Policies and Procedures - What`s New with It Works!

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UNITED STATES
STATEMENT OF POLICIES
and
PROCEDURES
Effective September 1, 2016
TABLE OF CONTENTS
SECTION 1 - INTRODUCTION ....................................................................................................... 1
1.1 - POLICIES AND COMPENSATION PLAN INCORPORATED INTO DISTRIBUTOR AGREEMENT ..................... 1
1.2 - PURPOSE OF POLICIES ........................................................................................................... 1
1.3 - CHANGES TO THE AGREEMENT ................................................................................................ 1
1.4 - DELAYS ............................................................................................................................... 1
1.5 - POLICIES AND PROVISIONS SEVERABLE .................................................................................... 1
1.6 - WAIVER .............................................................................................................................. 2
SECTION 2 - BECOMING A DISTRIBUTOR ..................................................................................... 2
2.1 - REQUIREMENTS TO BECOME A DISTRIBUTOR ............................................................................... 2
2.2 - NO PRODUCT PURCHASE REQUIRED ........................................................................................ 2
2.3 - DISTRIBUTOR BENEFITS............................................................................................................ 2
2.4 - TERM AND RENEWAL OF YOUR IT WORKS! BUSINESS ................................................................... 2
2.5 - COMPANY TRANSFER OF DISTRIBUTORS .................................................................................... 3
SECTION 3 - OPERATING AN IT WORKS! BUSINESS ...................................................................... 3
3.1 - ADHERENCE TO THE IT WORKS! COMPENSATION PLAN ............................................................... 3
3.2 - ADVERTISING ....................................................................................................................... 3
3.2.1 - GENERAL ......................................................................................................................... 3
3.2.2 - MARKETING AND LEAD GENERATION SYSTEMS ....................................................................... 3
3.2.3 - DISTRIBUTOR WEBSITES ........................................................................................................ 4
3.2.4 - BLOGS, CHAT ROOMS, SOCIAL NETWORKS, ONLINE AUCTIONS, AND OTHER ONLINE FORUMS ...... 4
3.2.5 - DOMAIN NAMES AND EMAIL ADDRESSES .............................................................................. 4
3.2.6 - TRADEMARKS AND COPYRIGHTS .......................................................................................... 4
3.2.7 - MEDIA AND MEDIA INQUIRIES ............................................................................................. 5
3.2.8 - UNSOLICITED EMAIL ........................................................................................................... 5
3.2.9 - UNSOLICITED FAXES OR AUTOMATED DIALING SYSTEMS ........................................................... 5
3.2.10 - PRINT CLASSIFIED ADS ..................................................................................................... 6
3.3 - BONUS BUYING PROHIBITED ................................................................................................... 6
3.4 - BUSINESS ENTITIES ................................................................................................................. 6
3.4.1 - CHANGES TO A BUSINESS ENTITY .......................................................................................... 7
3.5 - CHANGE OF ENROLLER OR PLACEMENT .................................................................................... 7
3.5.1 - CANCELLATION AND REAPPLICATION ................................................................................... 8
3.6 - UNAUTHORIZED CLAIMS AND ACTIONS .................................................................................... 8
i
3.6.1 - INDEMNIFICATION ............................................................................................................. 8
3.6.2 - PRODUCT CLAIMS AND TESTIMONIALS................................................................................... 8
3.6.3 - BEFORE AND AFTER PHOTOS ................................................................................................ 8
3.6.4 - INCOME CLAIMS AND THE INCOME DISCLOSURE STATEMENT .................................................... 8
3.7 - COMMERCIAL OUTLETS ......................................................................................................... 9
3.7.1 - CALIFORNIA RETAIL SALE .................................................................................................... 9
3.8 - TRADE SHOWS, EXPOSITIONS AND OTHER SALES FORUMS............................................................ 9
3.8.1 - DOUBLE-BOOKINGS DISPUTE RESOLUTION ........................................................................... 10
3.9 - CONFLICTS OF INTEREST ....................................................................................................... 10
3.9.1 - NON-SOLICITATION ......................................................................................................... 10
3.9.2 - SALE OF COMPETING GOODS OR SERVICES......................................................................... 11
3.9.3 - DISTRIBUTOR PARTICIPATION IN OTHER DIRECT SELLING PROGRAMS ........................................ 11
3.9.4 - DOWNLINE ACTIVITY (GENEALOGY) REPORTS AND ESUITE ACCESS. ........................................ 11
3.10 - TARGETING OTHER DIRECT SELLERS ...................................................................................... 11
3.11 - CROSS-SPONSORING ....................................................................................................... 12
3.12 - ERRORS OR QUESTIONS ..................................................................................................... 12
3.13 - GOVERNMENTAL APPROVAL OR ENDORSEMENT .................................................................... 12
3.14 - HOLDING APPLICATIONS OR ORDERS .................................................................................. 12
3.15 - IDENTIFICATION ................................................................................................................ 12
3.16 - INCOME TAXES ................................................................................................................ 12
3.17 - INDEPENDENT CONTRACTOR STATUS .................................................................................... 13
3.18 - INSURANCE ..................................................................................................................... 13
3.19 - INTERNATIONAL MARKETING .............................................................................................. 13
3.20 - INVENTORY LOADING........................................................................................................ 14
3.21 - ADHERENCE TO LAWS AND ORDINANCES ............................................................................. 14
3.22 - MINORS .......................................................................................................................... 14
3.23 - ONE IT WORKS! BUSINESS PER DISTRIBUTOR AND PER HOUSEHOLD............................................ 14
3.24 - ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED INDIVIDUALS ............................................. 14
3.25 - REQUESTS FOR RECORDS .................................................................................................... 15
3.26 - ROLL-UP OF MARKETING ORGANIZATION ............................................................................. 15
3.27 - SALE, TRANSFER OR ASSIGNMENT OF AN IT WORKS! BUSINESS.................................................. 15
3.28 - SEPARATION OF AN IT WORKS! BUSINESS .............................................................................. 15
3.29 - SPONSORING ................................................................................................................... 16
3.30 - SUCCESSION.................................................................................................................... 16
3.31 - TRANSFER UPON DEATH OF A DISTRIBUTOR ............................................................................ 16
3.32 - TRANSFER UPON INCAPACITATION OF A DISTRIBUTOR ............................................................. 17
3.33 - TELEMARKETING TECHNIQUES .............................................................................................. 17
3.34 - BACK OFFICE ACCESS ...................................................................................................... 17
SECTION 4 - RESPONSIBILITIES OF DISTRIBUTORS ...................................................................... 18
4.1 - CHANGE OF CONTACT INFORMATION ................................................................................... 18
4.2 - CONTINUING DEVELOPMENT OBLIGATIONS ............................................................................ 18
4.2.1 - ONGOING TRAINING ....................................................................................................... 18
4.2.2 - INCREASED TRAINING RESPONSIBILITIES ............................................................................... 18
4.2.3 - ONGOING SALES RESPONSIBILITIES ..................................................................................... 18
4.2.4 - RESIDUAL INCOME ........................................................................................................... 18
4.3 - NON-DISPARAGEMENT ....................................................................................................... 18
4.4 - PROVIDING DOCUMENTATION TO APPLICANTS........................................................................ 19
4.5 - GENERAL CONDUCT ........................................................................................................... 19
4.6 - REPORTING POLICY VIOLATIONS ........................................................................................... 19
4.7 - VENDOR CONFIDENTIALITY/COMMUNICATIONS...................................................................... 19
SECTION 5 - SALES REQUIREMENTS ............................................................................................ 19
5.1 - PRODUCT SALES ................................................................................................................. 19
ii
5.1.1 - SPECIAL STATE RULES ........................................................................................................ 19
5.2 - NO TERRITORY RESTRICTIONS ................................................................................................ 19
5.3 - SALES RECEIPTS .................................................................................................................. 19
5.4 - PRODUCT REPACKAGING, REBRANDING AND SAMPLING PROHIBITED ......................................... 20
5.5 - PRODUCT SOURCE .............................................................................................................. 20
SECTION 6 - BONUSES AND COMMISSIONS ............................................................................. 20
6.1 - BONUS AND COMMISSION QUALIFICATIONS .......................................................................... 20
6.1.1 - DEADLINES FOR QUALIFICATIONS ....................................................................................... 20
6.1.2 - COMMISSION PAYMENTS .................................................................................................. 20
6.2 - ADJUSTMENT TO BONUSES AND COMMISSIONS ....................................................................... 20
6.2.1 - ADJUSTMENTS FOR RETURNED PRODUCTS AND CANCELLED SERVICES ....................................... 20
6.2.2 - OTHER DEDUCTIONS ........................................................................................................ 21
6.3 - REPORTS ........................................................................................................................... 21
6.4 - LOYAL CUSTOMER RULES ..................................................................................................... 21
SECTION 7 - PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE ..................... 22
7.1 - PRODUCT GUARANTEE ........................................................................................................ 22
7.2 - RETURNS BY RETAIL CUSTOMERS ............................................................................................ 22
7.3 - RETURN OF INVENTORY AND SALES AIDS BY DISTRIBUTORS UPON CANCELLATION ......................... 22
7.3.1 - MONTANA RESIDENTS ...................................................................................................... 23
7.4 - PROCEDURES FOR ALL RETURNS............................................................................................. 23
SECTION 8 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS ................................... 24
8.1 - DISCIPLINARY SANCTIONS ................................................................................................... 24
8.2 - GRIEVANCES AND COMPLAINTS ........................................................................................... 24
8.3 - MEDIATION ....................................................................................................................... 24
8.4 - ARBITRATION ..................................................................................................................... 25
8.5 - DAMAGE LIMITATION .......................................................................................................... 25
8.6 - INDEMNIFICATION. ............................................................................................................. 26
8.7 - LIQUIDATED DAMAGES ........................................................................................................ 26
8.8 - CLASS ACTION WAIVER ...................................................................................................... 26
8.9 - GOVERNING LAW, JURISDICTION AND VENUE ......................................................................... 26
SECTION 9 - PAYMENT AND SHIPPING ...................................................................................... 27
9.1 - CHARGEBACKS .................................................................................................................. 27
9.2 - RESTRICTIONS ON THIRD PARTY USE OF CREDIT CARDS AND CHECKING ACCOUNT ACCESS .......... 27
9.3 - SALES TAXES ...................................................................................................................... 27
9.3.1 - CALIFORNIA SALES TAX .................................................................................................... 27
9.3.2 - NEW MEXICO GROSS RECEIPTS TAXES ................................................................................ 27
SECTION 10 - INACTIVITY, RECLASSIFICATION, & CANCELLATION .......................................... 27
10.1 - EFFECT OF CANCELLATION ................................................................................................. 27
10.2 - INVOLUNTARY CANCELLATION ........................................................................................... 28
10.3 - VOLUNTARY CANCELLATION .............................................................................................. 28
10.4 - NON-RENEWAL ................................................................................................................ 28
10.5 - REVOCATION OF CONSENT TO CONTRACT ELECTRONICALLY ................................................... 28
SECTION 11 - DEFINITIONS ......................................................................................................... 28
SOCIAL MEDIA AND INTERNET ADDENDUM TO POLICIES AND PROCEDURES ......................... 31
A. 1
A. 2
A. 3
GENERAL (APPLYING TO BOTH ONLINE AND OFFLINE MARKETING AND PROMOTION) ................. 31
IT WORKS! INDEPENDENT DISTRIBUTOR LOGO / IDENTITY ...................................................... 31
TRADEMARKS AND COPYRIGHTS ....................................................................................... 31
iii
A. 4
A. 5
A. 6
A. 7
A. 8
A. 9
A.10
A. 11
A. 12
A. 13.
A. 14
A. 15
A. 16
A. 17
A. 18
A. 19
A. 20
A. 21
A. 22
A. 23
A. 24
A. 25
A. 26
A. 27
A. 28
A. 29
A. 30
A. 31
A. 32
SOCIAL MEDIA AND ONLINE ALIASES ............................................................................... 31
USE OF THIRD PARTY INTELLECTUAL PROPERTY ..................................................................... 32
ADVERTISING TEMPLATES AND APPROVAL .......................................................................... 32
MEDIA AND MEDIA INQUIRIES ......................................................................................... 32
INDEPENDENT DISTRIBUTOR RELEASE .................................................................................. 32
IT WORKS! REPLICATED WEBSITES ...................................................................................... 32
EXTERNAL WEBSITES ....................................................................................................... 33
BLOGGING ................................................................................................................... 33
NO E-COMMERCE OR STOCK-AND-SELL RETAILING ............................................................ 34
IT WORKS! MARKETING HOTLINKS..................................................................................... 34
REMOVING IT WORKS! REFERENCES IN THE EVENT OF INDEPENDENT DISTRIBUTOR TERMINATION ... 34
SOCIAL MEDIA .............................................................................................................. 34
DISTRIBUTORS ARE RESPONSIBLE FOR THEIR POSTINGS .......................................................... 35
IDENTIFICATION AS AN IT WORKS! INDEPENDENT DISTRIBUTOR ............................................... 35
TRUTHFULNESS IN ONLINE POSTINGS .................................................................................. 35
RESPECTING PRIVACY..................................................................................................... 35
PROFESSIONALISM ......................................................................................................... 35
PROHIBITED POSTINGS .................................................................................................... 35
RESPONDING TO NEGATIVE POSTS .................................................................................... 36
ONLINE CLASSIFIEDS ...................................................................................................... 36
EBAY / ONLINE AUCTIONS .............................................................................................. 36
ONLINE RETAILING ......................................................................................................... 36
PROMOTIONS ................................................................................................................ 36
BANNER ADVERTISING .................................................................................................... 36
UNSOLICITED EMAIL SPAMMING / MASS EMAILING............................................................. 36
SPAM LINKING .............................................................................................................. 37
SOCIAL NETWORKING SITES (FACEBOOK/TWITTER/LINKEDIN) ............................................... 37
DIGITAL MEDIA SUBMISSION (YOUTUBE, ITUNES, PHOTOBUCKET ETC.) ................................... 37
SPONSORED LINKS / PAY-PER-CLICK (PPC) ADS .............................................................. 38
iv
SECTION 1 - INTRODUCTION
you may be unfamiliar with many of these
standards of practice, it is very important that
you read and abide by the Agreement. Please
review the information in this manual carefully.
It explains and governs the relationship
between you, as an independent contractor,
and the Company. If you have any questions
regarding any policy or rule, do not hesitate to
seek an answer from your Enroller or from It
Works!.
1.1 - Policies
and
Compensation
Plan
Incorporated into Distributor Agreement
These Policies and Procedures, in their
present form and as amended at the sole
discretion of It Works Marketing, Inc. (hereafter
‘It Works!’ or the ‘Company’), are incorporated
into, and form an integral part of, the It Works!®
Distributor Agreement.
Throughout these
Policies, when the term ‘Agreement’ is used, it
collectively refers to the It Works! Independent
Distributor Application and Agreement, these
Policies and Procedures, the It Works!
Compensation Plan, and the It Works! Business
Entity Registration Form (if applicable). These
documents are incorporated by reference into
the It Works! Distributor Agreement (all in their
current form and as amended by It Works!). It is
the responsibility of each Distributor to read,
understand, adhere to, and ensure that he or
she is aware of and operating under the most
current version of these Policies and Procedures.
When sponsoring or enrolling a new Distributor,
the sponsoring Distributor should confirm that
the applicant has online access to and has
reviewed the most current version of these
Policies and Procedures and the It Works!
Compensation Plan prior to his or her execution
of the Distributor Agreement.
1.3 - Changes to the Agreement
It Works! reserves the right to amend the
Agreement and its prices in its sole and absolute
discretion. By signing the Distributor Agreement,
a Distributor agrees to abide by all amendments
or modifications that It Works! elects to make.
Amendments shall be effective 30 days after
publication of notice to all Distributors that the
Agreement has been modified. Notification of
amendments shall be published in official It
Works! materials. The Company shall provide or
make available to all Distributors a complete
copy of the amended provisions by one or more
of the following methods: (1) posting on the
Company’s official website; (2) electronic mail
(e-mail); (3) inclusion in Company periodicals;
(4) via updates in eSuite; or (5) special mailings.
The continuation of a Distributor’s It Works!
business or a Distributor’s acceptance of
bonuses
or
commissions
constitutes
acceptance of any and all amendments.
1.2 - Purpose of Policies
It Works! is a direct sales company that
markets its products and services through
Independent Distributors (hereafter ‘Distributor’
or ‘Distributors’). It is important to understand
that your success and the success of your fellow
Distributors depends on the integrity of the men
and women who market our products and
services. To clearly define the relationship that
exists between Distributors and It Works! and to
explicitly set a standard for acceptable business
conduct, It Works! has established the
Agreement.
1.4 - Delays
It Works! shall not be responsible for delays
or failures in performance of its obligations when
performance
is
made
commercially
impracticable due to circumstances beyond its
reasonable control.
