Page 22 - SG_English HandBook

Principles of Direct Selling Business

2.2.2 No Authority to Represent the Company
• The Independent Distributor shall have no authority to act for the Company, including but are not limited to the following:
1) Register or own the Company’s name, trademarks, or products’ name.
2) Use of the Company’s name, trademarks or products’ name to register as domain names.
3) Register or obtain a licence for the Company’s products or businesses.
4) Establish any form of contact with or approach the public or the government using the name of the Company.
5) Any act which may cause the public to mistakenly believe that the Independent Distributor has the authority to represent the
Company.
• In the event the Independent Distributor commits any of the above which cause the Company to take any relief actions, the
Independent Distributor shall compensate the Company for all expenses and legal fees incurred by the Company. The
Company’s name, trademarks, products’ name, products or domain names obtained by the Independent Distributor due to any
violation of the provisions of this Chapter shall be transferred to the Company free at the Independent Distributor’s costs, and
the Company shall not be liable to pay or compensate the Independent Distributor for any fees incurred by the Independent
Distributor.

2.2.3 Refrain from Representing the Company as Employer
• The Independent Distributor shall not, in any loan applications, government forms or applications, employment verification
requirements, applications for unemployment benefits, any forms or documents or in any circumstances, represent that the
Company is the Independent Distributor’s Employer.

2.3 Obligations of an Independent Distributor

• When promoting the Company’s products or services or introducing others to join the Company as an Independent Distributor,
the Independent Distributor shall not mislead the potential Independent Distributors or customers to pay for expenses or
reimburse unjustified costs for training, lectures, networking session, meetings, advancement or others similar activities. The
Independent Distributor shall not request the potential Independent Distributors or customers to pay for any unnecessary
deposits, guarantees or fees.
• When promoting the sales of products or services or introducing others to join, the potential Independent Distributors or
customers should be clearly informed that the Company does not allow two distributorships or more simultaneously.
• Independent Distributor shall not breach the following rules:
1) Incite, induce, recruit, abet the Company’s Independent Distributors to join other direct selling companies or causing to do
the same through other means.
2) Invite, assist the Company’s Independent Distributors to participate in the activities of other direct selling companies or
through other means.
3) Create or cause any detrimental competition or conflict of interest between the Company and other direct selling
companies.
4) Except for valid reasons or with the Company’s consent, the Independent Distributor shall not encourage, induce or assist
other Independent Distributors to change their Sponsor. Such behavior will constitute an improper and unreasonable
intervention in the contractual relationship between the Company and the respective Independent Distributors. The
foregoing prohibitions include, but are not limited to, providing financial or other tangible rewards to other Independent
Distributors causing the termination of his or her existing distributorship rights and reapply as an Independent Distributor
under another Sponsor. The Independent Distributor agrees that violation of this rule will cause irreparable damage to the
Company, and further agrees that the Company shall have the right to take any measures to avoid such damage.
5) The Company reserves the right to impose severe sanctions on and/or claim damages against the Independent Distributor
who instigates or induces other Independent Distributors to change their Sponsor as well as the Independent Distributor
who changes his or her Sponsor, including using various names or means to cause others to participate and at the same
time receive or obtain any fees that have yet to be determined by the Company or any improper benefits.
6) Independent Distributor shall not in any manner or use any means (including but not limited to encouragement, inducement,
coercion or assistance) to cajole or snaffle other downlines and / or potential customers of another Independent Distributor.
7) Use deceiving, misleading, exaggerating, fraudulent, any guaranteed efficacy or false statements or explanations to
promote, sell products and services or introduce others to join the direct selling organization.
8) Raising funds from others under the disguise of a direct selling business.

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