Product Liability Protection
AMWAY products should not cause damage or injury if they are used for their intended purpose and in accordance with instructions provided. In the event that an AMWAY product is found to have a manufacturing defect or has been damaged in transit to the customer, the Amway 90 day satisfaction guarantee will apply in addition to AMWAY’S guarantee of quality that attaches to all its products.
AMWAY carries product liability insurance on its products which protects both the company and its IBOs. However, this insurance protection may not cover every situation and is dependent on whether the injury or damage resulted from a faulty product, from careless or negligent applications, or from the improper use of a product. AMWAY’s insurance coverage does cover injury or damage where a faulty product is involved, but does not cover careless or negligent application or improper use of a product.
Summary of Main Principles regarding Product Liability
(1) Like all people engaged in business, AMWAY IBOs may be liable to possible damage or injury suits. Such lawsuits are, however, extremely rare.
(2) AMWAY IBOs can avoid exposure to lawsuits if they are careful and if they recommend only those uses of AMWAY products which are detailed on AMWAY’s labels or in AMWAY’s literature.
(3) AMWAY does carry product liability insurance which protects both the company and IBOs where an injury or damage results from a faulty product.
(4) AMWAY’s insurance may not protect an IBO where the damage or injury results from changing an AMWAY label, misrepresenting a product, or from making claims other than those listed on the product or printed in the AMWAY literature.
(5) Every AMWAY IBO has the opportunity to secure his/her own liability insurance at a relatively low premium. In the event that IBOs are actively engaged in demonstrating or selling Amway products, this additional opportunity to insure against liability is recommended.