This includes, without
limitation, strikes, labor difficulties, riot, war, fire,
death, curtailment of a party’s source of supply,
or government decrees or orders.
1.5 - Policies and Provisions Severable
If any provision of the Agreement, in its
current form or as may be amended, is found to
be invalid or unenforceable for any reason, only
the invalid portion(s) of the provision shall be
severed and the remaining terms and provisions
shall remain in full force and effect. The severed
provision, or portion thereof, shall be reformed
It Works! Distributors are required to comply
with all of the Terms and Conditions set forth in
the Agreement which It Works! may amend at
its sole discretion from time to time, as well as all
federal, state, and local laws governing their It
Works! business and their conduct. Because
1
to reflect the purpose of the provision as closely
as possible.
States, the business must be registered
with the IRS with an EIN and must not be
a sole proprietorship. Any business
names that are not registered with the
IRS or that are sole proprietorships may
be used on the replicated website but
may not be entered on the account as
an entity name.
1.6 - Waiver
No party gives up its right to insist on
compliance with the Agreement and with the
applicable laws governing the conduct of a
business. No failure of a party to exercise any
right or power under the Agreement or to insist
upon strict compliance by the other party. No
custom or practice of the parties at variance
with the terms of the Agreement shall constitute
a waiver of a party’s right to demand exact
compliance with the Agreement. A waiver can
be effectuated only in writing by an authorized
representative of the party against whom the
waiver is sought to be enforced. A party’s
waiver of any particular breach shall not affect
or impair it’s rights with respect to any
subsequent breach, nor shall it affect in any way
the rights or obligations of any other Distributor.
2.2 - No Product Purchase Required
No person is required to purchase It Works!
products, services or sales aids, or to pay any
charge or fee to become a Distributor other
than purchase of a Basic Kit. In order to
familiarize new Distributors with It Works!
products, services, sales techniques, sales aids,
and other matters, the Company recommends
that they purchase a Business Builder Kit. It
Works! will repurchase Resalable kits from any
Distributor who terminates his or her Distributor
Agreement pursuant to the terms of Section 7.3.
The existence of any claim or cause of action
against a party shall not constitute a defense to
the other party’s enforcement of any term or
provision of the Agreement.
2.3 - Distributor Benefits
Once a Distributor Application and
Agreement has been accepted by It Works!,
the benefits of the Compensation Plan and the
Distributor Agreement are available to the new
Distributor. These benefits include the right to:
SECTION 2 - BECOMING A DISTRIBUTOR
2.1 - Requirements to Become a Distributor
To become an It Works! Distributor, each
applicant must:
a) Sell and solicit orders for It Works!
products and services;
b) Participate
in
the
It
Works!
Compensation Plan (receive bonuses
and commissions, if eligible);
c) Sponsor other individuals as Customers
or Distributors into the It Works! business
and thereby build a Marketing
Organization and progress through the It
Works! Compensation Plan;
d) Receive periodic It Works! literature and
other It Works! communications and
have access to It Works! online sales and
business tools;
e) Participate in It Works!-sponsored
support, service, training, motivational
and
recognition
functions
upon
payment of appropriate charges, if
applicable; and
f) Participate in promotional and incentive
contests and programs sponsored by It
Works! for its Distributors.
a) Be at least 18 years of age;
b) Reside in any country or territory that It
Works! has officially announced is open
for business;
c) Have a valid Social Security or Federal
Tax ID number or submit a properly
completed IRS form W-9 for US
Distributors;
d) Purchase an It Works! Sales Kit (optional
in North Dakota); and
e) Submit a properly completed Distributor
Application and Agreement to It Works!,
either in hard copy or online format.
f) When enrolling, the First and Last name
fields must contain the first and last
name of the Distributor who is
enrolling. If enrolling a business, the first
and last name of the person responsible
for the business must be entered. It is not
acceptable to enter the business name
in the first and last name fields. If
entering a business name in the United
2.4 - Term and Renewal of Your It Works!
Business
The term of the Distributor Agreement is one
2
year from the date of its acceptance by It
Works! (subject to prior termination or
reclassification pursuant to Section 10).
Distributors must renew their Distributor
Agreement each year by paying an annual
renewal fee of $35 on or before the anniversary
date of their Distributor Agreement. If the
renewal fee is not paid within 30 days after the
expiration of the current term of the Distributor
Agreement, the Distributor Agreement will be
canceled.
Compensation Plan other than those purchases
or payments identified as recommended or
required in official It Works! literature.
3.2 - Advertising
3.2.1 - General
All Distributors shall safeguard and promote
the good reputation of It Works! and its
products. The marketing and promotion of It
Works!, the It Works! opportunity, the
Compensation Plan, and It Works! products and
services shall be consistent with the public
interest and must avoid all discourteous,
deceptive, misleading, unethical or immoral
conduct or practices.
2.5 - Company Transfer of Distributors
It Works!, including but not limited to any of
its affiliates and/or subsidiaries, may transfer or
assign the Distributor Agreement in its sole
discretion. In the case that the Distributor does
not accept the transfer or assignment, it may
provide written notice that it wishes to terminate
the Agreement. In the event of such notice
being provided, the termination will become
effective immediately. In the event It Works!
chooses not to transfer a Distributor Agreement
termination will be effective immediately. If a
Distributor does not issue a written notice of
termination to It Works! the Distributor shall be
deemed to consent to the transfer or
assignment.
SECTION 3 - OPERATING AN IT WORKS! BUSINESS
To promote both the products and services,
and the tremendous opportunity It Works! offers,
Distributors must use the sales aids and support
materials produced or approved by It Works!.
The rationale behind this requirement is simple.
If It Works! Distributors were allowed to develop
their own sales aids and promotional materials,
notwithstanding their integrity and good
intentions, there is a high likelihood that they
would unintentionally violate any number of
statutes or regulations affecting an It Works!
business. These violations, although they may
be relatively few in number, would jeopardize
the It Works! opportunity for all Distributors.
3.1 - Adherence to the It Works! Compensation
Plan
Distributors must adhere to the terms of the
It Works! Compensation Plan as set forth in
official It Works! literature. Distributors shall not
offer the It Works! opportunity through, or in
combination with, any marketing system,
program, or method of marketing other than
that specifically set forth in official It Works!
literature.
Distributors shall not require or
encourage other current or prospective
Customers or Distributors to participate in It
Works! in any manner that varies from the
program as set forth in official It Works! literature.
Distributors shall not require or encourage other
current or prospective Customers or Distributors
to execute any agreement or contract other
than official It Works! agreements and contracts
in order to become an It Works! Distributor.
Similarly, Distributors shall not require or
encourage other current or prospective
Customers or Distributors to make any purchase
from, or payment to, any individual or other
entity to participate in the It Works!
3.2.2 - Marketing and Lead Generation
Systems
a) All marketing and lead-generation
systems must first be submitted to It Works!
Compliance and then reviewed and receive
written approval from the Company before
leaving the test server environment or in any
way used by a Distributor.
b) The system must only be promoted to the
Distributor’s personal enrollees, who then can
promote the system to their personal enrollees.
c) At the Double Diamond level and above,
the Distributor must obtain written permission of
their downline at the Diamond level and above
that it is permissible to market to their particular
downlines.
d) After initial approval, the Distributor must
obtain approval for any modifications or
changes.
e) The system shall only utilize standard
Company image packages.
f) No affiliate programs are allowed, e.g.
earn $5 for every person you sign up or sign up
2 and your system is free.
3
g) The system shall make no product or
income claims.
approved presence on the Internet. No
Distributor may independently design a website
that uses the names, logos, or product
descriptions of It Works! or otherwise promotes
(directly or indirectly) It Works! products or the It
Works! opportunity, unless previously approved
by the It Works! Compliance Team . A Distributor
may not use ‘blind’ ads on the Internet that
make product or income claims which are
ultimately associated with It Works! products,
the It Works! opportunity, or the It Works!
Compensation Plan.
See Social Media and
Internet Addendum to Policies and Procedures,
infra for additional information.
Accordingly, Distributors must submit all
proposed personal development system,
coaching system, sales aids, lead generation
systems, promotional materials, advertisements,
and other literature to the Company for
approval to [email protected]
Unless the Distributor receives specific written
approval to use such tools, the request shall be
deemed denied. Independently produced
websites are not permitted unless approved by
the Company.
It Works! shall not permit Distributors to sell
any systems or sales aids to other It Works!
Distributors. Therefore, Distributors who receive
authorization from It Works! to produce their
own sales aids may not sell such material to any
other It Works! Distributor. Distributors may make
approved material available to other
Distributors free of charge if they wish, but may
not charge other It Works! Distributors for the
material unless express written approval is
received from the Company. Distributors are
prohibited from reproducing or copying written
documents or marketing materials, films or
sound recordings identical or deceptively
similar to any materials produced by the
Company. Any Distributor receiving written
authorization from It Works! to produce sales
tools grants It Works! an irrevocable and royaltyfree license to use such tools, and to make such
tools available to other Distributors.
3.2.4 - Blogs, Chat Rooms, Social Networks,
Online Auctions, and other Online
Forums
Except as expressly provided for in these
Policies and Procedures, Distributors shall not
use online blogs, chat rooms, social networks,
online auction sites, or any other online forum to
sell It Works!’ products or services.. See Social
Media and Internet Addendum to Policies and
Procedures, for Company Policies relating to
Social Media usage.
3.2.5 - Domain Names and Email Addresses
Distributors may not use or attempt to
register any of It Works!’ trade names,
trademarks, service names, service marks,
product names, the Company’s name, or any
derivative thereof, for any Internet domain or
replicated website name. Nor may Distributors
incorporate or attempt to incorporate any of
the Company’s trade names, trademarks,
service names, service marks, product names,
the Company’s name, or any derivative
thereof, into any electronic mail address. If any
Distributor owns or otherwise controls domain
names or email addresses related to the
Company business or its products and services,
Company reserves the right to require the
Distributor to transfer ownership and control to
Company at the cost Distributor paid for such
domain names or email addresses.
It Works! further reserves the right to
rescind approval for any personal
development or coaching systems, sales tools,
promotional materials, advertisements, or other
literature, and Distributors waive all claims for
damages or remuneration arising from or
relating to such rescission.
3.2.3 - Distributor Websites
If a Distributor desires to utilize an Internet
web page to promote his or her business, he or
she may do so through the Company’s
replicated website program.
This program
permits Distributors to advertise on the Internet
and can be personalized with the Distributor's
message and the Distributor's contact
information. These websites seamlessly link
directly to the official It Works! website giving the
Distributor a professional and Company-
3.2.6 - Trademarks and Copyrights
It Works! will not allow the use of its trade
names, trademarks, designs, or symbols by any
person, including It Works! Distributors, without its
prior written permission. Distributors may not
produce for sale or distribution any recorded
Company events and speeches without written
permission from It Works! nor may Distributors
4
reproduce for sale or for personal use any
recording of Company-produced audio or
videotape presentations.
c) The email must include the Distributor’s
physical mailing address.
d) The
email
must
clearly
and
conspicuously
disclose
that
the
message is an advertisement or
solicitation.
e) The use of deceptive subject lines
and/or false header information is
prohibited.
f) All opt-out requests, whether received
by email or regular mail, must be
honored. If a Distributor receives an optout request from a recipient of an email,
the Distributor must forward a copy of
the opt-out request to the Company.
3.2.7 - Media and Media Inquiries
It Works! Independent Distributors are not
authorized to speak to any media source,
including but not limited to radio, television,
reporters
for
newspapers,
magazines,
advertisement outlets, or bloggers. Distributors
must not attempt to respond to media inquiries
regarding It Works!, its products or services, or
their independent It Works! business. All inquiries
by any type of media must be immediately
referred to the It Works!’ Public Relations
Department at [email protected] It
Works!’ PR Department will review the media
referral and decide whether or not we will
corporately proceed. This policy is designed to
assure that accurate and consistent information
and a proper public image are provided to the
public.
It Works! may periodically send commercial
emails on behalf of Distributors. By entering into
the Distributor Agreement, Distributor agrees
that the Company may send such emails and
that the Distributor’s physical and email
addresses will be included in such emails as
outlined above. Distributors shall honor opt-out
requests generated as a result of such emails
sent by the Company.
Distributors may not utilize media outlets for
advertising, distribution or promotion of It Works!
products or opportunity without the express
written consent of It Works! PR or Compliance
Departments.
3.2.9 - Unsolicited Faxes or Automated
Dialing Systems
Except as provided in this section,
Distributors may not use or transmit unsolicited
faxes or use an automatic telephone dialing
system relative to the operation of their It Works!
businesses. The term ‘automatic telephone
dialing system’ means equipment which has
the capacity to: (a) store or produce telephone
numbers to be called, using a random or
sequential number generator; and (b) to dial
such numbers. The term ‘unsolicited faxes’
means the transmission via telephone facsimile
of any material or information advertising or
promoting It Works!, its products, the
Compensation Plan or any other aspect of the
Company which is transmitted to any person,
except that these terms do not include a fax:
(a) to any person with that person's prior express
written invitation or permission; or (b) to any
person with whom the Distributor has an
established
business
or
personal
relationship. The term ‘established business or
personal relationship’ means a prior or existing
relationship formed by a voluntary two-way
communication between a Distributor and a
person, on the basis of: (a) an inquiry,
application, purchase or transaction by the
person regarding products offered by such
It Works! does not allow use of celebrity
pictures or endorsements indicating use of It
Works! products or services. It Works! also does
not allow Distributors to make claims on images
that are not their own or for which they do not
have permission.
3.2.8 - Unsolicited Email
It Works! does not permit Distributors to send
unsolicited commercial emails unless such
emails strictly comply with applicable laws and
regulations including, without limitation, the
federal CAN-SPAM Act. Any email sent by a
Distributor that promotes It Works!, the It Works!
opportunity, or It Works! products and services
must comply with the following:
a) There must be a functioning return email
address to the sender.
b) There must be a notice in the email that
advises the recipient that he or she may
reply to the email, via the functioning
return email address, to request that
future
email
solicitations
or
correspondence not be sent to him or
her (a functioning ‘opt-out’ notice).
5
Distributor; or (b) a personal or familial
relationship, which relationship has not been
previously terminated by either party.
directly on another Distributor or Loyal Customer
account using their own or a prepaid credit
card to make payments or use another
account to ship orders to themselves. All
bonuses, applicator rewards, product credits,
and commissions earned belong to the
account holder and can only be redeemed by
the account holder.
3.2.10 - Print Classified Ads
Some Distributors use classified advertising in
the newspapers to find prospects. The following
rules apply:
a) No advertisement may imply that a ‘job’
or ’position’ is available.
b) No specific income may be promised.
c) Advertisements
must
contain
no
misleading facts or distortions of the
Company opportunity or product line.
d) You must state that the opportunity is for
an “Independent Distributor for It Works
Marketing, Inc.”
A Distributor found to be in violation of this policy
will be subject to the disciplinary sanctions as set
forth in Section 8.1.
3.4 - Business Entities
A corporation, limited liability company
(LLC), partnership or trust (collectively referred
to in this section as a ‘Business Entity’) may apply
to be an It Works! Distributor by submitting its
Certificate of Incorporation, Certificate of
Organization, Partnership Agreement or trust
documents (these documents are collectively
referred to as the ‘Entity Documents’) to It
Works!, along with a properly completed
Distributor Application and Agreement. If a
Distributor enrolls online, the Entity Documents
must be submitted to It Works! within 30 days of
the online enrollment. (If not received within the
30-day period, the Distributor Agreement shall
automatically terminate.)
Members of the
entity are jointly and severally liable for any
indebtedness or other obligation to It Works!.
3.3 - Bonus Buying Prohibited
Bonus buying is strictly and absolutely
prohibited. ‘Bonus buying’ includes: (a) the
enrollment of individuals or entities without the
knowledge of and/or execution of an
Independent Distributor Application and
Agreement by such individuals or entities; (b)
the fraudulent enrollment of an individual or
entity as a Distributor or Customer; (c) the
enrollment or attempted enrollment of nonexistent individuals or entities as Distributors or
Customers (‘phantoms’); (d) purchasing
excessive amounts of goods or services that
cannot reasonably be used or resold in a
month; (e) attempt to cross sponsor or re-enroll
an existing customer or distributor; or (f) any
other mechanism or artifice to qualify for rank
advancement, incentives, prizes, commissions
or bonuses that is not driven by bona fide
product or service purchases by end user
consumers. A Distributor is allowed a total of 5
order transfer requests per month with a total
bonus volume limit of 1,000 BV without violating
this provision. The order can only be transferred
to a distributor in the downline of the distributor
requesting the order transfer. Orders may only
be transferred in full and may only be
transferred once. An order transfer is where a
Distributor places an order under themselves
and then requests that this order be moved
under another Distributor. Once a Distributor has
reached the limit of 5 requests for the month, all
other requests will be denied. Orders may not
be moved to or from a Loyal or Retail Customer.
