POLICIES AND PROCEDURES
MONAT Global United States
Effective Date November 1st, 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 sole discretion of Monat Global Corp (“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). Market Partners have the responsibility to read, understand, adhere to and ensure that they are 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 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 Market Partners (“Market Partner” or “Market Partners”). It is important to understand that your success and the success of your fellow Market Partners depends 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 the Policies and Procedures which MONAT may amend from time to time, at its sole discretion, as well as all federal, state and local laws governing their 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 Federal, state, and local laws, periodically change, and because our business environment evolves so rapidly, MONAT reserves the right to amend the Agreement and its prices in 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 web site; (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 a Market Partner’s MONAT business or by accepting commission, bonuses or awards from MONAT, the Market Partner thereby acknowledges the revised Policies and Procedures and agrees to abide by them.
1.4 - DELAYS
MONAT shall not be responsible for delays or failure in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a 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 MONAT to exercise any right or power under the Agreement or to insist upon strict compliance by a Market Partner 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 MONAT’s right to demand exact compliance with the Agreement. Waiver by MONAT can be effectuated only in writing by an authorized officer of the Company. MONAT’s waiver of any particular breach by a Market Partner, or MONAT’s waiver of any particular provision of the Market Partner Agreement or these Policies and Procedures, shall not affect or impair MONAT’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Market Partner. Nor shall any delay or omission by MONAT to exercise any right arising from a breach affect or impair MONAT’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 BE A MARKET PARTNER
To be a MONAT Market Partner, each applicant must:
- a)Be of the age of majority in their state of residence;
- b)Reside in the United States, a U.S. Territory, or any country that MONAT has officially announced is open for business;
- c)Provide MONAT with their valid Social Security or Federal Tax ID number associated with their legal name*;
- d)Purchase a MONAT Starter Kit (optional for residents of North Dakota); (Return of a Starter Kit or Product Pack is a voluntary cancellation of the account.)
- e)Submit a properly completed Market Partner Application and Agreement to MONAT either in hard copy or online format.
- f)Provide a valid physical address not associated with any other MONAT account. Non-physical addresses, including P.O. boxes, General Post Office (GPO), pack station, private mail bags, and other forms of non-physical addresses, will prevent payment of commissions;
- g)Provide a valid unique email address not associated with any other MONAT account;
- h)Provide a valid unique credit card not associated with any other MONAT account;
- i)Not be in jail or prison or otherwise confined to a correctional institution;
- j)Not have been convicted or plead no contest to a felony with the past 7 years. Felonies that occurred more than 7 years ago will be reviewed by MONAT’s discretion and might render an applicant ineligible to be a MONAT Market Partner;
- k)Not be a current employee, officer or director of MONAT or any subsidiary company, or the spouse or registered domestic partner of the foregoing;
- k)Be authorized to run a business in the United States, a US Territory, or any country that MONAT has officially announced is open for business.
* If an invalid Social Security Number or Tax ID is used and a valid one is not presented within a reasonable time, MONAT reserves the right to terminate the Market Partner Agreement. 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 familiarize 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 their Market Partner Agreement pursuant to the terms of Section 7.
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 Organization 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 $49.99 plus any applicable taxes, on or up to 30 days 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 their Market Partner account for a fee of $100.00 plus any applicable taxes. If the Market Partner account is not reinstated by the end of the 15-day Suspension Period, the Market Partner account will be terminated along with the Market Partner Agreement. Once the Market Partner Agreement is canceled, the Market Partner’s account will then be terminated; their down line will “roll up” to the up line and will not be replaced. The terminated Market Partner will need to wait six months before enrolling again.
SECTION 3 - OPERATING A MONAT BUSINESS
3.1 - ADHERENCE TO THE MONAT MARKETING PLAN
Market Partners must adhere to the terms of the MONAT Marketing Plan as set forth in official MONAT literature. 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 program 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 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 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 federal and state 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, would jeopardize 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. 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 utilize 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
1.1. 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 results;
- 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 skin care 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.
- i.Market Partners must be able to defend the origin and appearance of all posts.
C. Social Media Monitoring
To ensure adherence to MONAT’s Social Media policy as well as other MONAT policies, MONAT both manually reviews and utilizes 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.
3.2.3 - 3.2.3 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 to the sale of MONAT products, the MONAT opportunity, or the Compensation Plan is a breach of these Policies and Procedures and may result in any of the disciplinary sanctions set forth in Section 8.1.
