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Principles of Direct Selling Business

CHAPTER 2

Principles of Direct Selling Business

2.1 Business Ethics

2.1.1 Direct Selling Association Code of Ethics
• The Company is a member of the Direct Selling Association of Singapore and abides by the Singapore Direct Selling Association’s
Code of Ethics. In addition to the provisions in this chapter, the Independent Distributor shall also comply with the provisions of
the Code of Ethics of the Direct Selling Association of Singapore. The Code of Ethics by the Direct Selling Association of
Singapore can be found at www.dsas.org.sg.

2.1.2 Business Objective
• The main business objective of the Independent Distributor and the Company is to sell high quality products to customers and
as part of the business process, the Independent Distributor can establish his or her direct sale organization by sponsoring
other Independent Distributors. However, sponsoring other Independent Distributors is not the main objective of the
Independent Distributor. Instead, the Independent Distributor’s main business objective is to sell products to potential
customers through the direct sale organization.

2.1.3 Etiquette Rules of an Independent Distributor
• Independent Distributor shall manage his or her distributorship in an ethical, professional and courteous manner. In other
words, the Independent Distributor must comply with the following rules:
1) Independent Distributor shall comply with the terms and conditions of the agreement and all applicable laws.
2) Independent Distributor shall conduct sales through distributorship with honesty.
3) You should inform your potential customers or other Independent Distributors about your identity, the reason for contacting
them and the products that you are promoting, and that you are engaged in direct selling and shall not use this avenue to
employ others or disguise yourself through any other means.
4) The Independent Distributor shall not give false, exaggerated or unwarranted representation or false warranty to others
regarding the potential income generated from the Company’s compensation plan, or when promoting the benefits of the
Company’s products, or when promoting the Company’s products and services through successful testimonials or when
promoting the Company’s products and services or when introducing others to join.
5) The Independent Distributor shall not compel, force or otherwise induce other Independent Distributors or potential
customers to operate the business, causing them to be in debt, including but are not limited to compelling or inducing them
to purchase more than the reasonable amount in respect of usage, sales, business support products or ancillary services.
6) Independent Distributor should explain clearly to the potential customers and other Independent Distributors the
rules/requirements for return, exchange of non-defective products, scope of warranty for products.
7) The Independent Distributor shall not mislead the potential customers that the potential customers can only become an
Independent Distributor upon purchasing the Company’s products. The Independent Distributor should inform the potential
customers that they can become an Independent Distributor by executing the “Independent Distributorship Agreement” and
if they wish to purchase any products, they may do so at their own will.
8) When promoting the Company’s business or products, the Independent Distributor shall not commit the following acts:
(1) Acts that cause or are likely to cause others to feel unpleasant, uneasy or annoyed.
(2) Acts that damage or likely to damage the Company’s brand, image or business reputation.
(3) Acts that cause or likely to cause the public to have an adverse impression of the Company.

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