POLICIES AND PROCEDURES
MONAT Global Australia Pty Ltd trading as MONAT Global New Zealand
Effective 1 November 2022
1.1 - POLICIES AND PROCEDURES AND COMPENSATION PLAN INCORPORATED INTO MARKET PARTNER AGREEMENT
The Policies and Procedures, in their present form and as amended from time to time at the reasonable and sole discretion of Monat Global Australia Pty Ltd trading as MONAT Global New Zealand ("MONAT" or the "Company"), are incorporated into and form an integral part of the MONAT Market Partner Agreement. Throughout these Policies and Procedures, when the term "Agreement" is used, it collectively refers to the MONAT Market Partner Application and Agreement, these Policies and Procedures, the MONAT Compensation Plan, and the MONAT Business Entity Registration Form (if applicable). These documents are incorporated by reference into the MONAT Market Partner Agreement (all in their current form and as amended by MONAT from time to time). It is the responsibility of each Market Partner 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 Market Partner, it is the responsibility of the sponsoring Market Partner to ensure that the applicant is provided with, or has online access to, the most current version of these Policies and Procedures and the MONAT Compensation Plan prior to his or her execution of the Market Partner Agreement.
1.2 - PURPOSE OF POLICIES AND PROCEDURES
MONAT is a direct sales company that markets its products through Independent Resellers ("Market Partner" or "Market Partners"). It is important to understand that your success and the success of your fellow Market Partners depend on the integrity of the individuals who market our products. To clearly define the relationship that exists between Market Partners and MONAT, and to explicitly set a standard for acceptable business conduct, MONAT has established the Agreement.
MONAT Market Partners are required to comply with all Policies and Procedures which MONAT may amend from time to time, at its reasonable and sole discretion as well as all state and local laws governing their independent MONAT business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by these Policies and Procedures. Please review the information in these Policies and Procedures carefully as they explain and govern your relationship, as an independent contractor, with the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an answer from your Sponsor or from MONAT.
1.3 - CHANGES TO THE AGREEMENT
Because state and local laws periodically change, and because our business environment evolves so rapidly, MONAT reserves the right to amend the Agreement (where acting reasonably) and its prices at its sole and absolute discretion. By signing the Market Partner Agreement, and joining MONAT as a Market Partner, and in consideration of accepting commissions, bonuses, and awards from MONAT, a Market Partner agrees to abide by the most current version of these Policies and Procedures as they are amended by MONAT from time to time in its sole discretion. Amendments shall be effective thirty (30) days after publication of a notice that Policies and Procedures have been amended. Amendments shall not apply retroactively to any conduct that occurred prior to the effective date of the amendment. MONAT shall provide or make available to all Market Partners a complete copy of the amended Policies and Procedures by one or more of the following methods: (1) posting on the Company's official website; (2) electronic mail (e-mail); (3) posting in the Market Partner's back office; (4) inclusion in Company periodicals; or (5) special mailings. By continuing to operate an independent Market Partner's MONAT business or by accepting commission, bonuses, or awards from MONAT after the effective date of the amendments, the Market Partner thereby accepts the revised Policies and Procedures and agrees to abide by them.
1.4 - DELAYS
Neither MONAT nor Market Partners shall be responsible for delays or failure in the performance of their respective obligations when performance is made commercially impracticable due to circumstances beyond their reasonable control. This includes, without limitation, strikes, labor difficulties, riots, war, fire, death, pandemic, curtailment of a 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 to reflect the purpose of the provision as closely as possible.
1.6 - WAIVER
The Company never 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 with any obligation or provision of the Agreement, and 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. Waiver by a party can be effectuated only in writing (and a waiver by MONAT must be in writing by an authorised officer of the Company). A party's waiver of any particular provision of the Market Partner Agreement or these Policies and Procedures, shall not affect or impair that party's rights with respect to any subsequent breach, nor shall any delay or omission by a party to exercise any right arising from a breach affect or impair that party's rights as to that or any subsequent breach.
The existence of any claim or cause of action of a Market Partner against MONAT shall not constitute a defense to MONAT's enforcement of any term or provision of the Agreement.
SECTION 2 - BECOMING A MARKET PARTNER
2.1 - REQUIREMENTS TO BECOME A MARKET PARTNER
To become a MONAT Market Partner, each applicant must:
- a)Be at least 18 years of age;
- b)Reside in New Zealand, or any country that any of MONAT's related companies has officially announced is open for business;
- c)Purchase a MONAT Starter Kit;
- d)Submit a properly completed Market Partner Application and Agreement to MONAT either in hard copy or online format;
- e)Provide his or her valid, unique email address not associated with any other MONAT account;
- f)Provide his or her valid, unique credit card not associated with any other MONAT account;
- g)Not be in jail or prison or otherwise confined to a correctional institution;
- h)Not have been convicted or plead no contest to a criminal charge within the past 7 years. Criminal charges that occurred more than 7 years ago will be reviewed at MONAT's discretion and might render an applicant ineligible to be a MONAT Market Partner;
- i)Not be a current employee, officer, or director of MONAT, or the spouse or registered domestic partner of the foregoing;
- j)Be authorised to be an independent reseller in New Zealand or any country that any of MONAT's related companies has officially announced is open for business.
The Company reserves the right to reject any applications for a new Market Partner or applications for renewal.
2.2 - BUSINESS KITS AND PRODUCT PURCHASES
Except for the purchase of a MONAT Starter Kit, no person is required to purchase MONAT products, services, or sales aids, or to pay any charge or fee to become a Market Partner. To familiarise new Market Partners with MONAT products, services, sales techniques, sales aids, and other matters, the Company requires that they purchase a Starter Kit. MONAT will repurchase resalable Starter Kits from any Market Partner who terminates his or her Market Partner Agreement pursuant to the terms of Section 7.3.
2.3 - MARKET PARTNER BENEFITS
Once a Market Partner Application and Agreement has been accepted by MONAT, the benefits of the Compensation Plan and the Market Partner Agreement are available to the new Market Partner. These benefits include the right to:
- a)Sell MONAT products and profit from these sales;
- b)Receive retail rebates/commissions on retail purchases;
- c)Participate in the MONAT Compensation Plan (receive bonuses and commissions, if eligible);
- d)Sponsor other individuals as VIP Customers or Market Partners into the MONAT business and thereby, build a Marketing Organisation and progress through the MONAT Compensation Plan;
- e)Receive periodic MONAT literature and other MONAT communications;
- f)Participate in MONAT-sponsored support, service, training, motivation, and recognition functions, upon payment of appropriate charges, if applicable; and
- g)Participate in promotional and incentive contests and programs sponsored by MONAT for its Market Partners.
2.4 - TERM AND RENEWAL OF THE AGREEMENT
The term of the Market Partner Agreement is one year from the date of its acceptance by MONAT (subject to prior termination pursuant to Section 10). Market Partners may renew their Market Partner Agreement each year by paying an annual renewal fee of NZD $85.00 (GST inclusive) on or before the anniversary date of their Market Partner Agreement. If the renewal fee is not paid by the Market Partner's anniversary date or 30 days thereafter, the Market Partner's account will become suspended for 15 days (the "Suspension Period"). During the Suspension Period, the Market Partner may reinstate his/her Market Partner account for a fee of $170.00 (GST inclusive). If the Market Partner account is not reinstated by the ending of the 15-day Suspension Period, the Market Partner account will be terminated along with the Market Partner Agreement and their down line will "roll-up" to the up line and will not be replaced. The terminated Market Partner shall wait six months before enrolling again.
SECTION 3 - OPERATING AN INDEPENDENT MONAT BUSINESS
3.1 - ADHERENCE TO THE MONAT MARKETING MATERIALS
Market Partners must adhere to MONAT Marketing Materials. Market Partners shall not offer the MONAT opportunity through, or in combination with, any other system, program, sales tool, or method of marketing other than that specifically set forth in official MONAT literature. Market Partners shall not require or encourage other current or prospective Market Partners or VIP Customers to participate in MONAT in any manner that varies from the methods and information as set forth in official MONAT literature. Market Partners shall not require or encourage other current or prospective Market Partners or VIP Customers to execute any agreement or contract other than official MONAT agreements and contracts in order to become a MONAT Market Partner or VIP Customer. Similarly, Market Partners shall not require or encourage other current or prospective VIP Customers or Market Partners to make any purchase from, or payment to any individual or other entity to participate in the MONAT Compensation Plan other than those purchases or payments identified as recommended or required in official MONAT literature.
3.2 - ADVERTISING
3.2.1 - GENERAL
All Market Partners shall safeguard and promote the good reputation of MONAT and its products. The marketing and promotion of MONAT, the MONAT opportunity, the Compensation Plan, and MONAT products shall be consistent with the public interest and must avoid all discourteous, deceptive, misleading, unethical, or immoral conduct or practices.
To promote both the products and the tremendous opportunity MONAT offers, Market Partners must use the sales aids and support materials produced by MONAT. The rationale behind this requirement is simple. MONAT has carefully designed its products, product labels, Compensation Plan, and promotional materials to ensure that each aspect of MONAT is fair, truthful, substantiated, and complies with the vast and complex legal requirements of state and local laws. If MONAT Market Partners were allowed to develop their own sales aids and promotional materials, notwithstanding their integrity and good intentions, the likelihood that they would unintentionally violate any number of statutes or regulations affecting a MONAT business is almost certain. These violations, although they may be relatively few in number, would jeopardise the MONAT opportunity for all Market Partners.
Accordingly, Market Partners must not produce their own literature, advertisements, sales aids, business tools, promotional materials, or Internet web pages without the written authorisation of MONAT. Nor may Market Partners use any literature, advertisements, sales aids, business tools, promotional materials, or Internet web pages obtained from any source other than the Company. Market Partners may download and obtain approved promotional materials through the Back Office.
3.2.2 - SOCIAL MEDIA
A. In addition to meeting all other requirements specified in these Policies and Procedures, should a Market Partner utilise any form of social media, the Market Partner agrees to each of the following:
- 1. No product sales or enrollments may occur on any social media site. To generate sales, a social media site must link only to the Market Partner's MONAT Replicated Website;
- 3. A Market Partner may not use any social media site on which they discuss or promote or have discussed or promoted, the MONAT business or MONAT's products to directly or indirectly, solicit MONAT Market Partners for another direct selling or network marketing program (collectively, "direct selling"). In furtherance of this provision, a Market Partner shall not take any action that may reasonably be foreseen to result in drawing an inquiry from other Market Partners relating to the Market Partner's other direct selling business activities. Violation of this provision shall constitute a violation of the non-solicitation provision in Section 3.10 below. This provision applies during the term of this Agreement and for a period of 12 calendar months thereafter.
- 4. Market Partners must clearly identify themselves as Independent MONAT Market Partners along with a link to their replicating site. Market Partners may use the Independent MONAT Market Partner logo in social networking profiles. The independent logo is available in the Back Office under Resource Library.
- 5. Market Partners may not take any action or create any profile to confuse a reasonable person to believe they have landed on an official Corporate social media page, including but not limited to using the MONAT logo or anything similar in their profile photo or banner. If a Market Partner creates a business profile page on any social media site that promotes or relates to MONAT, its products, or opportunity, the business profile page must relate exclusively to the Market Partner's MONAT business and MONAT products.
If the Market Partner's MONAT business is canceled for any reason or if the Market Partner becomes inactive, the Market Partner must deactivate the business profile page.