B. Replicated Websites
If Market Partners desire to utilize an Internet web page to promote their business, they may do so through the Company’s replicated website program only. This program permits Market Partners to advertise on the Internet and can be personalized with the Market Partner’s message and the Market Partner’s contact information. These websites seamlessly linked 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 opportunity. 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 monetize 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, service 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 determines by MONAT in 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 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 auction sites, 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, Facebook Groups, Walmart.com 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 sanctions 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 and 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 are in compliance with MONAT Policies and Procedures. All material must align with MONAT values, contribute to the MONAT community and 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. Enticements for Enrollment
MONAT does not condone the use of any publicly shared enticements as a means of encouraging or enticing enrollment 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 or give-a-ways 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 incentives offered by a Market Partner to a member of that Market Partner’s team as a deserved award for sales or recognition. This enticement policy applies to both attempted enticements of Market Partners and Customers.
M. 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 IRS website 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.
3.2.4 - 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 they have 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 Market Partners wish to post their name in a telephone or online directory, it must be listed in the following format:
Market Partner’s Name
Independent MONAT Market Partner
3.2.5 - 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 authorized 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
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 video tape presentations.
Market Partners may create team branded gear to gift to team members. Items may not be sold for profit or be promoted at MONAT events. The approved MONAT logos are found on the back office. MONAT reserves the right to require Market Partners to cease distribution of any item with the name MONAT on it if deemed inappropriate, at MONAT’s sole discretion.
3.2.6 - 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.
3.2.7. - TELEVISION AND RADIO ADVERTISING
Market Partners must not utilize radio or television media for the advertising, distribution or promotion of MONAT products or opportunity without the express written consent of MONAT. In the event that MONAT does grant permission for the use of such media, MONAT must have final authority on every stage of the productions process with full rights to all recordings.
3.2.8 - 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 federal CAN SPAM Act. Any email sent by a Market Partner that promotes MONAT, the MONAT opportunity, or MONAT products must comply with the following:
- a)That the person is agreeing to receive commercial electronic messages relating to MONAT, its products, or the MONAT opportunity;
- b)That the person is agreeing to receive commercial electronic messages from you, and from MONAT Global Canada ULC;
- c)Your name;
- d)That you are asking for consent on behalf of yourself, and MONAT Global Canada ULC;
- e)Your mailing address;
- f)Either a telephone number, email, or web address, you use as a Market Partner; and
- g)A statement consent can be withdrawn.
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 honor opt-out requests generated because of such emails sent by the Company.
3.2.9 - 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 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, except that any person with whom the Market Partner has an established business or personal relationship. The term “established business or personal relationship” means a prior or existing relationship formed by a voluntary two-way communication between a Market Partner and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products offered by such Market Partner; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party. The term “automatic telephone dialing system” means equipment which has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers.
3.3 - BONUS BUYING PROHIBITED
Bonus buying is strictly prohibited. “Bonus buying” includes: (a) the enrollment 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 enrollment 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 enrollment or attempted enrollment 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.
3.4 - BUSINESS ENTITIES
A corporation, limited liability company (LLC), sole proprietor, 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, a properly completed Business Entity Registration Form, and a properly completed IRS Form W-9, or any other document listed as required on the Business Entity Registration Form. If a Market Partner enrolls online, the Entity Documents and Business Entity Registration Form must be submitted to MONAT within 30 days of the online enrollment. (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 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 without MONAT’s written authorization), additional partners, shareholders, members or other Affiliated Parties may be added to a Business Entity only upon the written approval of the Company. If a partner, shareholder, member or other Affiliated Party is added without the Company’s approval, the Market Partner Agreement may be canceled at the Company’s discretion. There is a $50.00 fee 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 notarized documents before implementing any changes to a MONAT business. Please allow thirty (30) days after the receipts 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
Market Partners may change their status under the same Sponsor from an individual to a Business Entity or from one type of Business Entity to another. There is $50.00 fee for each change requested, which must be included with the Business Entity Registration form and any specific documents listed as required on the Business Entity Registration form... Such change requests must be submitted prior to December 1 to become effective on January 1 of the following year. In addition, Market Partners operating their MONAT businesses utilizing a Business Entity must notify MONAT 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 organizations 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 enrollment.
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
Market Partners may legitimately change organizations by voluntarily cancelling their MONAT business in writing 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) full months. . Spouses and other members of the Market Partner’s household may not enroll during this six-month period. The purchase of a new Starter Kit is required upon reenrollment Following the six-month period of inactivity, the former Market Partner may reapply under the previous or new Sponsor, however, the former Market Partner’s Marketing Organization will remain in the original line of sponsorship.
