Amway products should not cause damage or injury if they are used for their intended purpose and in accordance with instructions provided. Amway stands behind its products if they are defective in manufacture or have been damaged while still in Amway’s control, but it cannot accept responsibility for careless use or handling, whether by ABOs or customers.

Amway carries product liability insurance on its products which protects both the company and its ABOs. 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, ABOs are liable to possible damage or injury suits. Such lawsuits are, however, extremely rare.

2. ABOs can avoid exposure to lawsuits if they are careful and if they recommend only those uses of Amway products which are spelled out on Amway’s labels or in Amway’s literature.

3. Amway does carry product liability insurance which protects both the company and ABOs where the injury or damage results from a faulty product.

4. Amway’s insurance may not protect an ABO 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 ABO who can secure his/her own liability insurance at a relatively low premium should do so since this will afford him/her not only extra protection, but will also make available for his/her defence experienced solicitors at the insurance company’s expense.