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

1. Principles to be followed in the conduct of an Amway Business.
2. The rights, duties, and responsibilities of each Independent Business Owner (IBO).

1.2 The Terms and Conditions of this relationship are set forth in:

1. The Amway IBO Contract; and
2. These Rules of Conduct; and
3. Amway Policies and other official Amway resources, or communications.

1.3 Severability: Whenever possible, the provisions of these Rules of Conduct shall be interpreted in such a manner as to be valid and enforceable under the applicable law. However, if one or more provisions of these Rules of Conduct are found to be invalid, illegal, or unenforceable, in whole or in part, the remainder of that provision and these Rules of Conduct, Amway Business Policies shall remain in full force and effect as if such invalid, illegal or unenforceable provision had never been contained herein. Moreover, in such an event the parties shall amend the invalid, illegal or unenforceable provision(s) or any part thereof and/or agree on a new provision in such a way as to reflect insofar as possible the purpose of the invalid, illegal or unenforceable provision(s)

1.4 Nothing in these Rules of Conduct in any way limits or detracts from the law otherwise applicable to contractual relationships between a contracting entity and an independent contractor.

From time to time, the contents of these documents are changed. Amway will notify all IBOs in a timely manner on www.amway.com.au and/or www.amway.co.nz and other official Amway communications, on the respective changes and when they become effective. In order to preserve the goals and purposes of the Amway Core Plan, Amway reserves to itself the sole right to adopt, amend, modify, supplement, or rescind any or all, of these Rules as necessary.

Amway: Collectively means Amway of Australia (ABN 49 004 807 756, a Company having its principal place of business in Sydney NSW) and Amway of New Zealand (a Company having its principal base of business in Auckland, New Zealand) and includes its successors and assigns.

Amway Business Opportunity: The products, marketing, support, and compensation system offered 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 IBO Application; and (2) other official Amway literature or communications.

Amway Core Plan (Sales and Marketing Plan): The system used to calculate commission and Bonus/Rebate compensation and recognition for IBO based on product sales as described in official Amway literature and official Amway Websites.

Australia IB: An IB carried on by an IBO in any part of Australia.

Amway’s Primary Website: In Australia, the Amway website at www.amway.com.au. In New Zealand, the Amway website as www.amway.co.nz.

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

Approved Provider or “AP”: A supplier of BSM who is a party to a current Accreditation Plus Approved Provider Agreement with Amway.

Amway Registration Pack: The collection of literature, sales aid, other materials, and product that IBOs are required to possess in connection with acceptance by Amway of their application.

Bonus / Rebate: The monetary rewards that Amway of Australia & Amway of New Zealand pays to IBOs in Australia & New Zealand in accordance with the Amway Core Plan. The term Bonus is interchangeable with Rebate when referenced for Australia’s / New Zealand IBOs.

Business Support Materials or “BSM”: All products and services (including but not limited to books, magazines, flip charts, and other printed material, online literature, websites, audio, video or digital media, rallies, meetings, and educational seminars, and other types of materials and services) that are (i) designed to solicit and/or educate Prospects, customers or prospective customers of Amway Products and services, or to support, train, motivate and/or educate IBOs, or (ii) which incorporate or Use one or more of the trademarks of Amway or Alticor Inc or Copyright Works authorised by Amway, or (iii) are otherwise offered with an explicit or implied sense of affiliation, connection or association with Amway.

Customer: A non-IBO who is a purchaser and end user of Amway Products and services, offered through or by Amway and it’s IBOs.

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®, X®, WeChat®, WhatsApp® or Snapchat®.

IBO in Good Standing: To be eligible for discretionary benefits such as GIP, FAA, and incentive trips, IBOs must consistently demonstrate that they are in Good Standing, as defined in the Good Standing Policy for ANZ.

Independent Business (“IB”) or Amway Business (“AB”): An Amway independent business conducted by an IBO.

IBO Contract/Application: The IBO application along with the incorporated documents that form the terms of the contractual agreement between IBO and Amway, including these Rules.

Inactivity or Inactive: To resign or not renew one’s current IB and not have engaged directly or indirectly in any business activity in connection with an Amway IB, including dealing with any Amway product (other than as a consumer), taking an order, making a delivery, accepting payment, presenting the Amway Core Plan to any prospective IBOs or attending any recruiting, training or motivational meetings conducted by Amway or any company or organisation controlled by or associated with any Amway IBO.

Leg: An IBO and all downline IBOs from that individual.

Line of Sponsorship or “LOS”: The structural organisation of IBOs established by the contractual relationship that each IBO has with Amway. The LOS, in the case of any one IBO, means the IBO, his/her Sponsor, the Sponsor’s Sponsor and so forth, up to and including Amway, and all persons who have been sponsored directly or indirectly by the IBO.

LOS Information: All information that discloses or relates to all or part of the structural arrangement of IBOs within the Line of Sponsorship established pursuant to the contractual relationship that each IBO has with Amway, including but not limited to IBO numbers and other IBO business identification data, IBO personal contact information, IBO business performance information, and all information generated or derived therefrom, in its present or future forms. This definition of LOS Information does not include information about customers of Amway Products who are not registered with Amway, or of Approved Provider products and services.

Management Agreement: In respect of the conduct of an Amway IB means an agreement in writing, the terms and conditions of which are approved by Amway, for the responsible conduct of an Amway Business, where the manager manages the business in the absence of the owner.

New Zealand IB: An IB carried on by an IBO in any part of New Zealand.

Performance Year: Amway’s performance year runs from September 1 to August 31 of the following year.

Personal Group: In respect of a particular IBO means the IBO in question, all IBOs personally sponsored by him/her, all IBOs personally sponsored by such personally-sponsored IBOs, and so forth downline from the IBO in question, to and including those IBOs who have not themselves sponsored other IBOs, but does not include any Platinum IBOs downline from the IBO in question nor any IBOs downline from any such Platinum IBOs. Platinum: An IBO who has achieved a certain level of business activity as specified by the Amway Core Plan.

Platinum: An IBO who has achieved a certain level of business activity as specified by the Amway Core Plan.

Prospect: A potential IBO or customer.

Quality Assurance Standards: The Program Standards and Content Standards for BSM as amended from time to time by Amway and as posted by Amway on Amway’s Primary Website or as otherwise notified to IBOs in writing.

Sponsor: There can be one of three relationships:

• Personal Sponsor: An IBO who introduces and sponsors a Prospect into the Amway Business Opportunity.
• International Sponsor: An IBO who introduces a prospect from another country to the Amway Business Opportunity and he/she becomes the (“International Sponsor”) when this prospect signs up and is being foster sponsored by another IBO in that market.
• Foster Sponsor: An IBO of Amway in the affiliate who is designated to provide training and support to an Internationally Sponsored IBO.

3.1 IBO Application Form and Registration Pack: To become a duly authorised IBO eligible to build an Amway business, through merchandising Amway Products and services and sponsoring other IBOs, an applicant must apply for authorisation from Amway by completing the IBO Application, in accordance with the provisions of Rule 3.3. It shall be considered accepted by Amway upon receipt of an IBO’s registration, including their acceptance of these Rules of Conduct and the IBO application Terms and Conditions.

3.2 Partners – Long-Term Relationship: Two Individuals who are in a long-term relationship together, upon acceptance by Amway, shall be authorised as one IB. A person whose partner is an authorised Amway IBO shall not be eligible to apply as an authorised IBO of another IB. A long-term relationship includes, but is not limited to, de facto couples and husband and wife.

• 3.2.1 If Amway is of the opinion (which opinion shall be final) that any act of the IBO and/or his her partner (whether or not the partner is registered with Amway as a partner) is found to be in contravention of any of the Rules of Conduct, they may terminate that business.
• 3.2.2 If two IBOs, become Partners in a Long-Term Relationship under Rule 3.2.1, each partner can keep the business or decide to surrender the business and join the other partner’s IB.
• 3.2.3 Where IBOs are in a long-term relationship IB, if a partner resigns from Amway for any reason, Amway may allow the remaining partner to continue operating the IB. In this event the remaining spouse and resigning partner shall be subject to these Rules of Conduct and to such other terms and conditions which Amway may deem fit to impose.

3.3 Application Requirements: Without limiting Amway’s rights, to become an IBO or to renew authorisation as an IBO, an applicant:

• 3.3.1 Must be contractually capable, that is at least 18 years of age and legally and mentally competent to conduct a business and enter into binding contractual obligations, and be duly authorised to engage in professional activities as required by applicable law;
• 3.3.2 Must not, without written approval of Amway, already be an IBO.
• 3.3.3 Must not be married to, or in a long-term relationship with, a currently authorised Amway IBO;
• 3.3.4 Must not have been previously terminated by Amway as an IBO or Customer for breach of contract within Australia or New Zealand, or within another Amway affiliate;
• 3.3.5 Must comply with Rule 6.5 and 6.6 of these Rules of Conduct if the applicant previously operated under an IB that was terminated or expired (and has not been renewed);
• 3.3.6 Must not be applying on behalf of recreational clubs, schools or school support organisations, charitable organisations or church affiliate groups;
• 3.3.7 Resides within the country where the business is being registered, if this is a person’s first Amway Business in any market where Amway operates;
• 3.3.8 Where this is a second or subsequent business application must nominate their IB outside of Australia or New Zealand as their International Sponsor, making this a multiple business application (Please also refer to the International Sponsoring and Multiple Business Policy).
• 3.3.9 Must be either
  • a. Be a citizen in that country; or
  • b. Be the holder of an entry permit under the relevant migration laws and which has not been granted subject to a condition imposing restrictions on the applicant performing work (or work required to build an Amway business), or
  • c. Be the majority shareholder of an incorporated or registered company.
• 3.3.10 If an IBO cannot satisfy the requirements of 3.3.9, they must alternatively provide Amway with evidence that they, in the country of registration:
  • a) have a bank account with a resident bank; and
  • b) have an Australian Business Number (only required in the event that they are conducting their Amway IB through a Limited Liability Company) or Inland Revenue Department Number;
  • c) have appointed a Manager (who is an IBO) to manage the Business, and have completed the non-resident Management Agreement form.

3.4 Acceptance or Rejection of IBO Application or renewalAmway reserves the right to accept or reject any IBO Application. Likewise, Amway reserves the right to refuse any renewal request. The decision of Amway to accept or reject such application is not open to review by an arbitrator appointed pursuant to Section 11 of these Rules.