B. Testimonials and "Before and After" Photos
1. All testimonials and "before and after" photos must be truthful, transparent, supported, and consistent with current MONAT product claims. To post "before and after" photos, Market Partners must do the following:
- a)Identify the person and if the person is a relative or immediate household member of MONAT independent Market Partner;
- b)Share their genuine result(s);
- c)Clearly and conspicuously disclose how often and how long the MONAT products were used, (unless otherwise directed by Corporate materials) and whether any other products or treatments contributed to the results;
- d)Clearly and conspicuously disclose the name of the MONAT product(s) used;
- e)The "before and after" photos must be taken under the same conditions and touch-ups and photo editing are not permitted;
- f)Subject must be recognizable as the same person in each photo;
- g)For skincare results makeup may be used as long as it does not alter the impact of the results;
- h)Market Partners may not use "stock" photos to advertise, sell, or offer to sell MONAT Products; and
- i)Market Partners must be able to defend the origin and appearance of all posts.
3.2.2 - ONLINE CONDUCT
A. No Independent Websites
No Market Partner may independently design a website that uses the names, logos, or product descriptions of MONAT or otherwise promotes (directly or indirectly) MONAT products or the MONAT opportunity. A Market Partner shall not use "blind" ads on the internet that make product or income claims which are ultimately associated with MONAT products, the MONAT opportunity, or the MONAT Compensation Plan. The use of any other internet website or web page (including without limitation auction sites such as eBay) in any way to promote the sale of MONAT products, the MONAT opportunity, or the Compensation Plan is a breach of these Policies and Procedures and may result in MONAT taking the enforcement steps and seeking the remedies set forth in Section 8.1.
B. Replicated Websites
If a Market Partner desires to utilise an internet web page to promote his or her business, he or she may do so through the Company's replicated website program only. This program permits Market Partners to advertise on the internet and can be personalised with the Market Partner's message and the Market Partner's contact information. These websites seamlessly link directly to the official MONAT website giving the Market Partner a professional and Company-approved presence on the internet.
There is no additional charge for the Replicated Website. Market Partners are solely responsible and liable for the content they add to their Replicated Websites and must regularly review the content to ensure it is accurate and relevant.
Market Partners may not alter the branding, artwork, look, or feel of their Replicated Websites, and may not use their Replicated Websites to promote, market, or sell non-MONAT products, services, or business opportunities. Specifically, a Market Partner may not alter the look (placement, sizing etc.) or functionality of the following:
- The MONAT Independent Market Partner Logo
- The Market Partner's Name
- MONAT Corporate Website Redirect Button
- Artwork, logos, or graphics
- Original text.
Because Replicated Websites reside on the myMONAT.com domain, MONAT reserves the right to receive analytics and information regarding the usage of your Replicated Website.
By default, a Market Partner's MONAT Replicated Website URL is www.myMONAT.com/﹤Market Partner ID#﹥. The Market Partner must change this default ID and choose a uniquely identifiable website name that cannot:
- Be confused with other portions of the MONAT corporate website;
- Confuse a reasonable person into thinking they have landed on a MONAT corporate page;
- Be confused with any MONAT name;
- Contain any discourteous, misleading, or off-color words or phrases that may damage MONAT's image.
Market Partners may not monetise their Replicated Websites through affiliate programs, adSense, or similar programs.
C. Domain Names and Email Addresses
Market Partners may not use or attempt to register any of MONAT's trade names, trademarks, service names, service marks, product names, the Company's name, or any derivative thereof, for any Internet domain name. Nor may Market Partners incorporate or attempt to incorporate any of the Company's trade names, trademarks, servi- ce names, service marks, product names, the Company's name, or any derivative thereof, into any email address except in manner approved by the Company.
When directing web traffic to a MONAT Replicated Website it must be evident from a combination of the link and the surrounding context that the link will be connecting to the site of an independent MONAT Market Partner. Attempts to mislead web traffic into believing they are going to a MONAT corporate site, when in fact they land at a Market Partner's Replicated Website, will not be allowed. The determination as to what is misleading to a reasonable reader or user of the site will be determined by MONAT at its sole discretion.
E. Online Classifieds
Market Partners may not use online classifieds (including Craigslist) to list, sell, or retail specific MONAT products or product bundles. Market Partners may use online classifieds (including Craigslist) for prospecting, recruiting, sponsoring, and informing the public about the MONAT business opportunity, provided MONAT-approved templates/images are used. These templates will identify the Market Partner as an Independent MONAT Market Partner. If a link or URL is provided, it must link to the Market Partner's Replicated Website.
F. eBay / Online Auctions
MONAT products may not be listed on eBay or other online auctions, nor may Market Partners enlist or knowingly allow a third party to sell MONAT products on eBay or other online auctions.
G. Buy and Sell Sites
MONAT prohibits the listing or selling of MONAT products on buy and sell sites such as Amazon, eBay, Gumtree, Facebook Groups, and other buy/trade/swap pages or social media platforms. The retailing of any MONAT products through these sites or platforms is a serious violation and will result in MONAT taking action up to and including the suspension or termination of your MONAT account. MONAT does permit the use of these forums to help promote and advertise an Independent Market Partner's availability, the MONAT opportunity, and MONAT products. (Please refer to 3.6.2 - Product Claims and 3.6.3 - Income Claims for further guidance.)
H. Banner Advertising
Market Partners may place banner advertisements on a website provided the Market Partner uses MONAT- approved templates and images. All banner advertisements must link to a Market Partner's Replicated Website. Market Partners may not use blind ads (ads that do not disclose the identity of the Company) or web pages that make product or income claims that are ultimately associated with MONAT products or the MONAT opportunity.
I. 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 and/or spamdexing. Any comments that a Market Partner makes on blogs, forums, guest books etc. must be unique, informative and relevant.
J. Video, Audio, Digital Media
Market Partners may upload, submit, or publish MONAT-related video, audio, or photo content that they develop and create to advertise or promote MONAT products and the opportunity. Market Partners must ensure that any claims made about MONAT products, or the opportunity is in compliance with MONAT Policies and Procedures. All material must align with MONAT values and contribute to the MONAT community and the greater good. Market Partners must clearly identify themselves as an Independent MONAT Market Partner in the content itself and in the content description tag, must comply with all copyright/legal requirements, and must state that they are solely responsible for the content.
K. Sponsored Links / Pay-Per-Click (PPC) Ads
Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to the sponsoring Market Partner's Replicated Website. The display URL must also be to the sponsoring Market Partner's Replicated Website and must not portray any URL that could lead the user to believe they are being directed to a MONAT Corporate site or be inappropriate or misleading in any way.
L. Social Media
In addition to meeting all other requirements specified in these Policies and Procedures, should a Market Partner utilise any form of social media, including but not limited to Facebook, Twitter, LinkedIn, YouTube, Instagram, or Pinterest, the Market Partner agrees to each of the following:
- No product sales or enrolments may occur on any social media site. To generate sales, a social media site must link only to the Market Partner's MONAT Replicated Website.
- Any social media site that is directly or indirectly operated or controlled by a Market Partner that is used to discuss or promote MONAT's products or the MONAT opportunity may not link to any website, social media site, or site of any other nature, other than the Market Partner's MONAT replicated website.
During the term of this Agreement and for a period of 12 calendar months thereafter, a Market Partner may not use any social media site on which they discuss or promote, or have discussed or promoted, the MONAT business or MONAT's products to solicit, directly or indirectly MONAT Market Partners for another direct selling or network marketing program (collectively, "direct selling"). In furtherance of this provision, a Market Partner shall not take any action that may reasonably be foreseen to result in drawing an inquiry from other Market Partners relating to the Market Partner's other direct selling business activities. Violation of this provision shall constitute a violation of the non-solicitation provision in Section 3.10 below.
A Market Partner may post, "pin" or "tag" photographs of MONAT products on a social media site, but only photos that are provided by MONAT and downloaded from the Market Partner's Back-Office may be used.
If a Market Partner creates a business profile page on any social media site that promotes or relates to MONAT, its products, or opportunity, the business profile page must relate exclusively to the Market Partner's MONAT business and MONAT products. If the Market Partner's MONAT business is cancelled for any reason or if the Market Partner becomes inactive, the Market Partner must deactivate the business profile page.
M. Social Media Monitoring
To ensure adherence to MONAT’s Social Media policy as well as other MONAT policies, MONAT both manually reviews, as well as utilises third party monitoring software to review, Market Partner social media pages including but not limited to, posts, reels, stories (both permanent and temporary) and/or videos. This review is done to ensure that Market Partners are making claims that are truthful, substantiated and approved. MONAT encourages Market Partners to keep record of any content, including but not limited to stories, that are posted on their social media pages. When necessary, MONAT will take appropriate action to ensure Market Partners are posting on social media in a compliant manner.
N. Enticements for Enrolment
MONAT does not condone the use of any publicly shared enticements as a means of encouraging or enticing enrolment in MONAT. Such unacceptable enticements include money, free or reduced product, special training, raffles, giveaways, buy-outs, and other similar forms of enticements. Any publicly shared social media posts, announcements, giveaways, or buy-outs are unacceptable and an attempt to "buy the business" and are not condoned by MONAT or its Field Leaders.
MONAT allows personally negotiated offers (such as offering product samples) between a Market Partner and personal prospects. MONAT also allows earned incentives offered by a Market Partner to a member of that Market Partner's team as a deserved bonus for sales or recognition. This enticement policy applies to both attempted enticement of MONAT Partners and Customers.
O. Giveaways and Promotions
MONAT allows giveaways and promotions when conducted privately with existing team members when based on the sale of MONAT products to end consumers. The Market Partner is responsible for abiding by all laws which vary by state. We strongly recommend that any Market Partner that chooses to run a giveaway or promotion consult with an attorney and the Prize Competition Game Rules in accordance with the Gambling Act (Prize Competition) Game Rules 2004 available on New Zealand Te Tari Taiwhenua Department of Internal Affairs website and Inland Revenue to ensure compliance with laws and tax reporting requirements. The Market Partner must state that the giveaway or contest is not sponsored or endorsed by MONAT.
3.2.3 - TELEPHONE DIRECTORY LISTINGS AND TELEPHONE ANSWERING
Market Partners may list themselves as an "Independent MONAT Market Partner" in the white or yellow pages of the telephone directory, or with online directories, under their own name. No Market Partner may place telephone or online directory display ads using MONAT's name or logo. Market Partners may not answer the telephone by saying "MONAT", "MONAT Incorporated", or in any other manner that would lead the caller to believe that he or she has reached the corporate offices of MONAT. A Market Partner may use the phrase "Independent MONAT Market Partner" in telephone greetings or on an answering machine or voicemail system to clearly separate the Market Partner's independent MONAT business from MONAT.
If a Market Partner wishes to post his or her name in a telephone or online directory, it must be listed in the following format:
Market Partner's Name
Independent MONAT Market Partner.
3.2.4 - TRADEMARKS AND COPYRIGHTS
The name of MONAT and other names as may be adopted by MONAT are proprietary trade names, trademarks, and service marks of MONAT (collectively "marks"). As such, these marks are of great value to MONAT and are supplied to Market Partners for their use only in an expressly authorised manner. MONAT will not allow the use of its trade names, trademarks, designs, or symbols by any person, including MONAT Market Partners, without its prior, written permission. As an independent Market Partner, you may use the MONAT name in the following manner:
Market Partner's Name; and
Independent MONAT Market Partner.
