JEUNESSEGLOBAL.COM DISTRIBUTOR MARKETING GUIDE · GUIDE JEUNESSEGLOBAL.COM DISTRIBUTOR MARKETING...

Confidential and Proprietary – For Jeunesse Distributor Use Only

WHAT DISTRIBUTORS SHOULD AND SHOULD NOT SAY WHEN MARKETING THE COMPANY,

ITS PRODUCTS AND THE OPPORTUNITY

DISTRIBUTOR MARKETING

GUIDE

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A D ISTR IBUTOR GUIDE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

PRODUCT CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

GENER AL RUL ES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

COSMETI CS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

D IETA RY SUP P LEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

OPPORTUNITY CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

GEN ER AL RUL ES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

A PPLY ING THE RUL ES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

COM PANY CONFIDENTIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

WHAT IS IT? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

WHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

GU ID EL INES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

A DVERTIS ING : TEST IMONIALS AND ENDORSEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

T HE OL D UP DATE F IRST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

T HE N EW S OCIAL MEDI A UP DATE FROM THE FTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

D IR ECT SELL ING ASSOCIAT ION'S CODE OF ETHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2

C O N T E N T S

What distributors should and should not say about the company, its products and the opportunity.

DI STR I BUTOR

MARKETING GUIDE


The Law: The Food & Drug Administration governs ingestible products (e.g., foods/beverages and dietary supplements), cosmetics and drugs (some cosmetics are OTCs). The FDA and the Federal Trade Commission (who governs advertising) generally require that claims for products be based upon generally accepted scientific studies. There are specific rules on which studies can be used and how they can be applied to a particular claim. A single study or group of studies may be insufficient. Personal and anecdotal experience can never be used to make claims about these products.

Jeunesse: Employees and distributors may make only authorized claims about Jeunesse products. Authorized claims are claims that appear on the official Jeunesse website. The claims there may change from time to time as products are improved or as new science may become available.

P R O D U C T C L A I M S

G E N E RA L R U L E S

PLEASE CONTACT COMPLIANCE should you have questions about these principles and regulations.

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COSMETICS DO SAY DON'T SAY

GENERALLY

LUMINESCE® CELLULAR

REJUVENATION SERUM

LUMINESCE DAILY MOISTURIZING

COMPLEX

• Products intended to make people more attractive are generally cosmetics. For example, moisturizing is a cosmetic claim. So, if a product is intended to make lines and wrinkles less noticeable, simply by moisturizing the skin, it’s a cosmetic. Similarly, makeup or “primers” intended to make the signs of aging less noticeable just by hiding them are also cosmetics.

• “May ___ the appearance or look of ____”

• Diminishes the look of fine lines and wrinkles for a youthfu-looking complexion.

• Revives with antioxidants and vitamins so your skin feels beautiful.

• Renews for a more even-looking skin tone.

• Protects your skin from harmful sunrays with Broad Spectrum SPF 30.

• Refreshes your skin with a special blend of vitamins and antioxidants.

• Hydrates your skin for a smoother-looking appearance.

• But, products intended to affect the structure or function of the body, such as the skin, are drugs, or sometimes medical devices, even if they affect the appearance. So, if a product is intended, for example, to remove wrinkles or increase the skin’s production of collagen, it’s a drug or a medical device.

• “Removes,” “disappears,” “ eliminates”

• Diminishes the signs of aging.

• Evens skin tone.

• Refreshes collagen and elastin.

• Protects against free radical damage.

• Increases skin firmness and elasticity.

Federal law defines a cosmetic, in part, as a product designed for “cleansing, beautifying, promoting attractiveness, or altering the appearance.” Promoting a product with claims that it treats or prevents disease or otherwise affects the structure or any function of the body may cause the product to be considered a drug.

In the eyes of the FTC, a company’s advertisements must be truthful and non-deceptive; advertisers must have competent and reliable scientific evidence substantiating their claims; and advertisements cannot be unfair.

CO S M E T I C S


COSMETICS DO SAY DON'T SAY


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INSTANTLY AGELESS™

LUMINESCE ADVANCED NIGHT

REPAIR

• Restores tired-looking skin for a radiant appearance.