3.5 Sponsoring Practices: The Amway Business Opportunity shall be presented as an equal opportunity available to anyone regardless of ethnic background, gender, nationality or religious or political beliefs.

• 3.5.1 A prospect as a condition to becoming an IBO, or an IBO as a condition to receiving assistance in the development of an IB, shall not be required to
  • a. Purchase any specified amount of products or services;
  • b. Purchase and Business Support Material;
  • c. Sponsor a specific or minimum number or other IBOs.

  3.6 Term and Expiration: Unless the term is renewed in accordance with Rule 3.4 and Rule 3.8 of the Rules of Conduct, an IB expires or may be terminated in accordance with its terms. Unless terminated earlier (Rule 3.7), the IB shall expire on 31 December of the current year. If an application is accepted on or after July 1st of a calendar year it will expire on December 31 of the next calendar year.

  • 3.6.1 Buy-Back/Return Rule: Upon expiration or voluntary termination of the IBO Contract, an IBO may apply to Amway to return unsold inventory of Amway Products that he/she has purchased within the past 12 months, provided such products are in new, unused and original condition. Amway will repurchase such products at the cost for which the IBO purchased such Amway Products from Amway, according to the existing policy. In the event that the IB is terminated for an IBO’s contract breach, Amway shall have discretion as to the repurchase of products under this Buy Back Rule.

  3.7 Termination: An IBO may terminate the IB at any time by providing Amway with written notice of termination at Amway’s address. Amway may terminate the IB at any time by providing the IBO 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 Core Plan and other policies maintained by Amway and which have been incorporated into the IBO Contract.

  3.8 Renewal: IBs have the right to renew their contractual relationship with Amway annually. Amway will consider each renewal application in good faith but reserves the right to reject any renewal application.

  • 3.8.1 If accepted by Amway, any extension of the term of IBO Contract and Amway’s Rules and Policies shall be effective from the date of renewal, 1 January, and concluding twelve months thereafter on 31 December. The terms of such renewal shall be the terms and conditions of the IBO Contract in effect at the time of renewal.
  • 3.8.2 Late Applications for Renewal filed, with an appropriate late renewal subscription, after 31 December, but before the following 31 December, shall be filed with Amway. Amway will determine at its absolute discretion whether a late application should be accepted and whether previous sponsorship of other IBOs or Customers should be maintained.

  3.9 Amway Business Operated through a Legal Entity: A party to an IBO Contract may be a limited liability company or Trustee operating as a limited liability company, provided it complies with certain requirements and conditions. Other authorised options for legal entities may be available. The person signing the IBO Contract on behalf of a limited liability company must be an authorised representative of that legal entity and must personally meet the qualifications set forth in Rule 3.3 of the Rules of Conduct and must be the majority owner of the legal entity. Any instance the IBO shall consist of not more than two persons except where an IB qualifies at the Platinum IBO level when Amway may, upon application in writing, admit additional owners to the IB for succession planning purposes.

  This also applies to a person following the original person as successor in the legal entity. A legal entity may be required to submit, in addition to other documents, proof of existence and qualification to conduct the activities anticipated in the IBO Contract, proof of compliance with applicable registration requirements, a document containing various information about and agreements of both the legal entity and the founders and management of the legal entity, or such other similar information and documentation as Amway may request.

  • 3.9.1 Where Amway has approved the addition of further owners to an IB, Amway will, for purposes of acknowledgment of both past and future pin levels, recognise only the original owner or co-owners of the business whilst those original owners continue to be active in the business.

  3.10 Invitations to Amway Events: Invitations for business seminars, incentive trips and other events organised by Amway will be issued or withheld at Amway’s absolute discretion. Invitations will only be extended to two individuals per IB. These individuals shall be the ones listed on Amway’s records as the owners of the IB.

  • 3.10.1 To be eligible to qualify for an invitation to any event referred to in Rule 3.10, a person must have been an IBO for a minimum 6 months of the relevant qualifying period and must continue to be a current IBO at the time of the invitation and attendance at the event.

  3.11 Conspiracy; Inducement to Breach: An IBO shall not conspire with any other person to breach or induce a breach of an IBO Contract.

  3.12 Representations and Warranties: An IBO shall not make any false representation or statement to Amway, nor induce Amway to enter into an IBO Contract under false pretences, nor breach any representation or warranties implied in this contract or by law.

  3.13 Activity outside the Australia and New Zealand Market or Activity outside the Market where the IBO is registered: IBOs who engage, directly or indirectly, in any activity related to the Amway Business in a jurisdiction outside of Australia/New Zealand 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 IBOs in that jurisdiction. Failure to do so shall be a breach of the IBO Contract.

  3.14 Unauthorised Amway Business Owner Activity in Unopened Markets: IBOS are authorised under their IBO Contract to engage in activities within the countries and territories described in that IBO Contract (“Opened Market”). Any activity taken in furtherance of an Amway business in any country or territory other than an “Opened Market” is considered “Unauthorised Activity” and is strictly forbidden.

4.1 Contractual Obligations: IBOs shall comply with the responsibilities and requirements set forth in the Rules of Conduct and the Amway Policies. They shall at all times fully and promptly cooperate with Amway employees, including cooperating in any investigation undertaken by Amway and comply with all directions issued by Amway.

4.2 Purchase of Amway Products: IBOs must only purchase directly from Amway, Amway Products for self-consumption; these products may only be sold to customers and not to other any IBOs. Amway Products or Amway-distributed products or services may not be sold or given to persons who wish to acquire such items for the purpose of resale.

4.3 Retail Stores: No IBO shall permit Amway Products or Amway resources to be sold or displayed in retail establishments or locations including, but not limited to schools, fairs, fetes, clubs or canteens or any other venues which Amway considers to be a retail location; nor shall he or she permit any Amway Products to appear in such locations even if not for sale. No promotional material related to Amway Products or Amway literature shall be displayed in retail establishments.

• 4.3.1 Exceptions to the Retail Stores Rule: Notwithstanding Rule 4.4:
  • a) IBOs who are medical or allied health professional, or professionals practice in the health and fitness industry, who promote NutriwayTM vitamins and supplements, may recommend and/ or market these products through their professional practices subject to the rules and regulations of relevant professional associations and to Rule 4.3.2.
  • b) IBOs promoting ArtistryTM or SatiniqueTM products who have received government accreditation in their related industries may recommend and/or market those products through their professional salons subject to Rule 4.3.2
  • c) IBOs promoting/selling selected XSTM Energy products, at retail locations may only use the promotional materials provided and approved by Amway, must ensure that the product is not displayed and that the contents are dispensed prior to the customer taking possession.
• 4.3.2 The activities in Rule 4.3.1 may only be undertaken where the environment is one-on-one, the product is not displayed or promoted in a public area and where the following statement (or its substantial equivalent) is made: ‘These products are available exclusively through IBOs contracted to Amway throughout Australia/New Zealand. If you are already being supplied by another IBO and you wish to purchase these products, you should purchase them from your existing IBO. If you are not an existing IBO customer or an IBO, I will be happy to supply these products.
• 4.3.3 IBOs will not re sell through external online sale platforms, any Amway products even if purchased for personal use.
• 4.3.4 In the online environment, IBOs 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 Communication Standards.

4.4 Booth and Events: An IBO may request permission to attend selected events, including expos and shows, and be able to promote specified Amway product for the duration of the chosen event. This requires a written request and approval from Amway and is only available for specified products at related events. Refer to Amway’s Booth and Events Guidelines available on Amway’s Primary Website and a Booths and Events application form.

4.5 Digital Communication: The Amway Rules of Conduct, Business Policies and Standards apply to IBO Digital Communications regarding Amway, the Amway business opportunity, Amway products and services (directly or indirectly), or when the Digital Communications constitute BSM. Since the digital space is unique, Amway has established Digital Communications Standards (DCS) to ensure IBO Digital Communications are in compliance with the Amway Rules of Conduct, Business Policies and Standards.

4.6. Advertising: IBOs may advertise the Amway business opportunity and/or Amway products, using only official Amway material or Amway approved material through channels authorised by Amway. IBOs are responsible for compliance with all relevant rules on misleading advertising and unfair trade practices.

4.7 Import and/or Export: In markets where IBOs are acting as re-sellers, they shall not export or impart of knowing export of import, Amway products from any country in which Amway has established operations, into any other country.

• a. IBOs may, however, take Amway products across borders for personal use, with the following limitations, when visiting another country
• b. No couriers, shipping companies, or freight forwarders may be involved.
• c. The order cannot be placed as a customer order for an overseas customer if the IBO has multiple business in that country.
• d. The products are for the IBOs personal use only and may not be resold, distributed, or given away under any circumstances.
• e. Durables (e.g. water treatment systems, air treatment systems) may not be carried from one market to another under any circumstances.
• f. The IBO order must not be for more than a reasonable amount of product: under $1000 annually when travelling outside Australia & New Zealand. The personal use exclusion may not be used more than once per year or as a business-building strategy.

4.8 Misrepresentations: IBOs shall not conduct any activity, make any statement or fail to make any statement in furtherance of or in connection with an Amway Business and the Amway Business Opportunity which, given the context and the circumstances, is not truthful, accurate and appropriate. Statements on Amway may only be taken verbatim from official Amway resource and official Amway Websites intended and approved for use in the respective market. Therefore, the IBO shall not engage in following practice:

• 4.8.1 Make any exaggerated or non-guaranteed claims or statements about any Amway products and services other than ones printed in official Amway resource or used on Official Amway websites, this includes but may not limited to: medical and/ or health claims/statements as well as statements on Amway products made by physicians and/or other third person or entity,
• 4.8.2 Represent Amway incorrectly with regard to prices, quality, standards, grades, contents, style or model, use, composition, place of origin or availability of Amway’s products; or
• 4.8.3 State that Amway’s products, services or products or services distributed by Amway are sponsored, backed, approved, or present any features as regards to performance characteristics, accessories, uses or benefits that they do not have; or
• 4.8.4 Act or present in any way whatsoever Amway, its products or the products Amway distributes, in a fraudulent manner or promote or pass off products or services that do not belong to Amway as if they did.

4.9 Repackaging: IBO may not repackage or otherwise change or alter any of the packaging labels of Amway Products, or services or official Amway resources.

4.10 Written Sales Receipt: An IBO who takes and/or delivers an order 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 and date charged, and (c) give the name, address, and telephone number of the selling IBO.