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 or a member of the Market Partner’s household enrolls prior to the six and another downline organization has been developed in the second business developed by a Market Partner, MONAT reserves the sole and exclusive right to determine the final disposition of the downline organization. Resolving conflicts over the proper placement of a downline that has developed under an organization 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 AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.
3.6 - UNAUTHORIZED CLAIMS AND ACTIONS
3.6.1 - INDEMNIFICATION
Market Partners are fully responsible for all of their 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, attorney fees, court costs, or lost business incurred by MONAT as a result of the Market Partner’s unauthorized representations or actions. This provision shall survive the termination of the Market Partner Agreement.
3.6.2 - PRODUCT CLAIMS
No claims as to therapeutic, curative or beneficial properties of any products offered by MONAT may be made except those contained in official MONAT literature. In particular, Market Partners may not make 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, they also violate the laws and regulations of the United States, Canada, and other countries.
3.6.2. A - PRODUCT COMPARISONS
MONAT strongly encourages all of its 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.
3.6.3 - INCOME CLAIMS PROHIBITED
Market Partners may only make income or lifestyle claims that are truthful, accurate and represent what the typical earner is likely to achieve. These claims must be consistent with the publicly available MONAT Income Disclosure Statement (IDS).
Market Partners are required to share the IDS, which can be found at https://monatglobal.com/income-disclosure-statement/, in all instances as either a hard copy of the actual document or a link to the document. Any writings, including social media posts and profiles, email signature blocks, or written personal stories that include any income or lifestyle claim must include the income disclosure statement and a direct link to the IDS within close proximity of the claim.
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, when presenting or discussing the MONAT opportunity or Compensation Plan, may not make income projections, guaranteed income statements, disclose their MONAT income (including the showing of their MONAT Payment Card records, Back-office records, bank statements, or tax records), non-typical income or lifestyle claims, stated or implied (per the Monat IDS). Additionally, Market Partners must not engage in any misleading, deceptive or unfair conduct and not make false representations or exaggerated claims.
The Federal Trade Commission and several states have laws or regulations that prohibit certain types of income claims and testimonials made by persons engaged in direct selling. While Market Partners may believe it beneficial to share copies of their earnings or others, such approaches have legal consequences that can negatively impact MONAT as well as the Market Partner making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation.
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 an individual can be successful as a MONAT Market Partner without commitment, effort, and sales skill.
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 federal and state laws and may result in civil or criminal liability. Market Partners may affix a personalized sticker with the Market Partner’s personal/contact information to each product or product container, if 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 general public. (i.e., The individual stall or reception area is acceptable but in the window or reception area of a salon is not acceptable).
Online auction and/or sales facilitation websites, including but not limited to eBay and Craig’s List constitute Commercial Outlets, and may not be used to sell MONAT products.
3.9 - TRADE SHOWS, EXPOSITIONS AND OTHER SALES FORUM
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 authorize 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 Brand Guideline Department. MONAT further reserves the right to refuse authorization to participate at any function which it does not deem a suitable forum for the promotion of its products 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 - PARTICIPATION IN OTHER DIRECT SELLING OR COMPETING VENTURES
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 or member of their immediate household, is engaged in multilevel marketing, network marketing, relationship marketing or direct sales opportunity 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 target, or share non-MONAT opportunities or products with, MONAT Market Partners, employees or Customers via any social media platforms used to promote MONAT products.
- b.)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.
- c.)Not offer the MONAT opportunity or products to prospective or existing Customers or Market Partners in conjunction with any non-MONAT program, opportunity, product, or service.
- d.)Not offer any non-MONAT opportunity, products, services, training, or opportunity at any MONAT- related meeting, seminar, convention, webinar, teleconference, or other function.
- e.)Not transfer their business or use other names or ID numbers (including that of a spouse, relative, household member, business, or others 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, 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, as well as Section 3.10.1, 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, impose any sanction it deems necessary or appropriate against such Market Partner or such Market Partner’s independent distributorship, or seek immediate injunctive relief without the necessity of posting a bond. Such sanction may include, without limitation, suspension of commissions and bonuses, fines, restriction from MONAT events and recognition or termination of a Market Partner’s MONAT independent distributorship.
