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WORLD WATCH

November 02, 1995

Amway Asia Ordered to Suspend Sales Recruiting: The company said the Chinese government ordered it to suspend such activity there pending a review of all multilevel marketing companies. The Hong Kong-based distributor of consumer products said it will be able to continue to sell its products in China during the suspension, although maybe not as much as formerly projected. Multilevel marketing, sometimes known as a pyramid sales scheme, is a strategy whereby salespeople get paid for recruiting other people to sell the product, usually by receiving a percentage of the recruits' sales. China is investigating because of concerns that some sellers may be operating without licenses or forcing distributors into advance purchases.

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