By  on November 30, 2007

AMWAY CASE: A British court is weighing up Amway’s trading future in the U.K., seeking to cease the direct seller’s operations here, which includes the sale of cosmetics, health supplements and other items through independent agents. The hearing, which kicked off in the Companies Court on Monday, follows a government investigation into its U.K. business. According to the government’s case, Amway has suggested that substantial rewards could be earned by becoming a company sales agent, whereas the investigation claims the majority of agents make minimal financial returns. An Amway spokesman said the company has made changes to its business model over the past year to address the issues raised by the government. “In no way do we accept that the arguments the U.K. government put forward should lead to the company being shut down in the U.K.,” he said. The hearing is expected to continue for up to four weeks.

This story first appeared in the November 30, 2007 issue of WWD. Subscribe Today.

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