Section 7a – Australia: Non-Amway Produced Business Support Materials (BSM)

Amway does not require an IBO to purchase BSM, however some IBOs may decide that BSMs can play a useful role in building a profitable business or achieving goals. Amway has introduced its “Accreditation Plus” program to provide Quality Assurance standards for BSM supplied by accredited third parties known as “Approved Providers”. The manner in which BSM may be used with Prospects and IBOs is detailed in this section. In particular, this section makes it clear that the sale, purchase and use of BSM is entirely optional and voluntary and that the content of BSM must comply with the Rules of Conduct. Amway does not endorse the representations made in any BSM. Amway’s review is solely for the determination of compliance with its Rules of Conduct. The Accreditation Plus program and business practices and policies. IBOs are responsible for compliance with applicable laws regarding the content, production, distribution, sale or use of BSM.

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, 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 and Intellectual Property laws: The content of BSM must comply with the Rules of Conduct and the Quality Assurance 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 or the goals and purposes of the Amway Sales and Marketing 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 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 (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 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 etc] 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.