A Distributor may not also be a Loyal Customer.
Distributors are prohibited from placing orders
To prevent the circumvention of Section
3.27 (regarding transfers and assignments of an
It Works! business), if an additional partner,
shareholder, member, or other business entity
affiliate is added to a business entity, the original
applicant must remain as a party to the original
Distributor Application and Agreement. If the
original Distributor wants to terminate his or her
relationship with the Company, he or she must
transfer or assign his or her business in
accordance with Section 3.27. If this process is
not followed, the business shall be canceled
upon the withdrawal of the original Distributor.
All bonus and commission checks will be sent to
the address of record of the original Distributor.
Please note that the modifications permitted
within the scope of this paragraph do not
include a change of sponsorship. Changes of
sponsorship are addressed in Section 3.5, below.
There is a $35 USD fee for each change
requested, which must be included with the
written request and the completed Distributor
Application and Agreement. It Works! may, at
6
through Customer Service within 24 hours
of enrollment. For security purposes,
changes can only be requested by the
original Enroller or the Distributor/Loyal
Customer being moved.
its discretion, require notarized documents
before implementing any changes to an It
Works! business. Please allow thirty (30) days
after the receipt of the request by It Works! for
processing.
3.4.1 - Changes to a Business Entity
An It Works! business may change its status
under the same Enroller from an individual to a
partnership, LLC, corporation or trust, or from
one type of entity to another. There is a $35 USD
fee for each change requested, which must be
included with the written request and the
completed
Distributor
Application
and
Agreement. Such changes are effective once
form is submitted, processed and approved. In
addition, Distributors operating their It Works!
businesses utilizing a business entity must notify It
Works! of the addition or removal of any officers,
directors, shareholders, managers, members or
business associates of the business entity.
In the event of an enrollment error during
sign
up,
enrollment
changes
for
Distributors or Loyal Customers must be
requested by the new enrollee through
Customer Service within 24 hours of
enrollment.
Requests for placement or enrollment
corrections cannot be made for those
who have a start date prior to the
enrollment date of the Loyal Customer or
Distributor they are requesting to be
moved under. Only the first request for
placement or enrollment correction for a
new Loyal Customer or Distributor will be
honored. We are unable to accept third
party requests for these changes. Any
disputes will need to be verified by the
enrollee being moved and will only be
done with Company approval. Retail
Customers cannot be moved.
3.5 - Change of Enroller or Placement
To protect the integrity of all It Works!
Marketing Organizations and to safeguard the
hard work of all Distributors, requests for enroller
or placement changes from one Distributor to
another are rarely if ever permitted.
If there is a change requested for any
other purpose other than user error during
sign up, then It Works! shall evaluate the
situation on a case-by-case basis. The
enrollee requesting the change has the
burden of proving that he or she was
placed beneath the wrong Enroller.
Requests for change of enroller or
placement must be submitted in writing via
ticket submission and must include the reason(s)
for the change.
Changes will only be
considered in the following two circumstances:
a) In cases in which the new Distributor is
enrolled by someone other than the
individual he or she was led to believe
would be his or her Enroller, a Distributor
may request that he or she be transferred
to another organization with his or her
entire Marketing Organization intact. All
requests for transfer alleging fraudulent
enrollment practices shall be evaluated on
a case-by-case basis. Requests for transfer
under this policy will be evaluated on a
case-by-case basis and must be made
within 24 hours from the date of enrollment.
The Distributor requesting the change has
the burden of proving that he or she was
placed beneath the wrong Distributor.
b)
In cases wherein the appropriate Enroller
change procedures have not been followed,
and a Marketing Organization has been
developed in the second business developed
by a Distributor, It Works! reserves the sole and
exclusive right to determine the final disposition
of the Marketing Organization.
Resolving
conflicts over the proper placement of a
downline that has developed under an
organization that has improperly switched
Enrollers is often extremely difficult. Therefore,
DISTRIBUTORS WAIVE ANY AND ALL CLAIMS
AGAINST IT WORKS! THAT RELATE TO OR ARISE
FROM THE IT WORKS! DECISION REGARDING THE
DISPOSITION
OF
ANY
MARKETING
ORGANIZATION THAT DEVELOPS BELOW AN
ORGANIZATION OR DISTRIBUTOR THAT HAS
IMPROPERLY CHANGED LINES OF ENROLLMENT.
In the event of placement error during sign
up, placement changes for Distributors
and Loyal Customers must be requested
7
3.5.1 - Cancellation and Reapplication
A Distributor may legitimately change
organizations, sponsorships, or leadership level
Enrollers by voluntarily cancelling his or her It
Works! business and remaining inactive (i.e., no
purchases of It Works! products for resale, no
sales of It Works! products, no sponsoring, no
attendance at any It Works! functions, and no
participation in any other form of Distributor
activity or operation of any other It Works!
business) for three (3) full calendar months. This
three calendar month prohibition applies to
spouses, immediate family members and
businesses. Following the three calendar month
period of inactivity, the former Distributor may
reapply under a new Enroller; however, the
former Distributor’s Marketing Organization will
remain in the original line of sponsorship. It
Works! will consider waiving the three calendar
month waiting period under exceptional
circumstances. Such requests for waiver must
be submitted to It Works! in writing.
Company products may only be advertised
and used according to the label specifications
at the specified dosage. Unless the label
specifically states that the product is suitable for
children, Company products are to be used by
adults only.
Testimonials must receive written approval from
It Works!’ corporate Compliance Department
before being posted or published in any forum.
Send submissions via support ticket in your
eSuite in the Compliance Approvals category.
3.6.3 - Before and After Photos
It Works! recommends using corporate
approved Before and After photographs
located on the It Works! Corporate Facebook
page and in eSuite. These Before and After
photos are preapproved for use and have the
proper disclaimers attached.
In the event that you wish to create your own
Before and After photos they must either be
your own personal images or you must have
written permission to use the images from the
person in the image utilizing the Consent Form
located in eSuite.
3.6 - Unauthorized Claims and Actions
3.6.1 - Indemnification
A Distributor is fully responsible for all of his or
her verbal and written statements made
regarding It Works! products, services, and the
Compensation Plan which are not expressly
contained in official It Works! materials.
Distributors agree to indemnify It Works! and It
Works’ directors, officers, employees, and
agents, and hold them harmless from any and
all liability including judgments, civil penalties,
refunds, attorney fees, court costs, or lost
business incurred by It Works! as a result of the
Distributor’s unauthorized representations or
actions.
This provision shall survive the
termination of the Distributor Agreement.
If you do not have personal written permission,
you cannot post (or re-post) a picture on
Facebook or other social media.
All Before and After photos must meet
company branding standards and be
approved by the Compliance Department
before posting.
Please reference the Before and After Photo
Guidelines in eSuite for exact direction.
3.6.2 - Product Claims and Testimonials
No claims (which include personal
testimonials) as to therapeutic, curative or
beneficial properties of any products offered by
It Works! may be made except those contained
in official It Works! literature. In particular, no
Distributor may make any claim that It Works!
products are useful in the cure, treatment,
diagnosis, mitigation or prevention of any
diseases. Such statements can be perceived as
medical or drug claims. Not only do such claims
violate It Works! policies, but they potentially
violate federal and state laws and regulations,
including the federal Food, Drug, and Cosmetic
Act and Federal Trade Commission Act.
3.6.4 - Income Claims and the Income
Disclosure Statement
When presenting the It Works! business or
discussing the Compensation Plan with a
prospective Distributor, or if a Distributor makes
an income representation to a prospective
Distributor, the Distributor must provide the
prospect with a copy of It Works! Income
Disclosure Statement (the “IDS”).
The terms ‘income representation’ and/or
‘earnings representation’ (collectively ‘income
claim’) include: (1) statements that a specific
amount of income has been or may be easily
achieved, (2) statements that, although not
8
specifically stating a given income level has
been or may be achieved, imply that such
income is possible, (3) statements of earning
ranges, (4) income testimonials, (5) lifestyle
claims, and (6) hypothetical claims. Examples of
‘statements of non-average earnings’ include,
“Our number one Distributor earned XXX dollars
last year” or “Our average (rank) makes XXX per
month.” An example of a ‘statement of
earnings ranges’ is “The monthly income for
(rank) is XXX on the low end to YYY on the high
end.”
literature in any retail establishment. The
exception to this rule involves sales in service
establishments where the nature of the business
is to service customers and no competing
products are sold by the facility. These types of
businesses include, but are not limited to, salons,
doctor offices, and health clubs. The sale of
products within these facilities must be
conducted by a Distributor whereby the
prospect is introduced to the products and
opportunity just as if they met outside of the
retail facility.
Only Company-produced
literature, banners and signage may be used
and may be displayed on a shelf, counter, or
wall by itself. No products may be openly
displayed from a shelf for retail sale. Company
products may not be rebranded in any way,
and all Company trademarks must be
displayed. No Company product may be
marketed as a generic product or service.
A lifestyle income claim typically includes
statements (or pictures) involving large homes,
luxury cars, exotic vacations, or other items
suggesting or implying wealth. They also consist
of references to the achievement of one's
dreams, having everything one always wanted,
and are phrased in terms of ‘opportunity’ or
‘possibility’ or ‘chance.’ Claims such as “My It
Works! income exceeded my salary after six
months in the business,” or “Our It Works!
business has allowed my wife to come home
and be a full-time mom” also fall within the
category of ‘lifestyle’ claims.
3.7.1 - California Retail Sale
In California dietary supplements may not
be sold in any retail establishments. All customer
orders must be submitted through the
Company website or eSuite.
A hypothetical income claim exists when
you attempt to explain the operation of the
Compensation Plan through the use of a
hypothetical example. Certain assumptions are
made regarding the: (1) number of Distributors
sponsored, (2) number of downline Distributors,
(3) average product volume per Distributor, and
(4) total organizational volume. Running these
assumptions through the Compensation Plan
yields income figures which constitute income
claims.
3.8 - Trade Shows, Expositions and Other Sales
Forums
Distributors may display and/or sell It Works!
products at trade shows and professional
expositions in the countries we are officially
open for business. The Company policy is to
authorize only one It Works! business per event.
Company recommends registering under the
name “It Works! Independent Distributor” and
inquiring if there are any other registrants using
that name. It Works! further reserves the right to
refuse authorization to participate at any
function which it does not deem a suitable
forum for the promotion of its products, services,
or the It Works! opportunity. No Distributor may
sell or promote the Company's products or
business opportunity at swap meets, garage
sales, flea markets or farmers markets as these
events are not conducive to the professional
image that It Works! wishes to portray. When
attending an event you must adhere to the
following policies relative to participation in
temporary sales forums:
In any non-public meeting (e.g., a home
meeting, one-on-one, regardless of venue) with
a prospective Distributor or Distributors in which
the Compensation Plan is discussed or any type
of income claim is made, you must provide the
prospect(s) with a copy of the IDS.
Copies of the IDS may be printed or
downloaded without charge through eSuite
and is also viewable on the corporate website
at www.itworks.com/Legal/Income.
3.7 - Commercial Outlets
In general, Distributors may not sell It Works!
products from a commercial outlet, nor may
Distributors display or sell It Works! products or
a) Only one It Works! booth is allowed per
show or event. It is your responsibility to
check with the show manager or
promoter to ensure there are no other
9
Distributors contracted before you
contract for space.
b) Only current It Works! Independent
Distributors are authorized to contract
for booth space exhibiting It Works!
products. The contract is between the
Independent Distributor and the Event
Sponsor. It Works! is not, and may not be
made, a party to a contract between
you and an event organizer.
c) You must also write on the contract, or in
a cover letter you attach to the
contract, that It Works! has a one‐booth‐
per‐show policy and that, in making the
show or event manager aware of our
policy, you are asking in writing that the
show not allow other It Works!
Independent Distributors to display or sell
It Works! products.
d) Company products and opportunity are
the only products or opportunity that
may be offered by Distributor at the
trade show. Only Company-produced
or approved marketing materials may
be displayed or distributed.
together in a single booth or to operate a
separate booth at the same show.
2. Ask the event promoter to have the second
contracted Distributor removed from the show.
(This will only work if you have followed the
procedure to inform the manager of It Works!
policy of only allowing one booth per show in
writing, AND if they are willing to cooperate.)
3. Request that the event manager refund your
money. (This will also only work if you have
followed the procedure to inform the manager
of our policy of only allowing one booth per
show.)
3.9 - Conflicts of Interest
3.9.1 - Non-Solicitation
It Works! Distributors are free to participate in
other non-competing multilevel or network
marketing business ventures or marketing
opportunities (collectively ‘network marketing’).
However, during the term of this Agreement,
Distributors may not directly or indirectly Recruit
other It Works! Distributors or Customers for any
other network marketing business.
Following the cancellation of a Distributor’s
Agreement, and for a period of six (6) calendar
months thereafter, with the exception of a
Distributor who was personally sponsored by the
former Distributor, a former Distributor may not
recruit any It Works! Distributor or Customer for
another
network
marketing
business.
Distributors and the Company recognize that
because network marketing is conducted
through networks of independent contractors
dispersed across the entirety of North America
and internationally, and business is commonly
conducted via the internet and telephone, an
effort to narrowly limit the geographic scope of
this non-solicitation provision would render it
wholly ineffective. Therefore, Distributors and It
Works! agree that this non-solicitation provision
shall apply to all markets in which It Works!
conducts business.
3.8.1 - Double-Bookings Dispute Resolution
In the event of a double-booking, the
Independent Distributor with a valid/signed
contract and proof of payment from the event
company with the earliest date will be allowed
to do the event if:
a. The application has been filled out
completely and accurately per It Works!
policies; and
b. The second applicant was aware that
there was an It Works! booth already
contracted and paid, but the second
applicant signed up anyway.
Not all shows follow the same policies regarding
multiple vendors from the same company at
their events. Some event managers will
knowingly double-book because their policies
do not limit the number of vendors from any one
company. In the event there is a doublebooking, and both parties filled out applications
appropriately, made the event manager
aware of Company policy to only have one
vendor per show, and were unaware of the
other Consultant, there are three (3) options:
1. Work with the other Distributor to come up
with an equitable agreement to do the show
The term ‘Recruit’ means the actual or
attempted sponsorship, solicitation, enrollment,
encouragement, or effort to influence in any
other way, either directly, indirectly, or through
a third party, another It Works! Distributor or
Loyal Customer to enroll or participate in
another
multilevel
marketing,
network
marketing or direct sales opportunity. The
conduct described in the preceding sentence
constitutes Recruiting even if the Distributor’s
10
actions are in response to an inquiry made by
another Distributor or Loyal Customer.
Announcement that a Distributor is joining a
new network marketing opportunity on his or her
Facebook page or other social media site also
constitutes Recruiting as such announcements
are veiled efforts to induce inquiries from others
about the new opportunity that the Distributor
has joined.
internet web address from the It Works!
meeting.
3.9.4 - Downline
Activity
(Genealogy)
Reports and eSuite Access.
Downline Activity Reports are available for
Distributor access and viewing at the Company
eSuite of each Distributor’s replicated It Works!
website. Furthermore, access to a Downline
Activity Report is a privilege and not a right. It
Works! reserves the right to suspend a
Distributor’s access to a Downline Activity
Report if the Company reasonably believes that
the Distributor is utilizing, sharing or posting the
Downline Activity Report inappropriately. All
Downline Activity Reports and the information
contained therein are confidential and
constitute proprietary information and business
trade secrets belonging to It Works!.
The
Distributor and It Works! agree that, but for this
agreement
of
confidentiality
and
nondisclosure, It Works! would not provide
Downline Activity Reports to the Distributor. A
Distributor shall not, on his or her own behalf, or
on behalf of any other person or entity:
3.9.2 - Sale of Competing Goods or Services
Distributors must not sell, or attempt to sell,
any competing non-It Works! programs,
products or services. Any program, product or
service that is offered through network
marketing or multi-level marketing in the same
generic categories as It Works! products or
services is deemed to be competing, regardless
of differences in cost, quality, or other
distinguishing factors.
3.9.3 - Distributor Participation in Other
Direct Selling Programs
If a Distributor is engaged in other non-It
Works! direct selling programs, it is the
responsibility of the Distributor to ensure that his
or her It Works! business is operated entirely
separate and apart from any other program in
which the Distributor participates whether
online or offline. To this end, the following must
be adhered to:
a) Directly or indirectly use or disclose any
information contained in any Downline
Activity Report or in eSuite to any third
party;
b) Directly or indirectly disclose the
password or other access code to his or
her eSuite;
c) Use the information contained in any
Downline Activity Report or eSuite to
compete with It Works! or for any
purpose other than managing or
supporting his or her It Works! business; or
d) Recruit or solicit any Distributor or
Customer listed on any Downline Activity
Report or in eSuite, or in any manner
attempt to influence or induce any
Distributor or Customer to alter their
business relationship with It Works!.
a) The Distributor shall not display It Works!
promotional materials, sales aids,
products or services with or in the same
location
as
any
non-It
Works!
promotional materials, sales aids,
products or services.
b) The Distributor may not offer the It Works!
opportunity, products or services to
prospective or existing Customers or
Distributors in conjunction with any nonIt Works! program, opportunity, product
or service.
c) The Distributor may not offer any non-It
Works! opportunity, products, services,
or opportunity at any It Works!-related
meeting, seminar or convention, or
within two hours and a five mile radius of
the It Works! event. If the It Works!
meeting is held telephonically or via the
internet, any non-It Works! meeting must
be at least two hours before or after the
It Works! meeting, and on a different
conference telephone number or
Upon demand by the Company, any
current or former Distributor will return the
original and all copies of Downline Activity
Reports or other information to the Company.
