The Business Support Materials Arbitration Agreement


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Amway® and the ADA Board have put together an Arbitration Agreement to be signed by all distributors who "choose" to purchase or sell independently produced Business Support Materials. (To fully appreciate this section, it is recommended that you first read our sections on The System and So You Want To Be Your Own Boss.) This Arbitration Agreement is called the "Business Support Materials Arbitration Agreement" or "BSMAA."

When we were first told of this upcoming BSMAA months ago, it was via an Amvox message passed down from Kenny Stewart. In this message our upline Kenny Stewart said that we would need to sign the BSMAA if we wish to receive tools after 09/01/97. This policy was reinforced at various Emerald meetings. We believe the BSMAA is a result of too many lawsuits over the system. We believe the reason that Amway® is involved in this one is because they usually get sued right along with the distributors.

When we were first told we had to sign the agreement we read the BSMAA, and we had an attorney read the agreement. The attorney noticed the mention of "Amway® Arbitration Rules." We contacted Dave Carroll, who is an attorney that works for Amway® to inquire about the "Amway® Arbitration Rules." Mr. Carroll, who was quite nice, told us that these rules were not yet completed. We asked him if we should sign something when we could not read the rules behind it. He said that he wouldn't. We asked him if our upline had the right to withhold our tools if we didn’t sign it. Mr. Carroll told us that they could do whatever they wish, but that didn’t sound very smart. It didn’t sound very smart to us either. At that point we asked him when the "Amway® Arbitration Rules" would be ready. He told us he wasn’t sure, but they would NOT be ready by September 1st, 1997.

It was at that point that we began looking into this idea of Mandatory Arbitration. We spoke with an attorney who had nine years of experience working for the SEC in their binding arbitration department. He told us that in his opinion it was sort of like going into a casino. The fact is, the odds are in favor of the house. But most people don’t know that. They think arbitration will be totally fair and unbiased. Well, that depends on who the people are who are deciding the arbitration.

To be honest, initially we were skeptical simply because the upline wanted us to sign the BSMAA so desperately. We figured it was in their best interest to have us all sign it, but we weren’t sure if it was in our best interest.

We recently read an article from Business Week Magazine March 16, 1998 edition. The article is titled, Forced Into Arbitration? Not Any More. You can download a copy from Business Week at www.businessweek.com. The article basically makes the case that arbitration may not always be the best option for employees and contractors.

Another somewhat humorous note is item number ten on the BSMAA.  This item states, "Only items specifically authorized by Amway® Corporation for use with prospects may be sold, loaned, shown, or given to a prospect." This reminds me of other Amway® rules which are stated but appear to never be enforced. Item ten sounds good until we realize the majority of tapes, the Profiles of Success and other "tools" passed out by unknowing distributors to their prospects have NOT been approved by the Amway® Corporation. I do not know of one "story tape" that has been approved. This is discussed further in The System section of this site. Some of the Diamonds probably know this. You would think the Amway® Corporation knows this-maybe not.

By the way, in item nine on the BSMAA, which is the "No guarantee of results" section it states, "While I understand that some distributors may earn money from selling BSMs, no one has made any promises as to my own profitability. Sorry guys but it's NOT some may; it's some DO make money. And, sorry but many DO make promises about my own profitability. I guess they think if they say it correctly in writing they are covered regardless of how many times they contradict it with their words. Sayin' it don't make it so. Read The System for more information on this subject also.

By the way, we have not yet signed the BSMAA.  As of 4/1/98 our tools have not yet been "cut off" despite many threats to the contrary. Of course they were supposed to be cut off after 9/1/97.

We appreciate that Amway® allows us to have this site even though we disagree with them. We have to concede that they have been very reasonable in allowing us to express our opinions within the rules, and they are still sending us our monthly bonus check.


[ Start Here | What's New | Reasons To Read This Site ]
[ Who I Am & What This Site Is About | The System | Glossary ]
[ So You Want To Be Your Own Boss? | Politics & Religion | Photo Album ]


Last modified: July 14, 1998 
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