literature (either printed or digital). The changes will become effective upon publication. In order to preserve the goals and purposes of the Amway Sales and Marketing Plan, Amway reserves to itself the sole right to adopt, amend, modify, supplement, or rescind any or all of these, Rules of Conduct, the Amway Policies and Standards as necessary

Except where the context otherwise requires, reference to the singular shall include the plural and reference to the masculine gender shall include the feminine gender.

Amway: “Amway” shall mean Amway Hong Kong Limited except where the context requires.

Amway Business (“AB”): A business, as identified by the ABO number and the ABO Application Form.

Amway Business Opportunity: The products, marketing, support and compensation system offered by Amway.

Amway Business Owner (“ABO”): An independent contractor whose ABO Application Form has been accepted by Amway.

Amway Business Policies: Rules and Policies set forth in official Amway literature, including the Rules of Conduct and other various policies and guidelines that may be maintained by Amway from time to time which are incorporated by reference into; (1) the Amway ABO Contract; and (2) other official Amway literature or communications.

Amway Business Year: The Amway Business Year begins on September 1 and ends on August 31 of the following calendar year.

ABO Contract:  Refers to the ABO Application Form along with the incorporated documents that form the terms of the contractual agreement between ABO and Amway.

ABO in Good Standing:  For the purposes of interpreting and enforcing the Rules of Conduct only, the term “good standing” shall refer to an ABO who is currently authorized by Amway to hold himself out as a ABO and whose conduct complies with the letter and spirit of the Rules of Conduct and Amway Business Policies for each market in which an ABO has a presence; is not engaged in conduct that negatively affects the reputation of Amway, Amway’s affiliates, and its ABO; is not engaged in conduct that supports or defends the activity of other ABOs which jeopardizes the ongoing nature of an Amway affiliate or otherwise is inconsistent with the other criteria set forth herein; is not engaged in conduct that does not comply with all applicable laws and regulations in each country and whose conduct does not demonstrate cultural sensitivity given market conditions.    

Amway Corporation: Amway Corporation of 7575 East Fulton Road, Ada, Michigan, USA.

Amway Privileged Customers: Amway Privileged Customers are authorized to use the Amway Privileged Customer Card and are entitled to certain benefits as deemed appropriate by Amway Hong Kong subject to the Amway Privileged Customer Agreement.

Amway Produced Business Support Materials (“Amway BSM”):  BSM produced by, or on behalf of Amway.

Amway Products:  All goods and services, including literature and other support or auxiliary materials, made available by Amway to ABOs.

Amway Sales and Marketing Plan (“Plan”): This is Amway’s bonus system, rewards and awards, sponsoring procedures and Amway’s guidelines, requirements, systems, procedures and policies regarding the presentation of Amway Products and the Amway Business and the conduct of an ABO, as set out in Amway Award and Reward as amended when necessary by Amway. The Amway Sales & Marketing Plan is deemed to form part of these Rules. All terms used in these Rules which are defined or explained in the Amway Sales & Marketing Plan shall have the same meaning as they have in the Amway Sales & Marketing Plan, including but not limited to “Monthly Performance Bonus”, “Business Volume” (or “BV”), Point Value (or “PV”), etc.

Amway Starter Kit: A kit containing selected Amway Products, Amway literature and other related materials that ABOs are required to possess in connection with acceptance by Amway of their application and the ABO Contract.

Business Support Materials (“BSM”):  The definition for BSM is intended to be interpreted broadly and means all products and services (including, but not limited to, books, magazines, flip charts, and other printed material; online literature; Internet websites; audio, video, or digital media; rallies, meetings, and educational seminars), which are: (i) designed to solicit and/or educate Prospects, customers, or prospective customers about AMWAY ® products and services, or to support, train, motivate, and/or educate ABOs, or (ii) which incorporate or use one or more of Amway’s name, or trademarks, service marks, copyrighted works, or other intellectual property belonging or licensed to Amway, or (iii) otherwise offered with an explicit or implied sense of affiliation, connection, or association with Amway. When the term BSM is used without the preface “Amway Produced”, it refers to non-Amway produced BSM only.

Bonus: The monetary rewards that Amway pays to ABOs in accordance with the Amway Sales & Marketing Plan.

Digital Communications: Digital Communications are 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®, YouTube®, Instagram®, Twitter®, WeChat®, Weibo®, Telegram®, WhatsApp® or Snapchat®.

Digital Communications Standards (“DCS”): It is a document published by Amway and amended from time to time, containing those terms that ABOs must comply with when engaging in any Digital Communications regarding the Amway Opportunity or Amway Products (directly or indirectly). The DCS are fully incorporated into, and made enforceable as a part of, these Rules of Conduct.

Platinum Distributor: An ABO who has qualified as such pursuant to the Amway Sales and Marketing Plan. It includes Platinum Distributor, Ruby Direct Distributor, Pearl Direct Distributor and all levels of Platinum Distributor up to and including Founders Crown Ambassador Direct Distributor.

Distributorship: A distributorship is another way to describe an Amway business, which is identified by an ABO number.

Leg: A downline ABO and all other ABOs that are downline of that ABO.

Line of Sponsorship (“LOS”):  The structural organization of ABOs established by the contractual relationship that each ABO has with Amway.  

LOS Information: includes all information that discloses or relates to all or part of the structural arrangement of ABOs within the Line of Sponsorship, including but not limited to ABO numbers and other ABO business identification data, ABO personal contact information, ABO business performance information, and all information generated or derived there from, in its present or future forms.  

Prospect:  A potential ABO or customer.

Recommended Customer Price: The recommended price (higher than the ABO price) on Amway and Amway-distributed products that should be charged to the customers, for ABOs’ reference.

Rules of Conduct (“Rules” or “ROC”):  Define and establish: (1) certain principles to be followed in the development and maintenance of an Amway Business; and (2) the rights, duties, and responsibilities of each   ABO.  These Rules may from time to time be altered or amended by Amway, and Amway will notify the ABOs of such changes in a timely manner in official Amway literature (either printed or digital). The changes will become effective upon publication.

Sponsor: There can be one of three relationships:

• Personal Sponsor: An ABO who introduces and sponsors a Prospect into the Amway Business Opportunity.

• International Sponsor: An ABO who introduces a prospect from another market to the Amway Business Opportunity and he/she becomes the (“International Sponsor”) when this prospect signs up and is being foster sponsored by another ABO in that market.

• Foster Sponsor: An ABO of the Amway affiliate in the other market who is designated to provide training and support to an Internationally Sponsored ABO.

3.1 ABO Contract and Starter Kit: To become a duly authorized ABO capable of merchandising Amway’s products and services and sponsoring other ABOs, an applicant must be sponsored by an existing authorized ABO and apply by completing and signing the ABO Application Form (SA-88A) in the Amway Starter Kit. The applicant shall peruse the Rules of Conduct, Code of Ethics and all information in the Amway Starter Kit and agree to abide by all their provisions. The completed ABO Application Form must be sent to Amway immediately, and accepted by Amway as authorized in accordance with the provisions of Rule 3.3. The authorization will be effective when the applicant receives from Amway his Amway Identification Number (ABO Number) and ABO Authorization Card. The rights and privileges that come with the ABO Authorization Card cannot be transferred to another person.

3.2 Husband and Wife ABO: Individuals who are husband and wife shall upon acceptance by Amway be authorized as one Distributorship. A Person whose spouse is an authorized Amway ABO shall not be eligible to apply as an authorized ABO of another Distributorship. ABO with spouse must complete the spouse’s personal information on the ABO Contract.
3.2.1 Amway may at its sole discretion terminate the Distributorship 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 a Distributorship in different or same Lines of Sponsorship (neither of which is at the Platinum Distributor or above level), become married to each other, one Distributorship must be terminated. If either member of the newly married couple has attained the status of Platinum Distributor or above, then the newly married couple may operate both Distributorships, each of which will, however, be operated in its original Line of Sponsorship. The ABO must notify Amway within 30 days of the marriage date.
3.2.3 In a husband and wife Distributorship, if a spouse resigns from Amway for any reason pursuant to the Rules of Conduct, Amway shall be entitled to terminate the Distributorship of the remaining spouse without assigning any reason. Amway may however allow the remaining spouse to continue operating the Distributorship in which event the remaining spouse and the 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 A Platinum Distributor who is widowed or divorced may apply to add his/her son/daughter who is 18 or older as a partner of the Distributorship subject to the following Rules:

3.2.4.1 For the purpose of this Rule 3.2.4, “son/daughter” means a son/daughter of the Platinum Distributor and/or his or her lawful spouse by blood or a lawful adoption.

