What is “inactivity”?
Under the Rules of Conduct, “inactivity” means that an Independent Business Owner (IBO) has absolutely no direct or indirect AMWAY related business activity for a required period. This includes, but is not limited to, attending meetings held by Amway or associated affiliations, discussing the business opportunity with a potential sponsor or prospect, retailing products, taking orders or accepting payment.
There are two designated activity periods; 6 months or 2 years. During this inactivity period, an IBO may only purchase products at retail price for personal consumption only.
Who does the 6 month inactivity period apply to?
This applies to any IBO (and all other members of that business) who has resigned or failed to renew their business. If the IBO wishes to re-join the business under a new sponsor, they will need to wait the 6 month inactivity period before doing so. For more information, see Rule 4.7.
Who does the 2 year inactivity period apply to?
This applies to any IBOs downline from the IBO subject to the 6 month inactivity period who wish to resign and join the new Line of Sponsorship (LOS) of their previous sponsor who has changed LOS. This may also include the sponsor of the IBO who is subject to the 6 month inactivity period. For more information, see Rule 4.8.
When does the inactivity period commence?
The inactivity period can commence in two ways:
- When the IBO’s resignation letter, submitted in writing and signed by all members of the independent business, is processed by AMWAY. The IBO will receive notification that this has happened. The first day of the inactivity period begins on the date of the resignation letter; or
- When the IBO chooses not to renew their current independent business. As the last day of any given year is December 31st, the first day of your inactivity period is January 1st of the following year.
Why does AMWAY require inactivity periods?
AMWAY recognises that you, as an IBO, have worked hard in introducing new IBOs to the business and have put much time into helping them build a strong, profitable business. The inactivity period operates to protect your hard work and the Line of Sponsorship as the foundation of the business.
Penalties for breaching the inactivity period.
AMWAY may transfer the offending independent business, including the business volume generated and any IBOs that have joined in the new LOS during the period of violation, back into the former Line of Sponsorship.
For more information, please refer to rules 4.7 and 4.8 of the Rules of Conduct for IBOs.