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Las  colecciones  incluidas  en  el  Sistema  Multilateral

III. IMPLEMENTACIÓN   DEL   SISTEMA   MULTILATERAL   DE   ACCESO   Y   DISTRIBUCIÓN  DE  BENEFICIOS  EN  GUATEMALA

4. Las  colecciones  incluidas  en  el  Sistema  Multilateral

Jamberry is a direct-to-consumer business, and a Consultant’s success with customers depends on personal relationships. Through direct sales, the consumer may try before buying and receive proper individual instruction in product usage, both before and after the sale. Therefore, Jamberry Canada’s policies regarding sales are intended to steer Consultants away from the pursuit of the one-time only, impulse sale, toward long-term, relationship-based sales. That is why Jamberry Consultants are encouraged to conduct in-person informational Home Parties for individual consumers or groups.

B

LANKET

D

ISCOUNTS

You may not offer your Consultant discount to the public at large, including friends and family. This prohibition does not apply to sales pursuant to any Fundraising programs that the Company may have in place at any given time or to wholesale sales to Salons. Your personal discount is for personal purchases only. You may however, buy gifts for others with your discount.

You are prohibited from offering a blanket discount at Home Parties, through your personal website, or other marketing channels, including Facebook. This includes “25% off everything at my Home Party” or place an “online order with me and I will rebate you 15%.” Any other permutation of an offer that serves to undercut the retail price of Jamberry is restricted.

You may however offer specific, time limited, occasional incentives such as “book a Home Party tonight and get $25 off your order,” or, “spend over $100 and receive free shipping,” so long as your promotions (including free shipping):

• Are offered to a limited group of customers (members of a club, specific group of individuals, not, for example, an open invite to anyone who can view your Facebook profile).

• Run for no more than 3 days.

• Occur no more than one time per quarter.

You may then personally incur the cost of the shipping or specific promotion for your customers. Any promotional discount that contributes to a Consultant’s minimum PRV requirements for earning overrides or her volume rebate will be grounds for termination of her Consultant Agreement with the Company by the Home Office. We expect our Consultants to use their conservative discretion when interpreting the terms of this policy.

S

ALES

P

RESENTATIONS

At sales presentations, you will truthfully represent the Company, yourself and the products. You may not use any misleading, deceptive or unfair sales practices. Explanation and demonstration of products offered will be accurate and complete, including but not limited to, price, terms of payment, refund rights, guarantees and after- sales service and delivery. Personal or telephone contact will be made in a reasonable manner and during reasonable hours to avoid intrusiveness. Immediately discontinue a sales presentation upon request of the consumer. Also, refrain from using comparisons which are likely to

mislead, and which are incompatible with the principles of fair competition.

B

ONUS

B

UYING

The success of the Company depends on retail sales to the ultimate consumer. It is possible to conduct a healthy business with no product inventory other than your samples. While the Company recognizes that you may wish to purchase certain products for your own use, or in some cases, for “instant delivery” to customers in need of last-minute gifts, it strictly prohibits the purchase of products in unreasonable amounts and prohibits the purchase of products only or primarily to qualify for compensation levels or incentive programs. This is one of the unethical practices that we refer to as “Bonus Buying” and is strictly prohibited. Bonus buying may also result in the immediate termination of a Consultant Agreement.

Bonus Buying includes:

1. The sponsorship of individuals without their knowledge and/or execution of an Consultant Agreement on behalf of others without their knowledge;

2. The fraudulent sponsorship of a Consultant;

3. The sponsorship or attempted sponsorship of nonexistent persons as Consultants (“phantoms”); 4. The use of a credit card by or on behalf of a Consultant when the Consultant is not the account- holder of such credit card;

5. Subsidizing the entire or partial cost of a customer purchase or New Consultant Starter Kit purchase that counts towards your volume or adds a Consultant to your team. This includes offering a blanket discount or rebate on the purchase of goods;

6. The purchase of product to qualify for contests, fast-start bonuses, promotions, personal sales requirement for coaching commissions or pay rank;

7. Maintaining excessive inventory. Consultants may not inventory load, encourage others to inventory load or represent that there is any obligation to purchase products, literature or other sales aids except for the Starter Kit, nor shall they represent that overrides, bonuses or other earnings may be obtained solely from the purchase of products rather than the sale of products. Inventory is not a component of our business and should not be carried beyond the month in which it is intended to be sold.

