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all MLM busters

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Amway’s Row Over Roe

Amway, technically the manufacturing company, called Access Business Group, is suing a couple of companies using an ingredient in Amway’s overseas skin care line: http://www.reuters.com/article/idUSL5N1710I1. The ingredient comes from fish roe, or fish eggs. It is interesting one of the “claims to fame” about the product is no salmon are killed in obtaining the product, and which is literally stored in Norwegian glaciers (despite global warming!). It appears the other two companies (ABT, the ingredient manufacturer, and Restorsea, a skin care product manufacturer/marketer) don’t want Amway to put their products in their storefronts, commonly called “Experience Centers.” The court is currently awaiting an attempt by the two sides to settle out of court. Here’s the lawsuit: Access ABT Lawsuit (see paragraph 77, in particular, “However, it [ABT] cannot allow sales through experience centers at this time.”)

Interestingly, Amway had exclusive rights to the product for a certain period of time, and now they are suing because another company apparently now has exclusive rights to the product’s retail presence. Apparently, the other company making products from the ingredient, Restorsea, has an exclusive rights to retail presence, which means Amway can use the product in their skin care line, just not in their Experience Centers, which would be a retail presence. I’ll bet Amway acted like jerks, too, making extending the agreement going forward more likely to be more restrictive in nature. That would be par for the course for Amway, and something smells fishy as well.

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