• Hydrates with richly moisturizing ingredients.

• Replenishes with vitamins and antioxidants.

• Corrects environmental damage.

• Increases skin firmness and elasticity.

CO S M E T I C S (CONT. )

• Immediately reduces the appearance of under-eye bags, fine lines, wrinkles and pores.

• Visibly diminishes the appearance of fine lines and wrinkles.

• Helps tighten, firm and lift the appearance of sagging skin.

• Helps to minimize the appearance of pores for a flawless finish.

• This specifically designed micro cream targets areas that have lost elasticity – revealing visibly toned, lifted skin.

• Helps to even skin texture.

• Mattes skin for a flawless finish.

• Restores skin to optimum appearance.

• Do not compare to other popular products or medical procedures.

• Do not use third party trademarks, e.g., Botox®.

• Don’t say or imply that any celebrity or public figure endorses the product by referencing their name or using a photo of them.

LUMINESCE ESSENTIAL BODY

RENEWAL

LUMINESCE YOUTH RESTORING

CLEANSER

LUMINESCE ULTIMATE LIFTING

MASQUE

• Exfoliates for a deep and thorough cleanse.

• Brightens the appearance of youthful-looking skin.

• Tightens the look of aging skin for a younger-looking complexion.

• Hydrates with essential moisturizing ingredients so skin feels soft.

• Softens your skin's appearance for a smooth and supple feel.

• Refreshes your skin with a special blend of vitamins and antioxidants.

• Instantaneously lifts while providing long-term hydration.

• Deeply nourishes to produce supple skin.

• Effectively diminishes the appearance of aging.

• Protects against free radicals and other environmental damage.

• Evens skin tone and helps combat photo aging.

• Contains anti-inflammatory properties.

• Cleanses skin gently to remove debris and impurities.

• Exfoliates to reveal younger and smoother-looking skin.

• Prepare skin to receive the maximum benefits of your Luminesce beauty regimen.

• Removes toxins at the cellular level.

• Helps prevent acne, blemishes, and other skin impurities.


Federal law defines a dietary supplement as a product taken by mouth that is intended to supplement the diet and that contains one or more "dietary ingredients." Structure/function claims may be used to promote dietary supplements; however, claims that suggest the product is intended to treat, diagnose, prevent, or cure a disease or condition may cause the product to be considered a drug.

To make structure function claims on dietary supplements, the law requires scientific substantiation that the claims are truthful and not misleading and the claim must include a mandatory disclaimer: “These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.”

The FTC requires advertisements to be truthful and non-deceptive; advertisers must have competent and reliable scientific evidence substantiating their claims; and advertisements cannot be unfair.


D I E TA RY S U P P L E M E N TS

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DIETARY SUPPLEMENTS DO SAY DON'T SAY

GENERALLY

AM ESSENTIALS™

PM ESSENTIALS™

• E.g., May maintain healthy cholesterol levels.

• Supports joint health.

• Prepares your body for a restful sleep.

• Provides you with the vitamins and nutrients your body craves.

• Vital nutrients that support daily cellular functions.

• Jumpstarts and supports digestion.

• All natural.

• Enhance mood.

• Aid the immune system.

• Helps protect against environmental damage

• Aid in cell construction and repair

• A powerful blend of nutrients that mimic the anti-aging effects of calorie restriction without the need to reduce food intake.

• Nutrient dense superfoods that aid in cell construction and repair.

• (Promotes the production of telomerase), which may help in repairing telomeres that connect DNA.

• All natural.

• Enhance mood.

• Aid the immune system.

• Helps protect against environmental damage

• Aid in cell construction and repair

• A powerful blend of nutrients that mimic the anti-aging effects of calorie restriction without the need to reduce food intake.

• Nutrient dense superfoods that aid in cell construction and repair.

• (Promotes the production of telomerase), which may help in repairing telomeres that connect DNA.

• E.g., Reduces cholesterol.

• Reduces joint inflammation.

• Increase energy.

• Improve mood.

• Support healthy biorhythms.

• Jumpstarts and supports digestion.