3.2.4.2 The Platinum Distributor making the application shall submit the necessary documents to prove the relationship with his or her son/daughter to be added as Amway may require.

3.2.4.3 The maximum number of partners is limited to two.

3.2.4.4 The Platinum Distributor and his/her son/daughter added shall be deemed to be a partnership holding one Distributorship.  Both will share the rights and responsibilities of the Distributorship as well as abide by these Rules of Conduct. Therefore, each is held accountable for the action of the other as far as the Rules are concerned.

3.2.4.5 The partners of a Distributorship may apply in writing to Amway with their written unanimous consent to replace one of the partners with a qualified person under this Rule 3.2.4. No change of partner shall be made final and approved in writing by Amway.

3.2.4.6 The addition of a partner under this Rule 3.2.4 is subject to the final written approval of Amway.

3.3 Requirements: Without limiting Amway’s rights, the following are requirements for becoming an ABO or renewing a Distributorship in Hong Kong:
3.3.1 Must be at least 18 years of age.

3.3.2 Must be a Hong Kong or Macau citizen.

3.3.3 Must not be the spouse of a currently authorized Amway ABO unless he or she qualifies under 3.2.2.
3.3.4 Must not have been terminated for breach of contract under a previous Distributorship or Distributorship with another Amway affiliate.

3.3.5 Must comply with Section 6.4 of these Rules of Conduct if the applicant previously operated under a Distributorship that was terminated or expired (and has not been renewed).
3.3.6 Must not be an employee of a direct-selling company at the time of the initial application or during the term of his or her authorization as an ABO.

3.3.7 Must be capable of entering a contract in accordance with the Laws of Hong Kong and/or Macau and, must comply with all legal requirements for conducting business in Hong Kong and/or Macau.
3.3.8 Must reside within Hong Kong or Macau if this is a person’s first Amway business in any market where Amway operates. Amway retains the discretion to make exceptions to this Rule.

3.4 Acceptance or Rejection of ABO Application/ABO Contract or Renewal: Amway reserves the right to accept or reject an ABO Application/ABO Contract. Likewise, Amway reserves the right to refuse any Renewal request and can revoke the Distributorship 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 Rule 3.3.

3.5 Partnerships & Legal Entities

3.5.1 Distributorships operated through Partnerships: A Distributorship can be granted to a partnership between a husband and wife (Rule 3.2), or a parent and a child (Rule 3.2.4).

3.5.2 Legal Entities as ABOs: ABs shall be formed initially by and in the name(s) of the individual applicant(s). Any ABO who has been qualified as Emerald or above for two consecutive years and wishes to operate his/her AB as a private company limited by shares (“Entity”), must complete the appropriate Entity Agreement for Amway Business Owners (ABOs) and submit it to Amway, which may accept or reject it. One of the pre-conditions of Amway’s acceptance of the use of an Entity to operate the AB is that the individual ABO(s) must be the only shareholder(s) and only director(s) of the Entity. The sole purpose of the Entity is to own and operate the AB. The Entity shall neither own nor operate any other businesses or business interest(s). Unless Amway expressly allows, the Entity shall not own and operate more than one AB. 

3.6 Date of Authorization: The date of authorization as an Amway ABO is when the ABO Application/ABO Contract has been processed and accepted by Amway.

3.7 Prohibited Sponsoring Practices: The only purchase requirement which may be imposed on a Prospect is the purchase of an unaltered Amway Starter Kit for the Prospect to familiarize with the Amway Sales & Marketing Plan and Amway products. 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 Distributorship, 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.

3.7.6 Subscribe to any business aids and/or support programs.

3.7.7 Sponsor a specified number of new ABOs.

3.7.8 Achieve a specified sales volume in any month.

3.8 Term and Expiration: Unless the term is renewed in accordance with Rule 3.9 of the Rules of Conduct and the Amway Business Policies, a Distributorship 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 Distributorship shall expire at the end of the 12th calendar month period counting from and including the month of first authorization.
3.8.1 Buy-Back Rule: Upon expiration or the ABO voluntary termination of the ABO Contract, an ABO may return unsold inventory to Upline ABOs along the Line of Sponsorship, up to and including the first Platinum Distributor or Amway, provided that the products are in new, unused and original condition. Amway will repurchase such products at the cost for which such ABO purchased such Amway Products from Amway, less a 10% administrative handling and restocking charge, less any bonuses that have been paid on the respective purchases and less any amounts that are due and owing by the ABO. Amway will also adjust the relevant awards and rewards. In the event that the Distributorship 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: A Distributorship 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 ABO Contract in any market.  An ABO may apply to renew his authorization by sending to Amway a completed Notice of Intent to Continue Your Distributorship Form (SA-469HK) and the relevant current fee for renewal prior to the expiration of authorization then current. If accepted by Amway, any extension of the term of ABO Contract and Amway’s Rules and Policies shall be effective from the original expiration date. The terms of such extension shall be the terms and conditions of the ABO Contract in effect at the time of extension. If an ABO fails to renew by the due date, or if Amway does not accept an application for renewal, his authorization shall expire automatically in accordance with Rule 3.8.

Without limiting Amway’s discretion to deny extension of a Distributorship, the following shall automatically disqualify an ABO from extension of his/her Distributorship:
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 Rules of Conduct or the Amway Business Policies within the 12 months preceding the period for which extension is sought; or
3.9.3 Failure to meet the requirements outlined in Rule 3.3 of these Rules of Conduct.

3.10 Termination: An ABO may voluntarily resign or terminate the Distributorship at any time by providing Amway with written notice of termination at Amway’s address, and return any Amway Products according to Rule 3.8.1. If the Distributor resign his Distributorship within the first year from the date of application, he can obtain a full refund of the application fee. Amway may terminate the Distributorship at any time by providing the ABO with 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 Two Persons only: Invitations for business seminars, incentive trips and other events organized by Amway will only be extended to two individuals per Amway Business. These individuals shall be listed on Amway’s records.

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 authorizations 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 www.amway.com.hk).

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 these Rules 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 authorization 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.

3.17.2 If an ABO owes Amway any amount of debt, including but not limited to, the amount of products ordered, Amway may deduct such amounts from the bonuses payable and/or may decide not to recognize any qualification until the account has been settled.

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 Distributorship or the Distributorship of another ABO.

4.2 Cross Group Buying or Selling: 

ABOs can order products directly from Amway or obtain any Amway Product from Upline Distributors along the Line of Sponsorship, up to and including the first Platinum Distributor as the situation requires in the course of business development. All such products shall be returned to the Upline Distributor or Upline Platinum Distributor within a mutually agreed timeframe so as to ensure the bonuses paid to every ABO are of the correct amount.

No ABO shall engage in cross-group buying or selling. “Cross group buying and selling” occurs when a ABO sells 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 Distributor.
4.2.1 An ABO must only purchase Amway Products and Amway BSM directly from his/her Sponsor or Amway.
4.2.2 An ABO must not sell Amway Products to another ABO who is not personally sponsored and downline of those sponsored, down to the next Platinum Distributor.

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 ABOs shall not supply Amway or Amway distributed products to persons who wish to acquire such items for the purpose of resale.

4.3.4 An ABO who works in or owns a retail store must operate his or her Distributorship 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.

4.3.5 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 Advertising: An ABO may not present the Amway Sales and Marketing Plan or solicit participation in the Amway Sales and Marketing 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.

4.5 Truthful and Accurate: ABO statements about the products and services offered through or by Amway must be truthful, accurate, and not misleading.  ABOs shall not:

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

4.5.2 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;

4.5.3 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

4.5.4 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.

4.6 Repackaging: ABOs may not repackage products, change the content of products or otherwise change or alter any of the packaging labels of Amway Products. ABOs must deliver Amway Products in their original packaging.

4.7 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 customer and the selling ABO. ABOs can use the Customer Order Receipt (SA-107HK) from Amway.