Independent MONAT Market Partner
The content of all Company sponsored events is copyrighted material. Market Partners may not produce for sale or distribution any recorded Company events and speeches without written permission from MONAT; nor may Market Partners reproduce for sale or for personal use any recording of Company-produced audio or videotape presentations.
3.2.5 - MEDIA AND MEDIA INQUIRIES
Market Partners must not attempt to respond to media inquiries regarding MONAT, its products, or their independent MONAT business. All inquiries by any type of media must be immediately referred to the MONAT Home Office. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.
3.2.6. - TELEVISION AND RADIO ADVERTISING
Market Partners must not utilise radio or television media for the advertising, distribution, or promotion of MONAT products or opportunity without the express written consent of MONAT. If MONAT does grant permission for the use of such media, MONAT must have final authority on every stage of the production's process with full rights to all recordings.
3.2.7 - UNSOLICITED EMAIL
MONAT does not permit Market Partners to send unsolicited commercial emails unless such emails strictly comply with applicable laws and regulations including, without limitation, the Unsolicited Electronic Message Act 2007 ("Unsolicited Electronic Message Act"). Any email sent by a Market Partner that promotes MONAT, the MONAT opportunity, or MONAT products must comply with the following:
- a)The recipient must have given the Market Partner permission to send them marketing messages in writing. The Market Partner must keep a record of their consent;
- b)There must be a functioning return email address to the sender;
- c)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 solicitation or correspondence not be sent to him or her (a functioning "opt-out" notice);
- d)The email must include the Market Partner's name and physical mailing address (as well as their New Zealand Business Number, if they have one);
- e)The email must clearly and conspicuously disclose that the message is an advertisement or solicitation;
- f)The use of deceptive subject lines and/or false header information is prohibited; and
- g)All opt-out requests, whether received by email or regular mail, must be honored within five working days of receipt. If a Market Partner receives an opt-out request from a recipient of an email, the Market Partner must forward a copy of the opt-out request to the Company.
MONAT may periodically send commercial emails on behalf of Market Partners. By entering into the Market Partner Agreement, Market Partner agrees that the Company may send such emails and that the Market Partner's physical and email addresses will be included in such emails as outlined above. Market Partners shall honour opt-out requests generated because of such emails sent by the Company.
The Unsolicited Electronic Message Act prohibits:
- a)the use or supply of a list that has been created with address-harvesting software; and
- b)the use or supply of address-harvesting software.
3.2.8 - UNSOLICITED FAXES
Except as provided in this section, Market Partners may not use or transmit unsolicited faxes or use an automatic telephone dialing system in connection with the operation of their independent MONAT businesses. The term "unsolicited faxes" means the transmission via fax of any material or information advertising or promoting MONAT, its products, the Compensation Plan or any other aspect of the Company, which is transmitted to any person by fax, except to any person who has agreed expressly to receive marketing faxes or where this consent can be reasonably inferred from the person's conduct or business or other relationships. The term "automatic telephone dialing system" means equipment that 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.
If a person indicates that they no longer wish to receive marketing fax, their consent ends immediately.
Unsolicited faxes must not be sent to any number which has been entered on the Do Not Call Register unless the Market Partner sending the fax had the recipient's consent, the Market Partner had checked the Do Not Call Register in the previous 30 days and the number was not on the Register and/or the fax was sent by mistake after the Market Partner took reasonable precautions and exercised due diligence not to send a fax to a number on the Do Not Call Register.
3.3 - BONUS BUYING PROHIBITED
Bonus buying is strictly prohibited. "Bonus buying" includes:
- a)the enrolment of individuals or entities without the knowledge or execution of an Independent Market Partner Application and Agreement by such individuals or entities;
- b)the fraudulent enrolment of an individual or entity as a Market Partner;
- c)"stacking" which is the specific placement of an individual VIP Customer or Market Partner under a person within one's downline, other than the person who introduced them to MONAT, in order to qualify yourself or others for rank advancements, incentives, prizes, commissions or bonuses;
- d)the enrolment or attempted enrolment of nonexistent individuals or entities as Market Partners;
- e)purchasing MONAT products on behalf of another Market Partner or under another Market Partner's I.D. number, to qualify for commissions or bonuses;
- f)purchasing excessive amounts of MONAT products that cannot reasonably be used or resold in a month; and
- g)any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that are not driven by bona fide product purchases by end consumers.
In addition, Market Partners certify with each new product order that they have sold or consumed a minimum of 70% of all products purchased in prior orders. MONAT reserves the right to verify the resale of product inventory and inspect documentation of Customer sales. MONAT Market Partners are not required to carry an inventory of products or sales aids.
3.4 - BUSINESS ENTITIES
A corporation, limited liability company (Pty Ltd), partnership or trust (collectively referred to in this section as a "Business Entity") may apply to be a MONAT Market Partner by submitting a properly completed Market Partner Application and Agreement and a properly completed Business Entity Registration Form. If a Market Partner enrols online, the Entity Documents and Business Entity Registration Form must be submitted to MONAT within 30 days of the online enrolment. (If not received within the 30-day period, the Market Partner Agreement shall automatically terminate.) The Business Entity Registration Form must be signed by all of the shareholders, members, partners, or trustees. The Business Entity and its shareholders, members, managers, partners, trustees, or other parties with any ownership interest in, or management responsibilities for, the Business Entity (collectively "Affiliated Parties") are individually, jointly, and severally liable for any indebtedness to MONAT, compliance with the MONAT Policies and Procedures, compliance with the Market Partner Agreement, and all other obligations to MONAT hereunder.
To prevent the circumvention of Section 3.28 (which prohibits the sale, transfer, or assignment of a MONAT business), additional partners, shareholders, members, or other Affiliated Parties may be added to a Business Entity only upon the written approval of the Company (which will not be unreasonably withheld or delayed). If a partner, shareholder, member, or other Affiliated Party is added without the Company's approval, the Market Partner Agreement may be cancelled at the Company's discretion. There is a $85.00 fee (GST inclusive) for each change requested, which must be included with the written request and completed Market Partner Application and Agreement. MONAT may, at its discretion, require certified documents before implementing any changes to a MONAT business. Please allow thirty (30) days after the receipt of the request by MONAT for processing. Note that the changes permitted within the scope of this section do not include a change of sponsorship. Changes of sponsorship are addressed at Section 3.5 below.
3.4.1 - CHANGES TO A BUSINESS ENTITY
A Market Partner may change his, her or status under the same Sponsor from an individual to a Business Entity or from one type of Business Entity to another. There is $85.00 fee (GST inclusive) for each change requested, which must be included with the written request and the completed Market Partner Application and Agreement. Such changes shall be processed only once per year and must be submitted by December 1 to become effective on January 1 of the following year. In addition, Market Partners operating their MONAT businesses utilising a Business Entity must notify MONAT promptly of the addition or removal of any officers, directors, shareholders, managers, members, or other Affiliated Parties of the Business Entity.
3.5 - CHANGE OF SPONSOR
To protect the integrity of all Market Partner organisations and safeguard the hard work of all Market Partners, MONAT strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical to the success of every Market Partner and to MONAT. Therefore, the transfer of a MONAT Market Partner from one sponsor to another is not permitted except when a mistake is made in choosing the correct Sponsor while completing the MONAT online enrolment.
Errors must be reported during the initial thirty (30) day period immediately following the date that a Market Partner or VIP Customer first joins MONAT. Sponsor corrections are not permitted after such initial thirty (30) day period. To request a Sponsor correction, a Market Partner or VIP Customer must contact Customer Service to initiate the request process. All Sponsor correction requests are subject to approval not only by the Company but also by the current Sponsor and new Sponsor.
*In certain circumstances, Monat may use its discretion to assign a Sponsor that may be in the best interest of the MONAT business, or the business of the Market Partners involved.
3.5.1 - CANCELLATION AND RE-APPLICATION
A Market Partner may legitimately change organisations by voluntarily cancelling his or her MONAT business and remaining inactive (i.e., no purchases of MONAT products for resale, no sales of MONAT products, no sponsoring, no attendance at any MONAT functions, and no participation in any other form of Market Partner activity, or operation of any other MONAT business) for six (6) months. Following the six-month period of inactivity, the former Market Partner may reapply under a new Sponsor, however, the former Market Partner's Marketing Organisation will remain in the original line of sponsorship. MONAT will consider waiving the six-month waiting period under exceptional circumstances. Such requests for waiver must be submitted to MONAT in writing.
3.5.2 - NON-CIRCUMVENTION; WAIVER OF CLAIMS
In the event, a Market Partner circumvents the above policies regarding change of Sponsor and changes to a Business Entity, and another downline organisation has been developed in the second business developed by a Market Partner, MONAT reserves the sole and exclusive right (where acting reasonably) to determine the final disposition of the downline organization. Resolving conflicts over the proper placement of a downline that has developed under a Market Partner that has improperly switched sponsors is often extremely difficult. Therefore, Market Partners waive any and all claims against MONAT, its officers, directors, owners, employees, and agents that relate to or arise from MONAT's decision regarding the disposition of any downline organization that develops below a Market Partner that has improperly changed lines of sponsorship.
3.6 - UNAUTHORISED CLAIMS AND ACTIONS
3.6.1 - INDEMNIFICATION
A Market Partner is fully responsible for all of his or her verbal and written statements made regarding MONAT products and the Compensation Plan that are not expressly contained in official MONAT materials. This includes statements and representations made through all sources of communication media, whether person-to-person, in meetings, online, through social media, in print, or any other means of communication.
Market Partners agree to indemnify MONAT and its directors, officers, employees, and agents, and hold them harmless from any and all liability including judgments, civil penalties, refunds, reasonable attorney fees, court costs, or lost business incurred by MONAT as a result of the Market Partner's unauthorised representations or actions. This provision shall survive the termination of the Market Partner Agreement.
3.6.2 - PRODUCT CLAIMS
No claims (which include personal testimonials) as to therapeutic, curative or beneficial properties of products offered by MONAT may be made except those contained in official MONAT literature. In particular, Market Partners may make no claims that MONAT products are useful in the cure, treatment, diagnosis, mitigation, or prevention of any diseases. Such statements can be perceived as medical or drug claims, and they may lack adequate substantiation. Not only are such claims in violation of the Market Partner Agreement, but they also violate the laws and regulations of New Zealand, Australia, the United States, Canada, and other countries.
3.6.2. A - PRODUCT COMPARISONS
MONAT strongly encourages all Market Partners to promote the benefits of MONAT's revolutionary products and its cutting-edge Market Opportunity. Market Partners may not make product comparisons against the products of other companies, except as specifically set forth in official MONAT marketing materials. Any other product comparisons made by a Market Partner are prohibited and are a violation of these Policies and Procedures and may result in potential legal claims for trademark infringement and defamation against the Market Partner making such comparisons, as well claims against MONAT, such as injurious falsehood.
3.6.3 - INCOME CLAIMS
MONAT strongly encourages all Market Partners to promote the benefits of MONAT's revolutionary products and its cutting-edge Market Opportunity. Market Partners may not make product comparisons against the products of other companies, except as specifically set forth in official MONAT marketing materials. Any other product comparisons made by a Market Partner are prohibited and are a violation of these Policies and Procedures and may result in potential legal claims for trademark infringement and defamation against the Market Partner making such comparisons, as well claims against MONAT, such as injurious falsehood.
