Friday, October 17, 2008

Amway Japan bought tickets to parties for consumer minister Noda


Oct 17 02:25 AM US/Eastern

(AP) - TOKYO, Oct. 17 (Kyodo) — The state minister in charge of consumer affairs, Seiko Noda, said Friday that networking marketing company Amway Japan G.K. bought eight tickets, worth 160,000 yen in total, for her fundraising parties between 2002 and April this year.

The revelation came a day after Noda told parliament that she made comments 12 years ago in favor of the multi-level marketing industry, arguing at the Diet that one-sided criticism might discourage the creation of a new industry.

While denying at a press conference Friday that she raised questions at the Diet in the industry's favor upon its request or in exchange for political donations from the industry, Noda said she will soon return the funds to Amway Japan, the Japan affiliate of Amway Corp. of the United States known for its multi-level marketing business practices.

"From the standpoint of my present position (as the state minister for consumer affairs), it's not good for me to be viewed as being biased," she said, explaining her intention.

Noda ruled out stepping down as a Cabinet minister over the links with the industry, saying she has never received donations from or sold fundraising party tickets to pyramid sales businesses other than Amway Japan.

Amway Japan purchased three tickets each in January 2002 and June and two in April this year, she said.

Noda said she has completed checks on her ticket sales to the multi- level marketing industry in 2000 and later but an investigation is still under way into such sales in 1999 and before.

In April 1996, Noda told the House of Representatives Commerce and Industry Committee, "Door-to-door sales in the form of chain or multi- level marketing are in the consumers' interest...The industry has implemented its own voluntary controls, helping to create a number of good dealers."

"Consumers must be clever and strong...Protection alone does not necessarily lead to good consumer (protection) activities," she said at that time.

On Thursday, Noda told the House of Councillors Budget Committee session that she posed the questions to clarify problems of the multi- level sales practices, but not at the request from the industry.

Meanwhile, Chief Cabinet Secretary Takeo Kawamura defended Noda, telling a news conference Friday that she was not in a position to defend any problematic company.

Noda assumed the current ministerial post in Prime Minister Taro Aso's Cabinet in late September.

Aso and his predecessor Yasuo Fukuda have both signaled the importance of a consumer-oriented administration, in a departure from a producer- and seller-oriented one, ahead of the next general election widely expected to be called soon.

Democratic Party of Japan lawmaker Yukichi Maeda left the main opposition party earlier this week over his links with the multi-level sales industry, which has sometimes caused problems with consumers over bids and the return of goods.