The Reserve Bank of India has notified the police that Amway in India may be violating certain laws regarding a “money circulation scheme,” reports Siffy News.
Amway denies its actions are in violation of Indian law. An investigation will take place.
Historically, many Amway distributors in the United States have lost money or barely made minimum wage for their time. Some say that Amway is really more about making money from recruiting people to become distributors, as opposed to selling products.
The organization, which is a multi-level marketing scheme, has drawn frequent complaints, bad press and often-contentious litigation.
Nevertheless, Amway has made its two ruling families, the Devos and Van Andel clans, billionaires.
In recent years sales and recruitment for the company have slowed in the United States. In an apparent effort to improve its sagging situation Amway launched Quixtar on the Internet and also moved into international markets.
However, Amway has encountered resistance in China and Quixtar doesn’t seem to be doing that well.
If Amway is exploiting the citizens of India in some way, which is certainly not an affluent country, the company may have hit a new low.
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