Moreover, the New Zealand Fair Trading Act prohibits the making of misleading, deceptive, or false representations concerning income claims and testimonials. While Market Partners may believe it beneficial to provide copies of their payment records, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact MONAT, as well as the Market Partner making the claim unless appropriate disclosures are required by law, are also made contemporaneously with the income claims or earnings representation. Because MONAT Market Partners do not have the data necessary to comply with the legal requirements for making income claims, a Market Partner, when presenting or discussing the MONAT opportunity or Compensation Plan to a prospective Market Partner, may not make income projections, income claims, or disclose his or her MONAT income (including the showing of their MONAT Payment Card records, back-office records, bank statements, or tax records).
MONAT is a member of the Direct Selling Association and Market Partners agree to abide by the Code of Practice (https://directselling.org.nz/dsacodeofpractice/).
Therefore, Market Partners' earnings representations and sales figures must be truthful, accurate, and are based on documented and substantiated facts in the local market. Market Partners are also required to explain that actual earnings and sales vary from person to person depending on factors including personal skill and the time and effort dedicated to business building activities. Market Partners must not engage in any misleading, deceptive, or unfair conduct or not make false representations or exaggerated claims.
3.6.4 - COMPENSATION PLAN CLAIMS
When presenting or discussing the MONAT Compensation Plan, Market Partners must make it clear to prospective Market Partners that financial success with MONAT requires commitment, effort, and sales skill. Conversely, Market Partners must never represent that one can be successful without diligently applying themselves. Examples of misrepresentations in this area include:
- It's a turnkey system;
- The system will do the work for you;
- Just get in and your downline will build through spillover;
- Just join and I will build your downline for you;
- The company does all the work for you;
- You don't have to sell anything; or
- All you have to do is buy your products every month.
The above are just examples of improper representations about the Compensation Plan. It is important that Market Partners do not make these or any other representations that could lead a prospective Market Partner to believe that he or she can be successful as a MONAT Market Partner without commitment, effort, and sales skills.
3.7 - REPACKAGING AND RE-LABELING PROHIBITED
MONAT products may only be sold in their original packaging. Market Partners may not repackage, re-label, or alter the labels on MONAT products. Tampering with labels/packaging could be a violation of state laws and may result in civil or criminal liability. Market Partners may affix a personalised sticker with the Market Partner's personal/contact information to each product or product container, as long as this is done without removing existing labels or covering any text, graphics, or other material on the product label.
3.8 - COMMERCIAL OUTLETS
Market Partners may sell MONAT products from a commercial outlet and may display or sell MONAT products or literature in a retail or service establishment but only as outlined below.
Market Partners may sell MONAT products from service establishments that are open to the public on an appointment basis and the MONAT products (or literature) are not displayed in locations that are accessible to the public. (i.e., The individual stall or reception area is acceptable however the window area of a salon is not acceptable).
Online auction and/or sales facilitation websites, including but not limited to eBay, Gumtree and Craig's List constitute Commercial Outlets, and may not be used to sell MONAT products.
3.9 - TRADE SHOWS, EXPOSITIONS, AND OTHER SALES FORUMS
Market Partners may display and/or sell MONAT products at trade shows and professional expositions. Before submitting a deposit to the event promoter, Market Partners must contact the MONAT Home Office and obtain permission in writing for conditional approval, as MONAT's policy is to authorise only one MONAT business per event. Final approval will be granted to the first Market Partner who submits an official advertisement of the event, a copy of the contract signed by both the Market Partner and the event official, and a receipt indicating that a deposit for the booth has been paid. Approval is given only for the event specified. Any request to participate in future events must again be submitted to the Market Partner Support Department. MONAT further reserves the right to refuse authorisation to participate in any function that it does not deem a suitable forum for the promotion of its products or the MONAT opportunity. Approval will not be given for swap meets, garage sales, flea markets or farmer's markets as these events are not conducive to the professional image MONAT wishes to portray.
3.10 - CONFLICTS OF INTEREST
3.10.1 - NON-SOLICITATION
MONAT Market Partners are free to participate in other direct selling ventures or marketing opportunities including party plan, network marketing, and multilevel marketing, as long as the Market Partner keeps their organisations and downlines separate. During the period that a MONAT Market Partner operates an independent MONAT business and continues to receive commission or bonus payments from MONAT in connection with that independent MONAT business (the "Term of the Agreement") Market Partners may not directly or indirectly, recruit any other MONAT Market Partner or VIP Customer for any other direct selling business.
In consideration of the benefits that MONAT provides to all Market Partners, including without limitation, websites, marketing assistance and training, commission payments, and other incentives, and for the added benefits provided to higher ranking Market Partners, for a period of (i) six (6) months for all Market Partners below the rank of Market Mentor; and (ii) twelve (12) months for all Market Partners ranked Market Mentor and above, following the Term of the Agreement, Market Partners may not recruit, directly or indirectly, any MONAT Market Partners or VIP Customers for any other direct selling, multi-level, network marketing, or relationship marketing company.
The term "recruit" means the actual or attempted sponsorship, solicitation, enrolment, encouragement, or any effort to influence in any other way, either directly or indirectly (i.e., through a third party), another MONAT Market Partner or VIP Customer to enrol or participate in another multilevel marketing, network marketing, relationship marketing or direct sales opportunity.
Market Partners and the Company recognise that because network marketing is conducted through networks of independent contractors dispersed across New Zealand 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, Market Partners and MONAT agree that the non-solicitation provision set forth in this Section 3.10.1 shall apply nationwide and to all international markets in which MONAT Market Partners are located.
The provisions of this Section 3.10.1 shall survive the Term of the Agreement, and the termination of a Market Partner's association with MONAT, for a period of (i) six (6) months for all Market Partners below the level of Market Mentor; or (ii) twelve (12) months for all Market Partners at a level of Market Mentor or above.
3.10.2 - SALE OF COMPETING GOODS
Market Partners must not sell, or attempt to sell, any competing non-MONAT products to other Market Partners or VIP Customers. Any product in the same generic categories as MONAT products is deemed to be competing (e.g., any hair or beauty product similar to MONAT, and is, therefore, a competing product, regardless of differences in cost, quality, ingredients, or other distinguishing factors).
3.10.3 - MARKET PARTNER PARTICIPATION IN OTHER DIRECT SELLING PROGRAMS
Market Partner Holding Rank Below Market Mentor:
MONAT Market Partners below rank of Market Mentor are free to participate in other direct selling ventures or marketing opportunities, multilevel marketing, network marketing, or relationship marketing opportunities, as long as they keep their organizations and downlines separate.
If a Market Partner below rank of Market Mentor or a member of their immediate household, is engaged in a direct selling venture or marketing opportunity, multilevel marketing, network marketing, relationship marketing, or any business that sells competing products, it is the responsibility of the Market Partner to ensure that the MONAT business is operated entirely separate and apart from any other program in which the Market Partner participates. To this end, Market Partners shall:
- a)Not display MONAT promotional materials, sales aids, or products with or in the same location as any non-MONAT promotional materials, sales aids, products, or services.
- b)Not offer the MONAT opportunity or products to prospective or existing VIP Customers or Market Partners in conjunction with any non-MONAT program, opportunity, product, or service.
- c)Not offer any non-MONAT opportunity, products, services, or opportunity at any MONAT- related meeting, seminar, convention, webinar, teleconference, or other function.
- d)Not target or share non-MONAT opportunities or products with MONAT Market Partners or VIP Customers via current or new Facebook pages or any social media outlets.
- e)Not transfer their business or use other names or ID numbers (including that of a spouse, relative, household member, business, or other legal entity such as a corporation or trust), to evade or circumvent the above policies.
- f)Not display or bundle MONAT products or services in sales literature, on a website, on social media, or in sales meetings, with any other products or services.
Market Partner Holding Rank of Market Mentor and Above:
Market Partners who achieve Market Mentor, Managing Market Mentor, Associate Executive Director, Executive Director, Senior Executive Director, and Founders are looked to by the sales field for guidance and MONAT holds them to the highest standards. Reaching the rank of Market Mentor and above is very distinguished and provides the Market Partners access to additional MONAT confidential and trade secret information, support, and compensation. Therefore, all such individuals are prohibited from participating in any other direct selling ventures or marketing opportunities, multilevel marketing, network marketing, or relationship marketing opportunities.
During the period that a MONAT Market Partner operates an independent MONAT business and continues to receive commission or bonus payments from MONAT in connection with that independent MONAT business (the "Term of the Agreement") Market Partners may not directly or indirectly, recruit any other MONAT Market Partner, employee or Customer for any other direct selling business.
A violation of any of the provisions in this Section 3.10.3 shall constitute unreasonable and unwarranted contractual interference between MONAT and its Market Partners and would cause irreparable harm on MONAT. In such event, MONAT may, at its sole discretion, take steps to enforce the Agreement against such Market Partner or such Market Partner's independent distributorship or seek immediate injunctive relief. Such steps may include, without limitation, suspension of commissions and bonuses, restriction from MONAT events, and recognition or termination of a Market Partner's MONAT independent distributorship.
3.10.4 - MARKET PARTNER ACTIVITY (GENEALOGY) REPORTS-CONFIDENTIAL INFORMATION
"Confidential Information" includes, but is not limited to, Market Partner Activity Reports, the identities of MONAT VIP Customers and Market Partners, the contact information of MONAT VIP Customer and Market Partners, and Market Partners' sales volume information. Confidential Information is or may be available for Market Partner access and viewing at the Back Office of each Market Partner's replicated MONAT website. Market Partner access to such Confidential Information is password protected. All Market Partner Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to MONAT.
Market Partner Activity Reports are provided to Market Partners in the strictest confidence and are made available to Market Partners for the sole purpose of assisting Market Partners in working with their respective Marketing Organisations in the development of their MONAT businesses. Market Partners may not use any Confidential Information for any purpose other than for developing their independent MONAT businesses. Where a Market Partner participates in other direct selling or multilevel marketing ventures, the Market Partner is not eligible to have access to certain Confidential Information, including, but not limited to, Downline Genealogy Reports.
Market Partners should use the Confidential Information to assist, motivate, and train their downline Market Partners, and for no other purpose. In so doing, a Market Partner may not disclose the Confidential Information to any third party, including, without limitation, his or her downline Market Partners. The Market Partner and MONAT agree that, but for this agreement of confidentiality and nondisclosure, MONAT would not provide Confidential Information (including Market Partner Activity Reports) to the Market Partner.
To protect the Confidential Information, a Market Partner shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation, or other entity:
- a)Directly or indirectly use or disclose any Confidential Information to any third party;
- b)Directly or indirectly disclose, to any individual, partnership, association, corporation, or other entity, the password or other access code to his or her Back Office;
- c)Use any Confidential Information to compete with MONAT or for any purpose other than promoting or supporting his or her MONAT business; or
- d)Recruit or solicit any MONAT Market Partner or VIP Customer listed on any Market Partner Activity Report or any other report in the Market Partner's Back Office, or in any manner attempt to influence or induce any such Market Partner or VIP Customer to alter his or her business relationship with MONAT.
The obligation of a Market Partner to not disclose any Confidential Information shall survive cancellation or termination of the Agreement and shall remain effective and binding irrespective of whether a Market Partner's Agreement has been terminated, or whether the Market Partner is or is not otherwise affiliated with the Company.