DIETARY SUPPLEMENTS

ENERGY DRINKS

DO SAY

DO SAY

DON'T SAY

DON'T SAY


ZEN PRO™

ZEN FIT™ • Rich source of amino acids and a vital part of the ZEN BODI™ System. • Aids workout recovery.

D I E TA RY S U P P L E M E N TS (CONT. )

FINITI®

GENERALLY

ZEN SHAPE™

RESERVE™

M1ND™

NEVO™

• Contains antioxidants

• Contains a unique blend of superfruits

• Designed for your well-being

• Supports your need for full-body health and wellness

• No added sugars and no artificial flavors, colors or sweeteners

• M1ND is a dietary supplement featuring clinically shown CERA-Q™ that supports memory and L-Theanine that helps reduce mental distraction.

• An Ounce of Genius.

• Inspired by Eastern Medicine

• CERA-Q is clinically shown to support memory

• CERA-Q supports memory

• Remember words, names, facts and numbers

• L-Theanine helps reduce mental distraction

• Only 50 calories

• Great-tasting energy drink

• 20% fruit juice

• No artificial flavors or colors

• No artificial sweeteners

• No high fructose corn syrup

• No sugar alcohols

• Contains a unique blend of ingredients and is Jeunesse's most advanced supplement to date.

• Contains a proprietary blend of ingredients, and fruit and vegetable extracts.

• E.g., Provides energy.

• Potent blend of whey, rice, and pea proteins.

• Our proprietary powder is made from the highest quality protein available, which is easily digestible.

• Eliminates cravings.

• Burns fat.

• Youth-enhancing.

• Restores, boosts, advances, expands, strengthens or improves memory, brain or cognitive function

• Prevents or treats the following medical conditions:

o Alzheimer’s o ADD/ADHD o Dementia o Tumors o Brain trauma o Narcolepsy o Anxiety/depression

• M1ND is clinically studied

• M1ND formula or ingredients cross the blood/brain barrier, remove plaque or increase blood glucose

• All natural

• Healthy

• No side effects

• Can’t have too much caffeine

• Cannot mention therapeutic benefits from the ingredients in the product.

• Contains the only proprietary blend of natural ingredients known to safely lengthen short telomeres.

• Help protect cells against oxidative stress.

• E.g., Enhances athletic performance.

• ZEN Shape™ was made to help you reach your fitness and wellness goals.

• Fights sugar cravings.

• Controls hunger.

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The FTC’s laws and regulations tell us that advertising must be true and not deceptive, must be supported by evidence, and cannot be unfair.

You may ask “How can a statement be deceptive if it is true?” If you took the Zen products and lost 20 pounds in 5 days, while true for your experience, it would be a deceptive claim because most people would not be able to do that.

O P P O R U N I T Y C L A I M S

G E N E RA L R U L E S

PLEASE CONTACT COMPLIANCE if you ever have a question about the specific application of these

principles and regulations

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CLAIMS DO SAY DON'T SAY

FINANCIAL REWARDS PLAN AND INCOME

CLAIMS

STARTER KIT (JKIT™)

ONLINE

• Statements of average earnings and of earnings ranges. Always refer to the Jeunesse Income Disclosure Statement (IDS) when talking about earnings and ranges of earnings. See the link at the opportunity tab of www.jeunesseglobal.com. This document shows the earnings of Jeunesse distributors and is the only income representation you may make.

• Lifestyle claims should be limited to the rewards specifically offered in the Financial Rewards Plan (trips, etc.). A lifestyle income claim typically includes statements (or pictures) involving large homes, luxury cars, exotic vacations, or other items suggesting or implying wealth.

• Use terms such as “income opportunity,” “financial opportunity,” or “home-based opportunity”.

• Use terms like “income-creating” rather than “wealth-creating.”

• When discussing the opportunity, you must mention that the purchase of sales aids is optional.

• Use words like “cost” or “expenditure” to describe the purchase of a Starter Kit.

• When blogging or posting online or promoting Jeunesse in any forum, you must always disclose your relationship to Jeunesse, i.e., that you are an employee of the company or an independent distributor of Jeunesse products.

