Nu Skin

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POLICIES &
PROCEDURES
2011

Table of Contents
Chapter 1
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
2
2.1
2.2
3
3.1
3.2
3.3
3.4
3.5
4
4.1
4.2
4.3
4.4
Chapter 2
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2
2.1
2.2
2.3
2.4
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8

Your Distributorship
Becoming a Distributor
Applying to Become a Distributor
One Individual per Distributorship
Age Requirements
Minors
Legal Residency
Former Distributors
Spouses and Co-habitants
Acceptance of your Distributor Agreement
Tax Payer Identification Number
Business Entities
Changing to a Business Entity
Temporary Accounts
Personal Information
Collection of Personal Information

1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2

3.9
3.10
3.11
4
4.1
4.2

Authorization to Use Your Personal Information
Maintaining Your Distributorship Account
Keeping your Distributor Agreement
and Business Entity Form current
Adding a New Participant
Starting a Distributorship under a New Sponsor
One Distributorship per Individual
Acquisition of Beneficial Interest in and
Merger of Distributorships
Transferring and Terminating Your Distributorship
Transferring Distributorships
Transfers Upon Death
Divorce
Right to Terminate

2
2

Operating Your Business
Business Ethics
DSA Code of Ethics
Purpose of Your Business
General Ethics
Non Disparagement
Harassment
No Contact of Vendors or Scientific Advisory
Board Members
Anti-Corruption
Maintaining the Company’s Reputation
Records Review
Independent Contractor
Distributors are Independent Contractors
Taxes
No Authority to Act on Behalf of Company
Designation as Employer Prohibited
Ordering Products or Services
Ordering
Transfer of Title
Inventory and the 80 Percent Rule
Methods of Ordering
Issuing Credits
Pricing Changes
Submitting Orders in the Name of Another Distributor
Payments without Sufficient Funds

5
5
5
5
5
5
5

2
3
3
3
3
3
3
4
4
4

5
6
6
6
6
6
6
6
6
6
6
6
6
7
7
7
7
7

7
7
7
7
7

6
6.1

Use of another Individual’s Credit Card
Automatic Delivery Rewards Program
Retailing of Products
Product Refunds and Exchanges
Refund Policy
Exchange Policy for Products Purchased
Directly from the Company
Procedures for Obtaining a Refund or Exchange
Retail Sales and Customer Returns
Retail Sales
No Wholesaling of Products
Retail Sales Receipts
Money-back Guarantee, Customer Refunds,
and Exchanges for your Retail Customers
Sales Compensation Plan
Sales Compensation Plan

6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
7
7.1
7.2
7.3
8
8.1
8.2
9

Exceptions to Sales Compensation Plan
No Compensation for Sponsoring
No Guaranteed Income
Manipulation of Sales Compensation Plan
Bonuses
Required Retail Sales; Retail Sales Verification
Timing
Bonus Recovery
Payment Corrections
Product Liability Claims and Indemnification
Indemnification
Requirements for Indemnification
Indemnification by You
Sales Tax
Company Collection of State Sales Tax
Exemption from Company Collection of State Sales Tax
Associating Other Organizations with the Company

9
9
9
9
9
9
10
10
10
10
10
10
10
10
10
11
11

Advertising
Business Support Materials and Trademark Use
Use of Business Support Materials
Use of Trademarks and Copyrights
Product Claims
General Limitation
No Medical Claims
No FDA Approved Claims
Before and After Photographs
Modifications to Product Packaging
Income Claims
No Misleading Income Claims
Requirements for Lifestyle and Income Claims
Blue Diamond Produced Business Support Materials
Blue Diamond Business Support Materials
No Endorsement or Approval by Company
License Agreement for Business Support Materials
Registration of Blue Diamond Business Support
Materials and Services
Sales by Blue Diamonds; Purpose
Distributor Organizations
Mass Media; General Advertising
Promotions Utilizing Mass Media...
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