Amway Japan obtains partial network marketing business suspension order


The Japan Consumer Agency has issued a partial business suspension order for Amway Japan for illegally soliciting people through network marketing.

The agency says the company has invited individuals to become members and promote sales of its products. It also says the company urged members to solicit others to become sellers and receive referral fees.

The specified Commercial Transactions Act states that a commercial operator is required to inform consumers of the names of the attorneys and the operator, as well as the subject matter of the solicitation.

But the agency says Amway Japan has been breaking the law since at least March of last year. Authorities say the company invited people without telling them its name or purpose, using hard-selling tactics and not issuing any documents.

The agency on Friday ordered Amway Japan to suspend parts of its operations, including solicitation activities and entering into contracts, for six months. The agency also instructed the company to create a system to prevent a recurrence.

Amway Japan claims that some members have committed illegal acts and that it will take steps to improve its business and prevent it from happening again. The firm says these steps will include revising its ethics platform, code of conduct and member training. He added that he would educate his members on the relevant laws and regulations.


Comments are closed.