4.8 Satisfaction Guarantee and Warranty: 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) an exchange for a like product; or (c) a full credit towards the purchase of another product.
4.8.1. 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.
4.8.2. ABOs are not authorized to make any type of offer or compromise or render Amway liable for any complaint or product return except as provided in the foregoing provisions.
4.8.3. ABOs will be held strictly liable for claims they make which exceed the terms of the Satisfaction Guarantee/Warranty and shall indemnify and hold Amway harmless for claims made to that effect.

4.9 Compliance with Applicable Laws, Regulations and Codes: ABOs shall comply with all laws, regulations and codes that apply to the operation of their Distributorship 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 candor and good faith.

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

4.11 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. An ABO must operate his/her business in a financially responsible, solvent and business-like manner.  

4.12 Professionalism: An ABO shall at all times conduct himself or 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 the Amway Sales and Marketing Plan, when and where appropriate.

4.12.1 ABOs shall provide quality service to customers.

4.12.1.1 ABOs shall demonstrate the products, which customers purchase for the first time, explain the directions for use and any cautions specified on product labels of those products.

4.12.1.2 ABOs shall immediately communicate all significant consumer complaints to Amway and furnish copies of all correspondence and details of all conversations relating thereto.

4.12.2 ABOs shall not go door-to-door to promote and solicit potential ABO or customer leads.

4.13 ABO Relationship: No ABO shall represent that he or she has any employment relationship with Amway or any of its affiliated companies and/or other ABO.
4.13.1. 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 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.
4.13.2. 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 stationary or other printed materials.
4.13.3. ABOs may not use their business cards to create the impression that they are in an employment relationship with Amway.

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

4.15 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 (except ABOs they have personally sponsored), 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.
4.15.1 ABOs shall not solicit, directly or indirectly, other ABOs (except ABOs they have personally sponsored) 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.
4.15.2 ABOs shall not sell, offer to sell, or promote any other business opportunities, products, or services in connection with the Amway Sales and Marketing Plan.

4.16 Interference in another ABO’s Distributorship; Inducement: It is a breach of the Rules of Conduct or the Amway Business Policies for an ABO to:
4.16.1 Interfere or attempt to interfere with another ABO’s Distributorship; or
4.16.2 Induce or attempt to induce another ABO to change his/her Line of Sponsorship, to transfer or abandon his/her Distributorship, or to sponsor or not sponsor a particular Prospect; or
4.16.3 Induce or attempt to induce another ABO to deny training, education, motivation or other support to a downline ABO; or
4.16.4 Induce or attempt to induce another ABO to breach the Rules of Conduct or the Amway Business Policies.
4.16.5 Supply tickets or passes to ABO events to ABOs from other Lines of Sponsorship.  ABOs are to ensure that event promotion, if any, should be within their own respective Lines of Sponsorship.

4.17 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:

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

4.17.2 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.

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

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

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

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

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

4.17.8 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.  

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

4.18 Seventy Percent and Ten Customer Rule:

4.18.1 Seventy Percent Rule:  To avoid overstock caused by the blind pursuit for better Monthly Performance Bonus, higher awards and rewards, ABOs should carefully estimate their Business Volume before ordering from Amway. At least 70% of the total value of products ordered during a given month shall be sold at wholesale or retail in order that:

4.18.1.1 Amway will calculate an ABO’s bonuses, travel points and other qualifications in accordance with his monthly Business Volume.

4.18.1.2 Amway will recognize his Silver Producer or above status.

If an ABO fails to fulfill Rule 4.18.1, all performance bonuses will be calculated according to the actual Business Volume sold instead of the Business Volume with Amway.

4.18.2 Ten Customer Rule: For an ABO to qualify for his/her Performance Bonus related to products and awards acquired by their downlines, the ABO must make sales to ten (10) different retail customers each month, except in the case of sales to Corporate Privileged Customer(s).

If the ABO fails to provide appropriate evidence for such sales, Amway may retain and/or reallocate that portion of the ABO’s Performance Bonus related to products and awards acquired by the ABO’s downlines; however the Sponsor will be entitled to a Performance Bonus based on his own sales.

4.19 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®, YouTube®, Instagram®, Twitter®, WeChat®, Weibo®, Telegram®, WhatsApp® or Snapchat®. These Rules apply to ABO Digital Communications regarding Amway, the Amway Business Opportunity, Amway Products (directly or indirectly), and when the Digital Communications constitute BSM as defined under these Rules and BSM Policy. Since the digital space is unique, Amway has established Digital Communications Standards (DCS) to ensure ABO Digital Communications are in compliance with the Rules and the QAS.  The DCS are incorporated into and made a part of these Rules, and ABOs must comply with the DCS.  (also refer to DCS available on www.amway.com.hk).

4.20 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, commission, or profits generated by such sale will benefit a particular group, organization or cause.

4.21 Amway Sales and Marketing Plan Manipulation: No ABO shall manipulate the Amway Sales and 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 and Marketing Plan and/or the Business Reference Guide.

4.21.1 The strategic and artificial structuring of an Amway Line of Sponsorship for the purpose of depth building (“stacking”), 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 and Marketing Plan.

4.21.2 ABOs should not order products in the name of their downlines so as to save tax and/or manipulate performance for better monthly performance bonus, higher awards and rewards or other specific purposes.

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

4.23 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.

4.23.1 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.

4.23.2 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.

4.23.3 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.

4.23.4 An ABO shall not compile, organize, 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.

4.23.5 Use or disclosure of Proprietary Information, other than as authorized 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.

4.23.6 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 this Rule 4.23.

4.23.7 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.

4.23.8 The confidentiality obligations set out in this Rule 4.23 shall survive during the term of the ABO Contract as well as after the date of its expiration or termination by any cause.

4.24 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 and Marketing Plan, must otherwise be in accordance with the following:
4.24.1 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 organizational 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/retail;  

d. advocate, imply or give the impression that ABOs can benefit solely or principally by sponsoring others to be ABOs; the importance of retailing should be emphasized;

e. promote inappropriate product usage and/or claims;
f. 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;
g. 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.;
h. 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,
i. use the meeting as a platform to promote or advocate religious, political and/or personal social beliefs.
4.24.2 Personal reflections on the following are not appropriate:
a. social and cultural issues;
b. preferences regarding specific political views, parties, candidates or elected officials.
4.24.3 Discussions must only relate to ethics and positive attitudes that will assist and encourage the ABO’s and Amway’s products, services and business.
4.24.4 Income representations, whether direct or implied, must reflect a realistic income potential from participation in the Amway Sales & Marketing Plan.
4.24.5 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 these Rules of Conduct.  

4.25 Activity Outside Hong Kong 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 Hong Kong 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.

Each Amway Business Owner (ABO) is responsible for building his/her own Amway business. Amway recognizes that proper support, training and motivation from the Sponsor/Platinum are also important to the continued growth of Amway businesses downline. However, Sponsor and other upline activities must never undermine the independence and personal effort of each Amway business or improperly interfere with the relationship between Amway and each ABO.  ABOs who qualify at the Emerald or Diamond level should only support and communicate with ABOs in their downline qualified Emerald and/or Platinum Business Groups as set forth in Rule 5.2.5 below.

Furthermore, Section 5 prohibits excessive or improper upline involvement which may also constitute the manipulation of the Amway Sales and Marketing Plan (Rule 4.21). Amway reserves the right to evaluate the type and frequency of upline involvement to determine whether it constitutes interference in violation of the Rules of Conduct.

5.1 Duties and Responsibilities of Sponsors: An ABO who engages in sponsoring activity or who sponsors an ABO shall:

5.1.1 Sell to the sponsored ABO an unaltered Amway Starter Kit, and inform him/her of the applicable time period in which the Kit can be returned for a refund.

5.1.2 Be in compliance with the ABO Contract and meet all requirements as set forth in the ABO Contract including the Amway Business Policies.

5.1.3 Train and motivate the sponsored ABO in accordance with the Amway Business Policies, or cooperate with the upline Platinum Distributor to ensure that this training and motivation occurs.

5.1.4 Ensure that the ABO whom they have personally sponsored fully complies with the Amway Rules of Conduct and the terms of the ABO Contract including the Amway Business Policies, and all applicable laws and regulations.