3.10 - Targeting Other Direct Sellers
It Works! does not condone Distributors
specifically or consciously targeting the sales
force of another direct sales company to sell It
Works! products or to become Distributors for It
11
Works!, nor does It Works! condone Distributors’
solicitation or enticement of members of the
sales force of another direct sales company to
violate the terms of their contract with such
other company. Should Distributors engage in
such activity, they bear the risk of being sued by
the other direct sales company. If any lawsuit,
arbitration or mediation is brought against a
Distributor alleging that he or she engaged in
inappropriate recruiting activity of its sales force
or customers, It Works! will not pay any of
Distributor’s defense costs or legal fees, nor will
It Works! indemnify the Distributor for any
judgment, award, or settlement.
3.12 - Errors or Questions
Distributors must notify the Company within
three (3) days following month end if they
believe volume and/or rank is incorrect. After
verifying rank and volume, if a Distributor
believes any errors have been made regarding
commissions or bonuses, the Distributor must
notify It Works! in writing within 30 days of the
date of the alleged error or incident in question.
It Works! will not be responsible for any errors,
omissions or problems not reported to the
Company after these dates.
3.13 - Governmental Approval or Endorsement
Neither Federal nor State regulatory
agencies nor officials approve or endorse any
direct selling or network marketing companies
or programs. Therefore, Distributors shall not
represent or imply that It Works! or its
Compensation Plan have been ‘approved’,
‘endorsed’ or otherwise sanctioned by any
government agency.
3.11 - Cross-Sponsoring
Actual or attempted cross-sponsoring is
strictly prohibited. ‘Cross-sponsoring’ is defined
as the enrollment of an individual or entity that
already has a current Customer or Distributor
Agreement on file with It Works!, or who has had
such an agreement within the preceding six (6)
calendar months, within a different line of
sponsorship or leadership level Enrollers. The use
of a spouse’s or relative’s name, trade names,
DBAs,
assumed
names,
corporations,
partnerships, trusts, federal ID numbers, fictitious
ID numbers or any straw-man or other artifice to
circumvent this policy is prohibited. Distributors
shall not demean, discredit or defame other It
Works! Distributors in an attempt to entice
another Distributor to become part of the first
Distributor’s Marketing Organization. This policy
shall not prohibit the transfer of an It Works!
business in accordance with Section 3.27.
3.14 - Holding Applications or Orders
Distributors must not manipulate enrollments
of new applicants and purchases of products.
All Distributor Applications and Agreements and
product orders must be sent to It Works! within
72 hours from the time they are signed by a
Distributor or placed by a Customer,
respectively. Any changes in placement of
volume must be completed within 24 hours of
entry of product orders.
3.15 - Identification
All US Distributors are required to provide
their Social Security Number or a Federal
Employer Identification Number to It Works!
through the Distributor Application and
Agreement. Upon enrollment, the Company will
provide a unique Distributor Identification
Number to the Distributor by which he or she will
be identified. This number will be used to place
orders and track commissions and bonuses.
If Cross-sponsoring is discovered, it must be
brought
to
the
Company’s
attention
immediately. It Works! may take disciplinary
action against the Distributor that changed
organizations and/or those Distributors who
encouraged or participated in the Crosssponsoring. It Works! may also move all or part
of the offending Distributor’s Marketing
Organization to his or her original Marketing
Organization if the Company deems it
equitable and feasible to do so. However, It
Works! is under no obligation to move the Crosssponsored Distributor’s Marketing Organization
and the ultimate disposition of the organization
remains in the sole discretion of It Works!.
Distributors waive all claims and causes of
action against It Works! arising from or relating
to the disposition of the cross-sponsored
Distributor’s Marketing Organization.
3.16 - Income Taxes
Each Distributor is responsible for paying
local, state and federal taxes on any income
generated as an Independent Distributor. If an
It Works! business is tax exempt, the Federal
Employer Identification Number must be
provided to It Works!. Every year, It Works! will
provide an IRS Form 1099 MISC (Non-employee
Compensation) earnings statement to each
12
U.S. resident who: 1) had earnings of over $600
in the previous calendar year; or 2) made
purchases during the previous calendar year in
excess of $5,000.
inventory or business equipment. Contact your
insurance agent to make certain that your
business property is protected. This can often
be accomplished with a simple ‘Business Pursuit’
endorsement attached to your present
homeowner’s policy. The Company maintains
product liability insurance for all of its products.
A copy of the Vendor Insurance Form can be
found in your eSuite under the Forms section of
the Documents tab. If the event you are
attending requires a named insured, please
complete the Liability Certificate of Insurance
Form that includes: date of event, all names to
be insured, event holder name and address,
and address where event is being held. Once
completed a copy of the Vendor Insurance
form will be emailed to the distributor that
submitted the form. Please make sure to submit
your request no later than ten (10) business days
prior to your event.
3.17 - Independent Contractor Status
Distributors are independent contractors
and are not purchasers of a franchise or a
business opportunity. The agreement between
It Works! and its Distributors does not create an
employer/employee
relationship,
agency,
partnership, or joint venture between the
Company and the Distributor. Distributors shall
not be treated as an employee for his or her
services or for federal or state tax purposes. All
Distributors are responsible for paying local,
state, and federal taxes due from all
compensation earned as a Distributor of the
Company. The Distributor has no authority
(expressed or implied), to bind the Company to
any obligation. Each Distributor shall establish
his or her own goals, hours, and methods of sale,
so long as he or she complies with the terms of
the Distributor Agreement, these Policies and
Procedures, and applicable laws.
3.19 - International Marketing
Because of critical legal and tax
considerations, It Works! must limit the resale of
It Works! products and services, and the
presentation of the It Works! business to
prospective Customers and Distributors located
within the United States, U.S. Territories, and
those other countries that the Company has
announced are officially opened for business.
Moreover, allowing a few Distributors to
conduct business in markets not yet opened by
It Works! would violate the concept of affording
every Distributor the equal opportunity to
expand internationally.
The name of It Works! and other names as
may be adopted by It Works! are proprietary
trade names, trademarks and service marks of
It Works!. As such, these marks are of great
value to It Works! and are supplied to Distributors
for their use only in an expressly authorized
manner. Use of the It Works! name on any item
not produced by the Company is prohibited,
except as follows:
[Distributor's Name] Independent Distributor for
It Works!
Accordingly, Distributors are authorized to
sell It Works! products and services and enroll
Customers or Distributors only in the countries in
which It Works! is authorized to conduct
business, as announced in official Company
literature. It Works! products or sales aids cannot
be shipped into or sold in any country that has
not been officially opened to do business.
Distributors may sell, give, transfer, or distribute It
Works! products or sales aids only in the country
in which the Company is authorized to conduct
business. In addition, no Distributor may, in any
unauthorized country: (a) conduct sales,
enrollment or training meetings; (b) enroll or
attempt to enroll potential Customers or
Distributors; or (c) conduct any other activity for
the purpose of selling It Works! products,
establishing a Marketing Organization, or
promoting the It Works! opportunity unless and
All Distributors may list themselves as an ‘It
Works!® Independent Distributor’ in the white or
yellow pages of a telephone or online directory
under their own name. No Distributor may
place telephone directory display ads using It
Works!’ name or logo. Distributors may not
answer the telephone by saying “It Works!”, “It
Works! Incorporated”, or in any other manner
that would lead the caller to believe that he or
she has reached corporate offices of It Works!.
3.18 - Insurance
You may wish to arrange insurance
coverage for your business. Your homeowner’s
insurance policy does not cover businessrelated injuries or the theft of or damage to
13
until authorized by Company. Anyone found
enrolling a customer or Distributor in an
unopened country will be subject to discipline
according to Section 8; plus all commissions
earned from a leg operating in an unopened
country shall be subject to clawback and the
illegally enrolled leg shall be cancelled.
Therefore, any illegally enrolled customer or
Distributor will be terminated. For further
information regarding Company international
policies, see each opened country’s legal
documents located on the website or in eSuite.
Distributors must be at least 18 years of age as
our products are intended for use by adults only.
Distributors shall not enroll or recruit minors into
the It Works! program or they shall be subject to
disciplinary sanctions as set forth in Section 8.1
3.23 - One It Works! Business Per Distributor and
Per Household
A Distributor may operate or have an
ownership interest, legal or equitable, as a sole
proprietorship, partner, shareholder, trustee, or
beneficiary, in only one It Works! business. No
individual may have, operate or receive
compensation from more than one It Works!
business. Individuals of the same family unit may
not enter into or have an interest in more than
one It Works! business. A ‘family unit’ is defined
as spouses and dependent children living at or
doing business at the same address. As an
accommodation to Distributors, the Company
allows two (2) Distributor accounts per
household as long as separate Social Security
Numbers are on file and the businesses are
operated separately. Therefore, husbands and
wives are allowed to have separate accounts,
but one spouse must be placed directly
beneath the other and cannot run business in
separate legs. Existing Distributors with multiple
accounts may be grandfathered or asked to
consolidate accounts at the sole discretion of
Company.
3.20 - Inventory Loading
Distributors must never purchase more
products than they can reasonably use or sell in
a month and must not influence or attempt to
influence any other Distributor to buy more
products than they can reasonably use or sell in
a month. The Company follows the 70% industry
standard whereby Distributors may not order
additional product unless they have sold or
used for personal or family use at least 70%of
previously purchased product. Although the
primary function of the Company is to sell
products to the general consuming public, the
Company realizes that its Distributors may wish
to purchase product for personal or family use
in reasonable amounts. For this reason, the
company defines a retail sale to include sales to
non-participants, as well as purchases for
personal or family use in reasonable amounts,
which are not made primarily for purposes of
qualification or advancement.
3.24 - Actions of Household Members or
Affiliated Individuals
If any member of a Distributor’s immediate
household engages in any activity that, if
performed by the Distributor, would violate any
provision of the Agreement, such activity will be
deemed a violation by the Distributor and It
Works! may take disciplinary action pursuant to
these Policies and Procedures against the
Distributor. If a Distributor cancels his or her
position for any reason, then no member of the
immediate household may join the Company
without waiting the required time period. If a
Distributor is terminated, then no member of the
immediate household may join the Company
without written permission from It Works!.
Similarly, if any individual associated in any way
with a corporation, partnership, trust or other
entity (collectively ‘affiliated individual’)
violates the Agreement, such action(s) will be
deemed a violation by the entity, and It Works!
may take disciplinary action against the entity.
3.21 - Adherence to Laws and Ordinances
Distributors shall comply with all Federal,
State, and local laws and regulations in the
conduct of their businesses. Many cities and
counties have laws regulating certain homebased businesses.
In most cases, these
ordinances are not applicable to Distributors
because of the nature of their business.
However, Distributors must obey those laws that
do apply to them. If a city or county official tells
a Distributor that an ordinance applies to him or
her, the Distributor shall be polite and
cooperative, and immediately send a copy of
the ordinance to the Compliance Department
of It Works!. In many cases, there are exceptions
to the ordinance that may apply to It Works!
Distributors.
3.22 - Minors
Retail Customers, Loyal Customers and
14
3.25 - Requests for Records
Any request from a Distributor for copies of
invoices, Applications, Downline Activity
Reports, or other records will require a fee of
$1.00 per page per copy. This fee covers the
expense of mailing and time required to
research files and make copies of the records.
to sell the It Works! business. Upon complete
execution of the Purchase and Sale Agreement
made between the Distributor and the
transferee, the parties must submit a copy to It
Works!. It Works! reserves the right to request
additional documentation that may be
necessary to analyze the transaction between
the buyer and seller. It Works! will, in its sole and
absolute discretion, approve or deny the sale,
transfer or assignment within 30 days after its
receipt of all necessary documents from the
parties.
3.26 - Roll-up of Marketing Organization
When a vacancy occurs in a Marketing
Organization due to the termination of an It
Works! business, no Distributor moves up, but the
volume will compress for commission purposes.
See the Compensation Plan for further details.
If the parties fail to obtain Company
approval for the transaction, the transfer shall
be voidable at the option of Company. The
purchaser of the existing Company business will
assume the obligations and position of the
selling Distributor. A Distributor who sells his or
her Company business shall not be eligible to reapply as an It Works! Distributor for a period of
at least three (3) full calendar months after the
date of the sale.
3.27 - Sale, Transfer or Assignment of an It Works!
Business
There is a $200 fee for the sale, transfer or
assignment of an It Works! business. Although an
It Works! business is a privately owned,
independently operated business, the sale,
transfer or assignment of a It Works! business is
subject to certain limitations. If a Distributor
wishes to sell his or her It Works! business, the
following criteria must be met:
The transferred account will not be viewed as a
New Distributor and will not be eligible for any
New Distributor bonuses and/or promotions, nor
will the purchaser receive any remaining bonus
payouts from what was achieved by the original
account holder.
a) Protection of the existing line of
sponsorship must always be maintained
so that the It Works! business continues
to be operated in that line of
sponsorship.
b) The buyer or transferee must become a
qualified It Works! Distributor. If the buyer
is an active It Works! Distributor, he or she
must first terminate his or her It Works!
business and wait three (3) calendar
months before acquiring any interest in
a different It Works! business.
c) Before the sale, transfer or assignment
can be finalized and approved by It
Works!, any debt obligations the selling
Distributor has with It Works! must be
satisfied.
d) The selling Distributor must be in good
standing and not in violation of any of
the terms of the Agreement in order to
be eligible to sell, transfer or assign an It
Works! business.
e) The Company reserves the right to
purchase the position at the same price
as the purchaser.
3.28 - Separation of an It Works! Business
It Works! Distributors sometimes operate their
It
Works!
businesses
as
husband-wife
partnerships, regular partnerships, corporations,
or trusts. At such time as a marriage may end in
divorce or a corporation, partnership or trust
(the latter three entities are collectively referred
to herein as ‘entities’) may dissolve,
arrangements must be made to assure that any
separation or division of the business is
accomplished so as not to adversely affect the
interests and income of other businesses up or
down the line of sponsorship. If the separating
parties fail to provide for the best interests of
other Distributors and the Company in a timely
fashion, It Works! will involuntarily terminate the
Distributor Agreement.
During the divorce or entity dissolution
process, the parties must adopt one of the
following methods of operation:
Prior to selling an It Works! business, the
selling Distributor must notify It Works! at
[email protected] of his or her intent
a) One of the parties may, with consent of
the other(s), operate the It Works!
15
business pursuant to an assignment in
writing whereby the relinquishing
spouse, shareholders, partners or
trustees authorize It Works! to deal
directly and solely with the other spouse
or non-relinquishing shareholder, partner
or trustee.
3.29 - Sponsoring
All active Distributors in good standing have
the right to sponsor and enroll others into It
Works!.
Each prospective Customer or
Distributor has the ultimate right to choose his or
her own Enroller. If two Distributors claim to be
the Enroller of the same new Distributor or
Customer, the Company shall regard the first
Application received by the Company as
controlling.
b) The parties may continue to operate the
It Works! business jointly on a ‘businessas-usual’
basis,
whereupon
all
compensation paid by It Works! will be
paid according to the status quo as it
existed prior to the divorce filing or
dissolution proceedings.
This is the
default procedure if the parties do not
agree on the format set forth above.
3.30 - Succession
Upon the death or incapacitation of a
Distributor, his or her business may be passed to
his or her heirs.
Appropriate legal
documentation must be submitted to the
Company to ensure the transfer is proper.
Accordingly, a Distributor should consult an
attorney to assist him or her in the preparation
of a will or other testamentary instrument.
Whenever an It Works! business is transferred by
a will or other testamentary process, the
beneficiary acquires the right to collect all
bonuses and commissions of the deceased
Distributor’s Marketing Organization provided
the following qualifications are met.
The
successor(s) must:
Under no circumstances will the Marketing
Organization of divorcing spouses or a dissolving
business entity be divided. Similarly, under no
circumstances will It Works! split commission and
bonus payments between divorcing spouses or
members of dissolving entities. It Works! will
recognize only one Marketing Organization and
will issue only one commission payment per It
Works! business per commission cycle.
