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Print (httpblogmlivecombusinessreviewwestern_impactprinthtml

entry=201405amway_leader_arrested_in_indiahtml)

Courtesy photo

Amway India CEO William Pickney shown with products sold inIndia

(httpadsmlivecomRealMediaadsclick_lxadswwwmlivecombusinesswest-michigan201405amway_leader_arrested_in_indiahtml409447504StoryAdMICHIGANLIVEdefaultemptygif72546b7459564e2b5959734141594646)

(httpconnectmlivecomstaffsmartinezgrindexhtml) By Shandra Martinez | smartinezmlivecom

(httpconnectmlivecomstaffsmartinezgrpostshtml)

on May 29 2014 at 930 AM

INDIA -- Amway is calling the

second arrest of its leader for

India operations in the last 13

months unjustified and

unnecessary

Amway India CEO William S

Pinckney was taken into

custody this week in connection

with a consumer complaint filed

in December that alleges

unethical circulation of money

through the India affiliate of the

Ada-based direct selling giant

according to The Economic Times

(httpeconomictimesindiatimescomnewspolitics-and-

nationhyderabad-police-arrest-amway-indias-ceo-s-

pinckneyarticleshow35624394cms)

Pinckney a US resident was jailed Monday May 26 and is expected to stay there

through Tuesday June 3 The Principal District Munsif Court has denied bail and

granted the policersquos request to keep him in jail for five days according to the publication

The Hindu

Pinckney was arrested by the Kurnool police at Gurgaon and lodged in the Central

Prison at Kadapa located near the countryrsquos Indian capital of New Delhi in the state of

Haryana

He was booked under the Prize Chits and Money Circulation Schemes (Banning) Act in

addition to charges of cheating as well as extortion under the relevant sections of the

IPC according to The Hindu

(httpwwwthehinducomnewsnationalamway-ceos-bail-plea-

rejectedarticle6058649ecehomepage=true)

Last year Pinckney and two company directors were arrested (southern

state of Kerala) on charges of financial irregularities in the southern state of Kerala

The Ada-based company is crying foul over Pinckneyrsquos treatment calling his arrest

ldquounjustified and unnecessaryrdquo

Amway says the arrest was unexpected and Pinkney has yet to receive a bail hearing

The company adds that Amway India and Pinckney have always cooperated with

investigative authorities and abided with standing judicial orders

ldquoThe complaint against Amway contained numerous false statements and showcases a

lack of understanding about our businessrdquo Amway said in a statement released to

media in India ldquoThe Amway business plan used in India is based on the direct selling

business plan used by Amway in over 100 countries and territories around the world for

over 55 yearsrdquo

The company says it uses a commission-based sales system that allows individuals to

sell high-quality consumer products such as cosmetics vitamins and household products

to end consumers In India there is no cost to join or money paid for recruiting Amway

Indiarsquos products are substantially manufactured in India and are all subject to an

industry-leading return policy

In its statement to the media Amway noted the recent police actions are clearly

inconsistent with the stated policy agenda of the newly-elected government of India to

promote foreign direct investment in India

Amway points out that while other companies have left India due to the challenging

business environment the company continues to demonstrate its longstanding

commitment to India by constructing a new state-of the-art $100 million

manufacturing facility in Tamil Nadu set to open later this year

ldquoThis situation again prompts us to urge the Indian government to deliver fair and

balanced direct selling guidelines so ethical direct sellers like Amway can operate with

clarity in this important marketrdquo the company said

Last year after the first arrest Amway Chairman Steve Van Andel told MLive the

company has no plans to pull out of the country which is one of its biggest markets

ldquoItrsquos kind of interesting because India is a relatively young market for us and it is not

atypical to what wersquove gone through because we have kind of gone through the same

exercise in other marketsrdquo Van Andel said during the 2013 interview (See entire

video interview here) (httpwwwmlivecombusinesswest-

michiganindexssf201306amway_chairman_steve_van_andel_1html)

Amway has been partnering with the Indian Direct Selling Association to work with

central and state level authorities toward clear consistent direct selling understanding

and regulation throughout India As part of that process Amway has cooperated openly