C

LOSING

P

ARTIES AND

C

USTOMER

D

ELIVERY

All parties must be closed and submitted within the Jamberry Canada system within five days of the actual home party orders being given to the Consultant. Home Parties must close in their entirety within fourteen days of holding the actual Home Party. In addition, all customer orders given directly to a Consultant must be submitted and closed within the Jamberry Canada system within five days of the customer placing the order. If a customer or party order is shipped directly to a Consultant, the Consultant must deliver the orders to the customers within five business days of receipt. Any violation

of this provision may result in immediate termination of the Consultant Agreement with the Compnay by the Home Office.

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HIRD

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ARTY

C

ONSUMERS

Consultants who cultivate business contacts must remember that the business can purchase Jamberry products as gifts for employees or clients, but there may not be a resale value attached to the products. Consultants cannot become a “vendor” to another business. Consultants who offer or arrange sale of Jamberry products to a business for gifts must include a personal letter with each gift that provides information about how the end-user can receive personal service from the Consultant. Large-scale sales of Jamberry product to regional or national companies are prohibited since they do not lend themselves to the development of personal relationships and personal service that Jamberry is based upon.

C

USTOMER

R

EFUNDS AND

R

ETURNS

You must comply with the Return Policy and procedures currently listed on the Jamberry Canada website at www.jamberry.ca.

Customers and consultants are only eligible to return up to $1,000 of retail products during any 12 month period. Any attempt to return products for a refund in excess of $1,000 will be denied and such returns are ineligible for a refund. If a consultant returns product for a refund and a commissions has already been paid to the consultant for the sale of such product, any refund will less the

commission amount.

C

USTOMER

O

RDER

F

ORMS AND

S

ALES

R

ECEIPTS

All Consultants making person-to-person sales to customers (including any sales subject to provincial direct selling requirements) shall ensure that the customer is provided with the then current copy of the Jamberry Canada Sales Order Form, properly completed, and signed by both the Consultant and the customer. The Sales Order Form sets out, among other things, the Buyer’s Cancellation Right afforded to the customer under provincial law. Consultants must ensure that all information fields in the Sales Order Form are completed, including the following:

(1) the date of the transaction;

(2) name and address of the selling Consultant; and

(3) the signatures of the selling Consultant and the customer, and the location where the Form was signed.

In addition, the Consultant shall orally inform the customer of his or her cancellation rights.

Consultants are required to keep a copy of each Sales Order Form for their own records, and shall be required to retain same for a period of at least seven (7) years.

Where a customer places an order through a Consultant’s personal website, the customer will be required to positively accept the sales contract during the order process, and will thereafter be provided

with an Electronic Receipt providing printable evidence of the sales contract, and otherwise providing disclosure as required by provincial law. Consultants will be provided with a copy of each Electronic Receipt for their own records, and shall be required to retain same for a period of at least seven (7) years.

C

USTOMER

C

ANCELLATION RIGHTS

Consumer protection laws in Canada’s various provinces generally requires a mandatory 10 day cooling off/cancellation period for sales of products or services and effectively requires that every purchaser be given the unqualified right to cancel the direct sale contract, within 10 days of purchase. This right is set out on the back of the Jamberry Nails Order Forms.

A Consultant is required by law to tell her customers about their right to cancel orders within ten business days. If a customer cancels an order within the applicable cancellation period, a Consultant must promptly refund the customer’s money (as long as any products the customer received are returned to the Consultant in substantially the same condition). This includes an order for personalized products. If a customer cancels an order that the Consultant has already submitted to the Company, please contact Support at [email protected].

T

ERRITORY

R

ESTRICTIONS

There are no exclusive territories granted to anyone, and no franchise fees are required.