4.11 Satisfaction Guarantee: IBOs shall administer the Amway Satisfaction Guarantee in accordance with this section and the information supplied n the official Amway resources relating thereto. In particular, and without limiting the forgoing:

• 4.11.1 Whenever a customer requests Amway Satisfaction Guarantee service within the stated guarantee period, the IBO shall immediately in the name of Amway offer the customer the choice of a:
  • (a) full refund
  • (b) exchange for like product; or
  • (c) full credit for exchange with another item.
• 4.11.2 IBOs shall advise Amway of any customer complaint and provide relevant information.
• 4.11.3 IBOs are not authorised to make any type of offer or compromise or render Amway liable for any complaint or product return.

4.12 Consumer complaints: IBOs will immediately communicate all significant customer complaints to Amway and furnish copies of all correspondence and details of all conversations relating there to.

4.13 Compliance with Applicable Laws, Regulations and Codes: IBOs shall comply with all laws, regulations and codes that apply to the operation of their Amway Business, and they must not conduct any activity that could jeopardise the reputation of the IBO and/or Amway.

• 4.13.1 All IBOs with an IB in Australia will comply with the Australian Consumer Law provisions of the Competition and Consumer Act 2010 (Cth), and in particular those provisions dealing with unsolicited goods and services and unsolicited consumer agreements.
• 4.13.2 All IBOs with an IB in New Zealand will comply with the Consumer Guarantees Act 1993 and the Trade Trading Act 1986 and similar consumer protection laws.

4.14 Deceptive or Unlawful Trade Practices: IBOs shall not engage in any deceptive or unlawful trade practice.

4.15 Unlawful Business Enterprises or Activities: IBOs shall not operate any illegal or unlawful business enterprise, and/or engage or participate in any illegal or unlawful business activity.

4.16 IBO Relationship: IBOs may not represent, imply, or act in a manner that suggests that they are employees or something other than a self-employed and independent contractor operating pursuant to a contract with Amway.

4.17 Franchises and Territories: No IBO shall represent to anyone that there are exclusive franchises or territories available under the Amway Core Plan.

4.18 Non-Amway Activities: If IBOs engage in other than the business activities as described above, related to non‐Amway products and services, or non‐Amway authorised BSM they have to comply with the following:

• 4.18.1 An IBO who personally sells and/or promotes products other than Amway products or who sells and/or promotes services (e.g., tax services, insurance, investments, et cetera) shall not induce another IBO whom he does not personally sponsor to sell and/or promote such products or services, nor shall he offer to sell and/or promote such products or services to any IBO except those personally sponsored by him or her. In this context induce means to persuade/attempt to persuade another IBO to sell and/or promote any product or service whether or not this is done to obtain revenues or for any other reason.
• 4.18.2 BSM distribution: Nothing in Rule 4.18 will service to prohibit arrangements solely for the distribution of BSM which are distributed pursuant to Section 7
• 4.18.3 Alternative business: IBO shall not take advantage of their knowledge of, or association with other IBOs whom they did not personally sponsor, including their knowledge resulting from or relating to their individual Lines of Sponsorship, in order to promote and expand such other business ventures.

4.19 Interference in another IB; Inducement: It is a breach of the Rules of Conduct or the Amway Business Policies for an IBO to:

• 4.19.1 Interfere or attempt to interfere with another IBO’s IB;
• 4.19.2 Induce or attempt to induce another IBO or customer to change his/her Line of Sponsorship, to transfer or abandon his/her IB, or to sponsor or not sponsor a particular Prospect;
• 4.19.3 To induce or attempt to induce another IBO to deny training, education, motivation or other support to a downline IBO; or
• 4.19.4 To induce or attempt to induce another IBO to breach any Rules of Conduct or the Amway Business Policies.
• 4.19.5 Induce or attempt to induce another IBO to engage in non-Amway selling activities not complying with Rule 4.19.

4.20 Retail Effort Rule: Amway pays Bonuses/Rebates under the Amway Core Plan based on sales to end consumers. For an IBO to be entitled to Bonuses/Rebates and/or qualification under the Amway Core Plan, that IBO’s purchases must be consumed or sold to end consumers within a reasonable period as determined by Amway. Amway reserves the right to deny all qualifications, awards and rewards if in Amway’s judgment, the IBO’s purchases are not in compliance to this rule.

• 4.20.1 Amway does not require stock keeping or purchase of inventory. IBOs may not purchase or counsel other IBOs to purchase product for any purpose other than the provision of such product to end consumers.

4.21 Amway Core Plan Manipulation: No IBO shall manipulate the Amway Core Plan or award volume in any way which results in the payment of Bonuses/Rebates or other awards and recognition that have not been earned in accordance with the terms set forth in the Amway Core Plan, Principles of Qualification or other official Amway resources. This includes the strategic and/or artificial structuring of an Amway Line of Sponsorship where such placement was effected primarily for the purpose of gaining an unfair business advantage. Amway at its sole discretion will determine what constitutes manipulation of the Amway Core Plan.

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

4.23 Privacy and Confidentiality: All IBOs are required to comply with applicable data protection laws and regulations in combination with the Amway Privacy Notice (available on www.amway.com.au / co.nz). Amway is the holder of confidential and proprietary information and trade secrets relating to its products, business and the LOS as defined in this Amway Rules of Conduct (“Confidential Information”). The IBO acknowledges and agrees that all such Confidential Information shall at all times remain the property of Amway, and that, to the extent that the IBO is granted access to the use of Confidential Information in the course of performance of the Contract, the IBO shall only use such Confidential Information to the extent and for the purposes authorised in the Contract. The IBO shall not transfer or disclose Confidential Information to any third party, including another IBO, except in accordance with express terms of the Contract, without the prior written authorisation of Amway. Upon termination or non‐renewal of the Contract, the IBO shall return to Amway all Confidential Information in his/her possession. The IBO acknowledges and agrees that any breach of this provision shall cause irreparable damage to Amway, entitling Amway to immediate injunctive or similar relief to prevent further breach of the Contract or disclosure of the Confidential Information. Any confidentiality obligations under this provision shall survive the termination of the Contract.

4.24 Professionalism; Disrepute: An IBO 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 Core Plan, when and where appropriate. IBOs shall not make any representation or engage in or conduct any activity or do any other act, matter or thing which may bring either them or Amway or IBOs generally or any supplier of Amway distributed goods or services in disrepute.

4.25 Fundraising: IBO shall use Amway Products in conjunction with any type of fundraising activity only upon explicit Amway approval. Fundraising includes but is not limited to the solicitation for the purchase of Amway Products based on the representation that all, or some, of the gains, proceeds, Bonuses/Rebates, or profits generated by such sale will benefit a particular group, organisation or cause.

4.26 Presentation Rule of the Business Opportunity by IBOs: The Amway Business Opportunity may only be presented to a prospective IBO by an IBO. Only IBOs may sponsor a new IBO.

4.27 Image Use: An IBO authorises and irrevocably licenses Amway to use the IBO’s name, image and any video of them (“Images”) whether or not created or taken by them, for promotional and publicity purposes for Amway, its business or its products, and without any form of compensation. Each IBO releases Amway and its related bodies and the officers and employees of each of them, from all claims that may arise out of Amway’s use of the Images.

5.1 Upline Involvement: Each (IBO) is responsible for building his/her own Amway Business. Amway recognises that support, training, and motivation from the upline are also important to the continued growth of Amway Businesses in the business group. However, upline activities must never undermine the independence and personal effort of each Amway Business or improperly interfere with the relationship between Amway and each IBO. Upline leaders should only support and communicate with IBOs in coordination with the qualified Emerald and/or Platinum Groups.

Further, Section 5 prohibits excessive or improper activity which may also constitute manipulation of the Amway Core Plan. (See also Rule 4.21). By way of example, following behaviour could be considered improper upline involvement (not exhaustive)

• a) Prospecting on behalf of a downline and/or registering prospects in the business group of a downline without their knowledge and involvement in the sponsoring activity or building a business group for a downline without their knowledge and activity.
• b) Regularly providing support to customers of a downline on their behalf
• c) Regularly placing orders on behalf of the downline without their knowledge and approval
• d) Regularly sharing personal data (like the address, email address, bank data etc.); in general, only own personal data should be used in the Amway Business. 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.

5.2 General Duties and Responsibilities of Sponsors:

• 5.2.1 Support the sponsored IBO accessing and carefully study official Amway resources ; and build their Amway business any instructions and directives issued by Amway from time to time;
• 5.2.2 Ensure training and motivation of the sponsored IBO in accordance with Amway Rules of Conduct, Amway Business Policies and Standards, or cooperate with the upline Platinum to ensure that this training and motivation occurs;
• 5.2.3 Explain the Amway Core Plan to all new IBOs, and provide ongoing Core Plan and product training to downline IBOs;
• 5.2.4 Preserve the independent relationship to those IBOs sponsored by him or her;
• 5.2.5 Use best efforts to ensure that personally sponsored IBOs fully comply with the IBO Contract including the Rules of Conduct, Amway Policies, and all applicable laws and regulations;
• 5.2.6 Personally engage in and encourage retail sales;
• 5.2.7 Use best efforts to encourage personally sponsored IBOs to attend official Amway meetings/events;
• 5.2.8 Not in any way discourage any IBOs, whether in his/her Line or Sponsorship or otherwise, from:
  • a) attending Amway meetings or other Amway functions;
  • b) conducting his/her IB in accordance with Amway’s instructions and directives; or
  • c) working and cooperating fully with Amway employees.
• 5.2.9 Achieve, in any given month, a minimum performance bonus/rebate schedule requirement of which 50PV earned through Amway products and services derived from personal activity or as otherwise specified by AMWAY from time to time.

5.3 Responsibilities of an IBO at Platinum Level or Above: To attain and retain the title and privileges of an IBO at the Platinum level or above, an IBO must initially qualify and then requalify in each performance year. The requirements of qualification and requalification are specified in the official Amway resources or on official Amway Websites. Included are the duties to:

• 5.3.1 Support and comply with the Rules of Conduct and educate and assure that other IBOs whom they have personally sponsored and the downlines of those sponsored, to the next Platinum do the same; and
• 5.3.2 STrain IBOs in the Platinum Group in the operation of the Amway Business and the Amway Products, including the Amway Satisfaction Guarantee.

6.1 Protection of the Line of Sponsorship: An IBO shall in no circumstances directly or indirectly and whether on his/her own behalf or in conjunction with or by way of assisting any other person, solicit, interfere with or endeavour to entice another IBO or Customer away from his/her Line of Sponsorship or to change Line of Sponsorship.

