• SHARE

Amway Japan Ltd., a direct marketer of household goods and food, will introduce a new distribution system next month to increase the transparency of its business, Amway officials said Wednesday.The head of the Japan Consumer Information Center told a Diet committee last year that the center had received complaints related to Amway’s product distribution system from company salespeople and their families. Amway has expanded internationally by having its salespeople recruit more salespeople with the pitch that they can become wealthy if they can in turn recruit a large number of salespeople to work for them.Under the new program, Amway Japan and all of its distributors will be linked directly by removing intervention by senior distributors. Currently, senior distributors are in charge of deciding product distribution to junior distributors and the amount of bonus payments to junior distributors.Under the reform plan, the company headquarters will enhance movement of product sales as well as calculate and provide bonus payments and returns, company officials said. The program is the result of many discussions with the Consumer Information Center, they said.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW