Policies & Procedures

Transcription

Policies & Procedures

Policies & ProceduresSECTION 1.3INTRODUCTION.31.1 Policies Incorporated intoDirect Seller Agreement. 31.2Purpose. 3Changes. 31.31.4Delays. 31.5Policies and Provisions Severable. 3Titles Not Substantive. 31.61.7Waiver. 3No Reliance. 31.81.9Direct Seller’s Cooling Off Period. 3SECTION 2.3BECOMING A DIRECT SELLER.32.1 Requirements to Becomea USANA Direct Seller. 32.2Starter Kit . 32.3Identification and Direct Seller Number. 42.4Temporary Enrollment. 42.5Direct Seller Benefits. 4Renewal of Distributorship. 42.62.7Resignation . 4SECTION 3.4OPERATING A USANA DISTRIBUTORSHIP.43.1 Actions of Household Membersor Affiliated Individuals. 43.2 Adherence to the USANACompensation Plan . 53.3Advertising . 53.3.1 In General . 53.3.2 Television and Radio . 53.3.3 Media Inquiries. 53.3.4 Trademarks and Copyrights. 53.3.5 Use of Direct Seller Name, Likeness,and Image. 53.3.6 Advertised Price. 63.3.7 Social Media . 63.4 Direct Seller Claims andRepresentations. 63.4.1 Product Claims. 63.4.2 Income Claims. 63.4.3 Idemnification. 63.5Unauthorized Recruiting. 63.5.1 Post CancellationSolicitation Prohibited . 73.5.2 Genealogy Reports. 73.6 Corporation, Partnerships,and Trusts. 73.7 Personal Dataand Right of Privacy. 73.7.1 Personal Information. 73.7.2 Communicating PersonalInformation to Third Parties . 83.7.3 Direct Seller Accessto Personal Information. 8Independent Contractor Status. 83.83.9Insurance. 83.9.1 Product Liability Coverage. 83.9.2 Assumption of Risk. 83.10 International. 83.11 Adherence to Lawsand Ordinances. 83.12 One Distributorship. 83.13 Repackaging and RelabelingProhibited. 83.14 Sale, Transfer, or Assignmentof Distributorship. 93.15 Separation of a Distributorship. 93.16 Succession. 93.17 Taxes. 93.17.1 Income Taxes. 93.17.2 Taxes. 93.18 Telephone and E-MailSolicitation. 93.19 Territories . 103.20 Trade Shows and Expositions .103.21 Transfer of Sponsorship . 103.21.1 Conflicting Enrollments .103.21.2 Placement Changes. 103.21.3 Crossline Raiding . 103.22 Deceptive Practices andDetrimental Conduct. 10SECTION 4.11RESPONSIBILITIES OFDIRECT SELLERS AND SPONSORS .114.1 Ongoing Supervision,Training, and Sales . 114.2Non-disparagement. 11Holding Applications or Orders. 114.34.4Reporting Policy Violations. 11SECTION 5.11SALES REQUIREMENTS.115.1Product Sales. 111cmyk 40 blackC M Y K0 0 0 40

5.2Retail Customer Sales. 115.3 Excessive Purchasesof Inventory Prohibited. 115.4Deposits. 1110.1.1 Bank Transfer . 1410.2 Insufficient Funds, and Declined Credit . 14SECTION 6.1110.310.4Auto Order Program. 14Delivery and Risk of Loss. 14BONUSES AND COMMISSIONS.116.1Bonus and Commission Cycles. 116.2 Adjustment of Bonusesand Commissions. 11Loss of Rights to Commissions. 126.36.4 Unclaimed Commissionsand Credits . 12SECTION 7.12PRODUCT GUARANTEES, RETURNS,AND INVENTORY REPURCHASE.127.17.27.2.17.2.27.2.3Product Exchange. 12Thirty (30) Day Return Policy. 12Product Warranty. 12Preferred Consultant .12Cooling Off Period .127.3All Other Returns. 127.4 Procedures for All Returnsand Repurchases. 12SECTION 8.13DISPUTE RESOLUTION AND DISCIPLINARYPROCEEDINGS . 138.1Disputes Between Direct Sellers . 138.1.1 Grievances and Complaints . 138.1.2 Compliance Department Review. 138.2 Jurisdiction, Venue, and Choiceof Law for Disputes between USANAand Direct Sellers. 13Disciplinary Actions. 138.310.1.2 Credit Cards . 14SECTION 11.14DIRECT SELLER SERVICES.1411.1 Changes to the Distributorship. 1411.1.1 In General. 1411.1.2 Addition of Co-Applicants. 1411.2 Genealogy Reportsand Commission Statements. 1411.2.1 Genealogy Reports. 1411.2.2 Commission Statements. 1411.3 Errors or Questions. 1411.4 Resolving Problems . 15SECTION 12.15INACTIVITY ANDCANCELLATION POLICIES . 1512.112.212.312.412.5Inactivity. 15Involuntarily Cancellation. 15Written Cancellation. 15Effect of Cancellation. 15Termination of Agreement. 15SECTION 13.15DEFINITION OF TERMS.15SECTION 9.13ORDERING.139.19.29.39.49.59.6Ordering Methods. 13Auto Order Program. 13General Order Policies . 14Purchasing USANA Products . 14Back-Order Policy. 14Shipping Discrepancies. 14SECTION 10.14PAYMENT AND SHIPPING .1410.12Methods of Payment. 14 Copyright 2017 USANA Health Sciences, Inc.USANA Direct Sellers are hereby granted permission to reproduceany article that appears in this piece for personal use, provided thearticle is reprinted in its entirety and the reprint bears the followingnotice: “Reprinted with the permission ofPT USANA Health Sciences Indonesia

SECTION 1 – INTRODUCTION1.1 P OLICIES INCORPORATEDINTO DIRECT SELLER AGREEMENTThese Policies and Procedures, in their present form andas amended from time to time at USANA’s discretion, areincorporated into the USANA Direct Seller Agreement. It isthe responsibility of each Direct Seller to read, understand,adhere to, and ensure that he/she is aware of and operating under the most current version of these Policies andProcedures. For the purposes of these policies, the termDirect Seller refers to all individuals who entered into aDirect Seller Application and Agreement with USANA.1.2 PURPOSEThe purpose of the Direct Seller Agreement is: T o define the relationship between USANA and theIndependent Direct Seller; To set standards of acceptable business behavior; T o assist Direct Sellers in building and protecting theirbusiness.officer of the company. The waiver will apply only to thatspecific case.1.8 NO RELIANCEA Direct Seller should seek advice from their professionaladvisor for matters of legal, financial, or other professionaladvice and not rely on any such advice if given from USANA.1.9 DIRECT SELLER’S COOLING OFF PERIODIf a Direct Seller elects to cancel his/her distributorshipduring the 30-day period immediately following his/herenrollment, USANA will refund 100 percent of the price ofthe Starter Kit and all products purchased as part of the Direct Seller’s initial order (excluding shipping). For fulldetails of the Cooling Off Period, please see Section 7.2.3.SECTION 2 – BECOMING ADIRECT SELLER2.1 REQUIREMENTS TO BECOMEA USANA DIRECT SELLER: Be at least the age of 17 and have an ID Card (KTP);1.3 CHANGES Be domiciled in Indonesia;USANA may, from time to time, amend the termsand conditions of the Direct Seller Agreement, Policies andProcedures, Compensation Plan, and pricelist. Amendments shall be effective upon notification of the changesin official USANA publications. Read the USANA Policies and Procedures and Compensation Plan;1.4 DELAYSUSANA shall not be responsible for delays and failures inperforming its obligations due to circumstances beyond itsreasonable control, such as strikes, labor difficulties, riots,war, fire, death, curtailment or interruption of a source ofsupply, government decrees or orders, etc.1.5 P OLICIES AND PROVISIONSSEVERABLEIf any provision of the Direct Seller Agreement as it currentlyexists, or as may be amended, is found to be invalid,illegal, or unenforceable for any reason, only the invalidprovision will be severed from the Direct Seller Agreement;the remaining terms and provisions shall remain in full forceand effect and shall be construed as if such invalid, illegal,or unenforceable provision never comprised a part of theDirect Seller Agreement.1.6 TITLES NOT SUBSTANTIVEThe titles and headings to these Policies are for referencepurposes only and do not constitute, and shall notbe construed as, substantive terms of the Direct SellerAgreement.1.7 WAIVERUSANA never forfeits its right to require Direct Sellercompliance with the Direct Seller Agreement or with applicable laws and regulations governing business conduct.Only in rare circumstances will a policy be waived, and suchwaivers will be conveyed by the Compliance Officer or an Submit an original, signed Direct Seller Application andAgreement along with the copy of KTP to USANA; Provide USANA with a current and correct correspondence address and phone number where you can bereached; Purchase a USANA Starter Kit for a nominal cost (unlessprohibited by law); and Have a valid Indonesian Taxpayer Identification Number(Nomor Pokok Wajib Pajak or “NPWP”) (individuals) orNPWP and/or Taxable Entrepreneur Confirmation Number (Nomor Pokok Pengusaha Kena Pajak or “NPPKP”)(to the extent applicable) (businesses and corporations).” If USANA determines that the Direct Seller Applicationand Agreement contains inaccurate or false contactor other information, it may immediately terminate adistributorship or declare the Direct Seller Application andAgreement null and void from its beginning. Further, itis the obligation of the Direct Seller to report to the Company on an ongoing basis any changes which affect theaccuracy of the Direct Seller Application and Agreement. USANA reserves the right to accept or reject anyapplication for any reason.2.2 STARTER KITNo person is required to purchase USANA products to become a Direct Seller. However, to familiarize new Direct Sellers with USANA products, services, sales techniques, salesaids, and other matters, USANA requires new Direct Sellersto purchase a Starter Kit except where prohibited by law.USANA will repurchase any resalable kits from Direct Sellerswho terminate their Direct Seller Agreement.3cmyk 40 blackC M Y K0 0 0 40

2.3 IDENTIFICATION ANDDIRECT SELLER NUMBERWhen USANA receives and accepts a Direct Seller’soriginal Application and Agreement, USANA will assigna unique Direct Seller Number to that Direct Seller. DirectSellers must use their Direct Seller Number whenever theycall a USANA Direct Seller Services Representative or OrderExpress Representative to place orders and track commissions and bonuses. All Indonesian tax residents are requiredto register themselves as taxpayers, calculate their tax obligatax for certain payments. Direct Sellers are required toprovide a valid taxpayer code number to USANA for thewithholding tax purposes.2.4 TEMPORARY ENROLLMENTAfter signing the Direct Seller Application and Agreement, aDirect Seller applicant may enroll by telephone or over the Internet to receive a temporary Direct Seller Number and temporary authorization for a new distributorship while the writtenapplication is en route to USANA. The applicant must provideUSANA with all the necessary information to complete theDirect Seller Application and Agreement. The applicant mayorder a Starter Kit at that time. The new Direct Seller’s temporary Direct Seller Number and authorization will be validfor 21 days, Participate in the USANA Compensation Plan (receivebonuses and commissions, if eligible); Sponsor other individuals as Preferred Consultant orDirect Seller into the USANA business and thereby builda team and progress through the USANA CompensationPlan; Receive USANA literature and other USANA communications; those sales; Participate in promotional and incentive contests andprograms sponsored by USANA for its Direct Sellers; and Participate in USANA-sponsored support, service,training, motivational, and recognition functions uponpayment of appropriate charges, if applicable.A Direct Seller’s continuation of a distributorship or acceptance of earnings pursuant to the USANA Compensationtion and Direct Seller Agreement constitutes acceptance ofthe Direct Seller Application and Agreement, thesePolicies and Procedures, and any and all amendmentsthereto.2.6 RENEWAL FEEreserves the right to hold a distributorship from its systemand stop the payment of commission earned.USANA charge Direct Seller an annual distributorship renewal fee of IDR. 90.000,- . USANA will automatically charge thefee to the Direct Seller's credit card on file with USANA onthe anniversary date of the Direct Seller's application. DirectSellers without a credit card must renew by phone or email.The annual renewal fee will: Automatically renew your subscription to USANA publication; Renew your Direct Seller Agreement (signifying youracceptance of and promise to adhere to the most currentversion of Policies and Procedures as amended from timeto time at USANA's discretion) and maintain your line ofsponsorship; and Continue your entitlement to participate in USANA's Compensation Plan; purchase USANA products; enjoyUSANA service support program; participate in companypromotion, contest, and recognition; and retail USANAproducts and services; and attend Company events.Seller has not yet submitted the original and signed Direct2.7 RESIGNATIONUSANA reserves the rightto hold payment of commissions earned iftheApplication andhas notbeen received within the 21-day temporary enrollmenttime period. Once USANA receives the original DirectSeller Application andUSANAwill assign a permanent Direct Seller Number to theinitial distributorshipDirect Seller and extend