5.1.5 Encourage ABOs whom they have personally sponsored to attend official Amway meetings and functions.

5.1.6 Explain the responsibilities and obligations of an ABO under the ABO Contract, including the Amway Business Policies and instruct the sponsored ABO on how to operate a Distributorship in accordance with the Amway Business Policies, in addition to the Amway Business Reference Guide and other official Amway literature.

5.1.7 Support and comply with the Rules of Conduct and educate and assure that other ABOs whom they have personally sponsored do the same.

5.1.8 Protect the sponsorship rights of each ABO whom they have personally sponsored.

5.1.9 Promptly take back any good and saleable Amway products from any of his Personally-Sponsored ABOs who resign their Distributorships and make reimbursement for such items in accordance with Amway’s Refund Policy set out in Amway Award and Reward, and Amway Business Policies.

5.2 Duties and Responsibilities of ABOs at Platinum Distributorship Level and Above:  The following are some of the responsibilities and functions of an ABO at Platinum Distributorship level and above:

5.2.1 Ensure that the ABO whom they have personally sponsored and downline of those sponsored, to the next Platinum Distributor, fully comply with the Amway Rules of Conduct and the terms of the ABO Contract including the Amway Business Policies, and all applicable laws and regulations.

5.2.2 Encourage ABOs whom they have personally sponsored and downline of those sponsored, to the next Platinum Distributor, attend official Amway meetings and functions.

5.2.3 Maintain regular communication with, and hold regular meetings for the purpose of developing and inspiring ABOs whom they have personally sponsored and downline of those sponsored, to the next Platinum Distributor.

5.2.4 Support and comply with the Rules of Conduct and educate and assure that other ABOs whom they have personally sponsored and downline of those sponsored, to the next Platinum Distributor, do the same.

5.2.5 Protect the sponsorship rights of each ABO whom they have personally sponsored and downline of those sponsored, to the next Platinum Distributor.

5.2.6 ABOs who qualify at the Emerald or Diamond level have the following additional responsibilities related to the ABOs in their downline qualified Emerald and/or Platinum Distributor Business Group:

5.2.6.1 Offer to consult and support them in coordination with the downline qualified Emerald and/or Platinum Distributor of the group to strengthen the success of their business.

5.2.6.2 Promote compliance with the Rules of Conduct.

5.3 Training and Motivation: Conduct, or provide access to, training and motivation in accordance with the guidelines and requirements set out in Amway Award and Reward, and Amway Business Policies or otherwise as required or directed by Amway from time to time.

5.3.1 In order to meet this obligation, the Sponsor may personally train the ABOs whom he or she sponsors, or arrange for support from other, including his or her upline Platinum Distributor where applicable, ABOs eligible and approved to create and use BSMs in training, educating, and motivating other ABOs, or third-party vendors (“Training Providers”).  
5.3.2 If the Sponsor directly provides the training and motivation, the Sponsor remains responsible and accountable under the ABO Contract for ensuring that training and motivation that are compliant with the Rules.

5.3.3 If arrangements are made with the upline Platinum Distributor, or other authorized ABOs, to provide the training and motivation, then the ABO providing the training and motivation shall be responsible and accountable under the ABO Contract for the training and motivation to be compliant with the Rules.
5.3.4 If arrangements are made with the Training Providers, then the Sponsor or any other ABO who made the arrangement or provided training shall be jointly and severally responsible and accountable under the ABO Contract for the training and motivation to be compliant with the Rules.

6.1 Protection of the Line of Sponsorship: The sale of an ownership interest in a Distributorship, or transferring a Distributorship, 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 Distributorship from one ABO to another.
6.1.2 When a Distributorship is sold, such Distributorship shall remain in the same position in the Line of Sponsorship.

6.1.3 In the event that an ABO acquires another Distributorship, the ABO shall not transfer Business Volume between the business operated by him.

6.1.4 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 or her sponsored ABOs.  Without limiting or restricting in anyway Amway’s powers and discretion under Rule 6.1 above:
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 the ABOs upline up to and including the first qualified Platinum Distributor or above, and (2) a written acceptance from the new Sponsor and new Platinum Distributor or above. The written acceptance from the new Sponsor and Distributor 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 downlines and downlines of those personally sponsored downlines.  Without limiting or restricting in any way Amway’s powers and discretion under 6.1 above:
6.3.1 An ABO who wishes to transfer to a different Sponsor with all or part of his/her personally sponsored and downline of those sponsored, must submit a written request to Amway accompanied by the written consent from all ABOs in his Line of Sponsorship up to and including the first qualified Platinum Distributor, and all Platinum Distributors up to and including the first qualified Emerald.
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 Distributor 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 or her, and the written acceptance of the new Sponsor and new Platinum Distributor 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 recognized by Amway as a Group Leader (e.g., Silver Producer, Gold Producer, or Platinum Distributor) can be transferred with his/her personally sponsored and downline of those sponsored under this Rule.
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 2 full years have elapsed since the last month in which the ABO was recognized as such, provided there has been compliance with the procedures outlined above.

6.4 Six Month Inactivity: An ABO who wishes to terminate (by resignation or failure to renew/extend) his or her Distributorship 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 Distributorship will be considered expired and must remain inactive six months from the expiration date.
6.4.1 To apply for a new Distributorship under this inactivity rule, the applicant must complete a new Application for ABO Authorization Form (SA-88A) which may be obtained from Amway. The application should then be sent to Amway accompanied by a written statement of inactivity. When Amway receives this, it will notify the original Platinum Distributor or above level of the fact and grants him or her 14 days to file an objection to the inactivity claim.  If evidence of activity during the six-month period is provided and substantiated, Amway will refuse to honor the application 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 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 and Marketing Plan to any Prospect;
6.4.2.4 Shall not have filed a Renewal Form for the extension of his or her Distributorship; 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 or her Distributorship.
6.4.2.7 During the inactive period, the former ABO must not participate in any activity under another Distributorship in the name of his or her parents, siblings, or others or he or she shall be determined as "active" for the purposes of this Rule.
6.4.2.8 When either a husband or wife is an ABO, both must fulfill 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 ABO 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 Distributorship when completing the new ABO Contract.  

6.4.3 Two Year 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 or her in the original Line of Sponsorship up to and including the first ABO qualified at the Platinum Distributor 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 Distributor or above level, unless at least two years have elapsed since the termination of his or her Distributorship.
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 ABO who was previously above him or her in the original Line of Sponsorship up to and including the first ABO qualified at the Platinum Distributor or above level, or below him or her in his or her former personally sponsored and downline of those sponsored, down to and including the first ABO qualified at the Platinum  Distributor or above level.  However, an ABO who has been inactive for a period of two years following his or her resignation may be sponsored by any sponsor, including his or 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 Amway ABO in any other market in which he/she has a Distributorship, during the terms of his/her inactivity in the other market.
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 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 or her in the original line of foster sponsorship up to an including the first ABO qualified at the Platinum Distributor or above level, or below him or her in the original Line of Sponsorship down to and including the first ABO qualified at the Platinum Distributor or above level unless two or more years have elapsed since the termination of his or her Distributorship.
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 Distributorship, and transfer of his or 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 a Distributorship: An ABO who owns a Distributorship may sell his or her Distributorship 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 or her Distributorship in the order of priority stated below and the ABO interested in purchasing the Distributorship 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 or her International Sponsor, who retains throughout the sales negotiations to sell the Distributorship 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 or 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 Distributorship 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 ABO;
6.5.4 The fourth option, exercisable so long as the first, second, or third options above have not been exercised, belongs to any qualified Platinum Distributor 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 above have not been exercised, belongs to any qualified Emerald at that time.

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.
6.5.6 If the ABO wishes to sell his or her Distributorship under terms and conditions different from those of his or her first offer, the Distributorship must once again be offered for sale under the revised terms and conditions in accordance with the order of priority indicated above.
6.5.7 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.
6.5.7.1 Possesses sufficient expertise in the business so as to demonstrate a complete and accurate understanding of the Amway Sales and Marketing Plan and the Amway Business Opportunity;
6.5.7.2 Possesses a complete and accurate understanding of the Rules of Conduct and demonstrate a willingness to abide by them;
6.5.7.3 Possesses adequate resources to operate the seller’s Distributorship and to provide necessary training and support;
6.5.7.4 Possesses an understanding of any relevant market factors that may impact the operation of the seller’s Distributorship; and,
6.5.7.5 Is not currently engaged in any dispute or possess any conflict which may impact their ability to operate the seller’s Distributorship.
6.5.8 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 authorized 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 Distributorship, except as provided in Rules 6.6.1 – 6.6.5. Only under the following circumstances may an ABO have ownership interest in more than one Distributorship:
6.6.1 Where two ABOs marry and one or both have attained the Platinum Distributor or above level prior to marriage pursuant to Rule 3.2.2;
6.6.2 Where an existing ABO is being added as a partner of his/her parent’s Platinum  Distributorship pursuant to Rule 3.2.4.