6.2 Integrity of the Line of Sponsorship: The sale of an ownership interest in an IB, or transferring an IB, requires prior approval by Amway. This approval shall be at Amway’s sole discretion.

• 6.2.1 The Line of Sponsorship shall not be strategically restructured with sale, transfer, or merger of an Amway Business.
• 6.2.2 Transfers will only be granted by Amway if, in Amway’s opinion, the request for transfer represents an extraordinary circumstance or has been caused by or contributed to by any failure of a Sponsor or of any IBO upline from such Sponsor to meet all or any of the responsibilities of a Sponsor set out in these Rules, or to comply with any other of these Rules, or any injustice would otherwise be imposed upon the IBO requesting the transfer by refusal of the transfer request.

6.3 Individual Sponsorship Changes: An individual transfer involves the transfer of an IBO without any of his or her sponsored IBOs. Without limiting or restricting in anyway Amway’s powers and discretion under Section 6:

• 6.3.1 Any IBO who wants to change Sponsors must submit a written request to Amway accompanied by:
  • a) a written release signed by all IBOs upline up to and including the first qualified Platinum or above; and
  • b) a written acceptance from the new Sponsor and new Platinum or above. The written acceptance from the new Sponsor and Platinum or above confirms that they will incur all responsibilities of the transferring IBO.
• 6.3.2 Amway may contact any International Sponsor and International Leadership Bonus/Rebate recipients and will allow 30 days for comment.
• 6.3.3 If the request is granted by Amway, the national or foster Sponsor of the requesting IBO shall be changed and the Sponsor/Upline from which the requesting IBO has asked to be moved shall cease to be registered as Sponsor. The international Sponsor will remain.

6.4 Sponsorship Changes with Group: Any IBO who has not attained the qualification of Platinum or is recognised by Amway as a Group Leader may in accordance with the following procedures request Amway.

• a. To change the sponsor, and further
• b. That some or all Downline IBOs remain in the requesting IBO’s downline (including only IBO not qualified as Platinum or above) follow the change in sponsorship.

• 6.4.1 An IBO 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
  • a. written consent from all downline IBOs, who wish to transfer, down to the first IBO who is qualified at the Platinum or above level.
  • b. written consent from all IBOs in the Upline up to an including the first IBO who is qualified at the Platinum level or above together with all Upline IBOs who are qualified at the Platinum level or above to the first IBO who is qualified at the Emerald or above level.
  • c. written and signed acceptance from the Sponsor and Upline Platinum of the new Line of Sponsorship.
  • 6.4.1.1 Amway may notify the first qualified upline Diamond and allow 14 days for comment.
  • 6.4.1.2 Amway may contact any International Sponsor and International Leadership Bonus/Rebate recipient and will allow 30 days for comment.
  • 6.4.1.3 If the request is granted by Amway, the national or foster Sponsor of the requesting IBO shall be changed and the Sponsor/Upline from which the requesting IBO has asked to be moved shall cease to be registered as Sponsor. The international Sponsor will remain.
• 6.4.2 An IBO recognised by Amway as a Silver Producer may make such a request if more than 2 years have elapsed since the end of the last month in which the requesting IBO was recognised as Silver Producer.

6.5 Six Month Inactivity: An IBO who terminated (by resignation or failure to renew) their IB under their current Sponsor may, following the lapse of a 6-month Inactivity period, apply as a new IBO under a new Sponsor. The inactivity period begins on the date on which Amway receives the letter of resignation or if the business is considered expired due to non-renewal.

• 6.5.1 To apply as a new IBO under this Rule, the applicant must complete a new IBO Contract. If evidence of activity during the six-month period is substantiated, Amway will deny this new application.
• 6.5.2 When either a husband or wife is an IBO, both must fulfil the six-month Inactivity requirements before one can be sponsored again as an IBO.
• 6.5.3 A former IBO has to remain inactive and may not conduct any IBO activity, especially by way of example:
  • 6.5.3.1 Participation in any phase of the sale of any Amway Products; or
  • 6.5.3.2 Presentation of the Amway Core Plan to any Prospect;
  • 6.5.3.3 Renewal of attempted renewal of the term of an IBO contract, including the submission of any related form to Amway; or
  • 6.5.3.4 Attending any meeting/event conducted, promoted, or organised by any IBO or promoted to IBOs or Prospects, no matter in what country such activity occurs; or
  • 6.5.3.5 Attending any Amway meetings including those products by IBOs; or
  • 6.5.3.6 Participating in any activity for or on behalf of another IBOs, whether in his own name or in the name of another person; or
  • 6.5.3.7 Promoting, selling, or profiting from an BSM.

6.6 Two Year Inactivity: An IBO 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 6, may not be sponsored by any IBO who was previously above them in the original Line of Sponsorship up to and including the first IBO qualified at the Platinum or above level, or below them in their former personally sponsored and downline of those sponsored, down to and including the first IBO qualified at the Platinum or above level, unless at least two years of Inactivity have elapsed since the termination of his or her IB.

• 6.6.1 IBOs who transfers to, or who, following six or more months of Inactivity, are 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 IBOs who was previously above him or her in the original Line of Sponsorship up to and including the first IBO qualified at the Platinum or above level, or below them in their former personally sponsored and downline of those sponsored, down to and including the first IBO qualified at the Platinum or above

6.7 The right of an IBO to contest the sponsorship of a former IBO 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.

6.8 For purposes of Rule 6.5 and Rule 6.6 of the Rules of Conduct, the following shall not constitute IBO activity:

• 6.8.1 Procuring and/or submitting a written request for transfer; or
• 6.8.2 Directing an inquiry to Amway as to the status of his/her former Amway Business; or
• 6.8.3 Accept payments pursuant to the Amway “Return Rule” (3.6.1).
• 6.8.4 Become and be a customer.

6.9 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 IBO’s IB, 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.

6.10 Waiver of Inactivity: Amway, at its direction, may waive the required Inactivity period requirement in Rule 6.5 and 6.6 if in its opinion the former IBO’s Sponsor or any IBO upline from such Sponsor has caused or contributed to the resignation or failure to renew by failing to meet all or any of the responsibilities of a Sponsor set out in these Rules, or by breaching any other of these Rules, or any injustice would otherwise be imposed upon the IBO by enforcement of the Inactivity requirement.

6.11 Sale of an Amway Business: The sale of an Amway Business is subject to Amway’s express written consent. An IBO selling his Amway Business shall state the minimum acceptable conditions of sale, including price, in writing, and shall offer the Amway Business for sale at the same conditions to IBOs in the order of priority set forth in Rules 6.11.1 – 6.11.5 of the Rules of Conduct.

All eligible IBOs in a given priority shall be given the opportunity to submit proposals to the selling IBO to purchase the Amway Business once the time period for higher priority IBO to submit proposals has passed and a proposal has not been accepted by the selling IBO.

• 6.11.1 First Priority: The selling IBO’s International Sponsor, (if any).
• 6.11.2 Second Priority: The selling IBOs foster sponsor (if any) or personal sponsor,
• 6.11.3 Third Priority: The selling IBOs personally sponsored IBOs (if any)
• 6.11.4 Fourth Priority: Upline Platinum IBOs up to the next qualified Diamond IBO and Downline Platinum IBOs down to the next qualified Diamond IBO (if any)
• 6.11.5 Fifth Priority: Any IBO in good standing.
• 6.11.6 Purchasing IBOs: 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 finally executed copy of the sales agreement is provided to Amway for its records.
• 6.11.6.1 If the IBO wishes to sell his or her IB under terms and conditions different from those the first offer, the IB must be once again offered for sale under the revised terms and conditions in accordance with the order of priority indicated above.
• 6.11.6.2 All purchasing IBOs must be in Good Standing with Amway as determined by Amway and 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:
• a) Possess sufficient expertise in the business so as to demonstrate a complete and accurate understanding of the Amway Core Plan and the Amway Business Opportunity;
• b) Possess a complete and accurate understanding of the Rules of Conduct and demonstrate a willingness to abide by them;
• c) Possess adequate resources to operate the seller’s IB and to provide necessary training and support;
• d) Possess an understanding of any relevant market factors that may impact the operation of the seller’s IB; and
• e) Is not currently engaged in any dispute or possess any conflict which may impact their ability to operate the seller’s IB
• 6.11.7 Monthly Performance Bonuses/Rebates accruing to the business after the date of sale will be paid to the new owners. Annual Bonuses/Rebates (such as Emerald and Diamond Bonuses/Rebates) shall be paid as specified in the Sales Agreement as authorised 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.

6.12 Mergers and Combinations of IBs: IBs shall not be merged or combined without the prior written approval of Amway which may be given or withheld in Amway’s discretion. Any approval by Amway may be subject to such conditions and provisions as Amway may determine. Under no circumstances will Amway approve a merger which results in an IB attaining a higher award level.

6.13 One Amway Business Rule: An IBO may own, have an interest in, be a signatory on or be listed as a designee on only one IB, except as provided in Rules 6.13.1 – 6.13.4 below. Only under the following circumstances may an IBO have ownership interest in more than one IB:

• 6.13.1 Where two IBOs marry or enter into a long-term relationship pursuant to Rule 3.2;
• 6.13.2 Where an existing IB purchases another IB pursuant to Rule 6.11
• 6.13.3 Where an IBO (transferor), in order to facilitate the transfer of his or her IB in the event of his or her death, requests to assign the IB to another existing IBO pursuant to Section 10; or
• 6.13.4 Where an existing IBO inherits an IB pursuant to Section 10. In the event that an IBO owns or has an ownership interest in two or more IBs pursuant to this Rule, Amway shall continue to recognise such IBs as separate IBs and will only recognise them as separate, individual IBs for all purposes including, for award and Bonus/Rebate purposes.

6.14 Integration Rule: An IBO who is a parent may integrate his/her IB with his/her child’s or children’s IB provided the following conditions are met:

• 6.14.1 The child(ren) must be personally sponsored by the parent; or the parent must be personally sponsored by the child(ren)
• 6.14.2 The parent’s IB and the child’s (children’s) IB must have operated as separate IBs for not less than two (2) years by the date of integration;
• 6.14.3 The parent and the child(ren) shall have achieved the level of at least Platinum IBO as of the Implementation Date;
• 6.14.4 Upon integration, the parents and child(ren) agree to relinquish all rights to awards and reward level personally achieved in their own IBs; and
• 6.14.5 In the event that the parent(s) or the child(ren) are deceased or are not mentally or physically capable of running the IB before conditions 6.14.2 and
• 6.14.6 Above have occurred, the child(ren) or parent(s) inheriting the IB shall have the right to integrate the separate IBs in accordance with this Rule;
• 6.14.7 Upon Amway’s granting the request for integration, implementation shall be as follows: :
  • a) The Implementation Date shall be the next September 1
  • b) At the Implementation Date, the child(ren) and parents are eligible for all awards and recognition to their separate businesses earned during the previous fiscal year.
  • c) All awards and recognitions, based on the combined business, shall begin accruing at the Implementation Date. Thus, any higher awards based on the combined businesses will be awarded upon completion of qualification after the Implementation Date.