theauthorization period to one full year.the temporary enrollment and a Direct Seller has not yetsubmitted the original and signed Direct SellerUSANA reserves the right to remove a distributorship fromits system and stop the payment of commission earned.For information on returns, please see Section 72.5 DIRECT SELLER BENEFITSOnce USANA accepts a Direct Seller’s ApplicationandAgreement, the benefits of the USANACompensation Plan and the Direct Seller Agreement areavailable to the new Direct Seller. These benefits includethe right to:4Direct Sellers may resign at any time by sending a letter toUSANA requesting resignation.SECTION 3 – OPERATING AUSANA DISTRIBUTORSHIP3.1 ACTIONS OF HOUSEHOLD MEMBERSOR AFFILIATED INDIVIDUALSIf any member of a Direct Seller’s immediate household(a Direct Seller’s spouse or dependents) engages in anyactivity, which, if performed by the Direct Seller, wouldviolate any provision of the Direct Seller Agreement, suchactivity will be deemed a violation by the Direct Seller.

3.2 ADHERENCE TO THEUSANA COMPENSATION PLANDirect Sellers must adhere to the terms of the USANACompensation Plan as set forth in official USANA literature.Direct Sellers shall not offer the USANA opportunitythrough, or in combination with, any other opportunity orunapproved method of marketing. Direct Sellers shall notrequire or encourage other current or prospectivePreferred Consultant or Direct Seller to participate inUSANA in any manner that varies from the program as setforth in official USANA literature. Direct Sellers shall notrequire or encourage other current or prospectivePreferred Consultant or Direct Seller to execute any agreement or contract other than official USANA agreementsand contracts in order to become a USANA Direct Seller.Similarly, Direct Sellers shall not require or encourage othercurrent or prospective Preferred Consultant or Direct Sellerto make any purchase from, or payment to, any individualor other entity to participate in the USANA CompensationPlan, other than those purchases or payments identified asrecommended or required in official USANA literature.3.3 ADVERTISING3.3.1 In GeneralDirect Sellers must avoid all discourteous, deceptive, misleading, illegal, unethical, or immoral conduct or practicesin their marketing and promotion of USANA, the USANAopportunity, the USANA Compensation Plan, and USANA’sproducts. Only those Direct Sellers who have achieved therank of Gold Director or higher may produce individual sales,marketing, and support materials to market or promoteUSANA, the USANA opportunity, the USANA Compensation Plan, USANA’s products, or their USANA businesses.All other Direct Sellers may only use sales aids and supportmaterials produced or currently approved by USANA. Sales,marketing, and support materials include, but are not limitments, etc., promoting USANA’s products and programs,as well as e-mail messages, voice mail message recordings,social media sites, and Internet websites used to publicizeUSANA, its products, services, or its Compensation Plan.Any Direct Seller who has achieved the rank of GoldDirector or above who desires to create his/her own salestools, promotional materials, advertisements, or otherliterature (promotional material) must submit a copy of theproposed materials to USANA for review and approvalbefore he/she may use the information to promote his/her business or the USANA opportunity. Upon receipt ofthe proposed promotional material, USANA will review theinformation to determine the appropriateness of the material’s form and content. USANA’s review of the proposedpromotional material will be subject to a review fee. USANAwill promptly notify the Gold or higher ranking Director regarding the Company’s decision to approve or disapprovethe material for use in promoting and supporting his/herUSANA business activities. Gold and higher ranking Directors may only use those materials that USANA has expresslyapproved. Such materials may not be offered for sale at ato ensure that previously approved promotional materialremains current and up to date. USANA further reserves theright to rescind approval for any promotional materials, andDirect Sellers waive all claims for damages or remunerationarising from