6.6.3 Where an existing Distributorship purchases another Distributorship pursuant to Rule 6.5;
6.6.4 Where an ABO (transferor), in order to facilitate the transfer of his or her Distributorship in the event of his or her death, requests to assign the Distributorship to another existing ABO pursuant to Rule 10; or,
6.6.5 Where an existing ABO inherits a Distributorship pursuant to Rule 10.
6.6.6 In the event an ABO owns or has an ownership interest in two or more Distributorships pursuant to this Rule, Amway shall continue to recognize such Distributorships as separate Distributorships and will only recognize them as separate, individual Distributorships for all purposes including for award and bonuses purposes.

6.7 Mergers and Combinations of IBs: No merger or combination of two or more existing Distributorships by reason of intentional affirmative act on the part of the owners shall be permitted which results in the merging Distributorships 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.   

6.7.3 In no event may an Amway Distributorship be divided up or partially assigned other than in the circumstances set out in Rule 10.

6.8 Divorce, Annulment, Legal Separation, Separation, or Other Dissolution:  Whenever a business is ordered to be separated or divided as the result of a decree of divorce, annulment, legal separation, nullity of marriage, or separation of property, 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 AB in the Line of Sponsorship.  During the division or separation process, neither party shall administer or operate, together or separately, any other AB without Amway’s express written consent. 

6.8.1 Divorce, Annulment or Legal Separation:  Upon the issuance of a decree of annulment, divorce, legal separation, nullity of marriage, or separation of property of a married couple one of whom is a signatory to an ABO Contract, and unless such decree states to the contrary, Amway shall continue to recognize the signatory to the ABO Contract as the ABO and shall pay Bonuses and grant awards and rewards to such ABO only. Any arrangements between divorced/separated/annulled spouses with respect to proceeds from an ABO of one of the spouses must be handled by the spouses and will only be recognized by Amway provided there is a valid court decree or a written, legally binding agreement between the parties outlining the settlement.  To the extent that an individual is no longer part of an AB as a result of divorce, annulment or legal separation and relinquishes all rights in the original AB, such individual still needs to comply with the Inactivity Rules outlined in Rules of Conduct 6.4. 

6.8.2 Dissolution of a Legal Entity Operating an AB: Prior to the dissolution of a legal entity that is a signatory to an ABO Contract, the ABO must provide Amway with written notice of its intent to dissolve the entity. With the consent of Amway, the ABO Contract may be assigned to the authorized representative of the legal entity who signed the ABO Contract originally on behalf of the legal entity, or the AB may be sold in accordance with Rule 6.5 of the Rules of Conduct.  The failure to either assign the ABO Contract to the authorized representative or to sell the AB in accordance with Rule 6.5 of the Rules of Conduct shall result in termination of the AB in accordance with Rule 12 of the Rules of Conduct. 

6.9 Disposition of a Distributorship: If an ABO terminates his/her Distributorship with Amway, or fails to apply for extension/renewal of the Distributorship within the required time period, or dies without leaving heirs who are willing and able to assume responsibility for the Distributorship, Amway, at its sole discretion, shall decide the future of the Distributorship in accordance with Rule 13.

6.10 Non-Compete/ Non-Solicitation:   

6.10.1 Non-Compete:

6.10.1.1 During the term of his/her ABO contract with Amway, every ABO agrees he/she will not directly or indirectly own, manage, operate, consult for, act as an independent contractor or distributor for, engage in or carry on any business or service which offers a direct selling business opportunity.

6.10.1.2 During the six-month period following the end of his/her ABO contract with Amway, every ABO who had at any time qualified at the Platinum Distributor level or above agrees that, he or she will not directly or indirectly own, manage, operate, consult for, act as an independent contractor or distributor for, engage in or carry on any business or service which offers a direct selling business opportunity.

6.10.2 Non-Solicitation: During the 24 month period following the end of his/her ABO contract with Amway, every ABO agrees he/she will not directly or indirectly encourage, solicit, induce, attempt to solicit or induce, or otherwise entice any of Amway’s ABOs to own, manage, operate, consult for, act as an independent contractor or distributor for, engage in or carry on any business or service which offers a direct selling business opportunity.

While Amway does not require anybody to purchase Business Support Materials (BSM), ABOs may decide that they can play a useful role in building a profitable business or achieving goals. Amway does not endorse any BSM.  At its sole discretion, Amway may review any BSM and determine whether or not it is suitable for use in the market. ABOs are responsible for compliance with all laws regarding the content, production, distribution, and sale or use of BSM.

7.1 ABOs may produce, promote, use, sell or distributes BSM for the purpose of educating and motivating ABOs in their personal group provided that:

7.1.1 It must be emphasized in writing that BSM are entirely optional and the purchase is strictly voluntary, and that any ABO who purchases BSM shall be able to return the BSM for any reason for a full refund.

7.1.2 ABOs selling BSM shall give a written unconditional money-back guarantee which binds him to take back any item purchased within the preceding 12 months and refund the full payment on request.

7.1.3 An ABO cannot be burdened or obligated to purchase BSM or placed at any disadvantage by an upline or downline as a result of choosing not to purchase or sell BSM.  

7.1.4 ABOs shall not receive any compensation, incentives, or benefits from the sale of BSM, whether the BSM is ABO or third party-produced.  Rather, ABOs may sell BSM only at cost, and in no event at a price above the approved published price.

7.1.5 ABOs shall not induce another ABO whom they do not personally sponsor to sell BSM, nor shall they offer to sell such BSM to any ABOs except those personally sponsored by them. For the purpose of this Rule “induce” shall mean persuading or attempting to persuade another ABO, by whatever means and whether or not for gain, benefit or any other consideration.

7.1.6 BSM may not be sold to non-ABOs nor can the purchase of any BSM be framed as a requirement for becoming an ABO.  

7.1.7 All BSM must comply with the Rules of Conduct and the Digital Communications Standards, regardless of the purpose or source of the BSM.

7.1.8 ABOs may record speeches or presentations made at Amway-sponsored meetings, provided that such recording is solely for their own personal use and is not reproduced for any purpose.

7.1.9 All BSM shall display the date of recording or publication and the date and duration of Amway’s approval.

7.2 Review:

7.2.1 All BSM must be submitted to Amway for review and authorization prior to it being sold or distributed to any other ABO. Some Digital Communications that are BSM as stated in the Digital Communication Standards must also be submitted to Amway for review and authorization. As a result of such review, Amway may deny authorization or require at its sole discretion that such BSM be modified and/or take other appropriate action(s) before such BSM is used.

7.2.2 In addition to its right to approve all BSM, Amway may also conduct reviews of the use and treatment of Amway’s name, or trademarks, service marks, copyrighted works, or other intellectual property belonging or licensed to Amway to ensure compliance with all Rules and the Digital Communications Standards.

7.2.3 Reviews may include, but are not limited to, attending (in person or electronically) training and education meetings, as well as conducting interviews and surveys of ABOs.  ABOs shall provide Amway with full access to BSM, including, without limitation, access to meetings and events, all password-protected areas of websites, and reasonable access to such other materials, information, and locations necessary or helpful for the purpose of conducting any of the aforementioned reviews including, without limitation, those reviews conducted to verify ABOs’ compliance with the Rules of Conduct and the Digital Communications Standards.

7.2.4 ABOs shall respond to inquiries and otherwise cooperate in a timely fashion with any reviews conducted by Amway in connection with their obligations under the ABO Contract. ABOs shall act in good faith and shall not unreasonably withhold access to any materials or information requested by Amway.

7.2.5 The importation, use, or sale of any ABO-produced BSM not previously reviewed by Amway for use in a/each specific market is unauthorized. Authorization in one market does not automatically serve as authorization for use in all and especially new or unopened markets.

