Companies shall require their Direct Sellers, as a condition of membership in the Company's distribution system, to comply with the standards of this Code.
Companies shall not use misleading, deceptive or unfair recruiting practices in their interaction with prospective or existing Direct Sellers.
Information provided by Companies to prospective or existing Direct Sellers concerning the opportunity and related rights and obligations shall be accurate and complete. Companies shall not make any factual representation to a prospective Direct Seller that cannot be verified or make any promise that cannot be fulfilled. Companies shall not present the advantages of the selling opportunity to any prospective recruit in a false or deceptive manner.
Companies shall provide direct sellers with periodic accounts concerning, as applicable, sales, purchases, details of earnings, commissions, bonuses, and other relevant data, in accordance with the company's arrangement with the Direct Sellers. All financial due shall be paid and any withholdings made in a commercially reasonable manner.
Companies and Direct Sellers shall not misrepresent the actual or potential sales or earnings of their Direct Sellers. Any earnings or sales representations made shall be based upon documented facts. With great care taken to show the differences between newly recruited Direct Sellers (whose earnings may be limited) and experienced Direct Sellers. Companies that make or allow direct levels.
Companies shall provide to their Direct Sellers a 30 days cooling off period which will entitle her/him to:
Companies and Direct Sellers shall not require Direct Sellers or prospective Direct Sellers to assume unreasonably high entrance fees, training fees, franchise fees, fees for promotional materials or other fees related solely to the right to participate in the company's distribution system. Any fees charged to become a Direct Seller shall relate directly to the value of materials, products or services provided in return.
If requested upon termination of a Direct Seller's relationship with a Company
Companies shall not require or encourage Direct Sellers to purchase product inventory in unreasonably large amounts. Companies shall take reasonable steps to ensure that Direct Sellers who are receiving compensation for downline sales volume are either consuming or reselling the products they purchase in order to qualify to receive compensation.
Companies shall prohibit Direct Sellers from marketing or requiring the purchase by others of any materials that are inconsistent with company policies and procedures.
Direct Sellers who sell company approved promotional or training literature, whether in hard copy or electronic form, shall
Companies shall provide adequate training to enable Direct Sellers to operate ethically.