3.10.1 - NON-SOLICITATION
MONAT Market Partners may not directly or indirectly, recruit any other MONAT Market Partner or Customer for any other direct selling business. The term “recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or any effort to influence in any other way, either directly or indirectly (i.e., through a third party), another MONAT Market Partner, employee, or Customer to enroll or participate in another multilevel marketing, network marketing, relationship marketing or direct sales opportunity. This includes
- a.)posting or messaging information about another multilevel marketing, network marketing, relationship marketing or direct sales opportunity or products on any social media site utilized by a Market Partner to promote their MONAT business* and “business” is inclusive of information shared about the products, services, or income opportunity of MONAT,
- a.1.)In addition to the guidelines above, MONAT Market Partners who have achieved Director level may not post affiliate links, share, or link to any competing product on the same social media site utilized by a Market Partner to promote their MONAT business* and “business” is inclusive of information shared about the products, services, or income opportunity of MONAT,
- b.)tagging any MONAT Market Partner, employee, or customer in a post on any social media site that provides information or offers to provide information about another multilevel marketing, network marketing, relationship marketing or direct sales opportunity,
- c.)communicating information or offering to provide information about another multilevel marketing, network marketing, relationship marketing or direct sales opportunity.
*In reference to a.) above, deleting past MONAT content from a social media page in order to circumvent this policy is not permitted.
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, network.
Violation of Section 3.10.1 may result in the immediate termination of the violating Market Partner’s Agreement
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, employees or Customers for any other multilevel marketing, network marketing, relationship marketing or direct sales opportunity.
Market Partners and the Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States 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
3.10.2 - 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, contact information of MONAT VIP Customer and Market Partners, 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 strictest confidence and are made available to Market Partners for the sole purpose of assisting Market Partners in working with their respective Marketing Organizations 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, Market Partners may not disclose the Confidential Information to any third party, including, without limitation, 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, Market Partners shall not, on their own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
- Directly or indirectly use or disclose any Confidential Information to any third party;
- Directly or indirectly disclose, to any individual, partnership, association, corporation, or other entity, the password or other access code to their Back Office;
- Use any Confidential Information to compete with MONAT or for any purpose other than promoting or supporting their MONAT business; or
- 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 their 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 engagement in 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” or “Poaching” 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 Organization.
If Cross-Sponsoring is discovered, it must be brought to the Company’s attention immediately. MONAT may take disciplinary action against the Market Partner that changed organizations 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 Organization to the original marketing Organization 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 Organization, and the ultimate disposition of the organization 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 Organization.
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.
3.14 - GOVERNMENTAL APPROVAL, CERTIFICATION, OR ENDORSEMENTT
Neither federal nor 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.
Market Partners must not state or imply that MONAT’s products and ingredients are certified or approved by regulatory or government entities. The Food and Drug Administration regulates cosmetic and supplement products in the marketplace but does not approve or certify these categories of products.
3.15 - HOLDING APPLICATIONS OR ORDERS
Market Partners must not manipulate enrollments 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
All Market Partners are required to provide their legal name associated with their valid Social Security Number or a Federal Employer Identification Number to MONAT on the Market Partner Application and Agreement. Upon enrollment, the Company will provide a unique Market Partner Identification Number to the Market Partner. This number will be used for identification, to place orders, and track commissions and bonuses.
3.17 - INCOME TAXES
Each Market Partner is responsible for paying local, state and federal taxes on any income generated as an Independent Market Partner. If a Market Partner’s MONAT business is tax exempt, the Federal tax identification number must be provided to MONAT. Every year, MONAT will provide an IRS form 1099 NEC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had earnings, received trips, prizes or awards, in any combination valued at $600 or more in the previous calendar year.
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, partnership, or joint venture between the Company and the Market Partner. Market Partners shall not be treated as an employee for their services or for Federal or State tax purposes. All Market Partners are responsible for paying local, state, and federal taxes due from all compensation earned as a Market Partner of the Company. The Market Partner has no authority (expressed or implied), to bind the Company to any obligation. Market Partners shall establish their own goals, hours, and methods of sale, so long as they complied with the terms of the Consultant Agreement, these Policies and Procedures, and applicable laws.
3.19 - INSURANCE
Market Partners may wish to arrange insurance coverage for their 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. This can often be accomplished with a simple “Business Pursuit” endorsement attached to the Market Partner’s homeowner’s policy.
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 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 authorized to sell MONAT products, and enroll VIP Customers and Market Partners only in the countries in which MONAT is authorized 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 unauthorized country; (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential Market Partners; or (c) conduct any other activity for the purpose of selling MONAT products, establishing a Marketing Organization, 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.