• Statements of non-average earnings and income testimonials. Do not show or describe personal checks, individual earnings, or one’s personal experience. Do not make statements such as “Our number one distributor earned XXX dollars last year” or “Our average Double Diamond makes $XXX per month.” Refer to the IDS.

• Hypothetical earnings claims. You may not make hypotheticals about potential earnings. You may only refer to the IDS when explaining potential earnings.

• Avoid words like “millions”.

• Do not use the terms “business opportunity” or “employment opportunity”.

• Do not use the terms “passive income” or “residual income”.

• Avoid the words “investment” or “invest.” It’s okay to talk about investing time or effort—but not money.

• You may not require a distributor to purchase product when enrolling as a distributor. Product purchases are optional.

The FTC defines deceptive advertising as this: an ad is deceptive if it contains a statement or omits information that: i) is likely to mislead consumers acting reasonably under the circumstances; and ii) is "material" – that is, important to a consumer's decision to buy or use the product.

These are the guiding principles when talking about the Jeunesse opportunity and the Financial Rewards Plan. For this reason distributors should not provide individual or personal experiences to describe potential earnings.

In applying these principles to the Jeunesse opportunity, here are some specific rules:

A P P LY I N G T H E R U L E S


CLAIMS DO SAY DON'T SAY

O P P O R U N I T Y C L A I M S

DISTRIBUTOR STATUS

ESTABLISH JEUNESSE AS A REAL COMPANY

REGARDING RANK ADVANCEMENTS

• When discussing PV requirements for rank advancement, either is acceptable: 1. To qualify for the following ranks one must be active with 100 PV from sales to your preferred customers and personal purchases during the commission month. 2. Be active with 100 PV during the commission month.

• You may not suggest that ranks can be purchased.

A P P LY I N G T H E R U L E S (CONT. )

AUTOSHIP

PV GENERATION AND ACTIVE

PURCHASING REQUIREMENTS

ESTABLISHING THE OPPORTUNITY

• You may say that a distributor must generate a certain amount of PV to qualify for earnings under the compensation plan.

• Emphasize the product first.

• Use terms such as “part-time” and “supplemental income”.

• Use terms such as “flexibility” and the ability to work “how and when” they want when selling the product.

• Discuss the Jeunesse consumer-oriented approach: the product refund policies and low start-up costs.

• Position Autoship as a great way to ensure you never run out of product to service your customers, to share with prospects, and to personally consume.

• You MUST indicate that Autoship is optional for becoming a distributor AND for earning compensation.

• Use terms like “independent contractor” or “independent distributor”.

• Use terms such as “products people want” and “in business since 2010” and “total sales of $__” and “operating in __ countries”.

• Don’t use employment terms such as “employment” “employer” “job” “part-time employment”, etc.

• Be careful when using the term “partner” so that you do not imply a legal partnership.

• Do not impose personal purchase requirements.

• Do not require a distributor to purchase a minimum amount of product.

• Do not over-emphasize recruiting.

• Do not suggest retirement from full time employment.

• Do not position the Autoship as a way to remain active or to qualify for compensation.

• Example: “A product order or participation in the AutoShip program are required to become a distributor or to be Active in the Financial Rewards Plan.”

• Use terms such as “generated” and “sales to your customers” when talking about generating PV to be active.

• Use terms like “Build teams that duplicate by helping your personally sponsored distributors build their businesses.”

• Avoid using “purchase” when describing how PV or CV is generated.

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Company confidential information includes information that is unique and valuable to the company. The primary type of confidential information the company shares with you is the reports obtained in JOffice™. You have a strict obligation to keep the reports and the information therein confidential. You should never disclose confidential information without written authority from the company.

Confidential information can be in any format (digital, verbal, paper) or platform (e-mail, IM, documents, verbal). It is information that is not intended for the public.

If you voluntarily give out confidential information to non-authorized third parties, you will be in breach of your distributorship agreement with the company.

CO M PA N Y CO N F I D E N T I A L I N F O R M AT I O N

W H AT I S I T ?

W H Y

• Don’t disclose confidential information to anyone.

