Section 7b – New Zealand: Non-Amway Produced Business Support Materials (BSM)

Some IBOs offer for sale to other IBOs in their Personal Group a variety of non-Amway produced sponsoring and merchandising aids or Business Support Materials (BSM). The manner in which BSM may be used with prospective IBOs and existing 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 and business practices and policies. IBOs are responsible for compliance with applicable laws regarding the content, productions, distribution, sale or use of BSM.

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 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 or Members 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 Sales and Marketing 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 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 Sales and Marketing 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 or Members 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 Sales and Marketing 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.2.10 The distribution of BSM to IBOs shall be in accordance with the following procedures:

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 (ie. 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 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 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 any non-Amway BSM. Amway will only honour the satisfaction guarantee with respect to its own materials. Subject to Rule 7b.3.2, upon request, an IBO who sells non Amway 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.2.10.4 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.2.10.5; 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.