Commission payments shall always be issued to
the same individual or entity. In the event that
parties to a divorce or dissolution proceeding
are unable to resolve a dispute over the
disposition of commissions and ownership of the
business in a timely fashion as determined by
the Company, the Distributor Agreement shall
be involuntarily canceled.
a) Complete and execute a Distributor
Agreement;
b) Comply with terms and provisions of the
Agreement; and
c) Meet all of the qualifications for the
deceased Distributor’s status.
Bonus and commission payments of an It
Works! business transferred pursuant to this
section will be paid in a single payment jointly
to the devisees. The devisees must provide It
Works! with an ‘address of record’ to which all
bonus and commission payments will be sent. If
the business is bequeathed to joint devisees,
they must form a business entity and acquire a
Federal Employer Identification Number. It
Works! will issue all bonus and commission
payments and one 1099 MISC (US only) to the
business entity.
If a former spouse has completely
relinquished all rights in the original It Works!
business pursuant to a divorce, he or she is
thereafter free to enroll under any Enroller of his
or her choosing without waiting three (3)
calendar months. In the case of business entity
dissolutions, the former partner, shareholder,
member, or other entity affiliate who retains no
interest in the business must wait three (3)
calendar months from the date of the final
dissolution before re-enrolling as a Distributor. In
either case, the former spouse or business
affiliate shall have no rights to any Distributors in
their former organization or to any former Retail
Customer. They must develop the new business
in the same manner as would any other new
Distributor.
3.31 - Transfer Upon Death of a Distributor
To effectuate a testamentary transfer of an
It Works! business, the Personal Representative
or Executor of the Estate of the deceased
Distributor
must
provide
all
necessary
documentation to establish a successor or
successors’ right to the subject It Works!
16
business. The successor or successors must
complete and execute a Distributor Agreement
and meet the other requirements set forth in
Section 3.30.
Distributor and a prospect based on the
prospect’s purchase, rental, or lease of
goods or services from the Distributor, or
a financial transaction between the
prospect and the Distributor, within the
eighteen (18) months immediately
preceding the date of a telephone call
to induce the prospect's purchase of a
product or service.
3.32 - Transfer Upon Incapacitation of a
Distributor
To effectuate a transfer of an It Works!
business because of incapacity, the Trustee of
the incapacitated Distributor must provide all
necessary documentation to establish the right
of the subject Trust and Trustee to the subject It
Works! business. The Trustee must, on behalf of
the Trust, complete and execute a Distributor
Agreement and meet the other requirements
set forth in Section 3.30.
b) The prospect’s personal inquiry or
application regarding a product or
service offered by the Distributor, within
the three (3) months immediately
preceding the date of such a call.
c) If the Distributor receives written and
signed permission from the prospect
authorizing the Distributor to call. The
authorization
must
specify
the
telephone
number(s)
which
the
Distributor is authorized to call.
3.33 - Telemarketing Techniques
The Federal Trade Commission and the
Federal Communications Commission each
have laws that restrict telemarketing practices.
Both federal agencies (as well as a number of
states) have ‘do not call’ regulations as part of
their telemarketing laws. Although It Works!
does not consider Distributors to be
‘telemarketers’ in the traditional sense of the
word, these government regulations broadly
define
the
term
‘telemarketer’
and
‘telemarketing’ so that your inadvertent action
of calling someone whose telephone number is
listed on the National Do Not Call Registry could
cause you to violate the law. Moreover, these
regulations must not be taken lightly as they
carry significant penalties (up to $16,000.00 per
violation).
d) You may call family members, personal
friends, and acquaintances.
An
‘acquaintance’ is someone with whom
you have at least a recent first-hand
relationship within the preceding three
months. Bear in mind, however, that if
you engage in ‘card collecting’ with
everyone you meet and subsequently
call them, the FTC may consider this a
form of telemarketing that is not subject
to this exemption. Thus, if you engage
in calling ‘acquaintances,’ you must
make such calls on an occasional basis
only and not make this a routine
practice.
Therefore, Distributors must not engage in
telemarketing in the operation of their It Works!
businesses. The term ‘telemarketing’ means the
placing of one or more telephone calls to an
individual or entity to induce the purchase of an
It Works! product or service or to recruit them for
the It Works! opportunity. ‘Cold calls’ made to
prospective customers or Distributors that
promote either It Works’ products or services or
the
It
Works!
opportunity
constitute
telemarketing and are prohibited. However, a
telephone call(s) placed to a prospective
Customer or Distributor (a ‘prospect’) is
permissible under the following situations:
f)
In addition, Distributors shall not use
automatic telephone dialing systems
relative to the operation of their It Works!
businesses.
The
term
‘automatic
telephone dialing system’ means
equipment which has the capacity to:
(a) store or produce telephone numbers
to be called, using a random or
sequential number generator; and (b)
to dial such numbers.
3.34 - Back Office Access
It Works! makes online back office services,
such as eSuite, available to its Distributors. Back
office services provide Distributors access to
confidential and proprietary information that
a) If the Distributor has an established
business
relationship
with
the
prospect. An ‘established business
relationship’ is a relationship between a
17
may be used solely and exclusively to promote
the development of a Distributor’s It Works!
business and to increase sales of It Works!
products. However, access to a back office is
a privilege, and not a right. It Works! reserves
the right to deny Distributors’ access to the back
office at its sole discretion.
Company, the products, sales tips, Policies and
Procedures and business building and are
integral to the development and success of the
Distributor’s business.
Distributors should monitor the Distributors in their
Marketing Organizations to guard against
downline Distributors making improper product
or business claims or engaging in any illegal or
inappropriate conduct.
SECTION 4 - RESPONSIBILITIES OF DISTRIBUTORS
4.1 - Change of Contact Information
To ensure timely delivery of products,
support materials, and commission payments, it
is critically important that the It Works! files are
current.
Street addresses are required for
shipping. Distributors planning to move should
update their mailing address, email address
and telephone number information via the
eSuite function of the Distributor’s replicated It
Works! website. To guarantee proper delivery,
two weeks advance notice must be provided to
It Works! on all changes.
4.2.2 - Increased Training Responsibilities
As Distributors progress through the various
levels of leadership, they will become more
experienced in sales techniques, product
knowledge, and understanding of the It Works!
program. They will be called upon to share this
knowledge with lesser experienced Distributors
within their organization.
4.2.3 - Ongoing Sales Responsibilities
Regardless of their level of achievement,
Distributors have an ongoing obligation to
continue to promote sales through the
generation of new customers and through
servicing their existing customers.
4.2 - Continuing Development Obligations
4.2.1 - Ongoing Training
Any Distributor who enrolls another
Distributor into It Works! must perform a bona
fide assistance and training function to ensure
that his or her Marketing Organization is properly
operating his or her It Works! business.
Distributors must have ongoing contact and
communication with the Distributors in their
Marketing Organizations. Examples of such
contact and communication may include, but
are not limited to:
newsletters, written
correspondence,
personal
meetings,
telephone contact, voice mail, electronic mail,
and the accompaniment of downline
Distributors to It Works! meetings, training
sessions, and other functions. Upline Distributors
are also responsible to motivate and train new
Distributors in It Works! product knowledge,
effective sales techniques, the It Works!
Compensation Plan, and compliance with
Company
Policies
and
Procedures.
Communication with and the training of
downline Distributors must not, however, violate
Section 3.2 (regarding the development of
Distributor-produced
sales
aids
and
promotional materials). Any Distributor hosting
organizational training calls must do so at times
that does not conflict with Company corporate
training or informational calls. These corporate
calls are presented to allow Distributors to gain
information and knowledge about the
4.2.4 - Residual Income
Nothing contained in Section 4.2, 4.2.1, 4.2.2
or 4.2.3 is intended to limit or prohibit a
Distributor
from
receiving
his
or
her
organizational residual income as long as
compensation plan requirements are met.
4.3 - Non-Disparagement
The Company wants to provide customers
and Distributors with the best products, and
Distributors with the best Compensation Plan,
and service in the industry. Accordingly, we
value constructive criticisms and comments. All
such comments should be submitted in writing
to the Compliance Department. While the
Company welcomes constructive input,
negative comments and remarks made in the
field by Distributors about the Company, its
products, the Compensation Plan or other
Distributors serve no purpose other than to sour
the enthusiasm of other Company Distributors.
For this reason, and to set the proper example
for their Marketing Organization, Distributors
must not disparage, demean, or make negative
remarks about Company, other Company
Distributors,
Company
products,
the
Compensation Plan, or Company directors,
officers, or employees.
18
4.4 - Providing Documentation to Applicants
Distributors must describe the location of the
most current version of the Policies and
Procedures and the Compensation Plan to
individuals whom they are sponsoring to
become Distributors before the applicant signs
a Distributor Agreement.
If the individual
requests a hard copy, Distributors must provide
a copy of the requested material.
Department.
SECTION 5 - SALES REQUIREMENTS
5.1 - Product Sales
The It Works! Compensation Plan is based on
the sale of Company products and services to
end consumers. Distributors must fulfill personal
and retail sales requirements (as well as meet
other responsibilities set forth in the Agreement)
to be eligible for bonuses, commissions and
advancement to higher levels of achievement.
The following sales requirements must be
satisfied for Distributors to be eligible for
commissions:
4.5 - General Conduct
Distributors must not engage in any activity
outside of their It Works! business that may, in It
Works!’ discretion, damage It Works! reputation
or community standing. Therefore, It Works!
reserves the right to cancel any Distributor’s
Agreement and independent business if the
Distributor is convicted of, or pleads no contest
to, any charge, or finding of liability, for any act
or omission involving a claim of fraud, physical
or sexual misconduct, theft, use, sales or
distribution of a controlled substance, or any
other act or omission that involves moral
turpitude or a criminal felony.
a) Distributors must satisfy the Personal
Sales Volume and Group Sales Volume
requirements to fulfill the requirements
associated with their rank as specified in
the It Works! Compensation Plan.
Personal
Sales
Volume
includes
purchases made by the Distributor and
purchases made by the Distributor’s
personal Customers.
Group Sales
Volume shall include the total sales
volume of all Distributors in his or her
Marketing Organization, including the
Distributor’s Personal Sales Volume.
4.6 - Reporting Policy Violations
Distributors observing a Policy violation by
another Distributor should submit a written
report of the violation directly to the attention of
the Company Compliance Department.
Details of the incidents such as dates, number
of occurrences, persons involved, and any
supporting documentation should be included
in the report.
b)
It is recommended that at least 70% of
a Distributor’s total monthly Personal
Sales Volume be sold to personal
customers.
No compensation is ever paid to Distributors
based upon sponsoring or recruiting Distributors
without product sales.
4.7 - Vendor Confidentiality/Communications
It Works!’ business relationships with its
marketing
alliances,
vendors,
suppliers,
Company associates or former employees
within or outside the corporate workplace are
confidential, proprietary, and not to be
circumvented by either the Distributor or the
vendor. A Distributor shall not contact, directly
or indirectly, or speak to or communicate with
any representative of any supplier or
manufacturer of Company except at a
Company-sponsored event at which the
representative is present at the request of
Company or as otherwise expressly permitted in
writing by Company. Violation of this regulation
may result in termination of the Distributor and
possible claims of damages against the
Distributor and/or the vendor. Questions
regarding any of these business relationships
should be directed to the Compliance
5.1.1 - Special State Rules
Cumulative purchases during the first six (6)
months of becoming a Company Distributor are
limited to less than $500 in Georgia, Louisiana,
Indiana and Michigan. See specific addenda to
Agreement for specific states as to statutory
purchasing limitations, buyback rules and other
restrictions, disclosures and additional Distributor
rights and responsibilities.
5.2 - No Territory Restrictions
There are no exclusive territories granted to
anyone. No franchise fees are required.
5.3 - Sales Receipts
All Distributors must provide their Retail
19
Customers with two (2) copies of an It Works!
sales receipt at the time of the sale. These
receipts set forth the consumer protection rights
afforded by federal or state law. Distributors
must maintain all Retail sales receipts for a
period of two (2) years and furnish them to the
Company at the Company’s request. Records
documenting the purchases of Distributors’
Direct Customers must be maintained by
Distributors.
do not equal or exceed $15, the Company will
accrue the commissions and bonuses until they
total $15. A payment will be issued once $15
has been accrued.
6.1.1 - Deadlines for Qualifications
The following order deadlines apply for
purposes of qualifying for compensation and
/or rank in each pay cycle:
Online Orders: 11:59 pm CT on the final day
of the month.
Faxed Orders: 1 pm CT on the final business
day of the month.
Phone Orders: 5 pm CT on the final business
day of the month.
The Company is not responsible for orders
placed after published deadlines and will not
alter order data to accommodate Distributors
who do not meet the deadlines or make
mistakes on their orders. We encourage
Distributors to qualify early and to have eSuite so
they can track their business. It is the Distributor’s
responsibility to make sure they are qualified.
Corrections to mistakes must be made before
the end of the month.
In addition, Distributors must orally inform the
buyer of his or her cancellation rights.
5.4 - Product Repackaging, Rebranding and
Sampling Prohibited
The Company’s products may not be
rebranded, resold or repackaged in any way.
All products must be sold and displayed using
Company trademarks. For example, the
Ultimate Body Applicator may not be sold or
marketed under any other name. No Distributor
shall in any way alter, change or remove the
label, packaging or instructions intended by
Company to accompany any product.
No
sampling programs are allowed other than
through
Company-approved
packaging.
Providing Company products at parties for
testing purposes is exempt from this prohibition.
Accounts that are in “Hold” status at the
time of the commission processing will be sent
with the next commission run following the
release of the “Hold” status.
5.5 - Product Source
All products shall be purchased exclusively
from the Company. A Distributor is prohibited
from reselling products that have been
purchased from another Distributor.
6.1.2 - Commission Payments
All commissions and bonuses except for
weekly Fast Start Bonuses are paid monthly by
the 15th day of the following month by 5 PM CT.
Weekly Fast Start Bonuses are paid based upon
a Saturday to Friday weekly period with
payment on the following Friday by 5 PM CT. No
commission payments will be paid to Distributors
whose distributorships have expired prior to the
end of the commission period and not renewed
during the commission period. Further, no
commissions will be paid to Distributors who
resign or are terminated from the Company.
SECTION 6 - BONUSES AND COMMISSIONS
6.1 - Bonus and Commission Qualifications
Distributor must be active and in
compliance with the Agreement to qualify for
bonuses and commissions.
So long as a
Distributor complies with the terms of the
Agreement, It Works! shall pay commissions to
such Distributor in accordance with the
Compensation Plan in US Dollars. To be
commission qualified on a monthly basis, a
Distributor must either maintain 150 PBV or run
an optional minimum 80 BV auto-shipment no
later than the 25th of the month; alternatively, a
Distributor can be commission qualified by
purchasing a Business Builder Kit during the
month they join the Company. The minimum
amount for which It Works! will issue a payment
is $15. If a Distributor’s bonuses and commissions
6.2 - Adjustment to Bonuses and Commissions
6.2.1 - Adjustments for Returned Products
and Cancelled Services
Distributors
receive
bonuses
and
commissions based on the actual sales of
products and services to end consumers. When
a product is returned to It Works! for a refund or
repurchase, or a service is cancelled and the
Customer is entitled to a refund, either of the
20
following may occur at the Company’s
discretion: (1) the bonuses and commissions
attributable to the returned or repurchased
product or the refunded service will be
deducted, in the month in which the refund is
given and continuing every pay period
thereafter until the bonuses and commissions
are recovered, from the Distributors who
received bonuses and commissions on the sales
of the refunded product or cancelled service;
or (2) the Distributors who earned commissions
or bonuses based on the sale of the returned
product or cancelled service will have the
corresponding points deducted from their
Group Volume in the next month and all
subsequent months until such points are
completely recovered.
FITNESS
FOR
A
PARTICULAR
NON-INFRINGEMENT.
USE,
OR
TO THE FULLEST EXTENT PERMISSIBLE UNDER
APPLICABLE LAW, IT WORKS! AND/OR OTHER
PERSONS CREATING OR TRANSMITTING THE
INFORMATION WILL IN NO EVENT BE LIABLE TO
ANY DISTRIBUTOR OR ANYONE ELSE FOR ANY
DIRECT,
INDIRECT,
CONSEQUENTIAL,
INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES
THAT ARISE OUT OF THE USE OF OR ACCESS TO
PERSONAL AND GROUP SALES VOLUME
INFORMATION (INCLUDING BUT NOT LIMITED TO
LOST PROFITS, BONUSES, OR COMMISSIONS,
LOSS OF OPPORTUNITY, AND DAMAGES THAT
MAY
RESULT
FROM
INACCURACY,
INCOMPLETENESS, INCONVENIENCE, DELAY, OR
LOSS OF THE USE OF THE INFORMATION), EVEN IF
IT WORKS! OR OTHER PERSONS CREATING OR
TRANSMITTING THE INFORMATION SHALL HAVE
BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. TO THE FULLEST EXTENT PERMITTED BY
LAW, IT WORKS! OR OTHER PERSONS CREATING
OR TRANSMITTING THE INFORMATION SHALL
HAVE NO RESPONSIBILITY OR LIABILITY TO YOU
OR ANYONE ELSE UNDER ANY TORT, CONTRACT,
NEGLIGENCE, STRICT LIABILITY, PRODUCTS
LIABILITY OR OTHER THEORY WITH RESPECT TO
ANY SUBJECT MATTER OF THIS AGREEMENT OR
TERMS AND CONDITIONS RELATED THERETO.
