Page 45 - Company Policy

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ProhibiTed aCTiviTies

16.01 The Executive Committee’s decision to terminate a Forever
Business or to disallow, realign or adjust Bonuses, Case
Credits, compensation or any incentive awards for any
Forever Business Owner’s involvement in activities or
omissions that are not in conformance with Company
Policies and the Code of Professional Conduct shall be final.
Intentional acts of omission and disregard for the Company
Policies and the Code of Professional Conduct by an FBO
shall be severely dealt with which may include termination
and legal action for damages.
16.02 Prohibited activities causing grounds for termination and
liability for any damages caused by such acts include, but are
not limited to, the following conduct:
(a) Fraudulent Sponsoring. A Forever Business Owner
is prohibited from sponsoring individuals without the
knowledge of and execution of a Forever Business Owner
Application and Agreement by such individuals; the
fraudulent sponsoring of an individual as an FBO; or
the sponsoring or attempted sponsoring of non-existent
individuals as FBOs or Customers (“phantoms”) to qualify
for commissions or bonuses. As per the Direct Selling
Guidelines 2016 clause 5.6.b, such activity will constitute a
direct violation under unfair recruiting practices.
(b) Bonus Buying. A Forever Business Owner is prohibited
from ordering or encouraging their teams to order
more product than required to meet immediate sales
needs, and additional products may be purchased only
after 75% of that product’s inventory has been sold,
consumed or otherwise utilized. An FBO is prohibited
from purchasing products or encouraging other FBOs
to purchase products solely for the purpose of qualifying
for bonuses, and from using any other mechanism
by which strategic purchases are made to maximize
commissions or bonuses when an FBO does not have
a bona fide use for the products purchased. In order to
ensure no inventory loading is occurring:
1) Each Forever Business Owner who orders product
that was the subject of a prior order shall also be
confirming and certifying to the Company that
75% of the prior order of that product has been
sold or otherwise utilized. Each FBO should keep
accurate records of monthly sales, which records
can be subject to inspection by the Company
upon reasonable notice. Such records will include
reports reflecting inventory on hand at the end of
the month. With reference to the Direct Selling
Guidelines 2016, clauses 5.5 and 5.6.f, a direct
seller shall keep proper book of accounts stating the
details of the products, price, tax and the quantity

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