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Amway calls second arrest of leader in India
comments
'unjustified and unnecessary'
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By Shandra Martinez | [email protected]
(http://connect.mlive.com/staff/smartinezgr/posts.html)
on May 29, 2014 at 9:30 AM
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INDIA -- Amway is calling the
second arrest of its leader for
India operations in the last 13
months "unjustified and
unnecessary."
michigan/2014/05/amway_leader_arrested_in_india.html/409447504/StoryAd/MICHIGANLIVE/default/empty.gif/72546b7459564e2b5959734141594646)
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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
Amway India CEO William Pickney shown with products sold in
India.
Courtesy photo
Ada-based direct selling giant,
according to The Economic Times.
(http://economictimes.indiatimes.com/news/politics-andnation/hyderabad-police-arrest-amway-indias-ceo-spinckney/articleshow/35624394.cms)
Pinckney, a U.S. 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 police’s 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 country’s Indian capital of New Delhi in the state of
Haryana.
Michigan's Best
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.
(http://www.thehindu.com/news/national/amway-ceos-bail-plearejected/article6058649.ece?homepage=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.
(http://www.mlive.com/michigansbest/)
Where will we find
The Ada-based company is crying foul over Pinckney’s treatment, calling his arrest
“unjustified and unnecessary.”
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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.
“The complaint against Amway contained numerous false statements and showcases a
lack of understanding about our business,” Amway said in a statement released to
media in India. “The 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 years.”
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
India’s 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.
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Do you know a WWII vet?
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.
“This 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 market,” 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.
(http://www.mlive.com/lansingnews/index.ssf/2014/04/michigan_honors_chronicling_wo_1.html)
Michigan has 39,000 living WWII
veterans -- help us find them
(http://www.mlive.com/lansing-
“It’s kind of interesting because India is a relatively young market for us and it is not
atypical to what we’ve gone through, because we have kind of gone through the same
exercise in other markets,” Van Andel said during the 2013 interview. (See entire
video interview here.) (http://www.mlive.com/business/westmichigan/index.ssf/2013/06/amway_chairman_steve_van_andel_1.html)
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
news/index.ssf/2014/04/michigan_honors_chronicling_wo_1.html)
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(http://www.mlive.com/lansingnews/index.ssf/2014/04/michigan_honors_chronicling_wo_1.html)
More Michigan Business
Michigan Automotive
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Michigan Automotive
and fully to resolve any individual complaints, the company has said.
News and Reviews
(http://www.mlive.com/auto)
Amway, which is credited for pioneering the multi-level marketing approach to direct
sales, has faced similar accusations in the U.S. and other countries. Amway has long
Michigan business
press releases
been sensitive about allegations that it operates a pyramid scheme. A 1979 Federal
(http://www.mlive.com/prnewswire/)
Trade Commission ruling found the company did not operate a pyramid scheme.
Search for jobs in
Shandra Martinez covers business for MLive/The Grand Rapids Press. Email her
Michigan
(http://www.mlive.com/jobs/)
(mailto:[email protected]) or follow her on Twitter @shandramartinez
(https://twitter.com/shandramartinez).
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ScottTexJohnson (http://connect.cleveland.com/user/scotttexjohnson/index.html)
(http://connect.cleveland.com/user/scotttexjohnson/index.html)
12 minutes ago
WRONG. How can you say he didn't get a bail hearing, then say he got a bail
hearing, and was rejected? You removed my factual comment as well: Amway is the world's
largest MLM scam: www.stoptheamwaytoolscam.wordpress.com Shame on you.
3
(http://connect.m live.com /user/clydetorisII/index.htm l)
(http://connect.m live.com /user/profcourageous/index.htm l)
()
linney
() Like
Reply
8 minutes ago
@ScottTexJohnson
(http://connect.cleveland.com/user/scotttexjohnson/index.html) Be careful what
you say against the Amway Gods. You'll get called a troll by its sycophants and then
deleted by the Amway censors.
3
(http://connect.m live.com /user/clydetorisII/index.htm l)
(http://connect.cleveland.com /user/scotttexjohnson/index.htm l)
(http://connect.m live.com /user/profcourageous/index.htm l) Unlike
linney
Reply
20 minutes ago
You deleted the post below. WHY? There is nothing offensive except maybe the truth. Don't
insult me with your message to read the "community standards." Until those so called
standards include, THOU SHALT NOT INSULT THE AMWAY CABAL you don't deserve to be
taken seriously.
"The complaint against Amway contained numerous false
statements and showcases a lack of understanding about our business,” Amway said in a
statement released to media in India. “ Oh, they understand it, They're just not buying your load
of c**p like the patsies in the US. Not everyone can be bought off.
3
(http://www.mlive.com/news/annarbor/index.ssf/2014/05/man_in_critical_condition_afte_5.html#incart_mostread)
Restaurant Inspections for
Washtenaw County in April
2014
just now
@linney @ScottTexJohnson
(http://connect.cleveland.com/user/scotttexjohnson/index.htm
l) I'm not concerned about the troll namecalling, it's the Amway
sycophants at MLive, which is supposed to be the 4th pillar of
government that is the issue.
()
Man hit by train while bridge
jumping in Ann Arbor in
critical condition
Reply
ScottTexJohnson
(http://connect.cleveland.com/user/scotttexjohnson/index.html)
(http://connect.cleveland.com/user/scotttexjohnson/index.html)
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(http://connect.m live.com /user/profcourageous/index.htm l)
(http://connect.cleveland.com /user/scotttexjohnson/index.htm l) Unlike
Reply
INDIA -- Amw ay is calling the
second arrest of its leader fo
ScottTexJohnson
(http://connect.cleveland.com/user/scotttexjohnson/index.html)
(http://connect.cleveland.com/user/scotttexjohnson/index.html)
10 minutes ago
@linney Contact me
1 at
[email protected],
so we can stop this
New
Comment
lying, thanks.
1
()
(http://connect.m live.com /user/profcourageous/index.htm l) Like
Zebulab
Reply
21 minutes ago
Any minute now the prowling anti Amway / DeVos / Van Andel trolls will be flooding this article
with drivel......
Flag
Share
()
linney
1
(http://connect.m live.com /user/clydetorisII/index.htm l) Like
Reply
18 minutes ago
@Zebulab trolls? Is that the best you can come up with? Better to be a "troll" than
a blind believer. God forbid you open your eyes and see the truth.
Like
Reply
crooner (http://connect.mlive.com/user/profcourageous/index.html) 1 minute ago
(http://connect.mlive.com/user/profcourageous/index.html)
@Zebulab Drivel to you, the TRUTH to most everyone else.
(http://ads.mlive.com/RealMedia/ads/click_lx.ads/www.mlive.com/business/westmichigan/2014/05/amway_leader_arrested_in_india.html/L36/2134996070/RectangleBelow/MICHIGANLIVE/MacatawaBank01_MI_BTROS_Multi/macatawabank20140501-300x2500501.html/72546b7459564e2b5959734141594646)
Like
()
purplehaha
52 minutes ago
I would guess it is a India problem. They are a strange lot.
Like
()
Reply
chungasrevenge
Reply
1 hour ago
this sounds like a personal problem.
Like
Reply
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