You may view the entire Policy and Procedures at the NSE website:

http://www.nuskinusa.com/bp/static/pandp.html

 

 

POLICY AND PROCEDURES

Welcome. In this section of the OTG website we have included 3 of the policies of Nu Skin Enterprises that we find new distributor’s have the most trouble with early in their involvement in the company. These policies have been instituted to protect the opportunity, the distributor and the company. When you enrolled in Nu Skin you accepted all of the policies and procedures of the company and you are obligated to abide by them.

 

Section 20: Advertising and the Use of the Company Name

  1. A Distributor is expressly prohibited from using any form of media advertising to promote products or services. Products or services may be promoted only by personal contact or by literature produced and distributed by the Company or by Distributors in accordance with Section 21(A) of this document. Generic opportunity advertisements may be placed, in jurisdictions allowing that type of advertisement, but only in accordance with the Policies and Procedures of the Company. In addition, a Distributor may not promote the products, services, or opportunity through interviews with the media, articles in publications, news reports, or any other public information, trade, or industry information source, unless specifically authorized, in writing, by the Vice President of Corporate Communications or his designated representative. This includes private, paid membership, or "closed group" publications. All media contacts or inquiries should be immediately referred to the Public Relations Department of the Company by calling 801-345-2100.

  2. Company logos or names may not be used or displayed on any apartment, house, office, storefront, or other physical premise, where they may be viewed by persons passing by. Please see the Pharmanex Supplemental Policies for further information relating to pharmacies.

  3. No Distributor may use any of the Company's trade names, trademarks, service marks, product names, logos, or other intangible commercial assets, registered or otherwise, in any form of advertising or promotion without first entering into a separate, written licensing agreement with the Company for each proposed use of any of the above-stated names or devices. Each Distributor agrees that any use in violation of these provisions constitutes a breach of the Contract and causes irreparable harm to the Company. Upon notice of that any violation, the Distributor agrees to stipulate the appropriate injunctive relief enjoining that use. The Company, in its sole discretion, reserves the right to prohibit any advertising or promotion.

  4. Except for separate, written licensing agreements noted above, none of the Company's copyright-protected materials may be reproduced, in whole or part, by any means.

  5. Each Distributor agrees that any claims or representations concerning the opportunity must be congruent with, and limited to, those found in the materials and literature currently distributed by the Company. Those claims and representations must also be advanced in accordance with any applicable laws, ordinances, and regulations.

    1. No Distributor may make unreasonable, misleading, or unrepresentative representations respecting potential earnings.

    2. No Distributor may represent that, any Person can or will receive profits or revenues without substantial effort on her own behalf.

    3. All promotional materials including but not limited to flyers, business cards, and brochures prepared in accordance with Subsection F below, may be distributed through personal contact only. They may not be posted in public places, mass mailed, placed on parked cars, put in mail boxes, or disseminated by any other non-personal contact means. Materials may not be disseminated through unsolicited faxes or E-mail messages.

    4. In order to advertise in the Yellow Pages or list his name in the White Pages of a locally circulated directory in his area, a Distributor must have previously attained and currently enjoy active status as a Ruby-level or Managing Director-level, or above, at the time the contract for that listing is signed.

      1. This advertisement is to be limited to two lines containing the words "Pharmanex (or other Division name) Independent Distributor, John Doe (Distributor's Name)," and a telephone number. Neither bold print nor display advertisements are allowed. The advertisement must be in the Distributor's personal name only.
      2. In the Yellow Pages, the advertisement must be placed under the category, for example of "Pharmacy" or "Nutrition." Contact your Division for additional acceptable categories.

      3. The Company recommends that leads obtained from this listing be alternately disbursed throughout the Downline Organization of the Distributor.

      4. In case of a violation, the Company may require that the offending telephone number be disconnected, in addition to taking other remedial actions under the Contract against the responsible Distributor.

    5. A Distributor may not use a celebrity endorsement without the specific, prior, written approval of the endorsing celebrity for each use of the celebrity's name.

