AMWAY AND NETWORK 21
Mr Carl Scully to the Minister for Consumer Affairs, Minister
Assisting the Minister for Roads and Minister Assisting the Minister for
Transport—
(1) (a) Is she aware of the methods used by promoters of Amway products to obtain sales?
(b) Do some of these methods include dishonest, unethical and inappropriate behaviour?
(c) What steps will she take to warn the general community of
the methods and harassment of potential purchasers used by promoters of
Amway products?
(2) (a) Is she familiar with the organisation Network 21?
(b) Is she aware that this organisation promotes the sale of
Amway products by engaging in dishonest conduct and unethical methods?
(c) Will she instruct the Department to launch an
investigation into Amway and Network 21 and the methods used by both
organisations to promote their products?
(d) Will she warn the general public to be careful when
having any contact with any person from Network 21 in particular, and in
general any person promoting Amway products?
Answer—
(1) (a) Distributors of Amway products usually obtain
sales by showing the Amway catalogue to family, friends and workmates
who are invited to make purchases.
Distributors obtain a commission from sales.
Distributors also generate income by receiving commissions on the
sales of other distributors who they have introduced to the system.
(b) Amway is reputed to have around 100,000 distributors
throughout Australia. Complaints against Amway or Amway distributors are
very few and indicate little cause for concern. My Department recently
prosecuted an Amway distributor for misleading conduct involving the
potential recruitment of distributors. This followed a complaint from
Amway Australia Pty Ltd concerned that the distributor was promoting a
work-at-home scheme that was not subject to the company's Rules of
Conduct.
(c) Should the honourable member be in possession of specific
information about dishonest or unethical methods of promotion and
harassment of potential purchasers, that information should be brought
to the attention of the Department of Consumer Affairs for
investigation.
(2) (a) I am aware that Network 21 is a subgroup of
Amway distributors which incorporates a program of motivational
training.
(b) My Department has only had three formal complaints
against Network 21 which were very minor in nature. A small number of
telephone enquiries have been received from callers who have alleged
that certain Network 21 distributors have engaged in undesirable selling
practices, however, there has been no information provided on a formal
basis to enable the allegations to be properly considered by the
Department.
(c) Subject to my response to answer (1) (c) above, there
does not appear to be any substantial reason to launch an investigation
into Network 21 or Amway Australia.
(d) At this time there appears to be no justification for issuing a public warning against Network 21 or Amway Australia.
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