Friday, November 9, 2007

QUIXTAR: Why we fight, part 2

Original Source

Why we fight, part 2
November 9th, 2007 @ 2:46 pm ET…

We have been sharing information about the UK DBERR (formerly DTI) case against Amway on this blog for the past six months. The following memo was shared with our directors today:

To: Global Directors and above
From: Steve Van Andel and Doug DeVos
Subject: UK update
Date: November 9, 2007

We have important news from the U.K. that we want to share with you.

Despite recent, far-reaching reforms we have made to the UK market, the UK Department for Business Enterprise and Regulatory Reform has chosen to take the company to trial in London later this month.

We disagree vehemently with that decision and will defend the case vigorously on behalf of the 106 employees and 12,000 Amway Business Owners who have built the business since we opened the market in 1973.

Many of you know the background on this matter. Over a yearlong period, DBERR (formerly called the DTI) conducted an investigation of Amway UK, as well as sales organizations operating in the market, and took issue with the way some IBO organizations were promoting the business. Amway was criticized for not taking decisive action to correct the misrepresentations.

Since that time, UK and Amway Europe staff have worked tirelessly to address BERR’s complaints - and in the process, reinvented the UK business almost from the ground up. We have also initiated a global review of business practices to make sure we operate under the highest standards possible in all our markets.

Our self-imposed UK changes - which included steps like suspending BSM sales, a sponsorship moratorium and terminating or sanctioning IBOs - were comprehensive and difficult, but we made them without hesitation. After a terrifically successful September relaunch, we are on the right track to grow in a sustainable way, featuring a balanced business that works for ALL our ABOs and IBOs.

We have also taken a strong stance with the sales organizations, including refusing to renew the contracts of some leaders who would not endorse our reforms.

The fact is, in the wake of this sobering experience, every one of us - employees, IBOs, and others should renew our commitment to hold ourselves to the highest standards of behavior. The marketplace - and in the UK, the government - has made it clear that they expect no less. And when falling short of those standards exposes our company to such grave risk, there can no longer be any such thing as “business as usual.”

So you can see how seriously we have taken this matter. But still - despite these serious and significant changes - the BERR believes the best solution is to close us down in the UK. That is unwarranted and unnecessary and we will fight it in court with all our energy.

Please share this memo with employees and IBOs at your discretion. We will keep you updated on developments, either in emails or on the Amway Media Blog, http://amwaynews.alticorblogs.com. In the meantime, reach out to your friends in the UK and let them know we stand behind them.

We have faced significant challenges before. We are ready for this one.

Steve and Doug

6 comments:

John said...

What! That's it? That was a very weak part 2. I'm disappointed! I was expecting something that would have made part 1 seem mild. Out of steam so quickly?

Anonymous said...

john,
in all fairness to Steve Van Andel & Doug Devos, they're not the wordsmiths behind the usual fare on the Alticor blogs. Therefore, I believe that is why the tone seems much different.

Perhaps this means the company may have to choose between the pending court/arbitration situations with TEAM or the DBERR issue in the UK.

Nevertheless, truth shall prevail. It always finds a way of being discovered.

Anonymous said...

This letter is makes it obvious that Amway is scared to death. They are getting beaten by the TEAM in their home country and now face being totally shut down in the UK. Funny how no matter what goes wrong it is the IBOs fault? It could have nothing to do with Amway itself in the UK, only some IBOs?? Interesting that DBERR didn't choose to bring any such suits against BSM companies such as IBS, N21, or BWW.

Anonymous said...

Blame Blame Blame
All Amway does when they are caught doing wrong is Blame their IBOs.

Anonymous said...

Well this time they've decided to get in a peeing contest with an elephant - one who truly will spare no expense to prosecute (kinda makes binding arbitration seem like a cakewalk, huh boys?

TROUBLENPARDISE said...

as well as sales organizations operating in the market, and took issue with the way some IBO organizations were promoting the business. Amway was criticized for not taking decisive action to correct the misrepresentations.

Amway has been fighting this fight for years! And Not Taking Decisive Action To Correct The Misrepresentations till it was too late.
Unfortunely, they should have snipped it in the bud early on. Yes for the most part IBO's, it is your leaders and forfathers leaders of IBO's that have led to the destruction on Amway. The Tool system you so pride your self on and the deceitful ways you have led people astray to join.
Don't say you were not deceitful. You would not even mention the A word, till each of you had be indoctrinated. Why were you so ashame of it. Because your leaders had made it a bad word from their bad tactics. Now, since your leaders could not get their way, you yell and hollar, Amway is the Evil one.
Well, they might bite the dust, but it was the Leaders in the field that had a strong hand in destroying them.Not just TEAM.
Yes, they supplied you with the content and commerce, And your leaders have suppied them with the cult following because of your leadership system.
If Amway falls, remember, you were once promoting what your now talking bad about. You are just as GUILTY as amway.
You may become bitter when you realize that there are no one guilty party here!
Another One Bites the Dust.