Upon demand by the Company, any current or former Market Partner will return the original and all copies of Market Partner Activity Reports to the Company.
3.11 - TARGETING OTHER DIRECT SELLERS
MONAT does not condone Market Partners specifically or consciously targeting the sales force of another direct sales company to sell MONAT products or to become Market Partners for MONAT nor does MONAT condone Market Partners' 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 Market Partners 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 Market Partner alleging that he or she engaged in an inappropriate recruiting activity of its sales force or customers, MONAT will not pay any of the Market Partner's defense costs or legal fees, nor will MONAT indemnify the Market Partner for any judgment, award, or settlement.
3.12 - CROSS-SPONSORING
Actual or attempted cross-sponsoring is strictly prohibited. "Cross-Sponsoring" is defined as the enrolment of an individual or entity that already has a current Market Partner Agreement on file with MONAT or who has had such an agreement within the preceding six calendar months, within a different line of sponsorship. 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 strawman or other artifice to circumvent this policy is prohibited. Market Partners shall not demean, discredit or defame other MONAT Market Partners in an attempt to entice another Market Partner to become part the first Market Partner's Marketing Organisation.
If Cross-Sponsoring is discovered, it must be brought to the Company's attention immediately. MONAT may take action against the Market Partner that changed organisations and/ or those Market Partners who encouraged or participated in the Cross-Sponsoring. MONAT may also move all or part of the offending Market Partner's Marketing Organisation to his or her original marketing Organisation if the Company deems it equitable and feasible to do so. However, MONAT is under no obligation to move the Cross-Sponsored Market Partner's Marketing Organisation, and the ultimate disposition of the organisation remains within the sole discretion of MONAT. Market Partners waive all claims and causes of action against MONAT arising from or relating to the disposition of the Cross-Sponsored Market Partner's Marketing Organisation.
3.13 - ERRORS OR QUESTIONS
If a Market Partner has questions about or believes any errors have been made regarding commissions, bonuses, Market Partner Activity Reports, or charges, the Market Partner must notify MONAT in writing within 30 days of the date of the purported error or incident in question. MONAT will not be responsible for any errors, omissions, or problems not reported to the Company within 30 days, except where required by law.
3.14 - GOVERNMENTAL APPROVAL OR ENDORSEMENT
Neither state regulatory agencies or officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Market Partners shall not represent or imply that MONAT or its Compensation Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency.
3.15 - HOLDING APPLICATIONS OR ORDERS
Market Partners must not manipulate enrolments of new applicants and purchases of products. All Market Partner Applications and Agreements must be sent to MONAT within 72 hours from the time they are signed by an Applicant. Likewise, all product orders must be submitted to MONAT within 72 hours from the time that they are placed by Customers.
3.16 - IDENTIFICATION
Upon enrolment, the Company will provide a unique Market Partner Identification Number to the Market Partner by which he or she will be identified. This number will be used to place orders, and track commissions and bonuses. Market Partners may be required to supply identification documents to verify their account information.
3.17 - INCOME TAXES AND GST
Each Market Partner is responsible for paying income tax and GST on any income generated and benefits received as an Independent Market Partner. However, where required by law, MONAT will withhold income tax at the highest rate from payments to the Market Partner and remit it to the New Zealand Inland Revenue Office if the Market Partner has not provided a New Zealand Business Number (NZBN) to MONAT. MONAT will provide earnings statements as required by law.
MONAT cannot provide Market Partners with any personal tax advice. Market Partners should consult with their own tax accountant, tax attorney, or other tax professional.
3.18 - INDEPENDENT CONTRACTOR STATUS
Market Partners are independent contractors and are not purchasers of a franchise or a business opportunity. The agreement between MONAT and its Market Partners does not create an employer/ employee relationship, agency, franchise, partnership, or joint venture between the Company and the Market Partner. A Market Partner shall not be treated as an employee for his or her services or for any purpose. All Market Partners are responsible for paying income taxes due from all compensation earned as a Market Partner of the Company and MONAT will not withhold PAYG instalments from payments to Market Partners unless required by law. The Market Partner has no authority (expressed or implied), to bind the Company to any obligation. Each Market Partner shall establish his or her own goals, hours, and methods of sale, so long as he or she complied with the terms of the Market Partner Agreement (including these Policies and Procedures), and applicable laws.
3.19 - INSURANCE
A Market Partner may wish to arrange insurance coverage for his or her business. Homeowner's insurance policies typically do not cover business-related injuries or the theft of or damage to inventory or business equipment. Market Partners are advised to contact their insurance agents to make certain that their business property is protected.
3.20 - INTERNATIONAL MARKETING
Because of the critical legal and tax considerations, MONAT must limit the resale of MONAT products and the presentation of the MONAT business to prospective VIP Customers and Market Partners located within New Zealand, Australia, the United States and U.S. Territories and those other countries that the Company has announced are officially opened by business. Moreover, allowing a few Market Partners to conduct business in markets not yet opened by MONAT would violate the concept of affording every Market Partner the equal opportunity to expand internationally.
Accordingly, Market Partners are authorised to sell MONAT products, and enrol VIP Customers and Market Partners only in the countries in which MONAT is authorised to conduct business, as announced in official Company literature. MONAT products or sales aids cannot be shipped into or sold in any foreign country. Market Partners may sell, give, transfer, or distribute MONAT products or sales aids only in their home country. In addition, no Market Partner may, in any unauthorised country; (a) conduct sales, enrolment or training meetings; (b) enrol or attempt to enrol potential Market Partners; or (c) conduct any other activity for the purpose of selling MONAT products, establishing a Marketing Organisation, or promoting the MONAT opportunity.
3.21 - INVENTORY LOADING
Market Partners must never purchase more products than they can reasonably use or sell to Customers in a month and must not influence or attempt to influence any other Market Partner to buy more products than they can reasonably use or sell to Customers in a month.
3.22 - ADHERENCE TO LAWS AND REGULATIONS
Market Partners shall comply with all state and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases, these local laws are not applicable to Market Partners because of the nature of their business. However, Market Partners must obey those laws that do apply to them. If a city or county official tells a Market Partner that local law applies to him or her, the Market Partner shall be polite and cooperative, and immediately send a copy of the local law to the Compliance Department.
3.23 - MINORS
A person who is recognised as a minor in his/her state of residence may not be a MONAT Market Partner. Market Partners shall not enrol or recruit minors into the MONAT program.
3.24 - ONE MONAT BUSINESS PER MARKET PARTNER AND PER HOUSEHOLD
A Market Partner may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one MONAT business. No individual may have, operate, or receive compensation from more than one MONAT business. Individuals of the same household may not enter or have an interest in more than one MONAT Business. A "Household" is defined as all individuals who are living at or doing business at the same address, and who are related by blood, marriage, domestic partnership, or adoption, or who are living together as a family unit or in a family-like setting.
To maintain the integrity of the MONAT Compensation Plan, husbands and wives, domestic partnerships, or common-law couples (collectively referred to herein as "spouses") who wish to become MONAT Market Partners must be jointly sponsored as one MONAT business. Spouses, regardless of whether one or both are signatories to the Market Partner Application and Agreement, may not own or operate any other MONAT business, either individually or jointly, nor may they participate directly or indirectly (as a shareholder, partner, trustee, trust beneficiary, or have any other legal or equitable ownership) in the ownership or management of another MONAT business in any form.
An exception to the one business per Market Partner/Household rule will be considered on a case-by-case basis if two Market Partners get married or move in together, or in cases of a Market Partner receiving an interest in another business through inheritance. Requests for exceptions to policy must be submitted in writing to the Compliance Department.
3.25 - ACTIONS OF HOUSEHOLD MEMBERS OR AFFILIATED INDIVIDUALS
If any member of a Market Partner's immediate household engages in any activity which, if performed by the Market Partner, would violate any provision of the Agreement, such activity will be deemed a violation by the Market Partner and MONAT may take action pursuant to these Policies and Procedures against the Market Partner. Similarly, if any individual associated in any way with a Business Entity (collectively "affiliated individual") violates the Agreement, such action (s) will be deemed a violation by the entity, and MONAT may take action against the Business Entity.
3.26 - REQUEST FOR RECORDS
Records are available online at no additional charge in the Market Partner's back-office account. Any request from a Market Partner for copies of invoices, applications, Market Partner Activity Reports, or other records may incur a fee of NZD $3.00 per page, per copy. This fee covers the expense of mailing and time required to research files and make copies of the records.
3.27 - ROLL-UP OF MARKETING ORGANISATION
When a vacancy occurs in a Marketing Organisation due to the termination of an independent MONAT business, the Marketing Organisation may be rolled up as provided in this Section 3.27.
3.27.1 - ROLL-UP
When a vacancy occurs in a Marketing Organisation due to the termination of a MONAT Market Partner's Agreement, each Market Partner in the first level immediately below the terminated Market Partner on the date of the cancelation will be moved to the first level ("front line") of the terminated Market Partner's Sponsor. For example, if A sponsors B, and B sponsors C1, C2, and C3, if B terminates her business, C1, C2, and C3 will "roll up" to A and become part of A's first level.
* In certain circumstances, Monat may use its discretion to assign a Sponsor who is different than the Sponsor that would be assigned through a front-line roll-up.
3.28 - SALE, TRANSFER, OR ASSIGNMENT OF A MONAT BUSINESS
Although a MONAT business is a privately owned and independently operated business, the sale, transfer, or assignment of a MONAT business, and the sale, transfer, or assignment of an interest in a business entity that owns or operates a MONAT business, is subject to certain limitations. If a Market Partner wishes to sell his or her independent MONAT business, or interest in a business entity that owns or operates a MONAT business, the following criteria must be met:
- a)The selling Market Partner must offer MONAT, in writing, the right of first refusal to purchase the business on the same terms as agreed upon with a third-party buyer. MONAT shall have fifteen (15) days from the date of receipt of the written offer to exercise its right of first refusal.
- b)The buyer or transferee must become a qualified MONAT Market Partner. The buyer or transferee must accept the MONAT Market Partner Agreement, the MONAT Policies and Procedures, and the Compensation Plan. If the buyer is an active MONAT Market Partner, he or she must first terminate his or her MONAT business and wait six (6) calendar months before acquiring any interest in a different MONAT business.
- c)Before the sale, transfer, or assignment can be finalised and approved by MONAT, any debt obligations the selling party has with MONAT must be satisfied.
- d)The selling party must be in good standing and not in violation of any of the terms of the Agreement, or the Policies and Procedures, to be eligible to sell, transfer or assign a MONAT business.
- e)The buyer or transferee must pay a $260 (GST inclusive) MONAT account transfer fee.
- f)If the seller has a MONAT account with a "Founder" title, the Founder title and any bonuses or Founder pool payments connected with the Founder title will not be transferred to the buyer or transferee.
Prior to selling an independent MONAT business or Business Entity interest, the selling Market Partner must notify MONAT's Compliance Department in writing and advise of his or her intent to sell his or her MONAT business or business entity interest. The selling Market Partner must also receive written approval from the Compliance Department (which will not be unreasonably withheld or delayed) before proceeding with the sale. No changes in line of sponsorship can result from the sale or transfer of an independent MONAT business.