  6. A Distributor may not use business cards or other Personalized Sales Aids containing the Company's logo and name unless produced by the Company. These items produced by the Company will follow the general format listed below:

    1. the Company's logo and name must always appear with the registered trademark designation (except as prohibited by law);

    2. when the Company's logo or name is used, the business card or Personalized Sales Aid must also contain the words "Independent Distributor;"

    3. a Distributor may not use the names of any of the Company's products or any business designation; and

    4. a Distributor may not use the names of any of the Company's products or any business designation; and


  7. Each separate use of the Company's name or logo must be preceded by the completion of a separate written agreement with the Company for the use. Unauthorized use of the Company's logos, names, trademarks, or trade names is prohibited. Any unauthorized use constitutes a violation of trademark laws and will cause irreparable damage to the Company, and its Distributors. The Company reserves the right to pursue all legal and equitable remedies against any Distributor or any other individual or entity who wrongfully uses the Company's logos or name or any of the Company's trademarks or trade names.


  8. Distributors must only use Company produced Distributor web sites, Corporate sites, and web tools (i.e., Dynamic Web Pages, Global Web Pages, E-clips, etc.) when they promote the Company's products and services over the Internet. Additionally, Distributors are permitted to create generic business opportunity sites and/or generic splash pages with links to Company sites or a Business Center/GWP. These generic pages may not contain the Company's trademarks or other copyrighted material and may not contain information on the Company, its products or its business, or pictures of products or corporate facilities/personnel. Except as set forth in this policy, Distributors may not use the Internet to promote the Company, including its products and services, in any other manner. In case of a violation, the Company may require the offending Distributor to immediately remove the web site that is in violation of Nu Skin's policies, in addition to taking other disciplinary actions against the responsible Distributor in accordance with Section 6 of these Policies and Procedures. Distributor web sites are also subject to the following restrictions.
    1. Distributors who have previously attained and currently enjoy active status as a Blue Diamond/Presidential Director may create their own independent Internet sites to promote the Company's products/services and business opportunity. However, all such sites, and any changes thereto, must first be reviewed and approved as Sales Aids in accordance with Section 21 of these Policies and Procedures and carry a Company designated review seal. Changes made to the site after obtaining the initial review seal requires written authorization from a representative of the Distributor Conduct Department.

    2. Distributors may not include any intellectual property or proprietary information in the unique domain names/URL or meta-tags of their Company produced or generic business opportunity web sites. Additionally, intellectual property and proprietary information cannot be used as "wallpaper" on any Company hosted or generic business opportunity site.

    3. Distributors may not register their web sites with search engines or web directories using any intellectual property any proprietary information.

    4. Distributors are required to promote their Company hosted and/or generic business opportunity Internet sites through one-on-one personal contact only. Additionally, Distributors are prohibited from forwarding information regarding their sites to individuals who have not specifically requested information regarding the Company's business opportunity and/or products (i.e., spam).


Section 21: Sales Aids

  1. A Distributor may only use, distribute, or sell Sales Aids either: 1) produced and distributed by the Company and bearing their copyright designation, or 2) produced and distributed by an Independent Distributor, only after review by the Company and bearing the specific designation "content reviewed" followed by a designated review identification number. The above-stated designation may be obtained through the process outlined below and in accordance with additional terms found in the Sales Aid Review Contract but may only be used after a certificate has been received from the Company by the submitting Distributor. That certificate must specifically indicate that the material may be made available for distribution.

  2. The Company may impose a reasonable fee for reviewing a Sales Aid. Distributors should allow a minimum of three weeks for the Company to complete its review of submitted materials.

  3. The Company reserves the right to require any change to a Sales Aid it deems necessary to ensure appropriate content before allowing the Sales Aid to bear its review designation as stated above.

  4. The Company reserves the right to deny approval for any proposed Sales Aid and, if changes in regulatory requirements or other circumstances so dictate, to require, at the Company's sole discretion, the removal from the marketplace or previously reviewed Sales Aids without financial obligation to the affected Distributor.

  5. Any Distributor who produces or has previously produced or distributed materials as set forth in this Section bears ultimate responsibility for the material contained therein. The Company's review process does not guarantee that the Sales Aid complies with all applicable federal or state legal and other regulatory requirements. The review process does not constitute legal advice from the Company to any Distributor. In addition to the Company's review, all Distributors who intend to produce and distribute Sales Aids in accordance with this Section are strongly advised to seek the advice of independent legal counsel with regard to the legality and regulatory compliance of Sales Aids.

  6. Distributors are free to establish their own prices for Sales Aids reviewed by the Company under this Section.

  7. Sales Aids shall be identified by the name of the individual or individuals that produced them. Group or organizational identifiers shall not be used in connection with the production of Sales Aids.

