Section 2 – Definitions

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.

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

Amway Satisfaction Guarantee: The 90 Day 100% Amway Satisfaction Guarantee in respect of Amway Products and Amway-distributed products as explained in Amway catalogues and other official Amway literature.

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

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

Bonus: The monetary rewards that Amway of Australia pays to IBOs in Australia in accordance with the Amway Sales and Marketing Plan. The term Bonus is interchangeable with Rebate when referenced for Australia’s 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, internet 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. Previous known as VIP Client or Clients

Confidential Information: All trade secrets, LOS Information (as defined below), lists, databases or other compilations of persons who were, are or become IBOs, know-how, product formulas and specifications, business planning materials, business development plans, business specifications and data, financial information, projections, forecasts, marketing plans and strategies, records, reports, graphs, drawings, market studies, research and development data, distribution methods and processes, organisational structures, customer lists, supplier information, identity of Amway’s intellectual property, business procedures and techniques, studies, test results, and all other non-public or proprietary business or technical information (all of the foregoing in any form or medium; e.g., tangible, intangible, printed, electronic), owned or used by Amway. Anything marked “Confidential” shall be deemed to constitute Confidential Information, provided however, that LOS Information not marked “Confidential” shall still constitute Confidential Information. However “Confidential Information” does not include any information which is in or comes into the public domain.

Copyright Works: All works and subject matter other than works, in which copyright subsists, that are created by or for Amway and/or are used by Amway in its business.

Diamond Body: Those qualifying Diamond IBOs from time to time.

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^®, Twitter^®, WeChat^®, WhatsApp^® or Snapchat^®.

Digital Communication Standards (“DCS”): The document published by Amway and amended from time to time, containing those terms that IBOs must comply with when engaging in any Digital Communications regarding the Amway Business Opportunity, Amway Products, or Amway services (directly or indirectly). The DCS are fully incorporated into, and made enforceable as a part of, these Rules of Conduct.

Good Standing: For the purposes of interpreting and enforcing the Rules of Conduct only, the term “good standing” shall refer to an IBO who is currently authorised by Amway to hold himself/herself out as an IBO and whose conduct complies with the letter and spirit of the Rules of Conduct and Amway Business Policies for each market in which an IBO has a presence; is not engaged in conduct that negatively affects the reputation of Amway, Amway’s affiliates, and its IBO; is not engaged in conduct that supports or defends the activity of other IBO which jeopardizes the ongoing nature of an Amway affiliate or otherwise is inconsistent with the other criteria set forth herein; is not engaged in conduct that does not comply with all applicable laws and regulations in each country and whose conduct does not demonstrate cultural sensitivity given market conditions.

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

Independent Business Owner (“IBO”) or Amway Business Owner (“ABO”): An independent contractor of Amway, appointed as such pursuant to these Rules of Conduct, for the sale of Amway Products and Amway-distributed products and for the solicitation of applications for appointment as Amway IBOs and includes an Amway IBO who is also a Platinum IBO or a Sponsor and includes his/her duly authorised personal representatives, successors and assigns and if the IB comprises two natural persons means those persons jointly and severally and each of them and their respective personal representatives, successors and assigns jointly and severally.

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 Sales and Marketing 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 or of Approved Provider products and services who were not, are not and do not become IBOs.

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.

Non-Resident IBO Agreement: In respect of the conduct of an Amway IB, means an agreement in writing for the maintenance of an Amway Business on behalf of a foreign resident IBO, the terms and conditions of which are specified or approved by Amway.

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 Sales and Marketing 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.

Rebate: The monetary rewards that Amway of New Zealand pays to IBOs in New Zealand in accordance with the Amway Sales and Marketing Plan. The term Rebate is interchangeable with Bonus when referenced for New Zealand IBOs.

Related Body Corporate: In Australia, a body corporate that is deemed to be related to another body corporate by virtue of Section 50 of the Corporations Act 2001 (Cth). In New Zealand, a company that is deemed to be related to another company by virtue of Section 2(3) and 2(4) of the Companies Act 1993 (NZ).

Rules of Conduct (“Rules”): These Rules, as amended from time to time by Amway, which define and establish: (1) certain principles to be followed in the development and maintenance of an Amway Business; and (2) the rights, duties, and responsibilities of each IBO.

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.

Use:

a. with reference to trade marks, to use a mark upon, or in physical or other relation to, goods or services, including directly or indirectly placing or displaying one or more marks on or in connection with goods, placing a mark in any manner on the goods or their containers or packaging or the displays associated therewith or on tags or labels affixed thereto, or on documents or other communications or websites promoting or associated with the goods or their sale, offering, advertising or promotion; and:

1. in connection with goods, placing a mark in any manner on the goods or their containers or packaging or the displays associated therewith or on tags or labels affixed thereto, or on documents or other communications or websites promoting or associated with the goods or their sale, offering, advertising or promotion; and

2. in connection with services, displaying a mark, in the offering, provision, sale, advertising or promotion of services.

b. with reference to Copyright Works, to reproduce or make a copy of the Copyrighted Works and/or to communicate the Copyrighted Works to the public and/or to cause a sound recording to be heard in public or a film to be seen in public or to do any of the other acts comprised in the copyright in a Copyright Work;

c. with reference to Confidential Information, to include any Confidential Information in any document or on a website or in any electronic communication, or otherwise using any Confidential Information.

2.2 All terms used in these Rules which are defined or explained in the Amway Sales and Marketing Plan shall have the same meaning as they have in the Amway Sales and Marketing Plan to the extent there is no inconsistency with these Rules. Without limiting the generality thereof, such terms include “Business Volume” (or “BV”), “Diamond IBO” (or “Diamond”), “Emerald IBO” (or “Emerald”), “Internationally Sponsored IBO”, “Sapphire IBO”, “Performance Bonus/Rebate”, “Monthly Depth Bonus/Rebate”, “Point Value” (or “PV”), “PV/BV Transfer”, “Ruby IBO”, “Gold Producer”, “Silver Producer” and “Silver Sponsor”.

2.3 In these Rules, unless the context otherwise requires:

a) a reference to a singular number includes a reference to a plural number and vice versa;

b) a reference to one gender includes a reference to the other gender;

c) a reference to a person includes a reference to a company, partnership, other unincorporated association or other legal entity;

d) a reference to any statute or any statutory provision shall be deemed to include a reference to that statute or statutory provision as enacted as at the date these Rules were first published and to any amendment,
extension, re-enactment or replacement thereof from time to time.

2.4 Prospective IBOs should make enquiries of Amway if:

a) any difficulties arise with either the interpretation of these Rules of Conduct or questions arise as to how the Rules may apply to particular conduct.

b) a situation arises whereby an IBO disputes the interpretation of the Rules or requires a ruling as to the application of the Rules to particular conduct.