6.15 Partner dispute or disagreement: In the event that an IBO is a partnership, and the partners have a dispute or disagreement (matrimonial or otherwise) such that in Amway’s opinion the IB is not being properly conducted, then:

• 6.15.1 The IB may, with the prior approval of Amway be operated during the period of the dispute or such other period as Amway may approve or specify, by one of the partners or by a manager appointed by the partners for the purpose; Amway’s approval may be granted or withheld in Amway’s discretion. Amway’s approval may be subject to conditions, including, without limiting the generality of the foregoing, a condition that, within a period specified by Amway, the IB or one of the partners share all be sold or assigned.
• 6.15.2 TIf within 14 days after the dispute comes to Amway’s notice the partners cannot agree on a partner or on a manager to operate the IB during such period then Amway may either terminate the IB or appoint a manager on such terms and conditions as Amway considers appropriate to operate the IB. Without limiting Amway’s discretion in respect of the terms and conditions upon which a manager may be so appointed, the manager shall, if Amway considers it appropriate, be entitled to all, or such part as Amway specifies, of the Bonuses/Rebates and privileges accruing in respect of the IB during the period of management.
• 6.15.3 During such period:
  • a) neither of the partners may operate or participate in the operation of any other Amway IBs; and
  • b) to the extent directed by Amway, the partners or the partner specified by Amway, shall not attend any Amway function.
  • 6.15.3.1 IBOs qualified at Platinum or above level, ., may divide their IB so that one of the IBOs is registering a new IB, being inserted as sponsor of the other IBO keeping the original IB. In such a case, all group leaders will remain registered in the business group of the existing IB.
  • a) The respective request needs to be submitted to Amway for review and approval together with the written consent from the first IBO qualified at Platinum level and the first qualified Emerald. Amway may notify the first qualified Upline Diamond and allow 15 days for comment.
  • b) Non‐Group Leaders may be transferred to the new business from the original business in compliance with Rules 6.3 and 6.4 of the Rules of Conduct.

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

6.17 Dissolution of a Legal Entity Operating an IB: Absent the express written agreement of Amway to the contrary, prior to dissolution of a legal entity that is a signatory to an IBO Contract, the IBO Contract may be assigned to the authorised representative of the legal entity who signed the IBO Contract originally on behalf of the company, or the IB may be sold in accordance with Rule 6.11 of the Rules of Conduct. The failure to either assign the IBO Contract to the authorised representative or to sell the IB in accordance with Rule 6.11 of the Rules of Conduct shall result in abandonment of the IB in accordance with Section 13 of the Rules of Conduct.

7a.1 Supply/sale of BSMs: IBOs may only sell or supply BSM if the BSM has been authorised by Amway under either:

• 7a.1.1 Amway’s Accreditation Plus program; or
• 7a.1.2 These Rules.

7a.2 Compliance of BSMs: Subject to Rules 7a.3 and 7a.15, BSM used, promoted, distributed, offered for sale or sold by or to IBOs or used, promoted or distributed by or to Prospects must:

• 7a.2.1 Comply with all Quality Assurance Standards and the Digital Communication Standards, to the extent that they are capable of applying to IBOs who promote and/or supply BSM and who are not Approved Providers, as if references in the Quality Assurance Standards to Approved Providers included references to IBOs, and with any Rules of Conduct relating to their content, use, promotion and/or sale;
• 7a.2.2 Be submitted to Amway for review;
• 7a.2.3 Be authorised by Amway in writing; and
• 7a.2.4 If required by Amway for the category of BSM, bear the authorisation number provided by Amway.

7a.3 Use of an Approved Provider’s BSMs: IBOs who sell, promote, or distribute an Approved Provider’s Amway-authorised BSM require no further written authorisation from Amway of that Approved Provider’s BSM, but the IBOs must still comply with all the requirements of these Rules in respect of the use, promotion, distribution offering for sale and sale of that, or any other, BSM.

7a.4 Use of authorised BSMs: IBOs who have received authorisation from Amway to use specific BSM in accordance with these Rules of Conduct shall place on all authorised BSM the prominent statement ‘Content Reviewed’ or another prominent substantially equivalent statement specified or approved by Amway in writing. The Amway authorisation number will also be displayed with the statement.

7a.5 Validity of authorisation: Authorisations by Amway of BSM under these Rules will be valid for a period of two (2) years or such other period as may be specified in the Amway authorisation, or until a revision to the material is completed, whichever comes first.

7a.6 Requirements of when BSMs can be offered, supplied or used: BSM may be offered and/or supplied to and/ or used with IBOs and, subject to Rule 7a.15, Prospects only in accordance with the following:

• 7a.6.1 Must be authorised: IBOs shall not use or distribute any BSM which has not been authorised by Amway in writing, or the authorisation of which is not current.
• 7a.6.2 Comply with Rules, Quality Assurance Standards, the Digital Communication Standards and Intellectual Property laws: The content of BSM must comply with the Rules of Conduct, the Quality Assurance Standards and the Digital Communication Standards, and may not infringe in any way on Amway’s copyrights, trademarks or other intellectual property rights.
• 7a.6.3 Amway copyright materials: Subject to any authorisation by Amway as required by Rules 7a.1 and 7a.2, IBOs may incorporate into their newsletters or written presentations or audio or video recordings full and exact reproductions of materials set forth in Amway-produced literature, Amway catalogues or magazines or Amway product labels. Any reproduction of Amway printed material must bear the notation “Copyright of Amway of Australia” or “Copyright of Amway of New Zealand”.
• 7a.6.4 IBO-only BSMs: Any BSM authorised by Amway for use only with IBOs must never be provided directly or indirectly to Prospects, and must bear the statement “For existing IBOs” or its substantial equivalent.
• 7a.6.5 BSM deceptively similar to Amway materials: Subject to the right to reproduce materials set forth in Amway-produced literature, Amway catalogues or magazines or Amway product labels conferred by Rule 7a.6.3, no IBO may produce, sell and/or distribute any BSM that are deceptively similar or substantially identical to literature or material published and distributed by Amway to its IBOs or which could create the impression in a reasonable mind that such literature or material emanated from Amway or that its publication or distribution was authorised by Amway.
• 7a.6.6 Inappropriate BSM content: BSM shall avoid express or implied discriminatory or offensive references to political, sexual, religious or racial matters.
• 7a.6.7 BSMs not endorsed by Amway: If Amway determines that the content of BSM are inconsistent with the Rules of Conduct, the Quality Assurance Standards, the Digital Communication Standards or the goals and purposes of the Amway Core Plan, Amway may require that such BSM be modified or that the IBO take other action considered appropriate by Amway. IBOs acknowledge and agree that Amway nevertheless does not endorse the representations made in any BSM, and that Amway’s review is solely for the determination of BSM’s compliance with the Rules of Conduct, the Quality Assurance Standards, the Digital Communication Standards and Amway’s business practices and policies.
• 7a.6.8 Arrangement for sale/purchase of BSM: IBOs may sell and purchase BSM through methods that require an affirmative request for each purchase or under an automatic repeat order or similar arrangements (i.e. arrangements that do not require an affirmative request for each future purchase).
• 7a.6.9 Automatic repeat order of BSMs: IBOs who agree to make future purchases of BSM under an automatic repeat order program or similar arrangements must have the right to cancel or change their order at any time by notice in writing to the selling IBO.
• 7a.6.10 Automatic repeat order of BSMs statement: IBOs who sell BSM under automatic repeat order arrangements shall include a prominent statement in the following wording, or in substantially equivalent wording specified or approved by Amway in writing, on the standard order form: “We have a continued interest in you and your Amway Business. This special message is to help you evaluate expenses which relate to Business Support Materials available to you. Your expenditures on these items should be reasonable compared to your business volume and profits. You should review your business expenses and decide whether you wish to continue purchasing BSM. The use of BSM in connection with your Amway Business is voluntary and must always be in compliance with the Amway Rules of Conduct. If you wish to discontinue receiving future tapes, books, CDs, DVDs, tickets and other materials please advise us in writing.”
• 7a.6.11 No guarantee of success from using BSMs: IBOs who sell or otherwise supply or offer to sell or supply BSM shall not say, suggest or imply that the use of any such materials will guarantee success or that Amway requires the use of any such materials. BSM and the packaging of BSM shall contain a prominent statement in the following wording, or in substantially equivalent wording specified or approved in writing by Amway:
• “While the techniques and approaches suggested here have worked for others, no one can guarantee that these techniques and approaches will work for you. We hope, however, that the ideas presented here will assist you in developing a strong and profitable business. These materials have been published independently of Amway”. The same message shall also appear in the audio portion of any audio tape, CD, DVD, downloadable media or other BSM or be communicated through a substantially equivalent means.
• 7a.6.12 Event ticket refund statement: Tickets to BSM seminars and rallies shall contain:
  • a) A prominent statement which is the same as the statement in 7a.6.10 or a substantially equivalent statement specified or approved by Amway in writing; and
  • b) A prominent statement in the following wording, or in substantially equivalent wording specified or approved by Amway in writing: “The purchase of this ticket is optional and refundable up to 30 days prior to the event”
• 7a.6.13 No content guaranteeing success: IBOs shall not use, distribute or supply BSM which suggest, imply, promise or guarantee, either directly or indirectly, that any specific level or amount of sales, income, profit or earnings may be derived from the Amway Business, or from selling any specific line or lines of Amway or Amway-distributed products or services.
• 7a.6.14 Date BSM published/recorded: All BSM must display the dates they were first published or recorded, and the name of the publisher/producer.
• 7a.6.15 Requirements to promote, sell or distribute BSMs: IBOs who promote, sell or distribute BSM or offer BSM for sale must:
  • a) Ensure that such BSM are not sold or offered for sale in conjunction with the IBO’s application for authorisation as an IBO or the IBO’s registration as an IBO;
  • b) Provide purchasers of such BSM with any disclosures or other information that may be required by Amway from time to time;
  • c) In such BSM and their packaging, and in the promotion of such BSM, clearly and prominently state that the purchase of BSM is optional, and is strictly voluntary;
  • d) Never require another IBO to purchase any BSM, or imply or suggest that the purchase of BSM is necessary for success or full or significant success as an IBO; and
  • e) Advise the purchaser about refund policies that apply to such BSM in accordance with Rule 7a.7.