• Don’t disclose confidential information when posting information on a website or in social media, when making presentations to distributors, and in personal conversations with distributors and other third-parties.

• Shred documents containing confidential information rather than throw them away.

• Keep hard copy documents and storage drives with confidential information under lock and key.

G U I D E L I N E S

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Recently the Federal Trade Commission updated its guidance document for testimonials and celebrity endorsements.

In 2009 the FTC issued a significantly revised guidance document on testimonials and celebrity endorsements that affects Jeunesse content on social media, websites, printed material, audio/visual and live presentations—basically, everything. In summary:

TESTIMONIALS FROM DISTRIBUTORS AND CUSTOMERS

1. Testimonials (from distributors and customers):

a. We can no longer rely on general typicality disclaimers (i.e., “results not typical” or “results may vary”) whenever a consumer testimonial is not generally representative of what consumers can generally achieve.

b. Advertising includes blogging, word-of-mouth, Internet, and other advertising done by distributors.

i. You must not make any claims beyond those approved by the company; and

ii. The testimonial must disclose that you are a distributor of Jeunesse productsinformation that is not intended for the public.

1. Any testimonial must indicate your relationship to the company

2. For online ads:

a. The disclosure must be near, and when possible, on the same screen as the claim.

b. If in a video, the disclosure must be in the video.

c. Hyperlinks for disclosures must be obvious, appropriately labeled, consistently styled, near relevant information, monitored for effectiveness, and direct to the disclosure.

d. At a minimum, disclosures must be effectively communicated prior to purchase. The FTC is looking at the overall communication and context and the use of high tech methods and capabilities to make disclosures noticeable and attractive, clear and understandable.

CONSUMER ENDORSEMENTS (INCLUDES DISTRIBUTORS)

2. Section 1 is in addition to these existing rules on consumer endorsements:

a. Endorsements must always reflect the honest opinions, findings, beliefs or experience of the endorser.

b. Endorsements may not contain any representations that are deceptive

A DV E R T I S I N G : T E ST I M O N I A L S & E N D O R S E M E N TS

T H E O L D U P DAT E F I R ST

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T H E O L D U P DAT E F I R ST (CONT. )

CONSUMER ENDORSEMENTS (INCLUDES DISTRIBUTORS) CONT.

c. An endorsement must fairly reflect the endorser's opinion or experience with the product, but need not be phrased in the exact words of the endorser, unless the advertiser affirmatively represents that it is a direct quote

d. Any advertised portion of an endorsement should fairly reflect the spirit and content of the complete point of view or experience of the endorser

e. Typically an endorsement implies that the endorser is a bona fide user of the product who prefers that product to other products available

In the FTC’s guidance document, revised (2015), the section titled “What People Are Asking” addresses a handful of media specific and other specific issues.

1. The disclosure requirements for individuals who received products for free with the expectation that they will publish an endorsement, or who participate in network marketing programs (that’s us!) where they receive free product samples for endorsements. In both cases, full disclosure of the relationship is required to comply with the Endorsement Guides.

2. Disclosures in connection with sweepstakes or contests with a social media component (regardless of the social media vehicle used) must be made.

3. Posting a video where an individual discusses a product received from a marketer or an affiliate for free constitutes an endorsement in the same way as discussing the product on a blog, with disclosure being required about both the relationship and the free goods.

4. You independent contractor relationship with Jeunesse as a distributor must be disclosed regardless of whether you as the endorser are formally working at the time of making any statement about the products.

5. “Liking,” “pinning,” or “sharing” a link with others can be an endorsement if done as part of a sponsored campaign. In these situations, disclosure is required. Refrain from encouraging endorsements on platforms where clear and conspicuous disclosures cannot be accommodated.

a. “Likes,” “pins,” or “shares” that appear to be from actual consumers when they are not are deemed deceptive under the Endorsement Guides.

6. Ultimately—regardless of the medium and its limitations—the FTC’s touchstone is transparency. There is a need to completely disclose what is received for any endorsement. If a product is provided for free and something more (such as a payment) is also made, it is not enough only to disclose the receipt of the product. Similarly, if a “sneak peek” of a product is provided and, in addition, payment for a review of the product is received, it is not sufficient only to disclose the “sneak peek.” Early access and payment both need to be disclosed. This full disclosure responsibility resides with the “poster” (blogger, reviewer, etc.), as well as with the retailer whose product or service is the subject of the endorsement.