I

NTERNATIONAL

S

ALES

Due to complex legal and tax considerations involving international sales, no sales or recruitment efforts may be made outside Canada, unless you have received written approval from the Home Office.

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UT OF

S

TOCK

P

RODUCTS

I

TEMS

The Company will quickly ship all products currently in stock. Any out-of-stock items (unless

discontinued) may be placed on back order and will be distributed upon Company receipt of additional inventory. A Consultant will be charged and granted commissions on future ship items once the order is submitted. Items designated for future ship may be cancelled on a Consultant’s request and a credit will be made to either the Consultant or customer card based on the original payment method.

Commissions will be adjusted accordingly. If the item designated for future ship cannot be filled, the Company will cancel the order and adjust commissions accordingly. The Company has the right to offset such amounts against future commission and other compensation paid or owed to the Consultant who received commissions for subsequently canceled orders.

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ETAIL

O

UTLETS

We do not allow Consultants to set up a permanent retail display and sell Jamberry products in a retail environment. They are intended to be sold at a Home Party. A retail outlet includes a kiosk in a mall, boutique, grocery stores, flea markets, etc.

You may conduct a Home Party at the same retail location (such as a restaurant) once every 3 months, and no more than 4 times a year.

N

ON

-R

ETAIL

B

USINESSES

Consultants may leave a flyer in non-retail establishments, such as doctors’ offices, provided the intent is to attract participants to a Home Party, not to sell. Restaurants are not retail establishments and you may periodically conduct Parties or meetings in a restaurant.

M

AIL

O

RDER

Jamberry Consultants may not advertise, promote, sell or sponsor through other company catalogs.

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ONSULTANT

-T

O

-C

ONSULTANT

S

ALES

P

OLICY

Consultants may make Jamberry products available to other Consultants on a cost-recovery basis. For example, when a Consultant has an item in her samples and does not have time to receive an order from Jamberry Canada, it is acceptable for one Consultant to sell the Jamberry item to another at the Consultant purchase price. No adjustments of volume or commissions will be made by the Home Office. Violation of this policy will result in the termination of your Consultant Agreement with the Company.

R

ENTAL

S

PACE

Consultants may rent space for Home Parties, however, in order to prevent the appearance of such a space as being a retail establishment, Consultants may not store product in the location. The product must be stored in the Consultant’s home. Permanent signage or telephone rental locations are prohibited.

I

NTERNATIONAL

D

ISTRIBUTION

Jamberry Nails Consultants may not conduct business outside of Canada. Jamberry Nails Canada does offer Consultants the opportunity to sponsor consultants in the United States with special approval. If you are interested in sponsoring consultants in the United States, contact [email protected]

for more information.

M

ARKETING

M

ATERIALS

C

REDIT

Consultants may earn credit that can be used towards the purchase of marketing materials (catalogs, host join pamphlets, sample cards, postcards, order forms) based on the following monthly retail sales volumes listed below:

Monthly Personal Retail Volume (PRV)

Marketing Materials Credit

600 - 699 Cdn $25

700 - 799 Cdn $30

800 - 899 Cdn $35

900 - 999 Cdn $40

1,000+ Cdn $50

Marketing materials credit that is more than six months old on June 30 and December 31 of each year will expire. Marketing materials credit may only be used on marketing materials and not on any promotional products, retail products, shipping, or taxes.

EVENTS

B

EST

P

RACTICES

–O

PPORTUNITY

E

VENTS

The purpose of a Company sponsored opportunity event is for guests to come and have fun while feeling welcome and comfortable to explore the business and gather more information about becoming a Consultant. It’s also a great event for Consultants to attend along with their guests, or to come alone and learn how to talk to others about our opportunity. We want the atmosphere to be light and low- pressure, but informative and helpful.

As we grow in popularity, there is a chance that some guests may arrive at our opportunity event who are “unattached” to an existing Consultant. There is also a chance that a guest was informed of our event by a fellow Consultant that couldn’t be in attendance. To help reduce confusion, we ask every guest to fill out a short information card upon arrival. This card is then used to figure out where, and with whom, most guests belong.

