AP High Court Judgment - Amway maintains that it is a legal and ethical company doing business in public interest

Responding to the AP High Court's dismissal to its writ petition seeking a declaration that its business model did not fall under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978, Amway maintained it was a legal and ethical Company carrying out business in public interest. A company spokesperson informed that they have yet to see a copy of the judgement to understand the rationale for the dismissal. He added that it was business-as-usual in Andhra Pradesh for Amway's 80,000 independent business owners (IBO). The Company had earlier obtained orders of release of the office and godown premises and its stocks under the Criminal procedure code from the Hon'ble High Court.

Hyderabad, 19th July 2007: Responding to the AP High Court's dismissal to its writ petition seeking a declaration that its business model did not fall under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978, Amway maintained it was a legal and ethical Company carrying out business in public interest. A company spokesperson informed that they have yet to see a copy of the judgement to understand the rationale for the dismissal. He added that it was business-as-usual in Andhra Pradesh for Amway's 80,000 independent business owners (IBO). The Company had earlier obtained orders of release of the office and godown premises and its stocks under the Criminal procedure code from the Hon'ble High Court.

In a message from New Delhi, Mr. Sanker Parameswaran, Director - Legal & Corporate Affairs, Amway India, said, "we have to study the ruling carefully and take further steps as advised by our legal counsel ". We are confident that further investigation will simply underscore our argument - that we are a legal and ethical company doing business in the public interest. He maintained that the Company had always co-operated with the authorities so long as the same was conducted in accordance with due process of law.

For Hyderabad-based Amway business owners, it was another day in office. "Though we are all disappointed, the Amway distributors of Andhra Pradesh are confident that Amway will overcome this phase soon. In any case, the business and commitment of Amway distributors, remains unfazed and we have been able to carry on developing our businesses."

About Amway India:

Amway offers a unique customer satisfaction or money refund policy for both, business opportunity and products. If a person joins the Amway business, he/she gets a 90-day trial period to try the business at the end of which, if the person feels that this business is not meant for him/her, they can return the business kit and claim a 100% refund of their investment.

Similarly, consumers may return the Amway product within 30 days of purchase. Here too, the consumer is covered under a 100% money back guarantee even if the product has been used up to 30%.

Amway India is a wholly owned subsidiary of the US $ 6.4 billion Amway Corporation, USA, commenced commercial operations in May 1998 after obtaining necessary approvals from the Foreign Investment Promotion Board (FIPB), to replicate the Amway model of doing business in direct selling which has been successfully carried out in over 88 countries of the world.

Amway has invested in excess of Rs. 151 crores in India, including Rs. 26 crores as FDI. Rs. 17 crores has been invested in the state-of-the-art manufacturing facilities in India.

Amway has paid Rs 8.88 crores as sales tax in Andhra Pradesh in 06-07.

Amway currently markets over 85 products, in 4 categories (namely, homecare, personal care, nutrition and wellness, and cosmetics) and have 122 offices and 60 warehouses across India and has clocked a turnover of Rs. 738 crores last year. Amway contributes to the government exchequer around Rs. 200 crores as direct and indirect taxes.

For further information, please contact:

S. Viswanath
Amway India, Bangalore
Tel: 0-99020-08963

Rajat Banerji
Amway India, New Delhi
Tel: 0-99719-91006

Rahul Dayama
Hanmer & Partners Public Relations
Tel: 98661-56503

Thanks & Regards,

Neha Agarwal
Consultant
Hanmer & Partners
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Hanmer & Partners