7.2.6 If Amway determines that any ABO-produced BSM violates applicable law, impairs or is likely to impair its business or otherwise damages or is likely to damage its reputation, Amway reserves the right to instruct the ABO forthwith to cease producing, selling or distributing the Business Support Materials. Failure to comply with such an instruction will entitle Amway to terminate the authorization of the ABO and to hold the ABO responsible for any cost, damages or other liabilities suffered by Amway as a result of the production, distribution or sale of such materials.

8.1 Must Not Give False Impression: When inviting a prospect to hear a presentation of the Amway Sales and Marketing Plan, an ABO shall neither directly or indirectly:
8.1.1 Give the impression that the Amway Sales and Marketing Plan relates to an employment opportunity (in accordance with Rule 4.13);
8.1.2 Imply that the invitation is to a social event;
8.1.3 Disguise the invitation as a “market survey;”
8.1.4 Promote the event as a “tax seminar;” as stated in Rule 8.3.3
8.1.5 Promote the Amway Business Opportunity as a business relationship with a person, company, or organization other than Amway as stated in Rule 4.24.1;

8.1.6 Say Amway grants its ABOs exclusive territories for business development;

8.1.7 Directly or indirectly indicate that such products are merely one line of products distributed through or as a part of a brokerage, consignment, or intermediary business operated by a person, company or organization other than Amway;
8.1.8 Directly or indirectly indicate that the Amway Business Opportunity, ABO or products and services merchandised through Amway are part of any business other than the Amway Business Opportunity as defined in the Rules of Conduct and other official Amway literature;
8.1.9 Fail to affirmatively indicate in connection with such invitation the true nature of such presentation and that the presentation is about the Amway Sales and Marketing Plan and the Amway Business Opportunity; or
8.1.10 Engage in any other direct or indirect misrepresentation of the Amway Business Opportunity and the ABO’s relationship to Amway and the nature of this Amway Business, or omit any information that a person receiving such an invitation or attending or otherwise participating in such a presentation or event could reasonably be expected to need in order to properly evaluate the Amway Business Opportunity, Amway Products.
8.1.11 Or in any other way violate Rule 4.24 above.

8.2 First Contact with Prospects: It is a breach of the Rules of Conduct and the Amway Business Policies for an ABO to mislead or fail to inform a Prospect ABO the nature of the ABO’s activities and, therefore, at the first contact with Prospects in which the ABO discusses any aspect of the Amway business, an ABO must:

8.2.1 Introduce himself/herself by name;

8.2.2 If discussed, truthfully and honestly represent the Amway Sales & Marketing Plan, its products and/or services;

8.2.3 Truthfully and honestly respond with full transparency and candor to any questions that the Prospect has concerning the Amway Business Opportunity, Amway products and services, the ABO or Amway.

8.3 Sponsorship Ethics: In seeking participation of a prospect in the Amway Sales and Marketing Plan, the sponsoring ABO must comply with Rule 4.24 and this Rule:
8.3.1 A Sponsor shall explain the Amway Sales and Marketing Plan in Amway Award and Reward, and Amway Business Policies to the applicants in a bona fide manner without any cover-up, misinterpretation or falsehood before asking the applicants to sign the Application for ABO Authorization Form. During the explanation, the following should be emphasized:

• Amway Sales & Marketing Plan
• Rules of Conduct
• ABOs’ obligations and responsibilities
• Awards and Bonuses
• The variety, recommended customer price, feature and use of Amway Products
• Amway Satisfaction Guarantee
• Buy Back Rule/Return of unsold merchandise
• Procedures for resignation

8.3.2 Must not say that a successful Distributorship can be built in the form of a “wholesale buying club”, where the only products bought and sold are those transferred to other ABOs for their personal use.
8.3.3 Must not say that there is no requirement for the retail sale or marketing of products by ABOs.  
8.3.4 Must not promote the enjoyment of tax benefits as the best or principal reason for becoming an ABO.
8.3.5 Must not say that the business is a “get-rich-quick” opportunity in which it is easy to achieve success with little or no expenditure of effort or time. In the event that another ABO is used as an example for success, that ABO’s success must be verifiable and substantiated.
8.3.6 Must not use any broadcast communication methods including mass mailings, telemarketing, national or international advertising, radio, television, facsimile services, computer communication networks including the Internet, 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.
8.3.7 An ABO must not misrepresent the relationship between Amway and any other company affiliated with Amway.

8.3.8 A Sponsor shall inquire whether a Prospect and/or his spouse have been ABOs. If either of them has, a Sponsor shall effect the sponsorship only when the requirements under Rule 6.4 are met.

8.4 No Exclusive Territories: No ABO shall represent that there are exclusive territories available. It is a breach of the terms of ABO Contract to make such a representation.

8.5 No Obligation to Purchase: An ABO shall not require a Prospect to purchase products and/or services and/or that a deposit is required in order to participate, nor that there is a fee under the form of a training course, seminar, social event or similar activity in order to have the right to participate, except for the Amway Starter Kit.  It is a breach of the terms of ABO Contract to make such a representation.

This rule has been developed to maintain the integrity of Amway’s intellectual property and to ensure that the AMWAY brand will be available exclusively for the Amway Business. In addition, Amway has implemented a corporate identity program that requires the correct and consistent use of the Amway corporate logo, no matter where it appears.  Therefore, no alterations to the approved logotype are allowed.  Upon request, Amway will provide an example of the approved logotype and color specifications.

9.1 Misuse and Misappropriation:  ABOs shall not misuse or misappropriate Amway’s trademarks or other intellectual property or proprietary information.  It is a breach of the ABO Contract for an ABO to use any trademarks or other intellectual property or proprietary information belonging to or licensed to Amway except in accordance with the applicable terms, conditions and procedures set forth in the ABO Contract, including the Amway Rules and Policies.  
9.1.1 Each ABO acknowledges and agrees that Amway is the licensee of certain trademarks including, e.g., logos, service marks and other intellectual property and industrial property, including the name AMWAY, and various trademarks, trade names and service marks used in connection with Amway Products, and the various designs or labels.  
9.1.2 An ABO shall not use, in connection with his/her Amway Business or any other business (including but not limited to, any business vehicle, office, phone listings, premises, or stationery) and/or on or in connection with any products, the AMWAY name, or trademarks, service marks or other intellectual property belonging or licensed to Amway without the prior written consent of Amway and subject always to any conditions attached to such use except as otherwise provided herein. Amway reserves the right to withdraw its consent at its absolute discretion.   
9.1.3 No AMWAY name, or trademarks, service marks or other intellectual property belonging or licensed to Amway may be used on any BSM, including third-party BSM, without the prior written permission of Amway.

9.1.4 ABOs shall not display the Amway trade names or trademarks on the exterior of their business premises except Platinum Distributors who have Amway’s prior written approval.

9.1.5 Articles from the NEWSGRAM may be reprinted by ABOs in newsletters which they publish for their Personal Group provided that each article is reproduced completely and is immediately followed by the statement “Reprinted with permission of Amway Hong Kong Limited”.

9.1.6 All Amway printed, audio and video materials are protected by copyright and may not be reproduced in whole or in part by ABOs or other persons without Amway’s prior written permission, or as provided in Rule 9.1.5.

9.1.7 ABOs may use official Amway literature only for the purpose of carrying out their functions as Distributors.

9.1.8 Only Platinum Distributors may use identification with Amway in telephone directory listings. Prior written approval from Amway is necessary. Other ABOs may not use identification with Amway in telephone directory listings.

9.2 Imprinted banners/signs for Meetings/Events:  If an ABO desires to conduct a meeting or event in which the Amway name will be displayed in public, the ABO must first obtain prior written approval from Amway for such use of the Amway name (A public meeting is one where prospects may attend). The ABO shall provide a written request to Amway for each meeting; such request shall include a description of the proposed banners/signs, their size, materials to be used for banner/signs and location.  
9.2.1 ABOs must not produce or obtain any printed products from any source other than Amway which bears the Amway name, trademark, logo or trade name without written permission.  Such permissions must be renewed for each event or meeting.
9.2.2 Amway reserves the right at all times to withdraw permission to display the Amway name if standards stated are not met, of which Amway shall be the sole judge.