  8. All mailing lists of the Company's Distributors obtained in connection with the production or sale of an independently produced Sales Aid are the confidential and proprietary property of the Company. Independent tape duplicators or other persons obtaining access to Distributor Lists through their production or distribution of that material must contractually agree to the confidentiality and proprietary nature of those mailing lists and that any use of those lists or contacts generated there from except for the sole purpose of furthering the Company's business is expressly forbidden. They must also agree that the information is the proprietary property of the Company and any materials offered to the Distributors which make any reference to the Company or its programs may be done so only with the prior written consent of the Company for each separate offer.

  9. The return policy of Independent Distributors with regard to Sales Aids, which they have produced or sold, must be in full compliance with the pertinent Sales Aid return policy employed by the Company for Company Approved Sales Aids (See Section 12).

  10. Distributors who use, distribute, or sell Sales Aids in violation of this Section are subject to appropriate remedial action by the Company, up to and including termination of the violating Distributorship.

  11. Within an Authorized Country, a Distributor may only promote or train with Sales Aid materials that are approved and distributed by the local affiliated Company office in that country.


Section 22: Retail Store, Service Establishment Sales and Trade Show Policy

  1. A Distributor may not sell products and/or promote the Nu Skin Enterprises business opportunity through retail stores such as health food stores, grocery stores, and other such establishments. A Distributor is also prohibited from selling to any person who will ultimately sell products or services through retail stores. A Distributor may, with the prior consent of a retail establishment, place Company-produced Sales Aids/Personalized Sales Aids within their facility. However, all Sales Aid material must be contained within one Company-produced brochure holder. Furthermore, the brochure holder/Sales Aid material must not be visible to the general public in a manner as to attract the general public into the retail establishment.
  2. In general a Distributor may not sell any products and/or services of the Company nor promote the Company's opportunity at flea markets, swap meets, bazaars, men's/women's groups, supermarkets, malls or any other similar gathering where the opportunity or products are displayed. However, upon the prior written approval of the Company, an Executive level Distributor may rent a booth or set up an exhibit at a trade show or convention ("Convention"), subject to the Company's approval of the Convention and compliance with the following requirements:

    1. An Executive level Distributor may rent or set up a booth at a Convention if the Convention theme is directly related to the Distributor's Nu Skin Enterprises business

    2. At least four weeks prior to the Convention, the Executive must submit to the Company a proposal regarding the Convention and obtain prior written approval from the Company.

      1. The Distributor may only use Company-produced sales aids and promotional material. A purchase of a company produced independent Distributor banner, to display in the booth, is required.

      2. The Distributor will not reference Nu Skin Enterprises in any form of advertisement or promotional material that implies that Nu Skin Enterprises is participating in the Convention. Instead, any Company-approved advertisement or promotional material must make specific reference to the Distributor as an independent Executive level Distributor of Nu Skin Enterprises, including any maps or listings prepared by the sponsor of the Convention.

      3. The Distributor will not make any earnings representations of any kind.

    3. The Distributor will not use the Convention to promote any product, service, or business opportunity other than Pharmanex, Nu Skin, Big Planet, or any other Nu Skin Enterprises business in which the Distributor may be involved.

    4. During the Convention the Distributor must personally comply with the Policies and Procedures and is responsible for (i) the actions of every person who works in the booth at the Convention, (ii) all material distributed at the Convention, and (iii) all other aspects of participation in the Convention.

    5. In addition to the other remedies provided in the Policies and Procedures, the Company reserves the right to deny future Convention participation for any policy violation at a Convention.

  3. A Distributor who owns or is employed by a service-related establishment may provide the Company's products and services to customers through this establishment as long as he is providing proper prescreening and ongoing support to his customers as called for by the Contract. In any event, no product banners, or other Sales Aid materials may be displayed visibly to the general public in a manner as to attract the general public into the establishment to purchase products or services.

    1. A service-related establishment is one whose revenue is earned primarily by providing personal service rather than by selling products and whose use by customers is controlled by membership or appointment.

    2. Distributors may only sell products through service establishment that provide services related to the products. For example, Pharmanex products may be sold through the offices of doctors and other healthcare professionals, health clubs, or gymnasiums. Nu Skin products may be sold through barber shops, beauty salons, nail boutiques, or tanning centers. Big Planet products may be sold through consulting firms, counseling services, or computer or electronic repair shops.

  4. The Company reserves the right, in its sole discretion, to make a final determination as to whether an establishment is service-related or is a proper place for the sale of the products or services.