6.2.2 - Other Deductions
It Works! will deduct from all bonus and
commission payments issued to a Distributor a
data processing fee of $1. There is a $5 fee to
recover commission and re-send via an
alternative payment method. All paper checks
requested upon cancellation of distributor
position, will incur a $5 fee. After cancellation of
the Distributor’s position, after sixty (60) days
without notifying the Company regarding a final
payout for any outstanding commissions or
bonuses, the Company will begin to assess a
monthly $5 service fee.
Access to and use of It Works’ online
reporting services and your reliance upon such
information is at your own risk.
All such
information is provided to you ‘as is’. If you are
dissatisfied with the accuracy or quality of the
information, your sole and exclusive remedy is to
discontinue use of and access to It Works!’
eSuite and your reliance upon the information.
6.3 - Reports
All information provided by It Works! in online
or telephonic Downline Activity Reports,
including, but not limited to, Personal and
Group Sales Volume (or any part thereof), and
downline sponsoring activity is believed to be
accurate and reliable. Nevertheless, due to
various factors including, but not limited to, the
inherent possibility of human and mechanical
error; the accuracy, completeness, and
timeliness of orders; denial of credit card and
electronic check payments; returned products;
credit card and electronic check chargebacks;
the information is not guaranteed by It Works! or
any persons creating or transmitting the
information.
6.4 - Loyal Customer Rules
a) Loyal Customers in the same household
as any Distributor will not count towards
bonus
qualifications
or
rewards
programs. Distributors may not enroll a
Loyal Customer from their own
household under themselves or any
other Distributor to be used for bonus
qualifications or reward programs.
b) Multiple Loyal Customers per household
(outside the Distributor’s own household)
may be enrolled, but only one per
household may count toward bonus
qualifications or rewards programs. To
be eligible for bonus qualifications or
ALL PERSONAL AND GROUP SALES VOLUME
INFORMATION IS PROVIDED ‘AS IS’ WITHOUT
WARRANTIES, EXPRESS OR IMPLIED, OR
REPRESENTATIONS OF ANY KIND WHATSOEVER.
IN PARTICULAR, BUT WITHOUT LIMITATION, THERE
SHALL BE NO WARRANTIES OF MERCHANTABILITY,
21
c)
d)
e)
f)
g)
h)
i)
j)
reward programs, a Distributor’s Loyal
Customer must have an autoshipment
order of at least 10 BV.
Loyal Customers must be at least 18
years of age as our products are
intended for use by adults only.
Product must be shipped to the Loyal
Customer’s address.
The Loyal Customer must fulfill the terms
of the Loyal Customer Agreement or
any bonuses paid out to Distributors will
be recovered.
Loyal Customers can purchase product
for personal use only and cannot resell
the product for any reason. Only
Distributors are authorized to sell and
advertise product. Loyal Customers
found to be selling or advertising
product will immediately have their
rights to buy product terminated.
Distributors are responsible for the
proper enrollment of Loyal Customers. If
a Loyal Customer disputes the Loyal
Customer Agreement and wishes to
cancel prior to fulfilling the three
consecutive
month
autoshipment
commitment, the enroller of that Loyal
Customer will be responsible for paying
the Membership Fee if the Loyal
Customer did not enroll properly. Verbal
agreements are not sufficient. If a Loyal
Customer personally enrolls online they
will be held responsible for any fees. If
the Distributor helps the Loyal Customer
enroll online and the Company does not
obtain a proper electronic signature
from the Loyal Customer, the Distributor
will be held liable for those fees.
If a Distributor places a Loyal Customer
with another Distributor, the Distributor
receiving the Loyal Customer shall be
considered
the
Enroller
for
all
Compensation Plan purposes.
A Loyal Customer may not be a
Distributor at the same time. If a Loyal
Customer becomes a Distributor, then
he/she is no longer considered a Loyal
Customer.
If a Loyal Customer wishes to upgrade to
a Distributor and has completed the
Loyal Customer Agreement or the Loyal
Customer has paid the Membership Fee,
then the Loyal Customer is free to enroll
as a Distributor under whomever he or
she chooses. If a Loyal Customer wishes
to upgrade to a Distributor and has NOT
completed
the
Loyal
Customer
Agreement and they want the
Membership Fee to be waived, the
Loyal Customer must enroll under the
same Distributor their Loyal Customer
account is under.
SECTION 7 - PRODUCT GUARANTEES, RETURNS
AND INVENTORY REPURCHASE
7.1 - Product Guarantee
Since our products produce different results
for different people, we do not guarantee
specific results or offer a money back
guarantee. The Ultimate Body Applicators and
Facial Applicators are cosmetic products and
cannot be returned once the plastic wrapper is
opened. To receive a refund, all products must
be post-marked within thirty (30) days of the ship
date in resalable, unopened, ‘new’ condition.
7.2 - Returns by Retail Customers
A Retail Customer who makes a purchase of
$25 or more has three (3) business days (72
hours) after the sale or execution of a contract
to cancel the order and receive a full refund
consistent with the policies contained on the
invoice. When a Distributor makes a sale or
takes an order from a Retail Customer who
cancels or requests a refund within the 72 hour
period, the Distributor must promptly refund the
Retail Customer's money as long as the
products are returned to the Distributor in
substantially as good condition as when
received. Additionally, Distributors must orally
inform Retail Customers of their right to rescind
a purchase or an order within 72 hours, and
ensure that the date of the order or purchase is
entered on the order form.
7.3 - Return of Inventory and Sales Aids by
Distributors Upon Cancellation
Within sixty (60) days after cancellation of a
Distributor’s Agreement, the Distributor may
return his or her starter kit and any products and
sales aids held in his or her possession for a
refund. In order to receive a refund from
Company pursuant to this policy, the following
requirements must be met:
a) The items being returned must have
been personally purchased by the
Distributor from It Works! (purchases from
other Distributors or third parties are not
22
subject to refund);
b) The items must be in Resalable condition
(see Definition of ‘Resalable’ in Section
11 below); and
c) The items must have been purchased
from It Works! within one year prior to the
date of cancellation, except in the
states of Georgia, Louisiana, Maryland,
Massachusetts,
Wyoming and the
territory of Puerto Rico.
d) Distributors may only return product for
product credit
unless they are
cancelling their Distributorship.
Upon receipt of a Resalable starter kit
and/or Resalable products and sales aids, the
Distributor will be reimbursed 90% of the net cost
of the original purchase price(s), subject to the
70% consumption requirement contained in
Section 3.20. Shipping charges incurred by a
Distributor when the items were purchased will
not be refunded. If the purchases were made
through a credit card, the refund will be
credited back to the same account. If a
Distributor was paid a bonus or commission
based on a product that he or she purchased,
and such product is subsequently returned for a
refund, the commission that was paid to the
Distributor based on that product purchase will
be deducted from the amount of the refund.
d)
e)
7.3.1 - Montana Residents
A Montana resident may cancel his or her
Distributor Agreement within 15 days from the
date of enrollment, and may return his or her
starter kit and any products and sales tools, as
long as they are in Resalable condition,
purchased within this time period for a full
refund.
f)
7.4 - Procedures for All Returns
The following procedures apply to all returns
for product credit, refund, repurchase, or
exchange:
g)
a) All merchandise must be returned by the
Distributor or Customer who purchased
it directly from It Works!.
b) The return must be accompanied by:
i. the original, or a copy of the original,
dated sales receipt; and
i. the portion being returned from the
order in its original packaging.
c) Proper shipping carton(s) and packing
materials are to be used in packaging
h)
23
the product(s) being returned for
replacement, and the best and most
economical means of shipping is
suggested. The Distributor or Customer is
responsible for all return shipping costs
and a traceable shipping method must
be used. It Works! does not accept
shipping-collect packages. The risk of
loss in shipping for returned product shall
be on the Distributor or Customer. If
returned product is not received by the
Company’s Returns Processing Center, it
is the responsibility of the Distributor or
Customer to trace the shipment.
If a Distributor is returning merchandise
to It Works! that was returned to him or
her by a personal Retail Customer, the
product must be received by It Works!
within ten days from the date on which
the Retail Customer returned the
merchandise to the Distributor, and must
be accompanied by the sales receipt
the Distributor gave to the Retail
Customer at the time of the sale.
To receive replacement product or a
refund on incomplete or defective
product, the Distributor or Customer
must report the matter within 60 days
from the date of delivery and the
incomplete or defective product must
be made available for inspection at the
Returns Processing Center.
Refused orders are defined as orders
that are refused upon delivery, marked
return to sender, are undeliverable, or
that have an insufficient address. A
refused order is assigned a refusal fee
that is deducted from the refund.
Refusal fees are applied to offset return
shipping costs and return processing
charges. Refused orders could take up
to 90 days to reach the Returns
Processing Center and are not
guaranteed a refund.
Returning an order to It Works! will not
automatically
cancel
monthly
autoshipment orders. Autoshipment
orders can be cancelled through the
Distributor’s
online
account
by
submitting a ticket, or by calling the
Customer
Support
number.
All
autoshipment
changes
must
be
completed at least 2 business days prior
to the next autoshipment process date.
If only a portion of a stocked package
i)
j)
(several products grouped under one
item name/number) is returned, the full
value and Bonus Volume (BV) of the
item(s) kept will be deducted from the
refund of the return order.
To exchange products, Distributors can
call Customer Support or log into their
online accounts and submit a support
ticket within 30 days of delivery to
specify which product they would like to
return and which products they would
like to purchase in exchange. Exchange
orders should be placed prior to
Distributors returning their original items
for refund to avoid interruption of their
autoshipment services.
All products must be returned to:
bonuses and commissions during the
period that Company is investigating
any conduct allegedly in violation of the
Agreement. If a Distributor’s business is
canceled for disciplinary reasons, the
Distributor will not be entitled to recover
any commissions withheld during the
investigation period;
f) Suspension of the individual’s Distributor
Agreement for one or more pay periods;
g) Transfer of a portion or all of the
Distributor’s marketing organization or
downline;
h) Involuntary termination of the offender’s
Distributor Agreement;
i) Any other measure expressly allowed
within any provision of the Agreement or
which It Works! deems practicable to
implement
and
appropriate
to
equitably
resolve
injuries
caused
partially or exclusively by the Distributor’s
policy violation or contractual breach; o
j) Cancelation or suspension of a
Distributor’s privilege of receiving access
to his or her downline activity report; or
k) In situations deemed appropriate by
Company, the Company may institute
legal proceedings for monetary and/or
equitable relief.
It Works Marketing, Inc.
4005 Newpoint Place, Suite 200
Lawrenceville, GA 30043
No product credit, refund or replacement of
product will be made if the conditions of these
rules are not met.
SECTION 8 - DISPUTE RESOLUTION AND
DISCIPLINARY PROCEEDINGS
8.1 - Disciplinary Sanctions
Violation of the Agreement, these Policies
and Procedures, violation of any common law
duty, including, but not limited to, any
applicable duty of loyalty, any illegal,
fraudulent, deceptive or unethical business
conduct, or any act or omission by a Distributor
that, in the sole discretion of the Company may
damage its reputation or goodwill (such act or
omission need not be related to the Distributor’s
It Works! business), may result, at the Company
discretion, in one or more of the following
corrective measures:
8.2 - Grievances and Complaints
When a Distributor has a grievance or
complaint with another Distributor regarding
any practice or conduct in relationship to their
respective It Works! businesses, the complaining
Distributor should first report the problem to his
or her Enroller who should review the matter and
try to resolve it with the other party's upline
Enroller. If the matter involves interpretation or
violation of Company policy, it must be
reported in writing to the Compliance
Department at the Company. The Compliance
Department will review the facts and resolve it.
a) Issuance of a written warning or
admonition;
b) Requiring the Distributor to take
immediate corrective measures;
c) Imposition of a fine in an amount to be
determined by Company, which may
be withheld from bonus and commission
payments;
d) Loss of rights to one or more bonus and
commission payments;
e) Company may withhold from a
Distributor all or part of the Distributor’s
8.3 - Mediation
For any dispute involving $10,000.00 or more,
prior to instituting any arbitration as provided in
Section 8.4 below, the parties shall meet in good
faith and attempt to resolve any dispute arising
from or relating to the Agreement through nonbinding mediation.
One individual who is
mutually acceptable to the parties shall be
appointed as mediator. The mediator’s fees
and costs, as well as the costs of holding and
conducting the mediation, shall be divided
24
equally between the parties. Each party shall
pay its portion of the anticipated fees and costs
at least 10 days in advance of the mediation.
Each party shall pay its own attorney fees, costs,
and individual expenses associated with
conducting and attending the mediation.
Mediation shall be held in Sarasota or Manatee
County, Florida, and shall last no more than two
business days.
individual basis and not as part of a class or
consolidated action.
All arbitration proceedings shall be held in
Manatee County, Florida. There shall be one
arbitrator selected from the panel that the AAA
provides. Each party to the arbitration shall be
responsible for its own costs and expenses of
arbitration, including legal and filing fees. The
decision of the arbitrator shall be final and
binding on the parties and may, if necessary, be
reduced to a judgment in any court to which
the Parties have consented to jurisdiction as set
forth in the Agreement. This agreement to
arbitrate shall survive the cancellation or
termination of the Agreement.
8.4 - Arbitration
Except as otherwise provided in the
Agreement, any controversy or claim arising out
of or relating to the Agreement, or the breach
thereof, shall be settled through confidential
arbitration. The Parties waive rights to trial by jury
or to any court. This arbitration provision applies
to claims that were not successfully resolved
through the foregoing mediation process as
well as claims for less than $10,000.00 not subject
to the mediation requirement. The arbitration
shall be filed with, and administered by, the
American
Arbitration
Association
in
accordance with the AAA’s Commercial
Arbitration Rules and Mediation Procedures,
which are available on the AAA’s website at
www.adr.org. Copies of the AAA’s Commercial
Arbitration Rules and Mediation Procedures will
also be emailed to Distributors upon request to
It Works!’ Customer Service Department.
Notwithstanding the rules of the AAA, unless
otherwise stipulated by the Parties, the following
shall apply to all Arbitration actions:







The parties, their agents, attorneys, and the
arbitrator shall maintain the confidentiality of
the arbitration proceedings and shall not
disclose to third parties:




The Federal Rules of Evidence shall apply in
all cases;
The Parties shall be entitled to all discovery
rights permitted by the Federal Rules of Civil
Procedure;
The Parties shall be entitled to bring motions
under Rules 12 and/or 56 of the Federal
Rules of Civil Procedure;
The Federal Arbitration Act shall govern all
matters relating to arbitration. The law of the
State of Florida shall govern all other matters
relating to or arising from the Agreement,
without regard to principles of conflicts of
laws.
The arbitration hearing shall commence no
later than 365 days from the date on which
the arbitrator is appointed, and shall last no
more than five business days;
The Parties shall be allotted equal time to
present their respective cases;
The arbitration shall be brought on an


The substance of, the facts surrounding, or
basis for, the controversy, dispute, or claim;
The substance or content of any settlement
offer or settlement discussions or offers
Distributors with the dispute;
The pleadings, or the content of any
pleadings, or exhibits thereto, filed in any
arbitration proceeding;
The content of any testimony or other
evidence presented at an arbitration
hearing or obtained through discovery in
arbitration;
The terms or amount of any arbitration
award;
The rulings of the arbitrator on the
procedural and/or substantive issues
involved in the case.
Notwithstanding the foregoing, nothing in
the Agreement shall prevent either party from
applying to and obtaining from any court to
which the Parties have consented to jurisdiction
as set forth in the Agreement a temporary
restraining order, preliminary or permanent
injunction, or other equitable relief to safeguard
and protect its intellectual property rights, trade
secrets, and/or confidential information,
including but not limited to enforcement of its
rights under the non-solicitation provision of the
Agreement.
8.5 - Damage Limitation
In any action arising from or relating to the
25
Agreement, the parties waive all claims for
incidental and/or consequential damages,
even if the other party has been apprised of the
likelihood of such damage. The parties further
waive all claims to exemplary and punitive
damages. Notwithstanding the foregoing, this
Damage Limitation shall not apply to claims
alleging the breach of the non-solicitation or
confidentiality provisions contained in these
Policies.
through
Black
Diamond,
liquidated
damages shall be in the amount of his/her
gross compensation that he/she earned
pursuant to It Works!’ Compensation Plan in
the twenty-four (24) months immediately
preceding the termination.