9.3 Imprinted Cheques and Business Cards: Provided that an ABO is otherwise in full compliance with the Rules of Conduct and all other provisions of the ABO Contract, an ABO may use the AMWAY name (but not the AMWAY trademark, logo or any other trademarks, trade names, or service marks belonging to or licensed to Amway), on his imprinted checks and business cards provided that name is used in one of the following ways with no deviation:
     (common name)                                                       (common name)
Amway Business Owner           Or                   Amway Business Owner of
              (ABO)                                                                 Amway Products
9.3.1 Authorization for use of the Amway name on ABO business cards/cheques must be requested in writing to Amway.  This request will be reviewed by Amway prior to approval.
9.3.2 Any written approval for the use of the Amway name on cheques and/or business cards must be renewed annually.  No ABO may refer to himself/herself other than as an ABO on the cheques/business cards.
9.3.3 An ABO may not promote any other activities unrelated to the Amway Business on their imprinted cheques and business cards, including but not limited to, the placement of information, trademarks, trade names, logos or service marks relative to any training or education company, system or program the ABO owns, controls or participates in.                             

9.4 Promotional Literature, Stationery, Premiums, etc.: ABOs shall not produce or procure from a source other than Amway any item bearing the Amway name or logo or any trademarks, trade names or service marks belonging to or licensed to Amway.

10.1 Death and Inheritance: Upon the death of an ABO, the ABO’s interest in the Distributorship may be passed on to a relative or other designated person, subject to the laws on succession and Amway’s acceptance of the assignment of the Distributorship. Therefore, the original ABO must make proper arrangements during their lifetime for the orderly and legal transfers of ownership of their Distributorship to their heirs. This is to ensure that downline ABOs will continue to receive proper service, training and motivation.  

Amway may appoint a manager on such terms and conditions as Amway considers appropriate, to operate the Distributorship until such time as the Distributorship is assigned or otherwise dealt with pursuant to this Rule. Without limiting the breadth of Amway’s discretion as to such terms and conditions, the manager shall, if Amway considers it appropriate, be entitled to all, or such part as Amway specifies, of the bonuses accruing in respect of the Distributorship during the period of management.
In the event that a Distributorship comprises 2 natural persons in partnership and one of the partners dies, then the surviving ABO will be deemed to be the manager of the Distributorship, until such time as the Distributorship is assigned or otherwise dealt with pursuant to this Rule.
In the event that the heirs do not take steps to take over the Distributorship, the Distributorship may be deemed abandoned in accordance with 13.1. When a Distributorship is deemed abandoned, the heirs shall have no further rights in the Distributorship. Amway may then move up the Line of Sponsorship to the next qualified sponsor unless such a movement increases the number of 21% legs of the upline sponsor in which case the Distributorship shall be designated as a placeholder.

10.2 One Amway Business Rule: For Succession Planning purposes only, in order to facilitate the transfer of his or her AB, an ABO who has been qualified as Emerald Bonus Receiver or above for two (2) consecutive years, can submit a request to add the name(s) of his or her successor(s) to the AB for Amway’s approval.  Amway reserves the right to deny a request to name a successor(s) at its sole discretion. Once the addition of the name(s) of the successor(s) to the AB is approved in writing by Amway, the ABO will hold the AB together with the successor(s) as joint owners under joint tenancy, and the right of survivorship will apply. Upon the death of one or more of the joint owner(s), the ownership of the AB will pass to the surviving joint owner(s). The ownership as joint tenants may not be terminated or severed unless with Amway’s written approval.  

The ABO is allowed to have up to three individuals added to their AB as successors in any of the following manners:

(i) An ABO is allowed to add up to three(3) of the ABO’s own children to the AB or, alternatively add two (2) of the ABO’s children and one (1) spouse to the AB; or

(ii) In the event that the ABO does not have any children, the ABO is allowed to add up to three(3) family relatives to the AB or, alternatively add two(2) family relative and one (1) spouse to the AB.

Additional individual(s) may be added to the AB in accordance with the Rules of Conduct.  However, in no event should the AB have more than five(5) individuals.   

In the event of death of a joint owner, appropriate supporting documentation must be provided to Amway.

11.1 Procedures.
11.1.1 Investigation:  When Amway believes that a breach of the Rules of Conduct or the Amway Business Policies has occurred, will occur, or is threatened to occur, Amway may investigate the activity of the ABO at issue.  Amway may undertake this investigation on its own initiative or when requested by another ABO who has submitted a written complaint to Amway as provided in Rule 11.1.2.

11.1.2 Complaints by ABO: An ABO who believes that another ABO has breached the Amway Business Policies and/or the Rules of Conduct, or who has personal knowledge of the activities leading to such alleged breach, shall notify Amway in writing of the alleged breach and all facts connected with it.  

11.1.2.1 On receiving this notice Amway will notify the appropriate ABO of the complaint and request an immediate response.
11.1.2.2 If the complaint and response do not contain sufficient facts upon which to make a decision, additional information may be requested from any party by Amway.
11.1.2.3 When Amway believes that it has sufficient information regarding the facts and circumstances relevant to the complaint, Amway will decide whether there has been a violation of the Amway Business Policies or other breach of the Rules of Conduct and will take appropriate action in accordance with Rule 12.

11.1.3 Notification of Action
11.1.3.1 Amway will forward a decision letter to the violating ABO, as well as the Sponsor and the first upline Platinum Distributor of the sanctioned ABO. The decision letter will list the specific complaint(s), outline the corrective action to be taken and, if appropriate, set a time limit for the ABO to comply.
11.1.3.2 Any notice shall:
11.1.3.2.1 Be mailed (by registered mail or other confirmable method allowable by law), or e-mailed to the address or email address that Amway has on record for the ABO.  Claim of failure of a ABO to receive a notice shall not delay the action by Amway; and
11.1.3.2.2 If applicable, state the Section(s) of the Rules of Conduct or other provisions of the ABO Contract violated or breached by the ABO; and
11.1.3.2.3 State the date of which any such action shall become effective; and
11.1.3.2.4 If applicable, advise the ABO of his/her opportunity to seek Review of Amway's decision by the International Review Panel.  

12.1 Sanctions:  In the event Amway at its sole discretion determines that there has been a breach of the Rules of Conduct or the Amway Business Policies by an ABO, Amway may take one or more of the following actions:
12.1.1 Terminate the Distributorship by providing the ABO with a written notice of termination at his/her specified address or by some other suitable or electronic means or as allowed by law;  
12.1.2 Require the ABO to attend training;
12.1.3 Suspend specific authorizations under the distributorship, such as by way of example and without limitation, the ABO opportunity to Sponsor, to purchase or sell Amway Products, or to conduct similar activities associated with the Amway Business;
12.1.4 Remove the ABO as a Sponsor of any downline ABO and/or restrict the ABO’s authority to Sponsor others;
12.1.5 Require refund of Amway Bonuses;
12.1.6 Remove any qualification and require return of any objects evidencing such qualification (by way of example and not limitation, such as pins, certificates, etc.);
12.1.7 Require written acknowledgement of the breach(es) and an undertaking not to breach the ABO Contract in the future; or
12.1.8 Take any action short of termination of the Distributorship as may be permissible under applicable law and appropriate in Amway’s sole discretion to address the specific breach (es).

12.1.9 If Amway is of the opinion that one or more of the ABOs in a Platinum Distributor’s Personal Group have misrepresented the Amway Sales & Marketing Plan or have committed some other serious breach of the Rules of Conduct, then Amway may place the whole or part of the ABO’s Personal Group on Probation as Amway may determine. During the Probation period, specific authorizations under the distributorship(s) may be suspended. A thorough retraining programme may be required to teach the ABO on probation as well as other ABOs in his Personal Group the proper presentation and conduct of the Amway Business. Such retrainings will be conducted by the ABO or his Platinum Distributor under the supervision of Amway, or by Amway itself.

12.2 No Waiver: The failure of Amway to take any action upon learning of a breach or potential breach shall not constitute a waiver of Amway’s rights to assert such a breach in the future. The failure of an ABO to take any action upon learning of a breach shall not constitute a waiver of any other rights or remedies that may be available under applicable law.