7a.7 BSM returns and refunds: Amway’s Satisfaction Guarantee and Buy-Back Rule do not apply to materials not sold by Amway. BSM may only be sold subject to the right of the purchaser to return such BSM for a refund in accordance with the following:

• 7a.7.1 The terms of the refund policy, including terms regarding procedures for the resolution of disputes and the responsible person for returns, must be clearly communicated to the purchaser in writing prior to any sale. In addition to any other person designated to handle returns, the selling IBO and (if the IBO had acquired the BSM from an Approved Provider) the Approved Provider shall be responsible for handling returns, and the selling IBO together with the selling IBO’s upline Platinum IBO or above shall be responsible for handling returns of all other BSM.
• 7a.7.2 During the first 90 days following an IBO’s registration as an IBO, the IBO may return all BSM of any form purchased, including meeting tickets, for a 100% refund of the price paid for such BSM. Proof of the date of the IBO’s application for authorisation as an IBO and proof of purchase must be provided by the IBO. Such BSM includes but is not limited to: partial or opened packs of BSM; used BSM; out of date BSM; standing order, subscriptions, or any other recurring order type program; and function tickets.
• 7a.7.3 An IBO end-user of BSM may return BSM purchased, within 180 days following purchase, for a refund on commercially reasonable terms. Proof of purchase must be provided by the IBO.
• 7a.7.4 In addition to the purchaser’s rights referred to in Rules 7a.7.2 and 7a.7.3, each IBO who chooses to sell tickets to seminars, events, and other business meetings is obliged to refund a portion of the purchase price of tickets purchased for the purchaser’s personal use, for a period of 30 days after the event, provided the dissatisfied purchaser personally attended the event. Such refund shall be for that portion of the cost of the event related to admission to the event, exclusive of the cost of travel, meals, or hotel accommodations.
• 7a.7.5 BSM offered in the form of website subscriptions and downloadable media are subject to the following requirements, in addition to Rules 7a.7.1 to 7a.7.3:
  • a) Purchasers cancelling website subscriptions must be entitled to a refund for unused, whole months of any prepaid subscription(s).
  • b) Purchasers of downloadable media must be entitled, if dissatisfied, to obtain a replacement download of equal value within 30 days of the purchase of the subject downloadable media.

7a.8 Refunds for BSMs: All refunds for BSM required by these Rules shall be effected within 30 days of the receipt of a written request for a refund.

7a.9 Amway employee presentations No IBO may record a presentation by an employee of Amway without the prior specific written consent of Amway, which consent may be granted or refused in the absolute discretion of Amway. An IBO may make a single recording of the talks or presentation made by a person who is not an employee of Amway at any Amway corporate meeting, provided the recording is for their personal use and is not reproduced or exhibited in public or communicated to the public or any section of the public for any purpose.

7a.10 Quantity and cost of BSMs: An IBO who purchases, promotes, distributes, or offers BSM for sale shall use reasonable efforts to determine that the quantity and cost of BSM are reasonably related to sales volume and profits of the purchaser’s IB.

7a.11 Only Approved Providers can provide BSM compensation: IBOs who promote or distribute BSM which has not been acquired directly or indirectly from an Approved Provider, to other IBOs, may not compensate or remunerate other IBOs in connection with such promotion or distribution.

7a.12 IBOs who wish to earn an income from BSM sales: IBOs who wish to sell, promote or earn income from the sale of BSM which has been acquired directly or indirectly from an Approved Provider must have a written contract with or other binding authorisation from that Approved Provider in accordance with the Approved Provider’s Accreditation Plus Approved Provider Agreement with Amway, obligating the IBO to comply with all applicable laws and regulations relating to such activity, and with the Quality Assurance Standards and other rules and policies of Amway in connection with such activities.

7a.13 IBO events: IBOs may organise seminars, events, or business meetings for IBOs provided that they are consistent with their training obligations as Sponsors or Platinums.

7a.14 Non-Approved Provider use of BSMs: IBOs selling, promoting, or distributing BSM which has not been acquired directly or indirectly from an Approved Provider, must obtain appropriate written authorisation from Amway in accordance with Section 9 in order to use any trademarks, copyright material, confidential information or other intellectual property of Amway in connection with such BSM.

7a.15 Use of BSM with Prospects: BSM may be used with Prospects only in accordance with the following

• 7a.15.1 BSM must not be sold or offered for sale to Prospects; it may only be distributed to Prospects without charge;
• 7a.15.2 The BSM must not have been authorised by Amway for use only with IBOs;
• 7a.15.3 IBOs must not say, suggest, or imply to Prospects that any BSM have been authorised for use with Prospects, without the prior written authorisation of Amway in respect of specified BSM;
• 7a.15.4 The BSM must comply with all other applicable provisions of these Rules and the Quality Assurance Standards; and
• 7a.15.5 IBOs must in connection with the supply of BSM to Prospects, comply with all other applicable provisions of these Rules and the Quality Assurance Standards.

7a.16 Compliance with laws: IBOs must comply with all applicable laws regarding the content, production, distribution, sale and/or use of BSM.

7a.17 Qualitative surveys: IBOs who purchase or supply BSM acquired directly or indirectly from Approved Providers will, if required by Amway, participate in qualitative surveys intended to measure the IBO’s satisfaction with the BSM supplied by the Approved Providers, and the quality of the BSM training experience.

7a.18 Amway’s Confidential Information: Unless otherwise specified in writing by Amway at the time of disclosure to IBO, IBOs acknowledge that nothing in this Rule, or in any other Rule, shall be construed or interpreted as a license or other permission to incorporate any LOS Information or other Confidential Information of Amway into any BSM.

7a.19 Meeting content: The content of live seminars, events, business meetings, or other similar BSM must comply with the Quality Assurance Standards, however such BSM do not require authorisation from Amway unless and until the content is reduced to a fixed media (such as in print, audio, or video) for use with IBOs or Prospects.

7b.1 BSM may be used with prospects (persons who are not IBOs) only in accordance with the following:

• 7b.1.1 IBOs shall not use with prospects or, sell or distribute to prospects, or say, suggest, or imply to prospects that any BSM have been authorised for use with prospects without the prior written authorisation of Amway. All BSM shall display the dates they were published or recorded, and the name of the publisher/producer;
• 7b.1.2 IBOs shall not use with prospects or distribute to prospects, BSM which suggest, imply, promise or guarantee, either directly or indirectly, that any specific level or amount of sales, income, profit or earnings may be derived from the Amway Business, or from selling any specific line or lines of Amway Products or Amway distributed products or services;
• 7b.1.3 IBOs who have received authorisation to use BSM by Amway in accordance with these Rules of Conduct the Quality Assurance Standards, and the Digital Communication Standards shall place on BSM the following statement of ‘Content Reviewed’ or such other substantially equivalent statement. The authorisation number will also be displayed with the statement;
• 7b.1.4 Authorisations for use will be considered valid for a period of 2 years, or until a revision to the material is completed, whichever comes first;
• 7b.1.5 The provisions of Rule 7b.2 also apply to BSM covered by Rule 7b.1:

7b.2 BSM may be used with IBOs only in accordance with the following:

• 7b.2.1 IBOs shall not use or distribute any BSM which contain any presentation, explanation, or illustration of the Amway Core Plan, or any part thereof unless expressly authorised by Amway as provided herein;
• 7b.2.2 The content of BSM must comply with the Rules of Conduct, the Quality Assurance Standards, and the Digital Communication Standards and may not infringe in any way on Amway’s copyrights, trademarks or other intellectual property rights;
• 7b.2.3 BSM relating to the use, characteristics of and/or performance of Amway Products, or Amway-distributed, products or services shall not be produced, sold or distributed by IBOs unless expressly authorised by Amway. IBOs may incorporate into their newsletters or include in their records or written presentations full and exact reproductions of materials set forth in Amway produced literature, Amway catalogues or magazines or Amway product labels. Any reproduction of Amway printed material will bear the notation ‘Copyright of Amway of New Zealand’ or “Copyright of Amway of Australia;
• 7b.2.4 IBOs may produce general BSM dealing with general subjects of ‘how to nature’ including ‘how to sell products’, ‘how to market services’, ‘how to conduct training meetings’, ‘how to manage inventory’, ‘how to motivate people’ and ‘motivational success stories etc. However, BSM dealing with ‘how to show the Amway Core Plan’ must be expressly authorised by Amway;
• 7b.2.5 Any training material receiving an express, written authorisation for use in this context, must bear the statement or its substantial equivalent, ‘For existing IBOs only’. The authorisation number must also be displayed;
• 7b.2.6 Authorisations for use will be considered valid for a period of 2 years, or until a revision to the material is completed; whichever comes first;
• 7b.2.7 No IBO may produce, sell and/or distribute any BSM that are deceptively similar or substantially identical to literature or material published and distributed by Amway or its IBOs or which could create the impression in a reasonable mind that such literature or material emanated from Amway or that its publication or distribution was authorised by Amway; and
• 7b.2.8 BSM shall avoid, either express or implied, discriminatory or offensive references to political, sexual, religious or racial matters;
• 7b.2.9 Amway may require the submission for review of BSM intended for use with pre-existing IBOs periodically or in the event an investigation resulting from a complaint determines that the content of such BSM are inconsistent with the Rules of Conduct or the goals and purposes of the Amway Core Plan. As a result of such review, Amway may require that such BSM be modified, require that all BSM be submitted for review, or that the IBO take such other appropriate action.
• 7b.2.9 Amway may require the submission for review of BSM intended for use with pre-existing IBOs periodically or in the event an investigation resulting from a complaint determines that the content of such BSM are inconsistent with the Rules of Conduct or the goals and purposes of the Amway Core Plan. As a result of such review, Amway may require that such BSM be modified, require that all BSM be submitted for review, or that the IBO take such other appropriate action.
  • a) IBOs may sell, and both IBOs may purchase BSM through methods that require an affirmative request for each purchase or through standing order or similar arrangements (i.e. arrangements that do not require the affirmative request for each future purchase);
  • b) IBOs who agree to make future purchases of BSM through standing order or similar arrangements shall have the right to cancel or change their order at any time by notice in writing to the selling IBO;
  • c) IBOs who sell BSM under standing order arrangements shall include a statement in the same or substantially equivalent language on the standard order form. “We have a continued interest in you and your Amway Business. This special message is to help you evaluate expenses which relate to BSM available to you. Your expenditures on these items should be reasonable compared to your business volume and profits. You should review your business expenses and decide whether you wish to continue purchasing future BSM. The use of BSM in connection with your Amway Business is voluntary and must always be in compliance with the Amway Rules of Conduct. If you wish to discontinue receiving future tapes/books/ tickets, etc., please advise us in writing”;
  • d) IBOs who choose to sell BSM shall not say, suggest or imply that the use of any such materials will guarantee success or that Amway requires the use of any such materials. BSM shall contain a statement in the same or substantially equivalent language: “While the techniques and approaches suggested have worked for others, no one can guarantee that these techniques and approaches will work for you. We hope, however, that the ideas presented here will assist you in developing a strong and profitable business. These materials have been published independently of Amway.” The same message shall also appear in the audio portion of any audio tape, BSM or be communicated through a substantially equivalent means; and
  • e) The Amway Satisfaction guarantee and Buy Back Policy do not apply to BSM not sold and produced by Amway. Subject to Rule 7b.3.2, upon request, an IBO who sells BSM must buy them back from the original purchaser on commercially reasonable terms for a period of 90 days after the sale thereof. The purchaser must, upon request, provide proof of purchase if buy back of BSM is demanded. The terms of the refund policy adopted by an IBO selling BSM, including terms regarding procedures for the resolution of disputes and the responsible person for returns, must be clearly communicated to the purchaser prior to any such sale. In the event such terms do not include the responsible person for returns, the seller and the purchaser’s Platinum IBO shall be responsible for handling returns. Selling IBOs shall ensure that the terms and conditions of any refund policy adopted comply with all applicable laws.

