China - Amway banned from trading
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(24 Apr 1998) T/I: 10:15:20
American direct marketing businesses are confident that it is only a matter of time before they are allowed to resume their trade in China.
The Beijing government dropped its legal bomb on the world's largest direct-marketer -- Amway Corporation -- on Tuesday by banning all direct marketing in China.
The surprise move was an effort to crack down on an explosion of illegal pyramid schemes which have bilked unsuspecting consumers of millions of dollars.
Amway, Avon Products and Mary Kay Cosmetics are three of the biggest American companies that have been ordered to cease activity, bringing to a grinding halt a business network which has swept across China employing ten of thousands and reaping hundreds of millions of dollars in profits.
The ban comes at a time when Sino-US relations have been improving as Beijing and Washington move closer in anticipation of President Clinton's visit to China in late June.
SHOWS:
BEIJING, CHINA 24/4
Exterior of the Amway distribution centre,
CU notice of government's policy to stop direct market sales, and people
reading it;
Man bringing his many bags of goods to return,
crowd of people (distributors) waiting for doors to open, with their
boxes of Amway products;
Pan from glass display case of products to supervisor speaking to rows of employees,
medium shot of supervisor,
medium shot of employees;
Man opening door of distribution centre and people pile in with their bags to return,
CU of sign of service counter,
pan to the people waiting at the counter and the workers behind it,
CU of refund form;
Director International Affairs Richard Holwill in English, SOT, "The government quite rightly needed to crack down on these schemes, of pyramid schemes, ponsy schemes, whatever you want to call them. The term they use in China is chain selling; in cracking down on them, they have also forced all direct selling companies to shut down. We believe that it will be temporary and we believe that we can satisfy the government that our mode of ooperation is fair, ethical, and honorable. And if we need to make minor changes, we will do so, we'll do what we have to do to accommodate their concerns."
Cutaway, middle shot of bottles of Amway products;
Richard Holwill in English, SOT, "The fact that Barshefsky is here this week, that Madeline Albright is here next week, that Bill Clinton will be here in June gives us a unique opportunity to gain an audience with the highest levels of government concerning the differences and we hope to take advantage of that, to do the education we have to do to make
them draw the distinctions between our form of selling and that which is fraudulent.";
Wide shot of Holwill being interviewed;
Pile of boxes next to two distributors filling out their forms;
Wide of distribution centre,
CU of form being filled,
pan to a female distributor;
CU notice of refunds of products and of money;
Amway distributor in Mandarin, SOT, "It is suitable to the country's condition. Obey the law. (PAUSE) Nothing is really affected, everyone is using the products themselves.";
Crowds of people at the refund counter;
US trade rep. Charlene Barshefski leaves Beijing hotel on way to meeting with Chinese government officials.
3.30
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