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 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.
3.22 - ADHERENCE TO LAWS AND ORDINANCES
Market Partners shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances 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 an ordinance applies to them, the Market Partner shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department.
3.23 - MINORS
A person who is recognized as a minor in his/her state of residence may not be a MONAT Market Partner. Market Partners shall not enroll 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 into 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.
In order 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 disciplinary 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 disciplinary 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 will require a fee of $2.00 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
When a vacancy occurs in a Marketing Organization 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 cancellation 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 their 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 and the MONAT Policies and Procedures. If the buyer is an active MONAT Market Partner they must first terminate their MONAT.
- c)Before the sale, transfer or assignment can be finalized 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 $150 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 their intent to sell their MONAT business or business entity interest. The selling Market Partner must also receive written approval from the Compliance Department 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, regular partnerships, corporations, LLCs, trusts, or other Business Entities. When a marriage ends in divorce or a corporation, LLC, partnership, trust, or other Business Entity dissolves, 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 process, the parties must adopt one of the following methods of operation:
- a)One of the parties may, with consent of the other(s), operate the MONAT business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize MONAT to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.
- 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 proceedings. This is the default procedure if the parties do not agree on the format set forth above.
Under no circumstances will the Marketing Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will MONAT split commission and bonus payments between divorcing spouses or members of dissolving entities. MONAT will recognize only one Marketing Organization 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. If parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Market Partner Agreement shall be involuntarily cancelled.
If a former spouse has completely relinquished all rights in the original MONAT business pursuant to a divorce, they are thereafter free to enroll under any sponsor of their choosing without waiting six calendar months. In the case of business entity dissolutions, the former partner, shareholder, member, or other entity affiliate who retains no interest in the business must wait six calendar months from the date of the final dissolution 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 organization 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 enroll others into MONAT. Each prospective Market Partner has the ultimate right to choose their own Sponsor. New Market Partners and VIP Customers should be sponsored by the first person who introduced the MONAT Opportunity. Manipulation of enrollments is expressly prohibited as noted in Section 3.3. 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 or VIP Customer through the online enrollment process, the Sponsor may assist the new applicant in filling out the enrollment 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, the business may be passed to the heirs. 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 Organization provided the following qualifications are met. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper, such as:
- I.A certified copy of the death certificate
- II.A notarized copy of the will or other appropriate legal documentation establishing the heir’s right to administer the business
- III.A copy of the heir’s valid, government issued ID
Accordingly, a Market Partner should consult an attorney to assist in the preparation of a will or other testamentary instrument. If the successor should decide to take over the deceased’s MONAT business, the successor(s) will also be required to:
- I.Complete and execute a Market Partner Agreement;
- II.Comply with terms and provisions of the Agreement; and
- III.Meet all of the qualifications for the deceased Market Partner’s status.
If the business is bequeathed to joint devisees, they must form a Business Entity and acquire a federal taxpayer identification number. MONAT will issue all bonus and commission payments and one 1099 to the business entity. The devisees must provide MONAT with an “address of record” for proper completion.
3.32 - TRANSFER UPON DEATH OF A MARKET PARTNER
To effectuate a testamentary transfer of a MONAT business, the Personal Representative or Executor of the estate of the deceased Market Partner must provide all necessary documentation to establish a successor’s or successors’ right(s) to the subject MONAT business. 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 Trustee of the incapacitated Market Partner must provide all necessary documentation to establish the right of the subject Trust and Trustee to the subject MONAT business. The Trustee must, on behalf of the Trust, complete and execute a Market Partner Agreement and meet the other requirements set forth in Section 3.31.
3.34 - TELEMARKETING TECHNIQUES
The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as several states) have “do not call” regulations as part of their telemarketing laws. Although MONAT does not consider Market Partners to be “telemarketers” in the traditional sense of the word, these government regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to $43,792.00 per violation).
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. 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, within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect’s purchase of a product or service.
- 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 authorizing the Market Partner to call. The authorization must specify the telephone number(s) which the Market Partner is authorized to call.
- d)If the Market Partner has been referred to call an individual who has expressed an interest in the MONAT 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
Any Market Partner who sponsors another Market Partner into MONAT must perform a bona fide assistance and training function to ensure that the downline Market Partners are properly operating their respective MONAT businesses. Market Partners must have ongoing contact and communication with the Market Partners in their Marketing Organizations. Examples of such contact and communications may include but not be limited to newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline Market Partners to MONAT meetings, training sessions, and other functions. Upline Market Partners are also responsible 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.