7b.3 Business support offered in the form of major seminars, rallies and other meetings conducted by IBOs shall adhere to the following procedures:

• 7b.3.1 Tickets to major seminars and rallies shall contain the same or substantially equivalent, statement as in 7b.2.10(d) above;
• 7b.3.2 Each IBO who chooses to sell tickets to major seminars and rallies is obliged for a period of up to 30 days prior to the date of the event to refund tickets purchased for the purchaser’s personal use to the extent of that portion of the ticket price related to admission to the meeting. The terms of the refund policy as adopted by an IBO selling such tickets shall conform with 7b.2.10(e); and
• 7b.3.3 Tickets to major seminars and rallies shall contain the following statement in the same, or substantially equivalent language: “The purchase of this ticket is optional and refundable up to 30 days prior to the event”.

7b.4 Refunds for BSM made according to these Rules shall be effected within 30 days of receipt of a written request for a refund.

8.1 Invitations and Presentations: When inviting a prospect to a presentation of the Amway Core Plan, an IBO must not give any false impression or otherwise misrepresent the Amway Business Opportunity of the nature of the invitation and presentation.

8.2 First Business Contact With Prospects: It is a breach of the Rules of Conduct and Amway Business Policies for an IBO to mislead or fail to inform a Prospect the nature of the IBO activities and, therefore, at the first business contact with Prospects, an IBO must:

• 8.2.1 Introduce himself/herself by name;
• 8.2.2 Make himself/herself known as an Amway IBO;
• 8.2.3 Appropriately identify Amway and the IBO’s relationship to Amway;
• 8.2.4 Indicate the purpose of contact, namely the sale of Amway Products and/or the introduction of the Prospect to the Amway Business Opportunity; and
• 8.2.5 Truthfully and honestly respond with full transparency and candour to any questions that the Prospect has concerning the Amway Business Opportunity, Amway Products, the IBO or Amway.

8.3 Sponsorship Guidelines: No IBO shall conduct any activity, make any statement or shall fail to make any statement in the furtherance of or in connection with an Amway Business or the Amway Business Opportunity, which, given the context and the circumstance, is not truthful and accurate or may be misleading.

Amway Trademarks and Copyrighted Works are important and valuable business assets of Amway. The Marks help identify the source and reputation of the Amway products and services worldwide and distinguish them from those of competitors. Amway makes commercially reasonable efforts to protect the Marks from improper use, including through the Rules of Conduct, Amway Business Policies and Standards

9.1 Misuse and Misappropriation: IBOs may use the Amway Trademarks and Copyrighted Works only with prior written permission by Amway and subject to any conditions attached to such. This permission may be expressed through general publication (to all IBOs) or through a specific writing to one or more IBOs. Without limitation, Amway may require conformity with specifications, may require that materials that Use Amway’s Marks and/or Copyrighted Works be sourced from Amway or an Amway-approved supplier, and may otherwise condition Use of its Marks and Copyrighted Works. Any permission granted by Amway shall constitute a limited, non-exclusive, nontransferable and revocable license to Use such Marks and Copyrighted Works solely in connection with the Amway business in the Region.

• 9.1.1 Each IBO acknowledges and agrees that Amway or Alticor Inc. is the exclusive owner or licensee of certain trademarks including 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 services, and the various designs or labels.
• 9.1.2 IBOs 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 or Alticor Inc. 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.

9.2 Business Cards: Provided that an IBO is otherwise in full compliance with the Rules of Conduct and all other provisions of the IBO Contract, an IBO may use the Amway and selected Amway Brand Business Card templates available from Amway. These may only be used in the design they are supplied and no changes other that the addition of personal contact details may be added.

• 9.2.1 Should an IBO choose; they may print a double sided business card featuring only options from the templates supplied.

10.1 Death and Inheritance: Upon the death of an IBO, the IBO’s interest in the IB 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 IB pursuant to these Rules. The original IBO must make proper arrangements during their lifetime for the orderly and legal transfers of ownership of their IB to their heirs in accordance with Amway’s succession planning documents. This is to ensure that downline IBOs will continue to receive proper service, training, and motivation. In the event that the heirs do not take steps to take over the IB, the IB may be deemed abandoned in accordance with Rule 13.1.

• 10.1.1 During a period of transition, Amway can appoint a manager on such terms and conditions as Amway considers appropriate, to operate the IBO until such time as the IB is assigned or otherwise dealt with pursuant to Section 10 or terminated by Amway pursuant to these Rules.
• 10.1.2 The Executor or Administrator of the Estate of the deceased IBO shall within 30 days after the grant of probate or letters of administration:
• a) Assign or transmit the IB pursuant to Section 6 of these Rules;
• b) If the Executor or Administrator is or becomes an IBO, carry on the business of the deceased IBO’s IB; or
• c) Appoint a manager for such period and on terms and conditions as Amway considers appropriate, to operate the IB, provided the manager is or becomes an IBO before commencing to operate the IB. Without limiting the breadth of Amway’s discretion as to the terms and conditions which may be specified pursuant to Rules 10.1.1 and 10.1.2, the manager shall, if Amway considers it appropriate, be entitled to all, or such part as Amway specifies, of the Bonuses/Rebates and privileges accruing in respect of the IB during the period of management.

10.2 Death of one partner: In the event that an IBO comprises two natural persons in partnership and one of the partners dies, then:

• 10.2.1 The surviving IBO will be deemed to be the manager and sole owner of the IB, until such time as the IB is assigned or otherwise dealt with pursuant to the Rules of Conduct.
• 10.2.2 Within 30 days after the grant of probate or letters of administration:
  • a) The surviving partner shall acquire (whether by way or sale, transmission by will or operation of a partnership agreement) the interest of the deceased IBO in the IB;
  • b)The Executor or Administrator of the Estate of the deceased IBO shall assign or transmit the deceased IBO’s interest in the IB to another IBO who shall carry on the IB in partnership with the surviving IBO;
  • c) The IB shall be assigned or transmitted pursuant to Section 6 of these Rules; or
  • d) The Executor or Administrator of the Estate of the deceased IBO and the surviving IBO shall appoint a manger for such period and on such terms and conditions are specified or approved by Amway, to operate the IB, provided the manager is or becomes an IBO before commencing to operate the IB. Without limiting Amway’s discretion as to such terms and conditions which may be specified, the manager shall, if Amway considers it appropriate, be entitled to all or such part as Amway specifies, of the bonuses/rebates and privileges accruing in respect of the IB during the period of management.

10.3 Protected Person: In the event that an IBO becomes a protected person within the meaning of that term in the Protected Estates Act 1983 (NSW) or other relevant legislation, or a person in respect of whom an order or direction is in force that his/her estate be subject to management under similar Country, State or Territory legislation which makes provision with respect to the management of the property and affairs of persons who are incapable of managing their own affairs by reason of mental or other condition, then:

• 10.3.1 Amway may appoint a manager on such terms and conditions as Amway considers appropriate, to operate the IB until such time as the IB is assigned or otherwise dealt with pursuant to Rule 10.3.2 or terminated by Amway;
• 10.3.2 The Protective Commissioner (or manager/trustee of the Estate of the incapable IBO) may, if they have the power to do so under relevant legislation, within 30 days after the order or direction in question:
  • a) Assign the IB pursuant to Rule 6; or
  • b) If the manager/trustee is or becomes an IBO, carry on the business of the incapable IBO. Without limiting Amway’s discretion as to such terms and conditions which may be specified pursuant to Rule 10.3.1, the manager shall, if Amway considers it appropriate, be entitled to all or such part as Amway specifies, of the bonuses/rebates and privileges accruing in respect of the IB during the period of management.

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 IBO at issue. Amway may undertake this investigation on its own initiative or when requested by another IBO who has submitted a written complaint to Amway as provided in Rule 11.1.2.
• 11.1.2 Complaints by IBO: An IBO who believes that another IBO 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. A copy of this notification may be provided either by the IBO or Amway to the IBO’s Upline Platinum.
• 11.1.2.1 Amway will do initial investigates of the complaint to determine if there is substance to the complaint and if further investigations are required.
• 11.1.2.3 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.
• 11.1.2.4 Amway will decide whether there has been a violation of the Amway Business Policies or other breach of the IBO Contract based on the facts available and will take appropriate action in accordance with Section 12 of the Rules of Conduct.
• 11.1.3 Notification of Action:
• 11.1.3.1 Amway will forward a decision letter to the violating IBO. 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 IBO to comply.
• 11.1.3.2 Any notice shall:
  • a) Be mailed, e-mailed, or faxed or sent by registered mail or other confirmable method allowable by law to the address or fax that Amway has on record for the IBO. Claim of failure of an IBO to receive a notice shall not delay the action by Amway;
  • b) If applicable, state the Section(s) of the Rules of Conduct or other provisions of the IBO Contract violated or breached by the IBO;
  • c) If applicable, state the date of which any such action shall become effective; and
  • d) If applicable, advise the IBO of his/her opportunity to seek Review of Amway’s decision through dispute resolution in accordance with Section 14 of these Rules. An IBO will have 28 days to lodge a review under Section 14.