Amway calls second arrest of leader in Indiaunjustified and unnecessary

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and fully to resolve any individual complaints the company has said

Amway which is credited for pioneering the multi-level marketing approach to direct

sales has faced similar accusations in the US and other countries Amway has long

been sensitive about allegations that it operates a pyramid scheme A 1979 Federal

Trade Commission ruling found the company did not operate a pyramid scheme

Shandra Martinez covers business for MLiveThe Grand Rapids Press Email her

(mailtoSMARTIN4mlivecom) or follow her on Twitter shandramartinez

(httpstwittercomshandramartinez)

Tweet 0 Share 0 Reddit Email

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FOR RENT

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Newest | Oldest

ScottTexJohnson (httpconnectclevelandcomuserscotttexjohnsonindexhtml)

linney

Zebulab

(httpconnectclevelandcomuserscotttexjohnsonindexhtml)WRONG How can you say he didnt get a bail hearing then say he got a bailhearing and was rejected You removed my factual comment as well Amway is the worldslargest MLM scam wwwstoptheamwaytoolscamwordpresscom Shame on you

3

Like

(httpconnectmlivecomuserclydetorisIIindexhtml)

(httpconnectmlivecomuserprofcourageousindexhtml) () Reply

8 minutes agolinney ()

ScottTexJohnson(httpconnectclevelandcomuserscotttexjohnsonindexhtml) Be careful whatyou say against the Amway Gods Youll get called a troll by its sycophants and thendeleted by the Amway censors

3

Unlike

(httpconnectmlivecomuserclydetorisIIindexhtml)

(httpconnectclevelandcomuserscotttexjohnsonindexhtml)

(httpconnectmlivecomuserprofcourageousindexhtml) Reply

just now

ScottTexJohnson(httpconnectclevelandcomuserscotttexjohnsonindexhtml) (httpconnectclevelandcomuserscotttexjohnsonindexhtml)

linney ScottTexJohnson(httpconnectclevelandcomuserscotttexjohnsonindexhtml) Im not concerned about the troll namecalling its the Amwaysycophants at MLive which is supposed to be the 4th pillar ofgovernment that is the issue

Like Reply

()You deleted the post below WHY There is nothing offensive except maybe the truth Dontinsult me with your message to read the community standards Until those so calledstandards include THOU SHALT NOT INSULT THE AMWAY CABAL you dont deserve to betaken seriously The complaint against Amway contained numerous falsestatements and showcases a lack of understanding about our businessrdquo Amway said in astatement released to media in India ldquo Oh they understand it Theyre just not buying your loadof cp like the patsies in the US Not everyone can be bought off

3

Unlike

(httpconnectmlivecomuserclydetorisIIindexhtml)

(httpconnectmlivecomuserprofcourageousindexhtml)

(httpconnectclevelandcomuserscotttexjohnsonindexhtml) Reply

10 minutes ago

ScottTexJohnson(httpconnectclevelandcomuserscotttexjohnsonindexhtml) (httpconnectclevelandcomuserscotttexjohnsonindexhtml)

linney Contact me at stoptheamwaytoolscamyahoocom so we can stop thislying thanks

1 Like (httpconnectmlivecomuserprofcourageousindexhtml) Reply

()Any minute now the prowling anti Amway DeVos Van Andel trolls will be flooding this articlewith drivel

1 Like (httpconnectmlivecomuserclydetorisIIindexhtml) Reply

18 minutes ago

1 minute ago

linney

crooner (httpconnectmlivecomuserprofcourageousindexhtml)

()Zebulab trolls Is that the best you can come up with Better to be a troll thana blind believer God forbid you open your eyes and see the truth

Like Reply

(httpconnectmlivecomuserprofcourageousindexhtml)Zebulab Drivel to you the TRUTH to most everyone else

11 comments

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1 New Comment

INDIA -- Amw ay is calling thesecond arrest of its leader fo

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52 minutes ago

1 hour ago

purplehaha

chungasrevenge

Like Reply

()I would guess it is a India problem They are a strange lot

Like Reply

()this sounds like a personal problem

Like Reply