In the case of an “unattached” guest, here is the procedure that should be followed: • A list of all Consultants in attendance of the opportunity event will be kept

• “Unattached” guests who end up becoming Consultants as a result of our opportunity event will be assigned using the Home Office Leads system.

Please remember that this situation is rare and you should not attend an opportunity event in the hopes of sponsoring someone new (unless you’ve invited a guest of course!). Please refrain from handing out your personal business cards to any “unattached” guests in the hopes of sponsoring and instead, answer any questions they may have in a helpful way. In the end, everyone benefits and if not personally at this event, then perhaps down the road.

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EST

P

RACTICES

–T

RAINING

E

VENTS

The Home Office will not be responsible for lost or stolen inventory in the event that a Consultant brings her own inventory to a Training event. The Home Office recommends that all inventory be locked up during break periods.

T

EMPORARY

S

ALES

E

VENTS

Public events can be opportunities to receive exposure for your Jamberry business. You can find people interested in hosting a Home Party, purchasing the product or becoming a Consultant. However, it is important to consider the cost vs. the return. Consultants may promote their business (offering or arranging sale of Jamberry products and sponsoring) at exhibits and trade shows, in accordance with the following:

• The registration for the event must be as a Jamberry Consultant.

• The first Consultant to register for the space with the event sponsor has the right to conduct that event. If a second Consultant would also like to participate, she must contact the first registrant and obtain her permission. If two Consultants are registered without prior knowledge, it is up to the second Consultant to withdraw from the event if the first registered Consultant does not want double

participation. When registering for events, it is a good business practice to check cancellation policies and to proactively check with the sponsor to ensure another Jamberry Consultant is not already registered.

• The booth must be staffed at all times and must not be shared by another business. • An event held in the common area of a shopping mall is permissible.

Please note that Expos, Trade Shows and Booth Events are not considered a core part of the Jamberry business and the Home Office does not specifically recommend participation in these events, nor do we endorse any specific event. Furthermore, as an Independent Consultant, you are responsible for your decision to host or co- host a booth at an Expo, Trade Show, or Booth Event. The business agreements made between Jamberry Consultants to host or co-host an event are the proprietary responsibility of the Consultants and the event planners. We strongly advise every Consultant to evaluate every business decision thoroughly before proceeding with the understanding that the Home Office is not responsible for the Consultant’s participation or subsequent results.

Participation in any one specific Temporary Sales Event shall be limited to two weeks in a calendar year. The goal of Jamberry Canada in establishing this policy for trade shows, expos and craft fairs is to promote the professional image of Jamberry Canada and all Consultants, and provide an atmosphere of mutual respect and ethical cooperation. You are encouraged to take creative approaches in your selling. However, your primary approach should always be a Home Party. Before agreeing to participate in any other type of event, you should be able to answer “yes” to the following questions:

 Is this event fair to all parties involved?  Is this legal and ethical?

 Will this generate new bookings or future business?

 Will this approach provide the best environment for a successful event for the Hostess? If a Temporary Sales Event (such as a craft fair or holiday bazaar) a) is set up inside a retail environment (such as a shopping center or base exchange); b) occurs more often than every six weeks in its entirety, and/or c) occurs for twenty-five (25) consecutive days or more, you may set up a display about your

independent sales business for the event but you may NOT have product available for cash and carry sales. An established retail environment is defined as a location in which permanent retail activities take place, such as inside a shopping center, inside or adjacent to a base exchange, or inside or adjacent to a permanent swap meet. Shopping center kiosks, base exchanges, or permanent swap meets are not approved locations for temporary sales forums, because they take place within an established retail environment.

If you have any questions about whether to participate in an event, please contact Support. When you register to participate in an event, the event sponsor may ask you for your sales tax registration or inform you that you must post a copy of your Seller’s Permit at your booth. Regarding charging and collection of sales tax, please refer to “Sales Tax” section on page 27 for details. If you are required to provide sales tax registration information to the event organizer, please email

[email protected] with the name and contact information for the event and we can