  11.2 Dispute Resolution: If an IBO does not agree with the actions taken by Amway, then the IBO may request the decision be reviewed in line with the dispute resolution mechanisms outlined in Section 14.

  11.3 Waiver of Claims: An IBO waives any and all claims against Amway arising out of or in respect to any action that Amway takes under the IB and/or this Rule. An IBO who is terminated, de-sponsored 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 action taken.

12.1 Sanctions: In the event that Amway, at its sole discretion, determines that there has been a breach of the Rules of Conduct or the Amway Business Policies by an IBO, Amway may take one or more of the following actions to ensure the breach is remedied, that any damages arising from the breach are recouped and to reduce the likelihood of the breach or other breachers recurring:

12.2 Non-Compliance

• 12.2.1 Termination: Terminate the IB by providing the IBO with a written notice of termination by suitable means as allowed by law;
• 12.2.1.1 Effect of termination: Upon termination of an IB for any cause whatsoever, the IBO shall:
  • a. Return in good condition to Amway, all Amway Products, subject to Amway refunding the IBO price paid less any handling and freight charges as specified;
  • b. Cease the use of any and all trademarks, trade names, insignia or other intellectual property used in or related to the Amway Business; and
  • c. Cease to identify or hold himself/herself out as an IBO;
  • d. Cease to engage in any actions of an IBO as outlined but no limited to actions identified in the Rule 6.4 of the Rules of Conduct
• 12.2.2 Suspension: Suspend the IB by providing the IBO with a written notice of suspension by suitable means as allowed by law;
• 12.2.2.1 Effect of Suspension: Upon Suspension, Amway may take or restrict some or all authorisations of the IBO, including but not limited to;
  • a. Withholding bonus/rebate for payment of higher award monies in escrow pending final resolution of the matter;
  • b. Suspending authorisation to conduct sponsoring activity (sponsoring, recruiting meetings, training sessions, home presentations, etc.);
  • c. Suspending the ability to get any communication from Amway
  • d. Suspend invitations to company-sponsored seminars, trips and events;
  • e. Conduct reorientation and retraining meetings and charge back the expenses to the offending IBOs;
  • f. Require that IBO provide Amway with recordings of their Amway Core Plan presentations; and/or
  • g. Restrict order capability of the IBO for a defined period of time;
• 12.2.2.2 The IBO will be informed on the duration of suspension in the decision letter. The suspension may be imposed until such time as Amway is satisfied that the respective behaviour has been corrected.
• 12.2.3 Warning Letter: Which might include the requirement to provide relevant Rules of Conduct, Business Polies and Standards to the Business group of the Platinum IBO and to all Platinum IBOs in an Emerald or Diamond IBOs organisation.
• 12.2.4 Retraining: Require the IBO to attend (with or without downline) training organised by Amway in order to resolve the breach;
• 12.2.5 De-sponsorship: Remove the IBO from his/her position as a Sponsor in a Line of Sponsorship, and has the ability to sponsor new IBOs removed.
• 12.2.6 Repayment / Withholding of Bonus/Rebate: Require the IBO to pay back if paid, withhold if not paid, any bonus/rebate in order to cure the Breach. Amway reserves the right to retain the discretionary awards and rewards;
• 12.2.7 Revoke / Withhold Qualification: Amway may withhold or remove any qualification and require return of any objects evidencing such qualification (by way of example and not limitation, such as pins, certificates, etc.);
• 12.2.8 Written acknowledgement: he IBO must acknowledge the breach(es) providing undertakings stating they will comply with their contractual obligations. Amway may provide an opportunity to resolve a breach within a specific time period, as determined by Amway. Amway may ask the IBO to sign and send a cease and desist declaration.; and/or
• 12.2.9 Legal Action: Amway may take legal action against an IBO, file a civil or criminal complaint, notify, or file complaints or reports with appropriate authorities or take such other action or exercise any other remedies as may be available and permitted under applicable law.
• 12.2.10 Additional Action: Amway reserves the right to apply the sanctions and any other adequate action, if required in a specific case of a contract violation and also any action short of termination of the IB as may be permissible under applicable law and appropriate in Amway’s sole discretion to address the specific breach(es).

12.3 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 IBO 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.

12.4 Multiple Breaches: It is a breach of the Rules of Conduct or the Amway Business Policies for an IBO to allow any breaches 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.

12.5 No Claim Following Termination: In the event that Amway terminates an IBO’s IB pursuant to these Rules, the IBO will have no claim against Amway arising out of or in respect of the termination.

12.6 Appeal: If an IBO does not agree with the actions taken by Amway, the IBO may appeal a decision in line with the dispute resolution process provided for in Section 14.

13.1 Abandonment: When an IB is terminated, de-sponsored or not renewed, the IB is considered abandoned, and the signatory to the IBO Contract shall have no further rights in the IB. The IB will vest in Amway without any obligation or liability to compensate the IBO. Amway may assign, dispose or dissolve the IB at its sole and absolute 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 IB of any affected IBO to change their Sponsor and the Line of Sponsorship as may be necessary to implement such decision:

• 13.1.1 Sale/Assignment of IB: If Amway elects to sell/assign the right to operate an Amway Business in the former IBO’s position in the Line of Sponsorship, the following will be observed:
  • a) The sale shall be offered in the order of priority imposed by Rule 6.11 above.
  • b) The terms of the sale will be set forth in a written contract executed between Amway and the purchaser.
  • c) The purchasing party shall operate the Amway Business in the position in the Line of Sponsorship held by the previous IBO and it will become their Number 2 Business.
• 13.1.2 Dissolution of IB: If Amway elects to dissolve the IB, the first qualified Sponsor/IBO of the former IBO in the Line of Sponsorship may undertake the obligations of the former IBO and assume the role of Sponsor for all IBOs who had been personally or Internationally Sponsored by the former IBO.

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

14.1 Mediation: Any dispute, controversy or claim arising out of the relationship between Amway and an Approved Provider or an IBO or relating to the contract of which these Rules form a part or breach of these Rules, the termination of an IBO’s IB, the de-sponsorship of an IBO or the placing of an IBO on probation, shall be settled by mediation administered by, in Australia, the Australian Commercial Disputes Centre Limited (ACDC) and in New Zealand, the New Zealand Institute of Chartered Accounts (NZICA), and the following provisions shall apply:

• 14.1.1 The mediation for an Australian dispute shall be conducted at Sydney, Australia and the mediation for a New Zealand dispute shall be conduct in Auckland, New Zealand;
• 14.1.2 The mediator shall be selected by Amway and the IBO from a panel of mediators nominated by ACDC or NZICA, and failing agreement within 14 days as to a mediator, by the Secretary-general for the time being of ACDC or NZICA;
• 14.1.3 Each of the parties shall be entitled to be represented by one duly qualified legal practitioner or other representative in addition to the party himself/herself, or in the case of a corporation an executive of the corporation, whether legally qualified or not.

14.2 Arbitration: In the event that the dispute, controversy or claim is not resolved by mediation within 21 days of the appointment of the mediator (or such longer period as is agreed between Amway and the IBO or an Approved Provider and the IBO) either party may refer the dispute, controversy or claim to arbitration administered in Australia by ACDC or in New Zealand by NZICA and the following provisions shall apply:

• 14.2.1 The arbitration for an Australian dispute shall be conducted at Sydney, Australia and the arbitration for a New Zealand dispute shall be conducted in Auckland, New Zealand;
• 14.2.2 Subject to Rule 14.2.3, the arbitration shall be conducted in accordance with the current Rules for the Conduct of Commercial Arbitrations issued by the Institute of Arbitrators Australia or the current Rules issued by the New Zealand Dispute Resolution Centre;
• 14.2.3 The arbitrator shall be selected by Amway and the IBO from a panel of arbitrators nominated by ACDC or NZICA, and failing agreement within 14 days as to an arbitrator, by the Secretary-General for the time being of ACDC or NZICA. The Arbitrator shall be a person other than the Mediator who has conducted the mediation pursuant to Rule 14.1;
• 14.2.4 The arbitrator shall have the powers of the Court of relevant jurisdiction only;
• 14.2.5 Each of the parties shall be entitled to be represented by one duly qualified legal practitioner or other representative in addition to the party himself/herself or in the case of a corporation, an executive of the corporation, whether legally qualified or not;
• 14.2.6 Examination of witnesses by the parties and by the arbitrator shall be permitted, but compliance with the rules of evidence shall not be required.

14.3 Dispute Resolution costs: The costs of any mediation pursuant to Rule 14.1, or arbitration pursuant to Rule 14.2, shall be borne equally by the IBO and Amway.

14.4 Notice requirements: An IBO proposing to exercise his/her rights under Rule 14.1 shall promptly notify Amway of Australia at its Sydney head office (PO Box 743 Chatswood NSW 2067) and Amway of New Zealand at its Auckland head office (Private Bag 94401, Botany, Auckland, 2163) by post, email within 28 days of receiving notice of Amway’s or an Approved Provider’s determination.

15.1 Governing law: For Australian IBOs, these Rules shall be governed and construed in accordance with the law for the time being and from time to time in force in the State of New South Wales. For New Zealand IBOs, these Rules shall be governed and construed in accordance with the law for the time being and from time to time in force in New Zealand.

15.2 Notices: Any notice, demand or other document under or relating to these Rules shall be sufficiently served if delivered personally or email or prepaid post to Amway of Australia PO Box 743 Chatswood NSW 2067 or to Amway of New Zealand at Private Bag 94401, Botany, Auckland, 2163 and on the IBO at the address specified in his/her most recent IBO Application or at such other address as may from time to time be notified in writing by the IBO 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.

Please note: The following Amway Business Policies and Standards are made as part of these Rules, and IBOs must comply with them. They are available onamway.com.au or amway.co.nz or upon request at Amway:

• Digital Communications
• Core Plan
• Principles of Qualifications
• Good Standing Policy
• International Sponsoring and Multiple Business Policy