12.3 Suspension: Amway reserves the right to determine the specific terms of each Suspension on a case by case basis.  In the event of any breach of contract by an ABO, Amway may take action to suspend some or all of the ABO’s privileges under the Distributorship, including but not limited to:
12.3.1 Withholding bonuses for payment of higher award monies pending final resolution of the matter; and/or
12.3.2 Suspending authorization to conduct sponsoring activity (sponsoring, recruiting meetings, training sessions, home presentations, etc.); and/or
12.3.3 Suspending invitations to company-sponsored seminars, trips and events; and/or
12.3.4 Conducting reorientation and retraining meetings; and/or
12.3.5 Requiring that ABOs provide Amway with recordings of their Amway Sales and Marketing Plan presentations.

12.4 Actions Upon Termination: Upon termination for any cause whatsoever, the ABO shall:
12.4.1 Cease to identify himself/herself as an ABO.

International Review Panel (IRP) provides an internal procedure for the review of decisions as to the termination, suspension, and/or non-renewal of ABOs qualified at the Platinum level or higher. Any other decision may be reviewed by the IRP at its discretion.

13.1 PROCEDURE FOR FILING AN APPEAL REQUEST TO THE INTERNATIONAL REVIEW PANEL: In the event an Amway Business Owner (ABO) qualified at the Platinum level or higher disagrees with an affiliate’s decision to terminate, suspend, or not renew his or her Amway business, the ABO has the right to request an appeal of their case for review by the IRP. An ABO not qualified at the Platinum level or higher who disagrees with an affiliate’s decision to terminate, suspend, or not renew his or her Amway business, may request an appeal through his or her upline qualified Platinum. In this instance, the upline qualified Platinum may choose to submit the appeal on behalf of the downline ABO and the IRP will determine whether to review the appeal in its reasonable discretion based on an assessment of the nature of the allegations, the history of the ABO business, and the availability of significant new evidence that could not have previously been presented to or considered by Amway.

The appeal request must be submitted in writing (in local language or English). The appeal request should contain a 1–2-page narrative describing the basis for the appeal, issues to be considered for the appeal, any relevant facts, and the relief being sought. The appeal should also contain any information and documents (translated into English) which support the appeal.

Only the ABO qualified at the Platinum level or higher whose Amway business was terminated, suspended, or not renewed, can submit an appeal request to the IRP and must do so within 30 days of the date of the affiliate’s decision letter. In the case of an ABO not qualified at the Platinum level or higher, his or her upline qualified Platinum may submit an appeal request within 30 days of the date of the affiliate’s decision letter.  The appeal request must be submitted to the Review Panel Chair either via email at appeal.administrator@amway.com or via postal service to: Amway Corporation, Attn: Review Panel Chair, Center Rules/IRP, Mail Code: 78-2G, 7575 Fulton Street East, Ada Michigan 49355 USA.

13.2 MEMBERSHIP OF THE INTERNATIONAL REVIEW PANEL: The International Review Panel consists of the Review Panel Chair and additional corporate staff from the Amway Legal Division in Ada, all of whom are Legal or Rules professionals.

13.2.1 Members of the International Review Panel do not act as arbitrators.

13.3 MARKET DECISION REMAINS IN FORCE PENDING DECISION BY THE INTERNATIONAL REVIEW PANEL: In the event Amway grants an ABO the opportunity to have an affiliate’s decision reviewed by the International Review Panel, the decision taken by Amway will remain in force until the review has taken place and a final determination has been made by the International Review Panel.

13.4 PROCEDURES FOR REVIEW BY THE INTERNATIONAL REVIEW PANEL:

13.4.1 The Review Panel Chair will review the appeal request and determine if it meets the requirements for review by the IRP. If the requirements are met and/or if the IRP chooses to exercise its discretion to review an appeal request, the Review Panel Chair will provide notification to all parties (affiliate and the ABO) that the appeal request will be reviewed by the IRP. If the requirements are not met or the IRP declines to review the appeal in its discretion, the Review Panel Chair will advise the ABO accordingly and if possible, permit the ABO to rectify and resubmit the appeal request within the stated deadline.

13.4.2 The parties may produce additional information for the appeal independently or as requested by the IRP. The IRP will determine the relevancy and materiality of the information offered.

13.5 FINAL DETERMINATION BY THE INTERNATIONAL REVIEW PANEL:

13.5.1 The IRP may affirm or reverse the decision of Amway, or may remand the case back to the affiliate for further action.

13.5.2 The determination of the IRP will be communicated to all parties.

13.5.3 Amway will take such steps as may be necessary to implement the IRP’s determination.

13.5.4 In the event the determination of the IRP is rendered in favor of the ABO, Amway shall restore full rights and privileges, and as appropriate, pay the balance of monies previously held in escrow, or take such other actions as may be agreed by the IRP.

13.5.4.1 In the event of any other decision taken by the IRP, Amway shall determine the disposition of the monies held in escrow.

13.5.5 The decision of the IRP shall not give rise to any legal or financial liability, claim for damages or other recourse, including but not limited to loss of profits or goodwill, on the part of Amway or any other Amway affiliate to the ABO or any other person.

Waiver of Claims: An ABO waives any and all claims against Amway arising out of or in respect to any action that Amway takes under the Distributorship and/or this Rule. An ABO who is terminated or has other action taken as a result of a violation of the Rules of Conduct or the Amway Business Policies shall have no claim against Amway arising out of or with respect to the termination or other action taken.

14.1 Abandonment: When a Distributorship is terminated or not renewed, the Distributorship is considered abandoned, and the signatory to the ABO Contract shall have no further rights in the Distributorship.  Amway may Assign or Dissolve the Distributorship, pursuant to Rule 14.1.1 and Rule 14.1.2, the right to operate an Amway Business in the former ABO’s position in the Line of Sponsorship to another ABO, or may remove such position in the Line of Sponsorship, in its sole discretion. In exercising its prerogative hereunder, Amway may elect to employ one of the following methods or any other method permissible by law, and may unilaterally modify and amend the Distributorship of any affected ABO to change their Sponsor and the Line of Sponsorship as may be necessary to implement such decision:
14.1.1 Sale of Distributorship.  If Amway elects to sell the right to operate an Amway Business in the former ABO’s position in the Line of Sponsorship, the following will be observed:
14.1.1.1 The sale shall be offered in the order of priority imposed by Rule 6.5 above.
14.1.1.2 The terms of the sale will be set forth in a written contract executed between Amway and the purchaser.
14.1.1.3 The purchasing party shall operate the Amway Business in the position in the Line of Sponsorship held by the previous ABO.

14.1.2 Dissolution of Distributorship.  If Amway so elects, the Sponsor of the former ABO in the Line of Sponsorship may undertake the obligations of the former ABO and assume the role of Sponsor for all ABOs who had been personally or Internationally Sponsored by the former ABO.

14.2 No Limitation on Amway:  Amway, however, is in no way limited to any of the above methods of disposition of an Amway Business and may exercise complete discretion as to methods and/or timing of disposition.

15.1. ABOs are authorized to sponsor any Hong Kong or Macau residents aged 18 or above as Privileged Customers.
15.2 ABOs have the responsibility to serve Privileged Customers and explain to them the benefits and use of Amway products, the information included in Amway promotion materials and product ordering procedures.
15.3 ABOs should read the Amway Privileged Customer Agreement thoroughly and explain the terms to the Privileged Customers under his sponsorship.

16.1 No waiver by Amway of any breach, default or omission by any ABO in the performance or observance of any of these Rules of Conduct shall be deemed to be a waiver by Amway of any other or subsequent such breach, default or omission.
16.2 These Rules shall be governed and construed in accordance with the Law of Hong Kong for the time being and from time to time in force.
16.3 Any notice, demand or other document under or relating to the Rules shall be sufficiently served if delivered personally or if sent by registered letter to: Amway Hong Kong Limited at 15th Floor, Oxford House, Taikoo Place, 979 King's Road, Quarry Bay, Hong Kong, or to: for the ABO at the address specified in his most recent ABO Application or at such other address as may from time to time notified in writing by the ABO to Amway, and such notice, demand or other document shall be deemed to have been delivered at the time of delivery or, if service is effected in any other manner as aforesaid, at the time when it would in the ordinary course be delivered.
16.4 Where conflict arises between the Chinese and English version, the English version shall prevail.