Gross
compensation
shall
include
commissions and bonuses earned by the
Distributor pursuant to It Works!’ Compensation
Plan as well as retail profits earned by Distributor
for the sale of It Works! merchandise. However,
retail profits must be substantiated by providing
the Company with true and accurate copies of
fully and properly completed retail receipts
provided by Distributor to Customers at the time
of the sale.
8.6 - Indemnification.
Distributors agree to indemnify It Works! for
any and all costs, expenses, consumer
reimbursements, fines, sanctions, damages,
settlements or payments of any other nature
that It Works! incurs resulting from or relating to
any act or omission by Distributor that is illegal,
fraudulent, deceptive, negligent, unethical, or
in violation of the Agreement. It Works! may
elect to exercise its indemnification rights
through withholding any compensation due the
Distributor. This right of setoff shall not constitute
It Works!’ exclusive means of recovering or
collecting funds due It Works! pursuant to its
right to indemnification.
The Parties agree that the foregoing
liquidated damage schedule is fair and
reasonable.
A Distributor’s “Paid As” rank is the rank or
title at which they actually qualified to earn
compensation
under
the
It
Works!
Compensation Plan during a pay-period. For
purposes of this Policy, the relevant pay-period
to determine a Distributor’s “Paid As” rank is the
pay-period during which the Distributor’s
business is placed on suspension or terminated,
whichever occurs first. The “Paid As” rank differs
from the “Title Rank,” which is the highest title or
rank that a Distributor has ever achieved under
the It Works! Compensation Plan.
8.7 - Liquidated Damages
In any case which arises from or relates to
the wrongful termination of Distributor’s
Agreement and/or independent business, the
parties agree that damages will be extremely
difficult to ascertain. Therefore, the parties
stipulate that if the involuntary termination of a
Distributor’s Agreement and/or loss of their
independent business held to be wrongful
under any theory of law, Distributor’s sole
remedy
shall
be
liquidated
damages
calculated as follows:
8.8 - Class Action Waiver
Any action brought by a Distributor shall be
brought on an individual basis, and not on
behalf of a class or on a consolidated basis.
Distributors waive all rights to bring an action
against It Works!, its officers, owners, directors,
employees and agents as a class or
consolidated action.
 For Distributors at the Active Rank Distributor
through Emerald, liquidated damages shall
be in the amount of his/her gross
compensation that he/she earned pursuant
to It Works!’ Compensation Plan in the twelve
(12) months immediately preceding the
termination.
 For Distributors at the Active Rank Diamond
through Triple Diamond, liquidated damages
shall be in the amount of his/her gross
compensation that he/she earned pursuant
to It Works!’ Compensation Plan in the
eighteen
(18)
months
immediately
preceding the termination.
 For Distributors at the Active rank Presidential
8.9 - Governing Law, Jurisdiction and Venue
Jurisdiction and venue of any matter not
subject to arbitration shall reside exclusively in
Manatee County, State of Florida. The Federal
Arbitration Act shall govern all matters relating
to arbitration. The law of the State of Florida
shall govern all other matters relating to or
arising from the Agreement. Notwithstanding
the foregoing, and the mediation and
arbitration provisions in Sections 8.3 and 8.4,
residents of the State of Louisiana shall be
26
entitled to bring an action against Company in
their home forum and pursuant to Louisiana law.
of the products purchased. We cannot accept
resale certificates from Distributors unless they
hold a California Sales and Use Tax Permit for
selling other tangible personal property
obtained from vendors who are not section
6015(b) retailers.
SECTION 9 - PAYMENT AND SHIPPING
9.1 - Chargebacks
Unless a Distributor first contacts the
Company regarding the disputed charge, any
Distributor or Customer who issues a
chargeback is subject to termination.
Distributors must work out returns with Customer
Service according to the Company return
policy. A $50 fee will be issued to any Distributor
who issues a chargeback.
9.3.2 - New Mexico Gross Receipts Taxes
New Mexico state and local municipalities
do not have a sales tax. Instead, they have a
gross receipts tax. The gross receipts tax is
imposed upon persons engaged in business in
New Mexico. The gross receipts tax applies to all
sales and bonus payments received.
9.2 - Restrictions on Third Party Use of Credit
Cards and Checking Account Access
A Distributor shall not permit other
Distributors or Customers to use his or her credit
card, or permit debits to his or her checking
accounts, to enroll or to make purchases from
the Company. Distributors or customers are not
permitted to use a card to enroll themselves or
make purchases from the Company that does
not belong to them.
Company Responsibility:
It Works! is required to pre-collect the state and
local gross receipts tax on all sales of product
shipped to an address in the state.
It Works! shall remit these taxes collected
directly to the state of New Mexico on behalf of
the Distributors.
Distributor Responsibility:
Distributors are required to collect the
applicable gross receipts tax on their sales as a
reimbursement for the tax pre-collected by
Company.
9.3 - Sales Taxes
It Works! will collect and remit sales taxes on
behalf of Distributors, based on the sale price of
the products, according to applicable tax rates
in the state or province to which the shipment is
destined. Any distributors purchasing products
at wholesale pricing and selling them at a
higher price will be responsible for reporting and
remitting any applicable state and local sales
tax due. If a Distributor has submitted, and
Company has accepted, a current Uniform
Sales and Use Tax Exemption Certificate and
Sales Tax Registration License, sales taxes will not
be added to the invoice and the responsibility
of collecting and remitting sales taxes to the
appropriate authorities shall be on the
Distributor. Exemption from the payment of
sales tax is applicable only to orders which are
shipped to a state for which the proper tax
exemption papers have been filed and
accepted.
Applicable sales taxes will be
charged on orders that are drop-shipped to
another state.
Any sales tax exemption
accepted by Company is not retroactive.
The gross receipts tax also applies to bonus
payments Distributors receive from It Works
Marketing, Inc.. As a Distributor, you are
responsible to register with the state for a gross
receipts license and pay the applicable tax on
your bonus payments.
To register for a license please contact:
State of New Mexico
Taxation and Revenue Department
1100 S. Francis Dr.
Santa Fe, NM 87504-0630
Telephone: (505) 827-0700
SECTION 10 - INACTIVITY, RECLASSIFICATION, &
CANCELLATION
10.1 - Effect of Cancellation
So long as a Distributor remains active and
complies with the terms of the Distributor
Agreement and these Policies and Procedures,
It Works! shall pay commissions to such
Distributor
in
accordance
with
the
Compensation Plan. A Distributor’s bonuses
9.3.1 - California Sales Tax
The Company will be responsible for the
collection and remittance of all applicable
California sales and use taxes on the sale price
27
and commissions constitute the entire
consideration for the Distributor's efforts in
generating sales and all activities related to
generating sales (including building a
Marketing Organization).
Following a
Distributor’s non-renewal of his or her Distributor
Agreement, cancellation for inactivity, or
voluntary or involuntary cancellation of his or
her Distributor Agreement (all of these methods
are collectively referred to as ‘cancellation’),
the former Distributor shall have no right, title,
claim or interest to the Marketing Organization
which he or she operated, or any commission or
bonus from the sales generated by the
organization. A Distributor whose business is
cancelled will lose all rights as a Distributor. This
includes the right to sell It Works! products and
services and the right to receive future
commissions, bonuses, or other income
resulting from the sales and other activities of
the Distributor’s former Marketing Organization.
In the event of cancellation, Distributors agree
to waive all rights they may have, including, but
not limited to, property rights to their former
Marketing Organization and to any bonuses,
commissions or other remuneration derived
from the sales and other activities of his or her
former Marketing Organization.
cease business operations; (2) dissolve as a
corporate entity; or (3) terminate distribution of
its products via direct selling.
Following a Distributor’s cancellation of his
or her Distributor Agreement, the former
Distributor shall not as act an It Works! Distributor
and shall not have the right to sell It Works!
products or services.
A Distributor whose
Distributor Agreement is canceled shall receive
commissions and bonuses only for the last full
pay period he or she was active prior to
cancellation (less any amounts withheld during
an investigation and resulting sanctions
preceding an involuntary cancellation).
10.5 - Revocation of Consent to Contract
Electronically
If a Distributor who has consented to
contract electronically revokes his or her
consent, the Distributor’s Agreement shall be
cancelled.
10.3 - Voluntary Cancellation
A participant in this network marketing plan
has a right to cancel at any time, regardless of
reason. Cancellation must be submitted in
writing to the Company at its principal business
address. The written notice must include the
Distributor’s signature, printed name, address,
and Distributor I.D. Number Any commission
balance earned under $15 that has not yet
been paid may be requested in check form.
10.4 - Non-Renewal
A Distributor may also voluntarily cancel his
or her Distributor Agreement by failing to renew
the Agreement on its anniversary date. If a
Distributor is on the Autoshipment program, the
Distributor’s Autoshipment Agreement shall
continue in force and the former Distributor shall
be reclassified as a Loyal Customer, unless the
Distributor also specifically requests that his or
her Autoshipment Agreement also be
canceled. Any commission balance earned
under $15 that has not yet been paid may be
requested in check form.
SECTION 11 - DEFINITIONS
Active Loyal Customer — This is a Loyal
Customer who is in of or has fulfilled the It Works!
Loyal Customer Agreement and who does not
share an address with the enroller, any other
Distributor, or any other Loyal Customer.
10.2 - Involuntary Cancellation
A Distributor’s violation of any of the terms of
the Agreement, including any amendments
that may be made by It Works! in its sole
discretion, may result in any of the sanctions
listed in Section 8.1, including the involuntary
cancellation of his or her Distributor Agreement.
Cancellation shall be effective on the date of
which written notice is delivered to the
Distributor), or to his/her attorney..
Active Distributor — A Distributor who satisfies
the
minimum
Personal
Sales
Volume
requirements, as set forth in the It Works!
Marketing and Compensation Plan, to ensure
that he or she is eligible to receive bonuses and
commissions for a particular month.
Active Rank — The term ‘active rank’ refers to
the current paid title of a Distributor, as
determined by the Company Compensation
Plan, for any month. To be considered ‘active’
Company reserves the right to terminate all
Distributor Agreements upon thirty (30) days
written notice in the event that it elects to: (1)
28
relative to a particular rank, a Distributor must
meet the criteria set forth in the It Works!
Compensation Plan for his or her respective
rank. (See the definition of ‘Rank’ below.)
Distributor’s Marketing Organization. Group
Sales Volume includes the Personal Sales
Volume of the subject Distributor. (starter Kits
and sales aids have no Sales Volume.) Also
called Group Bonus Volume (GBV) in the
Company Compensation Plan.
Agreement — The contract between the
Company and each Distributor includes the
Distributor Application and Agreement, the It
Works! Policies and Procedures, and the It
Works! Compensation Plan, all in their current
form and as amended by It Works! in its sole
discretion. These documents are collectively
referred to as the ‘Agreement.’
Immediate Household — Heads of household
and dependent family members residing in the
same house.
Level — The layers of downline Customers and
Distributors in a particular Distributor’s Marketing
Organization. This term refers to the relationship
of a Distributor relative to a particular upline
Distributor, determined by the number of
Distributors between them who are related by
sponsorship. For example, if A sponsors B, who
sponsors C, who sponsors D, who sponsors E,
then E is on A’s fourth level.
Basic Kit — A selection of It Works! training
materials and business support literature that
each new Distributor is required to purchase,
except in North Dakota, where the purchase is
optional. The Basic Kit is sold to Distributors at
the Company’s cost. No product purchase is
required.
Cancel — The termination of a Distributor’s
business. Cancellation may be either voluntary,
involuntary, through non-renewal or inactivity.
Loyal Customer— A Customer who receives
preferential wholesale pricing by committing to
an Autoship order for a minimum of three
months.
Customer — An individual who registers with It
Works! as a Retail Customer or Loyal Customer
pursuant to the It Works! Customer Program.
Marketing Organization — The Customers and
Distributors sponsored below a particular
Distributor.
Downline Activity Report — A monthly online
report generated by It Works! that provides
critical data relating to the identities of
Distributors, sales information, and enrollment
activity of each Distributor’s Marketing
Organization. This report contains confidential
and trade secret information which is
proprietary to It Works!.
Official It Works! Material — Literature, audio or
videotapes, and other materials developed,
printed, published and distributed by It Works! to
Distributors.
Downline Leg — Each one of the individuals
enrolled immediately underneath you and their
respective Marketing Organizations represents
one ‘leg’ in your Marketing Organization.
Personal Sales Volume (PSV) — The
commissionable value or volume of services
and products sold in a calendar month: (1) by
the Company to a Distributor; and (2) by the
Company to the Distributor’s personally enrolled
Customers. Also called Personal Bonus Volume
(PBV) in the Company Compensation Plan.
Personal Production — Moving It Works!
products or services to an end consumer for
personal use.
Enroller— A Distributor who influences, solicits, or
otherwise assists a new Distributor or Customer
to join It Works!, and is listed as the Enroller on
the Distributor or Customer Application and
Agreement. An Enroller is the Sponsor of a new
Distributor and the terms Enroller and Sponsor
can be used interchangeably for purposes of
these Policies and Procedures.
Rank — The ‘title’ that a Distributor has achieved
pursuant to the It Works! Compensation Plan.
Rank can either be paid-as rank or historic rank.
Recruit
— For purposes of the Company
Conflict of Interest Policy (Section 3.9), the term
‘recruit’ means the actual or attempted
sponsorship,
solicitation,
enrollment,
Group Sales Volume — The commissionable
value of It Works! products or services sold by a
29
encouragement, or effort to influence in any
other way, either directly, indirectly, or through
a third party, another It Works! Distributor or
Customer to enroll or participate in another
multilevel marketing, network marketing or
direct sales opportunity. Except in California,
the foregoing conduct constitutes recruiting
even if the Distributor’s actions are in response
to an inquiry by another Distributor or Customer.
Resalable — Products and Sales aids shall be
deemed ‘Resalable’ if each of the following
elements is satisfied: 1) they are unopened and
unused; 2) packaging and labeling has not
been altered or damaged; 3) they are in a
condition such that it is a commercially
reasonable practice within the trade to sell the
merchandise at full price; 4) they are returned
to It Works! within 60 days for starter Kits and 30
days for product from the date of purchase;
and 5) the product contains current It Works!
labeling. Any merchandise that is clearly
identified at the time of sale as discontinued, or
as a seasonal item, shall not be Resalable.
Retail Customer — An individual who purchases
It Works! products but who is not a Loyal
Customer or a Distributor.
Retail Sales — Sales to a Retail Customer or a
Loyal Customer.
Sponsor — See “Enroller” definition.
Starter Kit — A generic term used when a
distributor first joins the Company and makes an
initial purchase that includes product and/or
business support materials and literature.
Upline — This term refers to the Distributor or
Distributors above a particular Distributor in a
sponsorship line up to the Company.
Conversely stated, it is the line of sponsors that
links any particular Distributor to the Company.
30
SOCIAL MEDIA AND INTERNET ADDENDUM TO POLICIES AND PROCEDURES
A. 1
General (applying to both online and offline marketing and promotion)
It is your responsibility to safeguard and promote the good reputation of the It Works! brand; to
ensure that your marketing efforts contribute to the public interest; and to avoid discourteous,
deceptive, misleading, unethical or immoral conduct or practices.
A. 2
It Works! Independent Distributor Logo / Identity
If you use an It Works! logo in any communication, you must use the Independent Distributor
version of the logo. Using any other It Works! logo requires written approval. Please see examples
below:
Logo(s) Approved for Independent Distributor Use
Logos NOT Approved for Independent Distributor Use
A. 3
Trademarks and Copyrights
You may not use It Works!® trade names, trademarks, designs, images or symbols without prior
written permission, except as outlined in this Add. 3. Video or audio recordings of company events,
training and/or speeches are also copyrighted and may not be distributed without written
permission.
The name It Works!® is a trademark of It Works Marketing, Inc., is of great value to the Company,
and is supplied to you for your use only in an authorized manner. Use of the It Works! name on any
item not produced or authorized by the Company is prohibited.
As a Distributor you may use the It Works name in the following manner:
Distributor’s Name
Independent Distributor, It Works!®
or: It Works!® Independent Distributor
Example:
Sarah Jones
Independent Distributor, It Works!
A. 4
Social Media and Online Aliases
In accordance with 3.2.5 you are not allowed to use or register It Works! or any It Works!
trademarks, product names, or any derivatives of for any social networking profiles or online
aliases. Additionally, you cannot use or register domain names, e-mail addresses, and/or online
aliases that could cause confusion, or be misleading or deceptive in that they cause individuals
to believe or assume the communication is from, or is the property of, It Works!.
31
A. 5
Use of Third Party Intellectual Property
If you use the trademarks, trade names, service marks, copyrights, or intellectual property of any
third party in any posting, it is your responsibility to ensure that you have received the proper
license to use such intellectual property and have paid the appropriate license fee. All third-party
intellectual property must be properly referenced as the property of the third-party, and you must
adhere to any restrictions and conditions that the owner of the intellectual property places on the
use of its property.