3.29 - SEPARATION OF A MONAT BUSINESS
MONAT Market Partners may sometimes operate their MONAT businesses as husband-wife partnerships, common-law partnerships, regular partnerships, corporations, trusts, or other Business Entities. When a marriage may end in divorce, a common or civil partnership may end or a corporation, partnership, trust, or other Business Entity may dissolve/wind-up, 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. During the divorce or entity dissolution/winding-up process, the parties must adopt one of the following methods of operation:
- a)One of the parties may, with the consent of the other(s), operate the MONAT business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partner(s), or trustees authorise MONAT to deal directly and solely with the other spouse or non-relinquishing shareholder(s), or trustee; or
- b)The parties may continue to operate the MONAT business jointly on a "business-as- usual" basis, in which case all compensation paid by MONAT will be paid according to the status quo as it existed prior to the divorce filing or dissolution/winding-up proceedings. This is the default procedure if the parties do not agree on the format set forth above.
Under no circumstances will the Marketing Organisation of divorcing spouses, separating partners or a dissolving/winding-up business entity be divided. Similarly, under no circumstances will MONAT split commission and bonus payments between divorcing spouses, separating partners, or members of dissolving/winding-up entities. MONAT will recognise only one Marketing Organisation and will issue only one commission payment per MONAT business per commission cycle. Commission payments shall always be issued to the same individual or entity. In the event that parties to a divorce, separation, or dissolution/winding-up 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 (where acting reasonably), the Market Partner Agreement shall be involuntarily cancelled.
If a former spouse or common law or civil law partner has completely relinquished all rights in the original independent MONAT business pursuant to a divorce or separation, he or she is thereafter free to enrol under any Sponsor of his or her choosing without waiting six calendar months. In the case of business entity dissolutions or windings-up, the former partner, shareholder, member, or other entity affiliate who retains no interest in the business must wait six calendar months from the date of the final dissolution/winding-up before re-enrolling as a Market Partner. In either case, however, the former spouse or business affiliate shall have no rights to any Market Partners in their former organisation or to any former Retail or VIP Customer. They must develop the new business in the same manner as would any other new Market Partner.
3.30 - SPONSORING
All active Market Partners in good standing have the right to sponsor and enrol others into MONAT. Each prospective Market Partner has the ultimate right to choose his or her own Sponsor. If two Market Partners claim to be the Sponsor of the same new Market Partner, the Company shall regard the first application received by the Company as controlling.
When sponsoring a new Market Partner through the online enrolment process, the Sponsor may assist the new applicant in filling out the enrolment materials. However, the applicant must personally review and agree to the online application and agreement, MONAT's Policies and Procedures, and the MONAT Compensation Plan. The Sponsor may not fill out the online application and agreement on behalf of the applicant and agree to these materials on behalf of the applicant.
3.31 - SUCCESSION
Upon the death or incapacitation of a Market Partner, 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, including but not limited to, letters of administration, indemnity from next-of-kin, or Grant of Probate. Accordingly, a Market Partner should consult a legal practitioner to assist him or her in the preparation of a will or other testamentary instrument. Whenever a MONAT business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Market Partner's Marketing Organisation provided the following qualifications are met. The successor(s) must:
- a)Complete and execute a Market Partner Agreement;
- b)Comply with terms and provisions of the Agreement; and
- c)Meet all of the qualifications for the deceased Market Partner's status.
The bonuses and commissions of a MONAT business transferred pursuant to this section will be paid jointly to the devisees. The devisees must provide MONAT with an "address of record." If the business is bequeathed to joint devisees, they must form a Business Entity and acquire a New Zealand Business Number (NZBN). MONAT will issue all bonus and commission payments to one business entity only.
3.32 - TRANSFER UPON DEATH OF A MARKET PARTNER
To effectuate a testamentary transfer of an independent MONAT business, the Executor of the estate of the deceased Market Partner must provide all necessary documentation to establish a successor's or successors' right to the subject MONAT business: a certified copy of the death certificate, letters of administration or Grant of Probate and written instructions from the Executor to the Company specifying to whom the MONAT business and income should be transferred. The successor or successors must complete and execute a Market Partner Agreement and meet the other requirements set forth in Section 3.31.
3.33 - TRANSFER UPON INCAPACITATION OF A MARKET PARTNER
To effectuate a transfer of a MONAT business because of incapacity, the representative of the incapacitated Market Partner must provide all necessary documentation to establish the right of the representative to the subject MONAT business: a certified copy of an appointment of an enduring guardian and a certified copy of the document (such as Enduring Power of Attorney) establishing the representative's right to administer the independent MONAT business. The representative must complete and execute a Market Partner Agreement and meet the other requirements set forth in Section 3.31.
3.34 - TELEMARKETING TECHNIQUES
The Commerce Commission New Zealand ("CCNZ") regulates the appropriate industry codes of practice that restrict telemarketing practices and door-to-door selling. The New Zealand Marketing Association runs the "do not call" and "do not mail" services as part of the uninvited direct sales laws under the Fair Trading Act. Although MONAT does not consider Market Partners to be "telemarketers" in the traditional sense of the word, these laws broadly define the term "telemarketer" and "telemarketing" so that your inadvertent action of calling someone whose telephone number is listed on the "do not call" register or your inadvertent action of mailing someone whose information is listed on the "do not mail" register could cause you to violate the law. Moreover, these laws must not be taken lightly, as they carry significant penalties.
Therefore, Market Partners must not engage in telemarketing in the operation of their MONAT businesses. The term "telemarketing" means the placing of one or more telephone calls to an individual or entity to induce the purchase of a MONAT product or to recruit them for the MONAT opportunity. "Cold calls" made to prospective Customers or Market Partners that promote either MONAT's products or the MONAT opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective Customer or Market Partner (a "prospect") is permissible under the following situations:
- a)If the Market Partner has an established business relationship with the prospect so that the Market Partner has the implied consent of the prospect to receive a telemarketing call. An "established business relationship" is a relationship between a Market Partner and a prospect based on the prospect's purchase, rental, or lease of goods or services from the Market Partner, or a financial transaction between the prospect and the Market Partner.
- b)The prospect's personal inquiry or application regarding a product or service offered by the Market Partner, within the three (3) months immediately preceding the date of such a call.
- c)If the Market Partner receives written and signed permission from the prospect authorising the Market Partner to call. The authorisation must specify the telephone number(s) which the Market Partner is authorised to call.
- d)If the Market Partner has been referred to call an individual who has expressed an interest in the MONAT Business Opportunity or MONAT Products.
- e)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.
In addition, Market Partners shall not use automatic telephone dialing systems or software relative to the operation of their MONAT businesses. Market Partners shall not place or initiate any outbound telephone call to any person that delivers any pre-recorded message (a "robocall") regarding or relating to the MONAT products or opportunity.
3.35 - BACK OFFICE ACCESS
MONAT makes online Back Offices available to its Market Partners. Back Offices provide Market Partners access to confidential and proprietary information that may be used solely and exclusively to promote the development of a Market Partner's MONAT business and to increase sales of MONAT products. Access to the Back Office is password protected. Market Partners may not under any circumstance provide their Back Office login credentials to any other person or entity.
Access to the Back Office is a privilege and not a right. MONAT reserves the right to deny Market Partners' access to the Back Office at its sole discretion.
SECTION 4 - RESPONSIBILITIES OF MARKET PARTNERS
4.1 - CHANGE OF ADDRESS OR TELEPHONE
To ensure timely delivery of products and support materials, it is important that MONAT's files are current. Street addresses are required for shipping. Market Partners planning to move should update their mailing address, email address and telephone number information via either Customer/ Market Partner Care or through the Back Office of the Market Partners' replicated MONAT Website. To guarantee proper delivery, two weeks advance notice must be provided to MONAT on all changes.
4.2 - ONGOING DEVELOPMENTAL OBLIGATIONS
4.2.1 - ONGOING TRAINING
MONAT recommends that any Market Partner who sponsors another Market Partner into MONAT should perform a bona fide assistance and training function to ensure that his or her downline Market Partners are properly operating their respective MONAT businesses. Market Partners are strongly encouraged to have ongoing contact and communication with the Market Partners in their Marketing Organisations. Examples of such contact and communications may include but not be limited to newsletters, written correspondence, personal meetings, virtual meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline Market Partners to MONAT meetings, and training sessions, and other functions. Upline Market Partners are also strongly encouraged to motivate and train new Market Partners in MONAT product knowledge, effective sales techniques, the MONAT Compensation Plan, and compliance with Company Policies and Procedures. Communication and the training of downline Market Partners must not, however, violate Section 3.2.
MONAT recommends that Market Partners monitor the Market Partners in their marketing Organisations to ensure that downline Market Partners do not make improper product or business claims or engage in any illegal or inappropriate conduct.
4.2.2 - INCREASED TRAINING RESPONSIBILITIES
As Market Partners progress through the various stages of leadership, they will become more experienced in sales techniques, product knowledge, and an understanding of the MONAT Business Program. They will be called upon by MONAT from time to time to share this knowledge with lesser experienced Market Partners within their organisation.
4.2.3 - ONGOING SALES RESPONSIBILITIES
Regardless of their level of achievement, Market Partners have an ongoing obligation to continue to personally promote sales through the generation of new Retail and VIP Customers and through servicing their existing customers.
4.3 - NON-DISPARAGEMENT
MONAT wants to provide Market Partners with the best products, Compensation Plan and service in the industry. Accordingly, we value constructive criticisms and comments. All such comments should be submitted in writing to the Customer Service Department. While MONAT welcomes constructive input, negative comments, and remarks made in the field by Market Partners about the Company, its products or Compensation Plan serve no purpose other than to demotivate other MONAT Market Partners. For this reason, and to set the proper example for their Marketing Organisation, Market Partners must not disparage, demean, or make negative remarks about MONAT, other MONAT Market Partners, MONAT Products, the Compensation Plan, or MONAT's directors, officers, or employees.
4.4 - PROVIDING DOCUMENTATION TO APPLICANTS
Market Partners must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are sponsoring to become Market Partners before the applicant signs a Market Partner Agreement (or ensure that such individuals have online access to these materials). In addition, copies of Policies and Procedures and Compensation Plan can be downloaded from MONAT's website.
4.5 - REPORTING POLICY VIOLATIONS
Market Partners observing a Policy violation by another Market Partner should submit a written report of the violation to the attention of the Compliance Department. Details of the incidents such as dates, numbers of occurrences, persons involved, and any supporting documentation should be included in the report.
SECTION 5 - SALES REQUIREMENTS
5.1 - PRODUCT SALES
The MONAT Compensation Plan is based on the sale of MONAT products to end consumers. Market Partners must fulfil personal and Marketing Organisation retail sales requirements (as well as meet other requirements as set forth in the Agreement) in order to be eligible for bonuses, commissions, and advancement to higher levels of achievement.
The following sales requirements must be satisfied for Market Partners to be eligible for commissions:
- a)Market Partners must satisfy the Personal Volume requirements to fulfill the requirements associated with their rank as set out in the MONAT Compensation Plan; and
- b)Market Partners must satisfy the Group Volume requirements to fulfill the requirements associated with their rank as set out in the MONAT Compensation Plan.
5.2 - NO TERRITORY RESTRICTIONS
There are no exclusive territories granted to anyone. No franchise fees are required (as MONAT is not a franchisor).