or relating to such rescission.3.3.2 Television and RadioDirect Sellers may not advertise on television and radiounder policy 3.3.1 except with USANA’s express writtenapproval.3.3.3 Media InquiriesDirect Sellers must refer all media inquiries regardingUSANA to the USANA Compliance Department. This willensure that accurate and consistent information reachesthe general public.3.3.4 Trademarks and Copyrights Direct Sellers may not directly or indirectly use the USANAtrademark or trade name or corporate logo to promotetheir independent business. Rather, they must use the“Independent USANA Direct Seller” logo to promote theirbusiness, including in business listings. A reproduciblecopy of the logo can be obtained from USANA. Direct Sellers should not answer the telephone in anymanner that might indicate or suggest that the caller has Direct Sellers may not directly or indirectly record or reproduce materials from any USANA corporate function,event, speech, etc. Direct Sellers may not directly or indirectly record, reproduce, or copy any presentation or speech by any USANAor other Direct Sellers. Direct Sellers may not directly or indirectly reproduce orcopy any recording of a USANA-produced media presentation, including audio tapes, videotapes, CDs, etc. Direct Sellers may not directly or indirectly publish, orcause to be published, in any written or electronic media,the name, photograph or likeness, copyrighted materials,or property of individuals associated with USANA, withoutexpress written authorization from the individual and/orUSANA. Direct Sellers may not directly or indirectly publish, orcause to be published, in any written form or electronicmedia, the copyrighted materials or property of USANA,without express written authorization from USANA. Direct Sellers may not directly or indirectly use or attemptto register or sell any of USANA’s trade names, trademarks, service names, service marks, product names, orany derivative thereof, for any Internet domain name ore-mail address.3.3.5 Use of Direct Seller Name, Likeness, and ImageDirect Seller consents to USANA’s use of his/her name,testimonial (or other statements about USANA, its products, or opportunity in printed or recorded form, including5cmyk 40 blackC M Y K0 0 0 40

translations, paraphrases, and electronic reproductions ofthe same), and image or likeness (as produced or recordin connection with advertising, promoting, and publicizingthe USANA opportunity, products, or any USANA-related orsponsored events.3.4.2 Income ClaimsDirect Sellers may not make income projections or claimsor disclose their USANA income (including the showingof checks, copies of checks, or bank statements) whenpresenting or discussing the USANA opportunity or Compen-3.3.6 Advertised PriceDirect Sellers may not create their own marketing oradvertising material offering any USANA products at a priceless than the current Auto Order price plus shipping andapplicable taxes.3.3.7 Social MediaAssociates may use social networking sites (Facebook,Twitter, Instagram, etc.), to: Communicate involvement with USANA and other information about the company, Direct users to approved USANA web content, includingan Associate’s personal USANA webpage (PWP), Post approved USANA education tools and otherapproved content, Participate in the following business-building activities:promote upcoming meetings or events, advertise products by linking to your USANA shopping cart or anyother USANA approved material, and encourage viewersto contact them for more information about the productsor business.It is essential when promoting USANA on social media thatUSANA Associates abide by all policies relating to businessand product claims. Please refer to sections 3.4.1, and3.4.2, and 5.1 for a reminder of these policies.Associates must avoid posting anything profane, vulgar,libelous, threatening, etc. as determined by USANA, andthey should adhere to the terms and conditions of thesocial sites on which they post. Associates are also prohibited from using USANA or trademarked names in the name oftheir Facebook page, Twitter handle, etc. USANA reservesthe right to require an Associate to remove any post that itdeems inappropriate.For full details of USANA’s