Japan’s Consumer Affairs Agency has issued a partial business suspension order to Amway Japan for illegally soliciting people over network marketing.
The agency says the firm invited individuals to become members and promote the sales of its products. It also says the firm urged the members to solicit other people to become salespersons, and that they would receive referral fees.
The specified commercial transactions law stipulates that a business operator is obliged to inform consumers of the names of the solicitors and the operator, as well as the purpose of solicitation.
But the agency says that Amway Japan has violated the law since at least March of last year. The authorities say the firm invited people without informing them of its name or its purpose, using hard-sell tactics and issuing no documents.
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