Amway reviews practices worldwide after British regulators take note

Associated Press/July 1, 2007

ADA, Michigan: Direct sales company Amway says it is conducting a review of its practices worldwide and has sped up a planned reorganization of its operations after British regulators filed a complaint against the company, according to a media report.

A sealed complaint was filed against Amway in Britain following a yearlong investigation. The country's Department of Trade and Industry declined to comment and details of the complaint were not released, The Grand Rapids Press reported Sunday.

Amway said it has placed a 120-day moratorium on recruitment of new distributors in Britain and a ban on sales of motivational tapes and literature not produced by the company.

"This makes very clear we are deadly serious about establishing a new way to promote the Amway business," Mike Mohr, general counsel for direct-sales giant Alticor Inc., Amway's parent, told the newspaper.

Amway hopes to convince the British government that changes have been made before a court takes up the issue.

Alticor spokesman Rob Zeiger told the paper that the company is implementing "best practices" around the world.

"We need to bring best practices to bear wherever we can," he said. "It's not easy to do instantaneous changes in 58 markets. It's just a question of getting through it."

Michigan-based Alticor confirmed last month that it planned to phase out its Quixtar Inc. label during the next 1 1/2 to two years and rebuild its Amway Corp. brand in the United States and Canada.

The Amway name has enjoyed a resurgence as the company focuses on expanding operations under that banner in Asia.