advertising policy, including thepolicies that apply to websites, blogs, etc., please seesection 3.3.1.3.4 DIRECT SELLER CLAIMSAND REPRESENTATIONS3.4.1 Product ClaimsUSANA Direct Sellers may not make claims that USANAproducts have therapeutic or curative properties exceptDirect Sellers may not make any claim that USANA products are useful in the cure, treatment, diagnosis, mitigation,or prevention of any diseases. Such statements can beperceived as medical or drug claims. Not only are suchclaims in violation of the Direct Seller Agreement, they alsoviolate the laws and regulations of Indonesia and otherjurisdictions.6A Direct Seller is fully responsible for all of his or her verbaland/or written statements made regarding the products,services, and the USANA Compensation Plan that are notDirect Seller agrees to indemnify USANA against any claims,damages, or other expenses, including attorneys’ fees,arising from any representations or actions made by theDirect Seller that are outside the scope of the Agreement.The provisions of this section survive the termination ofthe Agreement.3.5 UNAUTHORIZED RECRUITINGUSANA Direct Sellers may participate in other direct selling or network marketing or multi-level marketing ventures(collectively, “multi-level marketing”), and Direct Sellers mayengage in selling activities related to non-USANA productsand services, if they desire to do so. However, Direct Sellersare prohibited from unauthorized recruiting activities, whichinclude the following: Recruiting or enrolling USANA customers or Direct Sellersfor other multi-level marketing business ventures, eitherdirectly or through a third party. This includes, but isnot limited to, presenting or assisting in the presentationof other multi-level marketing business ventures to anyUSANA Direct Seller, or implicitly or explicitly encouragingany USANA Direct Seller to join other business ventures.It is a violation of this policy to recruit or enroll a USANADirect Seller for another multi-level marketing business,even if the Direct Seller does not know that the prospectis also a USANA Direct Seller; Producing any literature, tapes, or promotional materialof any nature for another multi-level marketing business,or appearing in, being referenced in, or allowing theDirect Seller’s name or likeness to be featured orreferenced in any promotional, recruiting, or solicitationmaterials for another multi-level marketing company; Selling, offering to sell, or promoting any competing products or services to USANA Preferred Consultant or DirectSeller. Any product or services in the same genericcategory as a USANA product or service is deemed to becompeting, (i.e., any dietary supplement is in the samegeneric category as USANA’s dietary supplements andis, therefore, a competing product, regardless of differences in cost, quality, ingredients, or nutrient content); Offering USANA products or promoting the USANACompensation Plan in conjunction with any non-USANAbusiness plan, opportunity, product, or incentive; Offering any non-USANA products or opportunitiesin conjunction with the offering of USANA products orbusiness plan or at any USANA meeting, seminar, launch,convention, or other USANA function;

Where a prospective Direct Seller accompanies a DirectSeller to a USANA meeting or function, no other USANADirect Seller may recruit the prospect to enroll in USANAor any other multi-level marketing business for a period offourteen (14) days or unless and until the Direct Seller whobrought the prospect to the function advises the otherUSANA Direct Seller that the prospect has elected notto enroll in USANA and that the Direct Seller is no longerrecruiting the prospect to enroll in USANA, whicheverutorship of any Direct Seller who violates this provision.Violations of this policy are especially detrimental tothe growth and sales of other Direct Sellers’ USANAbusinesses and to USANA’s business. Where a DirectSel

To set standards of acceptable business behavior; To assist Direct Sellers in building and protecting their business. 1.3 CHANGES USANA may, from time to time, amend the terms and conditions of the Direct Seller Agreement, Policies and Procedures, Compensation Plan, and pricelist. Amend-