5.3 - MONAT FLEXSHIP PROGRAM
As an added convenience to its VIP Customers and Market Partners, MONAT offers a Flexship Program with an automatic monthly delivery of MONAT products to your home address. To participate, as a VIP, a customer must register for the MONAT Flexship Program at the MONAT Website of his or her Market Partner or at the Company website provided the customer has his or her Market Partner's Sponsor ID number. By registering for the VIP program, you agree to three Flexship deliveries -- the enrolment order, plus two additional Flexship orders, each of NZD $140, or more in product. Shipping and handling do not count towards the total. The two additional orders can be "pushed out" by the VIP Customer through their VIP account. Flexship orders will be processed at 7:00 PM NZST on the Flexship ship date selected. Changes to Flexship orders can be made up until 3:59 PM NZST the day prior to the Flexship ship date. VIP Customers are also entitled to a 15% discount on all purchases and free shipping on qualified orders. If a VIP Customer cancels participation in the Flexship Program prior to receiving three such shipments or fails to pay for the three (3) Flexship deliveries, the VIP Customer will be charged a flat fee assessed by the following: cancellation after one shipment is forty dollars (NZD $40) and cancellation after two shipments is thirty dollars ($30). The registration fee is non-refundable if the account is canceled following the 30-day guarantee. (Please reference Section 7 for Refund details.) Market Partners may also register to participate in the Flexship Program through their back office. Market Partners are entitled to a 30% discount and free shipping on qualified orders, on products they purchase through the Flexship Program.
5.4 - SALES RECEIPTS
Records documenting online purchases made by Customers will be maintained by MONAT.
SECTION 6 - BONUSES AND COMMISSIONS
6.1 - BONUS AND COMMISSION QUALIFICATIONS
A Market Partner must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as a Market Partner complies with the Terms of the Agreement, MONAT shall pay commissions to such Market Partner in accordance with the Compensation Plan. The minimum amount for which MONAT will issue payment is. If a Market Partner's commissions and bonuses do not equal or exceed NZD $25.00, the Company will accrue the bonuses and commissions until they total NZD $25.00. Payment will be issued once NZD $25.00 has been accrued.
6.2 - ADJUSTMENT TO BONUSES AND COMMISSIONS
6.2.1 - ADJUSTMENTS FOR RETURNED PRODUCT
Market Partners receive bonuses and commissions based on the actual sales of products to end consumers. When a product is returned to MONAT for a refund or is repurchased by the Company, the bonuses and commissions attributed to this returned or repurchased product will be deducted, in the month in which the refund is given, and continue every pay period thereafter until the bonuses and commissions are recovered, from the Market Partners who received bonuses and commissions on the sales of the refunded products. In the event that any such Market Partner terminates their Market Partner Agreement, and the amounts of the bonuses and commissions attributable to the returned products have not yet been fully recovered by the Company, the remainder of the outstanding balance may be set off against any amounts owed to the terminated Market Partner.
6.2.2 - PAYMENT CARD FEES
MONAT currently pays bonuses and commissions through MoMoney. Currently, the Company pays all associated fees for this payment method. Company reserves the right to deduct any fees assessed to it as a result of such payment program or a Direct Deposit Program from the bonuses and commissions payable to Market Partners. In that event, MONAT shall provide at least 30 days prior notice to all Market Partners.
6.3 - REPORTS
All information provided by MONAT in any Market Partner Activity Reports, including but not limited to Personal Volume and Group 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, digital, electronic, or mechanical error, the accuracy, completeness, and timeliness of orders; the denial of credit card and electronic check payments; returned products; credit card and electronic check chargebacks; the information is not guaranteed by MONAT or any persons creating or transmitting the information.
TO THE EXTENT PERMITTED BY LAW, ALL PERSONAL AND GROUP VOLUME INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED OR REPRESENTATIONS OF ANY KIND. IN PARTICULAR, TO THE EXTENT PERMITTED BY LAW, THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT.
TO THE EXTENT PERMITTED BY LAW, ALL PERSONAL AND GROUP VOLUME INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. IN PARTICULAR, TO THE EXTENT PERMITTED BY LAW, THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT.
TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, MONAT AND OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY MARKET PARTNER 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 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 MONAT 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, MONAT 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 MATTER ARISING FROM THIS SECTION 6.3.
Access to and use of MONAT's 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 the use of and access to MONAT's online and telephone reporting services and your reliance upon this information.
SECTION 7 - PRODUCT GUARANTEES AND RETURNS
7.1 - 30-DAY MONEY BACK GUARANTEE
MONAT offers a 30-Day Money-Back Guarantee (less shipping charges) on all orders. If for any reason, you are not satisfied with any MONAT product you buy, you may return the unused portion of the product to MONAT within 30 days of your receipt of the order, for a full refund of the purchase price (less shipping charges).
This 30-day money-back satisfaction guarantee is in addition to and is not intended to limit or exclude the applicability of any statutory guarantees available under the New Zealand Consumers Guarantee Act. All refunds will be credited ONLY to the credit or debit card that was used to make the original purchase.
7.2 - PRODUCT RETURNS AFTER 30 DAYS
After 30 days, MONAT offers a 90% refund of the purchase price (excluding shipping charges) on the return of all unopened and unused products. We will refund the purchase price (excluding shipping charges) of the returned item(s) to the original form of payment. Any returns after 90 days from receipt of the order, will not be accepted.
7.3 - CUSTOMER RIGHT OF RESCISSION - Cooling Off Period
A Customer who makes a purchase has ten business days after the sale or execution of a contract to cancel their order and receive a full refund consistent with the cancellation notice on the order form or sales receipt. When a Market Partner makes a sale or takes an order from a customer who cancels or requests a refund within the applicable period, the Market Partner must promptly refund the customer's money as long as the products are returned to the Market Partner in substantially as good condition as when received. Market Partners must orally inform customers of their right to rescind a purchase or an order within the applicable time period and ensure that the date of the order or purchase is entered on the order form or sales receipt. All Customers must be provided with two copies of an official MONAT sales receipt at the time of the sale. The receipt provides the Customer with written notice of his or her rights to cancel the sales transaction.
7.4 - RETURN OF INVENTORY AND SALES AIDS BY MARKET PARTNERS UPON CANCELLATION
Upon cancellation of a Market Partner's Agreement, the Market Partner may return their Starter Kit and any products and sales aids they may have in their inventory for a refund. In order to receive a refund from MONAT pursuant to this policy, the following requirements must be met:
- a)The items being returned must have been personally purchased by the Market Partner from MONAT (Purchases from other Market Partners or third parties are not subject to refund);
- b)The items must be in Resalable condition (see Definition of "Resalable" below); and
- c)The items must have been purchased from MONAT within one year prior to the date of cancellation.
Upon receipt of a Resalable Starter Kit and/or Resalable products and sales aids, the Market Partner will be reimbursed 90% of the net cost of the original purchase price. Shipping charges incurred by a Market Partner when the items were purchased, and return shipping fees, 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 Market Partner 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 bonus and/or commission that was paid to the Market Partner based on that product purchase will be deducted from the amount of the refund. 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 have 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; and
- 4)they are returned to MONAT within one year from the date of purchase.
Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be Resalable.
7.5 - PROCEDURES FOR ALL RETURNS
The following procedures apply to all returns for a refund:
Return on items eligible for returns is accepted within 90 days of receipt. Items must be returned unopened/unused, in their original packaging. To return the product for a refund, you must return the products directly to MONAT and follow the steps listed below:
- a)You must first obtain a Return Authorisation Number (RMA) by contacting the MONAT Customer Care team at 800-442-677 or by email at NZMonatSupport@monatglobal.com.
- b)You will need to provide the order number and specify if requesting a full refund or partial refund.
- c)The Return Authorisation expires after 30 days. Product needs to be received at warehouse within 30 days of the RMA# being assigned.
- d)Proper shipping cartons and packing materials must be used when packaging products to be returned. All returns must be prepaid by the Market Partner or Customer. MONAT does not accept shipping collect packages. The risk of loss in shipping for returned products shall be on the Market Partner or Customer returning the product. If the returned product is not received by the MONAT's Distribution Center, it is the responsibility of the Market Partner or Customer to trace the shipment.
- e)The items must be returned to MONAT within 90 days from the date of purchase.
7.6 - RECEIVING A REFUND
A refund will be issued once we have received your returned items from the listed RMA process above. Any items that are damaged when we receive them are not eligible for a refund. Refunds do not include any shipping or handling charges, except in the case of faulty or damaged items. Your refund will be credited to the original form of payment used for the original transaction and will be in the amount of the product price less shipping and handling fees.
Please note that credit or debit card refunds may take up to 10 business days for your bank to post to your account, depending on their processing times. This can vary greatly among credit or debit card issuers.
SECTION 8 - DISPUTE RESOLUTION AND CONTRACTUAL REMEDIES
8.1 - ENFORCEMENT MEASURES
Violation of the Agreement, these Policies, and Procedures, violation of any common law, 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 Market Partner that, in the sole discretion of the Company (where it has reasonable grounds to form such a conclusion) may damage its reputation or goodwill (such act or omission need not be related to the Market Partner's MONAT business), may result, at MONAT's discretion, in one or more of the following measures:
- a)Issuance of a written warning or admonition;
- b)Requiring the Market Partner to take immediate corrective measures;
- c)Loss of rights to one or more bonus and commission payments;
- d)MONAT may withhold from a Market Partner all or part of the Market Partner's bonuses and commissions during the period that MONAT is investigating any conduct allegedly violating the Agreement (If a Market Partner's business is cancelled for breach of the Market Partner Agreement, the Market Partner will not be entitled to recover any commissions or bonuses withheld during the investigative period);
- e)Suspension of the individual's Market Partner Agreement for one or more pay periods (while the conduct is being investigated;
- f)Permanent or temporary loss of, or reduction in, the current Title Rank of the Market Partner (which may subsequently be re-earned by the Market Partner);
- g)Transfer or removal of a portion or all of the Market Partner's Marketing Organisation or downline Market Partners from the offending Market Partner's Marketing Organisation;
- h)Involuntary termination of the offender's Market Partner Agreement;
- i)Suspension or termination of the offending Market Partner's access to the Back Office and/or Replicated Website; or
- j)Any other measure expressly allowed within any provision of the Agreement or which MONAT (where acting reasonably) deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Market Partners contractual breach. In situations deemed appropriate by MONAT, the Company may institute legal proceedings for monetary and/or equitable relief.
8.2 - GRIEVANCES AND COMPLAINTS
When a Market Partner has a grievance or complaint with another Market Partner regarding any practice or conduct in relationship to their respective MONAT businesses, the complaining Market Partner should first report the problem to his or her Sponsor who should review the matter and try to resolve it with the other party's upline Sponsor. If the matter involves interpretation or violation of any Company policy, it must be reported in writing to the Market Partner Support Department. The Market Partner Support Dept. will review the facts and attempt to resolve it.
8.3 - MEDIATION
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 non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. Parties will agree to the mediator chosen by the Dispute Resolution Body if a mutually acceptable mediator is not chosen within 7 days. The mediation shall occur within 60 days from the date on which the mediator is appointed. The mediator's fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the preliminary fees and costs immediately after submission of the mediation application., as set forth in Section 5 of Appendix 1 of the New Zealand Dispute Resolution Centre's mediation rules. Thereafter, each party shall pay its portion of the anticipated fees and costs at least 5 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 Auckland, New Zealand, and shall last no more than two business days.