T H E N E W S O C I A L M E D I A U P DAT E F R O M T H E F TC

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T H E N E W S O C I A L M E D I A U P DAT E F R O M T H E F TC (CON T. )

7. Regarding videos, the FTC advises that a disclosure in the description of a video does not suffice. The disclosure needs to appear in the video itself—preferably at the beginning and repeated periodically throughout—since consumers can easily miss disclosures at the end of a video.

8. Similarly, the FTC states that links to “Disclosures” on websites are not prominent enough to meet the standards outlined in the Endorsement Guides.

9. With respect to “tweets,” the FTC states that it does not consider the medium’s space limitations a bar to full disclosure. Even with its 280 character limitation, the FTC notes that effective disclosure may be made by beginning a sponsored tweet with “Ad:” or “#ad.” Thus, the use of three characters may suffice for compliance, depending on the accuracy of the disclosure.

10. Further, the FTC suggests that customers who are incentivized to post reviews about products through discounts or other means (even with incentives that may have only a subjective value) should be instructed to disclose the incentive they received. In all events, if there is a question about whether the incentive offered could affect the review, the best practice is to disclose the incentive.

11


PROTECTING CONSUMERS DSA MEMBER RESPONSIBILITIES‹ ›

ENFORCEMENT

PROTECTING SALESPEOPLE

IN ALL INTERACTIONS, A SALESPERSON MUST

• Contact customers at a convenient time.

• Provide accurate information on products and services.

• Provide company and salesperson contact information.

• Protect customer privacy.

• Ensure product and earnings claims are clearly documented and defined, and substantiated by competent and reliable evidence.

A SALESPERSON WILL NOT

• Engage in unlawful or unethical recruiting practices.

• Encourage fellow salespeople to purchase unreasonable amounts of inventory or sales aides.

• Encourage selling of products solely to qualify for downline commissions.

• The Code of Ethics is enforced by an independent administrator, responsible for compliance and complaint resolution. A member company agrees to abide by the requirements of the Code as a condition of DSA membership.

A MEMBER COMPANY MUST PROVIDE

• Information on its compensation plan, products and sales methods.

• Actual and potential sales and earnings claims; accurate descriptions of products, services and opportunities.

• A contract detailing the relationship with the company, including start-up fees and costs.

• An explanation of its repurchase policy, requiring a 90% refund on currently marketable materials within 12 months of purchase, including sales kits if required.

• Member companies are subject to reviews to ensure Code compliance and adherence to state and federal laws.

• The Code requires consumer protection measures beyond the minimum standards set by the legal and regulatory communities.

• The Code administrator is empowered to issue periodic compliance reports, including public reports.

A MEMBER COMPANY MUST

• Abide by the Code’s standards and procedures as a condition of DSA membership.

• Publish the Code on their website and the process for filing a Code complaint.

• Provide ethics training to their salespeople.

• Ensure product and earnings claims are clearly documented and defined, and substantiated by competent and reliable evidence.

A MEMBER COMPANY WILL NOT

• Engage in unlawful or unethical recruiting practices and exorbitant entrance fees.

• Encourage salespeople to purchase unreasonable amounts of inventory or sales aides.

• Encourage selling of products solely to qualify for downline commissions.

• The Code Administrator is empowered to employ any appropriate remedy to ensure that salespeople do not incur significant financial loss, including requiring DSA member companies to repurchase inventory or materials.

• Member companies must ensure all marketing activity by the salesforce is consistent with company policies and the Code.

12

DIRECT SELLING ASSOCIATION’S CODE OF ETHICS

THE STANDARD FOR AN ACCOUNTABLE MARKETPLACE

Direct Selling Association | 1667 K Street, NW | Suite 1100 | Washington, DC 20006 | (202) 452-8866 | dsa.org | Copyright © 2015 DSA

NOTES

NOTES

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