Amway - How to get a Refund">

How to Get a Refund

If you are considering leaving the Amway business, you may be entitled to a refund for the unused, marketable products that you have and also for some or all of the Business Support Materials that you have purchased. This page describes YOUR rights that are documented in the Amway Business Compendium and the new Business Support Materials Arbitration Agreement.

Prior to September, 1997, Amway would not assist you in getting a refund on tools. If you and your sponsor signed the new BSMAA, your sponsor has a contractual obligation to give you a refund as stated in the BSMAA. If your sponsor is one of those "honest and impeccably ethical" distributors who drag their feet on giving you a refund, contact Amway's legal department and begin the reconcilation/arbitration process to get the refund you are entitled to.

Don't just walk away and toss the tools in the trash, especially if you feel you were coerced or tricked into buying the tools. Do the responsible thing -- exercise YOUR rights. It's the best way to eliminate unethical behavior.

Business Support Materials

Rule 109(5)(iv) in the Business Compendium addresses the return policy for BSM's:

The Amway Corporation Satisfaction Guarantee and Buy-Back Rule DO NOT APPLY to any non-Amway Business Support Materials. Amway Corporation will only guarantee to repurchase its own materials. Upon request, a distributor who sells non-Amway Business Support Materials must buy them back from the original purchaser on commerically reasonable terms for a period of 180 days after the sale thereof with proof of purchase. The terms of the refund policy adopted by a distributor selling non-Amway Business Support Materials, including terms regarding procedures for the resolution of disputes and the responsible person for returns, must be clearly communicated to the buyer prior to any sale. In the event such terms do not include the responsible person for returns, the seller and the purchaser's Direct Distributor shall be responsible for handling returns. Selling distributors shall ensure that the terms and conditions of any refund policy adopted comply with all applicable state laws.

Rule 109(6)(ii) in the Business Compendium addresses the refund policy for tickets sold to seminars, rallies and other meetings:

Each distributor who chooses to sell tickets to seminars, rallies, and other meetings is obligated to repurchase such tickets purchased for the buyer's personal use for a period of 30 days after the event to the extent of that portion of the cost of the affair related to admission to the meeting, exclusive of the cost of travel, meals, or hotel accomendations. The terms of the refund policy adopted by a distributor selling such tickets shall conform with Rule 109 (5)(iv) above.

Rule 105 (e) - The Buy Back Rule (To remain a sponsor)

Purchase back from any of his or her personally sponsored distributors leaving the business, upon their request, any unused, currently marketable AMWAY products and/or currently marketable Amway literature and merchandising or sponsoring aids.

The sponsor shall offer to repurchase said products at a price mutually agreeable to the departing distributor. It may be appropriate to consider a price equal to the published distributor cost at the time of purchase including surcharges, if any, less the Performance Bonus (on the BV associated with the products) paid by the sponsor to the purchasing distributor during the month the products being returned were purchased, less a service charge equal to 5% of the BV of the products being returned for handling, F.O.B sponsor's office. The sponsor shall also offer to repurchase said literature and/or merchandising and sponsoring aids at a price mutually agreeable to the departing distributor. Once again, it may be appropriate to consider a price equal to the published distributor cost less a service charge equal to 5% of such cost for handling, freight, pre-paid, sponsor's office.

If the sponsor fails to purchase back such product and/or literature and/or merchandising and sponsoring aids upon request from the sponsored distributor, then such sponsor shall lose the right to sponsor that distributor's line of sponsorship and such distributorship shall move to the first qualified sponsor above the defaulting sponsor. The new sponsor shall thereupon purchase back from the sponsored distributor the products and/or literature and/or sponsoring aids which he or she has offered to return for which he or she shall pay a mutually agreeable price as suggested above. (This rule is not intended to prohibit buy-back or exchange of products and/or literature and/or merchandising or sponsoring aids between a sponsor and one of his or her personally sponsored distributors under circumstances other than those wherein a sponsored distributor has elected to leave the business.)

If the distributor is unable to secure buy-back of products and/or literature and/or merchandising or sponsoring aids through his or her line of sponsorship, he or she may then write directly to Amway with full details including a list of unused currently marketable products and unused currently marketing literature and merchandising or sponsoring aids. After receiving written approval, he or she will be sent a Returned Merchandise Authorization Form (SA-112). He or she may then ship his or her products and/or literature and merchandising or sponsoring aids to Amway together with the completed SA-112 form, whereupon Amway will remit to him or her directly. Amway will then make all appropriate Performance Bonus differential and Leadership Bonus charges to those individuals who originally received them. Amway will also charge freight costs incurred by the returning distributor if the net reimbursement includes same.

This buy-back rule applies only to currently marketable AMWAY products, literature and merchandising or sponsoring aids which distributors may have purchased from their sponsors, Direct Distributors, or other Amway distributors.

The "Buy-Back" Rule: A Closer Look

The "Buy-Back" Rule in the Amway Rules of Conduct (Rule 105(e)) protects Amway distributors against inventory-loading and assures that no one who elects to become an Amway distributor, but who later decides to relinquish his or her business, will be left with unwanted AMWAY products, literature, or sales aids.

Q. How much refund does a departing distributor receive under the "Buy-Back" Rule?
A. The departing distributor is entitled to whatever refund is agreed upon between the departing distributor and his or her sponsor. Normally he will receive the net cost of the salable products to be returned. Net cost is the distributor cost of the product less any Performance Bonuses previously received on that product. In addition, the repurchasing distributor has the right to deduct up to 5% of BV as a service or handling charge.

Q. What happens if a sponsoring distributor refuses or fails to buy back salable products from a distributor who is leaving the business?
A. The responsibility to repurchase the products passes up to the first Direct Distributor. If the Direct Distributor fails or refuses to buy back the products, Amway will buy them back and then charge the account of the Direct Distributor accordingly. Moreover, any distributors above the departing distributors in the line of sponsorship who fail to honor the buy-back request will lose their right to sponsor any distributors who were sponsored by the departing distributor. Sponsorship of those distributors previously sponsored by the departing distributor will pass up the line of sponsorship to the distributor who assumes the responsibility for buying back the departing distributor's salable inventory.
Note: To return Amway literature for credit or refund, the literature must be sent back in its original wrapping, unopened and unused.

Q. How does the "Buy-Back Rule differ from the Satisfaction Guarantee?
A. The Amway Customer Satisfaction Guarantee covers replacement or refund for products which retail customers find unsatisfactory. (Note: A "customer" is the end-user or consumer of a product. Thus, when distributors purchase AMWAY products for their own use, they are considered customers in such instances.) The "Buy-Back" Rule, on the other hand, applies to distributors and covers situations in which a distributor (1) decides to leave the business, (2) has marketable (salable) products which he or she wishes to return, and (3) is willing to pay the cost of returning such products to his or her sponsor or Direct Distributor.

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