A. 6
Advertising Templates and Approval
You may only advertise or promote your It Works! business using approved tools, templates, ads,
or images acquired through your e-office downloads. No approval is necessary to use these
approved tools. Any designs or images in your eSuite downloads are exclusive property of the
Company and are to be used strictly in the format provided. Unauthorized use of these designs
and/or the images contained therein is a direct violation of the copyright laws and can lead to
prosecution and/or termination of your Distributor account. (see Section 3.2, infra)
If Independent Distributors are creating their own ads or marketing material, these must be
submitted to the It Works! Compliance Department for approval before they may be used. There
are exceptional cases in which new ideas for advertising/promotional material will be considered
for future projects. These new ideas must be submitted to [email protected] for
further review. A Distributor should not anticipate that approval will be granted.
A. 7
Media and Media Inquiries
Any inquiries by press or the media, including blogs, radio, or television, are to be referred
immediately to the Public Relations Department of the Company. This policy is to assure accuracy
and consistent public image. Additionally, you are not allowed to proactively contact the media
or distribute any form of press release that includes information about It Works!, its products, or the
opportunity without prior written approval from It Works!.
A. 8
Independent Distributor Release
By entering into the Distributor Agreement, you authorize It Works! to use your name, testimonials,
and/or likeness in It Works! advertising or promotional materials with no remuneration. Additionally,
you consent to and authorize the use and reproduction of any photographs taken by or supplied
to the Company, and further consent to the use and reproduction of any quotes, testimonials,
stories, conversations on social networking media for any print or electronic publicity, marketing
or promotional purposes, without remuneration.
DISTRIBUTOR WEBSITES
A. 9
It Works! Replicated Websites
Independent Distributors are allowed to advertise on the internet only through the It Works!
provided replicated websites or as otherwise approved by the It Works! Compliance Department.
Independent Distributors are allowed to put their own contact information on these sites as they
directly link to the Company website, giving the Independent Distributor a professional and
company-approved presence on the Internet. These replicated websites may be used by
Independent Distributors. Without first receiving the Compliance Departments full review and
approval, no Independent Distributor may design and/or utilize a website that uses the
trademarked names, logos, or product descriptions of the Company. No Distributor may use
‘blind’ ads on the Internet that make product or income claims which are ultimately associated
with Company products or the Company's Compensation Plan. You are solely responsible and
liable for the content that you add to any Compliance approved or It Works! replicated website
and must regularly review the content (every 30 days) to ensure it is accurate and relevant, and
not does not make any drug, medical, misleading or non-compliant claims
32
A.10 External Websites
All external websites must be submitted to the Compliance Department for initial review prior to
being public/live, and any updates or changes to the website will need to be resubmitted to the
Compliance Department for approval. Websites will need to be resubmitted for review on a yearly
basis to make sure original content still meets current policy. External Distributor websites should
not be confusingly similar to corporate websites and must prominently display the It Works!
Independent Distributor logo.
Until your external website is approved by the Compliance Department, you must use your It
Works! replicated website only.
All product descriptions and prices must come directly from the corporate website/product
information sheets. This information can be gathered when clicking on the product image linked
to the corporate website and will always be current. No custom product or service descriptions
or prices are allowed on Distributor created websites.
Each Distributor may only advertise products available in the Distributor’s home country on the
external website. Information regarding other countries can be directed to the Distributor’s
replicated website using the country drop down function. In countries outside of the Distributor’s
home country, Distributors may purchase additional domain names that are directly linked to the
Distributor replicated website in a specific country if they want country specific advertising.
No shopping carts are allowed on external websites– all sales must be directed to the replicated
website for purchase and payment through It Works!.
Lead generation to collect contact information will be allowed provided there is no call center
and orders are not taken over the phone, rather it must go through the normal process, i.e.
Distributor’s replicated website or through eSuite after collecting the appropriate prospective
Distributor or Loyal Customer information on the signed form.
Google or any other AdWords cannot be misleading and must specifically state “Independent
Distributor”. Distributors are prohibited from purchasing corporate trademarks in Google AdWords
or other similar search protocols.
A. 11
Blogging
Blog Sites
You are allowed one external blog to personalize your It Works! business and/or promote the
opportunity. If you wish to develop an external blog you must do the following:
1. Submit for approval and register your blog with the It Works! Compliance Department. Blogs
must be approved before going live. Approvals may take 2-4 weeks, depending on content.
2. Adhere to the branding and image usage policies described in this document.
3. Agree to modify your site to comply with current or future policies.
4. Agree to remove all references to It Works! from your registered site within 5 days, in
the event of the voluntary or involuntary cancellation of your Independent Distributor Agreement.
A blog developed on a blogging platform that is developed for the primary purpose of marketing
or promoting It Works! products and/or the It Works! opportunity must be registered with the
Compliance Department.
Blog Content
You are solely responsible and liable for your own blog content, messaging, claims, and
information and must ensure that your blog appropriately represents and enhances the It Works!
33
brand and adheres to company guidelines and policies. Additionally, your blog must not contain
disingenuous popup ads or promotions or malicious code. All decisions and corrective actions are
at the Company’s sole discretion.
It Works! Independent Distributor Image Mandate
To avoid confusion, the following three elements must be prominently displayed at the top of your
registered blog:
1. The It Works! Independent Distributor Logo;
2. Your Name and the phrase ‘It Works!® Independent Distributor’; and
3. Your Photo.
Although It Works! brand themes and images are desirable for consistency, anyone landing on
your page needs to clearly understand that they are at an Independent Distributor’s site and not
an It Works! Corporate site.
Blog Must Exclusively Promote It Works!
Your registered external blog must contain content and information that is exclusive to It Works!.
You may not advertise other products or services other than the It Works! product line and the It
Works! opportunity. Any site or profile you maintain that uses It Works!’ trademarks must exclusively
promote It Works!.
A. 12 No e-Commerce or Stock-and-Sell Retailing
You may not stock and sell It Works! products, nor may you develop an e-commerce environment
that would facilitate this model. All orders must be placed through your official It Works! replicated
website or eSuite. It is expressly against Company policy to accept PayPal, credit cards or other
payment solutions for the purchase of Company product.
A. 13. It Works! Marketing Hotlinks
When directing readers to your replicated website, the link and surrounding context must expressly
demonstrate to a reasonable reader that the link will be directed to the website of an
Independent Distributor. Attempts to mislead web traffic into believing they are going to the It
Works! corporate site, when in fact they land at an Independent Distributor’s replicated website,
is not allowed. The determination as to what is misleading or what constitutes a reasonable reader
will be at the Company’s sole discretion.
A. 14 Removing It Works! References in the event of Independent Distributor Termination
In the event of the voluntary or involuntary cancellation of your Independent Distributor
Agreement, you are required to remove all references to It Works! within 5 days. Independent
Distributors must discontinue using the company name and all of It Works!’ trademarks, trade
names, service marks, and other intellectual property, and all derivatives of such marks and
intellectual property, in any postings and all ‘Social Media’ sites that you utilize. If you post on any
‘Social Media’ site on which you have previously identified yourself as an It Works! Independent
Distributor, you must conspicuously disclose that you are no longer an It Works! Independent
Distributor.
ONLINE ADVERTISING, MARKETING AND PROMOTION
A. 15 Social Media
‘Social Media’ and social bookmarking including, but not limited to, blogs, Facebook, Instagram,
MySpace, Twitter, LinkedIn, and others, may be used by Distributors. However, Independent
Distributors who elect to use Social Media must adhere to the requirements set forth in this
Addendum as well as other It Works! policies and the Terms and Conditions set forth in those
particular Social Media websites.
34
A. 16 Distributors Are Responsible for Their Postings
Independent Distributors are personally responsible for their own postings and all other online
activity conducted on behalf of the Independent Distributor’s business, and which can be traced
back to the Company, and will be held fully responsible for any such activities. This applies even
if an Independent Distributor does not own or operate a blog, website, or social network site. If an
Independent Distributor posts any comment to any such site that relates to It Works! or which can
be traced to the Company, the Independent Distributor is responsible for the posting. No claims
as to therapeutic or curative properties about the products may be made except those officially
approved in writing by the Company or as contained in the official Company literature. In
particular, no Independent Distributor may make any claim that the Company products are useful
in the treatment or cure of any disease. Such statements can be perceived as medical claims.
Not only is this against Company policy, but it is also against the laws governed by the United
States Food and Drug Administration.
A. 17 Identification as an It Works! Independent Distributor
You must disclose your full name on all social media postings and conspicuously identify yourself
as an Independent Distributor for It Works!. Anonymous postings or use of an alias is prohibited.
A. 18 Truthfulness in Online Postings
It is your obligation to ensure your postings and other online marketing activities are truthful, are
not deceptive and do not mislead customers or prospects in any way. Postings that are false,
misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive
postings relating to the It Works! income opportunity, It Works! products and services, or your
biographical information and credentials.
A. 19 Respecting Privacy
Always respect the privacy of others in your postings. Independent Distributors must not engage
in gossip or advance rumors about any individual, company, or competitive products or services.
Independent Distributors may not list the names of other individuals or entities on their postings
unless they have the written permission of the individual or entity that is the subject of their posting.
A. 20 Professionalism
You must ensure that your postings are truthful and accurate. This requires that you fact-check
all material that you post online. You should also carefully check your postings for spelling,
punctuation, and grammatical errors. Use of offensive language is prohibited.
While we are one team with one mission, our Distributors are independent contractors and not
employees of It Works!. Any religious, political or other personal views or opinions made by
Distributors are not necessarily representative of It Works!. If you believe an offensive comment
appears to come from the Company, its Distributors or involves Company products, then please
contact the Compliance Department at [email protected] We encourage our
Distributors to uphold the highest level of standards and to be kind to one another. If the matter is
a violation of the law please contact the local authorities for proper assistance.
A. 21 Prohibited Postings
Independent Distributors may not make in conjunction with the It Works! company, business or
products any comments or link to any posting or other material that:
 Is sexually explicit, obscene, or pornographic;
 Is offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or
discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual
orientation, physical disability, or otherwise);
 Is graphically violent, including any violent video game images;
 Is solicitous of any unlawful behavior;
35


Engages in personal attacks or that is disparaging on any individual, group, or entity;
Is in violation of any intellectual property rights of the Company or any third party.
A. 22 Responding to Negative Posts
Do not converse with one who places a negative post against you, other Independent Distributors,
or It Works!. Report negative posts to the Compliance Department.
Responding to such negative posts often simply fuels discussions with those who do not hold
themselves to the same high standards as It Works! and therefore damages the reputation and
goodwill of the Company.
INTERNET ADVERTISING / AWARENESS GENERATION
A. 23 Online Classifieds
You or another party acting on your behalf may not use online classifieds to advertise, list, sell or
retail the It Works! product line or opportunity. This includes but is not limited to Craigslist, Kijiji,
Facebook Buy Sell Swap pages or other garage sale type sites or any other online classified
websites.
A. 24 eBay / Online Auctions
You or another party acting on your behalf may not use online auctions to advertise, list, sell or
retail the It Works! product line or opportunity. You may not list or sell It Works! products on eBay or
other online auctions, nor may you enlist or allow a third party (Customer) to sell It Works! products
on eBay or other online auctions.
A. 25 Online Retailing
You may not list or sell It Works! products on any online retail store or e-commerce site, nor may
you enlist or allow a third party (Customer) to sell It Works! products on any online retail store or ecommerce site.
A. 26 Promotions
No It Works! Independent Distributor may publicly offer free product, cash or offers to pay for starter
kits in an effort to enroll Distributors or Loyal Customers. The Company strongly encourages that
all Distributors offer products for sale without the Loyal Customer commitment at the Company’s
suggested retail price. At no time may an active Distributor advertise pricing on any Company
product at or below 120% of the Loyal Customer Price found at myitworks.com. Distributors may
advertise Loyal Customer pricing only with the 3 month Loyal Customer commitment. Wholesale
pricing is only available to the account holder. Distributors may not use their accounts to offer
wholesale pricing to others without signing them up as a Distributor or Loyal Customer. Distributors
are also prohibited from making any claim that implies an unfair advantage. For example, ‘lowest
price’ and similar ads are not allowed. Distributor organizational promotions which do not involve
giving away product, cash or paying for starter Kits to prospective Distributors or Loyal Customers
are
exempt
from
this
requirement.
A. 27 Banner Advertising
You may place banner advertisements on a website provided you use It Works!-approved
templates and images. All banner advertisements must link to your replicated website or an It
Works!-approved website. You may not use blind ads or web pages that make product or income
claims that are ultimately associated with It Works! products or the It Works! opportunity.
A. 28 Unsolicited Email Spamming / Mass Emailing
You are not allowed to transmit mass, unsolicited emails to promote It Works!, its products or the
business opportunity to people whom you do not know or who have not given you permission to
contact them. People who are ‘opt-in’ subscribers, who have initiated a request to be included
36
in bulk e-mailing, newsletter, or other standardized communications from you, are allowed.
Review Section 3.2.8 of the Policies and Procedures, for a comprehensive discussion of the
Company Policies regarding Mass emailing.
A. 29 Spam Linking
Spam linking is defined as multiple consecutive submissions of the same or similar content into
blogs, wikis, guest books, websites or other publicly accessible online discussion boards or forums
and is not allowed. This includes blog spamming, blog comment spamming or spamdexing. Any
comments you make on blogs, forums, guest books etc. must be unique, informative and relevant.
You may not use blog spam, spamdexing or any other mass-replicated methods to leave blog
comments. Comments you create or leave must be useful, unique, relevant and specific to the
blog’s article.
A. 30 Social Networking Sites (Facebook/Twitter/LinkedIn)
We encourage distributors to view, like, comment, and share content provided to you from our
corporate Facebook fan page: www.facebook.com/itworksglobal. However, Distributors are
prohibited from posting their website link, phone number, or Facebook fan page URL on our
corporate It Works! social media pages. Our goal is to keep the It Works! social media pages a
friendly environment for all potential customers, current customers, and Distributors. Posting your
fan page link or website URL will result in your post being marked as "spam" and could result in
losing access to the It Works! fan page.
You may use social networking sites (Facebook, Twitter, LinkedIn, blogs, forums and other socially
shared interest sites) to share information about the It Works! products and opportunity, and for
prospecting and sponsoring, based upon the It Works! marketing model; however, these sites may
not be used to sell or facilitate the transfer of products. All sales must go through an It Works!approved site.
Profiles you generate in any social community where you mention or discuss It Works! must clearly
identify you as an Independent Distributor, include your photo as your main profile picture, and
when you participate in those communities, you must avoid inappropriate conversations,
comments, images, video, audio, applications or any other adult, profane, discriminatory or
vulgar content. The determination of what is inappropriate is at the Company’s sole discretion,
and offending Independent Distributors will be subject to disciplinary action up to and including
termination. If fan pages or groups are created and you wish to use It Works! in the title, it must
include Independent Distributor and your full name. You will also need to include your picture
and/or the Independent Distributor logo as the profile picture. Product names or product claims
may not be used as titles. Banner ads and images used on these sites must be current and be your
own photo or come from the downloads section of your eSuite. Distributors are not approved to
use corporate images or logos on such sites unless found in the eSuite downloads. If a link is
provided, it must link to your replicated website or an It Works!-approved site. Any claims made
through social network posting must conform to all current corporate-provided
advertising/marketing material. If requested, you must add It Works! Compliance as a group
member.
A. 31 Digital Media Submission (YouTube, iTunes, PhotoBucket etc.)
All video content must be submitted and approved by our Compliance Department prior to
posting. Approvals can take 2-4 weeks for a response, depending on content. These submissions
must clearly identify you as an Independent Distributor (either in the content itself and/or in the
content description tag), must comply with all advertising policies, copyright/legal requirements,
and must state that you are solely responsible for this content and not It Works!. You may not
upload, submit or publish any content (video, audio, presentations or any computer files) received
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from It Works! or captured at official corporate events or in buildings owned or operated by It
Works! without prior written permission from the It Works! Compliance Department.
A. 32 Sponsored Links / Pay-Per-Click (PPC) Ads
Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to either
your replicated website or an It Works!-approved site. The display URL must also be to either your
replicated website or an It Works!-approved site, and must not portray any URL that could lead
the user to assume they are being led to an It Works! corporate site or be inappropriate or
misleading in any way.
Websites and web promotion activities and tactics that mislead or are deceptive, regardless of
intent, will not be allowed. This may include spam linking (or blog spam), unethical search engine
optimization (SEO) tactics, misleading click-through ads (i.e. having the display URL of a PPC
campaign appear to link to an official It Works! corporate site when it goes elsewhere),
unapproved banner ads, and unauthorized press releases. It Works! will be the sole determinant
of truthfulness and whether specific activities are misleading or deceptive.
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