The American Chamber of Commerce in India (Amcham) on Wednesday said the arrest of Amway India CEO William S Pinckney from the company’s headquarters in Gurgaon by the Andhra Pradesh’s Kurnool police on Monday is not appreciable.
In a Press release, terming the incident as unfortunate, it opined that the Government amend the Prize Chits and Money Circulation Schemes (Banning) Act 1978 (PCMCS) and calls for a systematic solution to the direct selling industries’ operational challenges in India.Pinckney was arrested on May 27 by the Andhra Pradesh police in connection with a complaint against the direct-selling firm under the PCMCS.
Stating that the PCMCS Act was enacted more than 20 years before direct selling companies like Amway, Oriflame, Avon,and Tupperware entered India, the Amcham said the act in its present form is unable to distinguish genuine direct selling companies from pyramid or Ponzi schemes. like other countries, India needs to amend this act and create a conducive legal environment for the direct selling Industry.