8.4 - ARBITRATION
If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration administered by the New Zealand Dispute Resolution Centre ("NZDRC") under its Arbitration Rules operating at the time of the dispute (available to view at https://www.nzdrc.co.nz/arbitration/arbitration-rules/, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The parties waive all rights to commence proceedings in any court. Copies of the NZDRC's Arbitration Rules will be emailed to Market Partners upon request to MONAT's Compliance Department. Notwithstanding the rules of the NZDRC, the following shall apply to all arbitration proceedings:
- a)The arbitration shall occur within 180 days from the date on which the arbitrator is appointed, and shall last no more than five business days; and
- b)The parties shall be allotted equal time to present their respective cases, including cross-examinations.
All arbitration proceedings shall be held in Auckland, New Zealand unless otherwise agreed by MONAT and the Market Partner in writing. There shall be one arbitrator selected from the panel that NZDRC provides. Each party to the arbitration shall be responsible for its own costs and expenses of the 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 of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement.
The parties and the arbitrator shall maintain the confidentiality of the entire arbitration process and shall not disclose to any person not directly involved in the arbitration process:
- a)The substance of, or basis for, the controversy, dispute, or claim;
- b)The content of any testimony or other evidence presented at an arbitration hearing or obtained through discovery in arbitration;
- c)The terms or amount of any arbitration award; or
- d)The rulings of the arbitrator on the procedural and/or substantive issues involved in the case
Notwithstanding the foregoing, nothing in these Policies and Procedures shall prevent either party from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect its intellectual property rights and/or to enforce its rights under the non-solicitation provision of the Agreement.
8.5 - GOVERNING LAW, JURISDICTION AND VENUE
The Agreement will be governed by and construed in accordance with and in force with the laws in New Zealand. The parties submit to the non-exclusive jurisdiction of the New Zealand Courts.
SECTION 9 - PAYMENT AND SHIPPING
9.1 - RESTRICTIONS ON THIRD PARTY USE OF CREDIT CARDS AND CHECKING ACCOUNT ACCESS
A Market Partner shall not permit other Market Partners, Retail Customers, or VIP Customers to use his or her credit cards or permit debits to his or her cheque accounts, to enrol or to make purchases from the Company.
9.2 - GOODS AND SERVICES TAXES
In creating the MONAT opportunity, one of our guiding philosophies has been to free our Market Partner from as many administrative, operational, and logistical tasks as possible. In doing so, Market Partner are free to concentrate on those activities that directly affect their incomes, namely product sales and enrolment activities. To these ends, MONAT relieves Market Partner of the burdens of collecting and remitting GST, filing the periodic goods and service tax settlement reports, and keeping records relative to GST. By virtue of its business operations, MONAT is required to charge GST on all purchases made by Market Partners, VIP Customers, and Retail Customers, and remit the GST charged to the New Zealand Inland Revenue ("NZIR"). Accordingly, all orders submitted to the Company must include GST. MONAT will collect and remit GST on behalf of Market Partners, based on the Suggested Retail Price of the products.
9.3 - SHIPPING POLICY
The customer will normally receive their order within 7-10 business days of its placement. MONAT will ship any part of an order currently in stock. If, however, an ordered item is out of stock, it will be placed on backorder and sent when MONAT receives additional inventory.
SECTION 10 - INACTIVITY AND CANCELLATION
10.1 - EFFECT OF CANCELLATION
As long as a Market Partner remains active and complies with the terms of the Market Partner Agreement, including these Policies and Procedures, MONAT shall pay commissions and bonuses to such Market Partner in accordance with the Compensation Plan. A Market Partner's bonuses and commissions constitute the entire consideration for the Market Partner's efforts in generating sales and all activities related to the generating of sales (including building a Marketing Organisation).
Following a Market Partner's non-renewal of his or her Market Partner Agreement, or voluntary or involuntary cancellation of his or her Market Partner Agreement (all of these methods are collectively referred to as "cancellation"), the former Market Partner shall have no right, title, claim or interest to the Marketing Organisation which he or she operated, or any commission or bonus from the sales generated by the organisation. A Market Partner whose business is cancelled will lose all rights as a Market Partner. This includes the right to sell MONAT products and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Market Partner's former Marketing Organisation. In the event of cancellation, Market Partners agree to waive all rights they may have, including but not limited to any bonuses, commissions, or other remuneration derived from the sales and other activities of his or her former Marketing Organisation.
Following a Market Partner's cancellation of his or her Market Partner Agreement, the former Market Partner shall not hold himself or herself out as a MONAT Market Partner and shall not have the right to sell MONAT products. A Market Partner whose Market Partner Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancelation (less any amounts withheld during an investigation preceding an involuntary cancellation). A Market Partner may also be entitled to return sales aids to MONAT for reimbursement in accordance with policy 7.4 (Return of Inventory and Sales Aides by Market Partners upon Cancellation).
10.1 - CANCELLATION DUE TO INACTIVITY
Market Partners who personally produce less than 200 Personal Volume for any pay period will not receive a commission for the sales generated through their Marketing Organisation for that pay period. If a Market Partner fails to renew their Agreement each year by paying the annual fee, then their account will be cancelled and any downline and customers they have will be compressed to the cancelled Market Partner's next upline.
10.2 - INVOLUNTARY CANCELLATIONS
A Market Partner's violation of any of the terms of this Agreement may result in any of the actions listed in 8.1, including the involuntary cancellation of his or her Market Partner Agreement. Cancellation shall be effective on the date on which written notice is mailed, emailed, faxed, or delivered to an express courier for delivery to the Market Partner's last known address, email address, or fax number, or to his or her attorney, or when the Market Partner receives actual notice of cancellation whichever occurs first.
MONAT reserves the right to terminate all Market Partner Agreements upon thirty (30) days' written notice in the event that it elects to:
- a)Cease business operations;
- b)Dissolve as a corporate entity; or
- c)Terminate the distribution of its products via direct selling.
10.3 - VOLUNTARY CANCELLATION
A Market Partner has a right to cancel at any time, regardless of the reason. Cancellation must be submitted in writing to the Company at email@example.com. The written notice must include:
- a)Full Name,
- b)ID Number,
- c)Reason for cancellation,
- d)Statement that you do not have any product to return and understand that refunds cannot be processed once the account is terminated. (Contact Customer Service with any product returns as noted in Section 7.5 and ensure that the refund has been received prior to sending your Cancellation notice.
10.4 - NON-RENEWAL
A Market Partner may also voluntarily cancel his or her Market Partner Agreement by failing to renew the Agreement on its anniversary date. The Company may also elect not to renew a Market Partner's Agreement upon its anniversary date (where it has reasonable grounds to do so and, if it does so, the Company will provide written notice to the Market Partner.
SECTION 11 - GLOSSARY OF TERMS
ACTIVE MARKET PARTNER
A Market Partner who satisfies the minimum Personal Volume requirements, as set forth in the MONAT Compensation Plan, to ensure that he or she is eligible to receive bonuses and commissions for a particular month.
A shareholder, member, partner, manager, trustee, or other parties with any ownership interest in, or management responsibilities for, a Business Entity
The contract between the Company and each Market Partner includes the Market Partner Application and Agreement, the MONAT Policies and Procedures, the MONAT Compensation Plan, and the Business Entity Registration Form (where appropriate), all in their current form and as amended by MONAT in its sole discretion. These documents are collectively referred to as the Agreement.
A corporation, partnership, trust, limited liability company, or other types of entity that enrols as a Market Partner and submits the required Monat Business Entity Registration Form.
CANCELATION OF AN ACCOUNT
The termination of a Market Partner's account. Cancellation may be either voluntary through resignation, non-renewal or inactivity, or termination for breach of the Agreement.
The term "Company" as it is used throughout the Agreement refers to MONAT Australia Pty Ltd trading as MONAT Global New Zealand (8287609, NZBN: 9429050250059).
All the Market Partners sponsored below a particular Market Partner, down to the first Market Partner of the rank of Managing Market Builder (MMB)) or above in each Downline leg.
The personal volume from you and your downline, down to, but not including the next Managing Market Builder or above (by Career Title). When a Market Partner in your group promotes to Managing Market Builder for the first time, their GV will be included in your GV for that month's qualification purposes only.
All individuals who are living at or doing business at the same residential address, who are related by blood or marriage, or who are living together as a family unit or in a family-like setting. A household includes, but is not limited to, spouses, common law or civil partners, heads-of-household, and dependent family members residing in the same residence.
The layers of downline Market Partners in a particular Market Partner's Marketing Organization. This term refers to the relationship of a Market Partner, relative to a particular upline Market Partner, determined by the number of Market Partners 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.
MARKET PARTNER ACTIVITY REPORT
An online report generated by MONAT that provides critical data relating to the identities of Market Partners, Sales Information, and enrolment activity of each Market Partner's Marketing Organisation. This report contains confidential and trade secret information which is proprietary to MONAT and is accessible to Market Partners through the Back Office.
OFFICIAL MONAT MATERIAL
Literature, audio or video presentations, and other materials developed, printed, published and distributed by MONAT to Market Partners.
An assigned value associated with products. PV is the sum of your personally purchased products as well as products purchased by your personally sponsored Retail and VIP Customers.
The total volume of products sold in a calendar month:
- a)By the Company to a Market Partner
- b)By the Company to the Market Partner's Retail Customers
- c)By the Company to the Market Partner's VIP Customers
The title that a Market Partner has achieved pursuant to the MONAT Compensation Plan. "Career Rank" or "Title Rank" refers to the highest rank a Market Partner has achieved in the MONAT compensation plan at any time. "Paid-As Rank" refers to the rank at which a Market Partner is qualified to earn commissions and bonuses during the current pay period.
For purposes of MONAT's Conflict of Interest Policy (3.10), the term recruit means the actual or attempted sponsorship, solicitation, enrolment, encouragement, or effort to influence in any other way, either directly, indirectly or through a third party another MONAT Market Partner or VIP Customer to enrol or participate in another multilevel marketing, network marketing or Direct Sales opportunity.
A website provided by MONAT to Market Partners utilises website templates developed by MONAT. The cost of the Replicated Website is included in the Starter Kit purchase and annual renewal fee.
Products and Sales aids shall be deemed Resalable if each of the following elements is satisfied::
- a)They are unopened and unused;
- b)Packaging and labeling have not been altered or damaged;
- c)They are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; and
- d)They are returned to MONAT within 90 days from the date of purchase.
Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item shall not be Resalable.
An individual who purchases MONAT products from a Market Partner but who is not a participant in the MONAT Compensation Plan. A Retail Customer may participate in the MONAT Flexship Program by registering as a VIP Customer at his or her Market Partner's MONAT website.
The method by which a vacancy is filled in an organisation when a Market Partner Agreement has been canceled.
Any type of online media that invites, expedites, or permits conversation, comment, rating, and/or user generated content, as opposed to traditional media, which delivers content but does not allow readers/ viewers/listeners to participate in the creation or development of content or the comment or response to content. Examples of social media include, but are not limited to, blogs, chat rooms, Facebook, Instagram Twitter, LinkedIn, Pinterest, Delicious, and YouTube.
A Market Partner who enrolls another Market Partner into the Company and is listed as the Sponsor on the Market Partner Application and Agreement. The act of enrolling others and training them to become Market Partners is called "sponsoring."
A selection of MONAT Training Material, product samples, and business support literature that each new Market Partner is required to purchase.
This term refers to the Market Partner or Market Partners above a particular Market Partner in a sponsorship line up to the Company. Conversely stated, it is the line of sponsors that links any particular Market Partner to the Company.
Last Revised: 01 June 2022