Market Partners may not charge for MONAT training.
Market Partners must monitor the Market Partners in their marketing Organizations 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 organization.
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 - NONDISPARAGEMENT
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 Organization, 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 the Policies and Procedures and the 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 fulfill personal and Marketing Organization retail sales requirements (as well as meet other requirement 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
- 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.
5.3 - MONAT FLEXSHIP PROGRAM
As an added convenience to its VIP Customers and Market Partners, MONAT offers a Flexship Program with automatic monthly delivery of MONAT products to your home address.
Unique credit cards, addresses, phone numbers and email addresses are required per VIP account. Monat will audit and investigate any suspect orders and accounts. Commissions may be withheld pending an investigation.
*Time of placement for orders associated with a Flexship Program will default to Eastern Standard Time Zone (EST).
5.4 - SALES RECEIPTS
Records documenting online purchases made by Customers will be maintained by MONAT.
5.4 - AUTOMATIC UPDATES TO STORED CREDIT/DEBIT CARDS
MONAT participates in account update services offered by some banks to help keep your credit card information up to date in our system. If your bank participates, this service will automatically update your card number and expiration date in our system. If you do not wish for your credit/debit card information to be automatically updated, you may opt out of these services by contacting your credit card issuing bank. Any automatic charges that may apply to your account because of one’s failure to opt-out of this service, will not be refunded. MONAT will not be responsible for these charges.
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 $15.00. If a Market Partner’s commissions and bonuses do not equal or exceed $15.00, the Company will accrue the bonuses and commissions until they total $15.00. Payment will be issued once $15.00 has been accrued.
Accepting any form of commissions, bonuses, awards or incentive trips from MONAT constitutes a Market Partner’s agreement to be bound by MONAT’s Policies and Procedures.
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 continuing 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, which includes a MONAT-brand debit card and on-line portal. Currently, the Company pays all associated fees for this payment method. Company reserves the right to deduct any fees assessed to it because 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.
ALL PERSONAL AND GROUP VOLUME INFORMATION IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESS OR IMPLIED OR REPRESENTATIONS OF ANY KIND. IN PARTICULAR BUT WITHOUT LIMITATION 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 SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.
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 and handling 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 and handling charges).
All refunds will be credited ONLY to the credit or debit card that was used to make the original purchase.
Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be eligible for a refund.
7.2 - PRODUCT RETURNS AFTER 30 DAYS
After 30 days, MONAT offers a 90% refund of the purchase price (excluding shipping and handling charges) on the return of all unopened and unused product. We will refund the purchase price (excluding shipping and handling charges) of 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 of $25.00 or more has three business days (five business days for residents of Alaska and 15 business days for residents of North Dakota who are age 65 or older) 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 if the products are returned to the Market Partner in substantially as good condition as when received. Market Partners must 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 back of the receipt provides the Customers with written notice of their 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 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
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 they 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 has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 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 - MONTANA RESIDENTS
Montana residents may cancel their Market Partner Agreement within 15 days of the date of enrollment and may return the Starter Kit for a full refund.
7.5 - PROCEDURES FOR ALL RETURNS
The following procedures apply to all returns for refund:
Return on items eligible for returns are accepted within 90 days of receipt. Items must be returned unopened / unused, in their original packaging. To return 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 Authorization Number (RMA) by contacting the MONAT Customer Care team at
or by email at:
US English: CustomerCareUSA@Monatglobal.com
US Español: CustomerCareUSA_ESP@Monatglobal.com
You will need to provide the order number and specify if requesting a full refund or partial refund.
The Return Authorization expires after 30 days. Product needs to be received at warehouse within 30 days of the RMA# being assigned.
- b)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 product shall be on the Market Partner or Customer returning the product. If 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.
- c)The items must be returned to MONAT within 90 days from the date of purchase.
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 refund. Refunds do not include any shipping or handling charges. 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 or 90% if returned after 30 days, 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 - DISCIPLINARY SANCTIONS
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 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 corrective measures:
- a)Issuance of a written warning or admonition;
- b)Requiring the Market Partner to take immediate corrective measures;
- c)Imposition of a fine, which may be withheld from the Market Partner’s bonus and commission payments;
- d)Loss of rights to one or more bonus and commission payments;
- e)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 disciplinary reasons the Market Partner will not be entitled to recover any commissions or bonuses withheld during the investigative period);
- f)Suspension of the individual’s Market Partner Agreement for one or more pay periods;
- g)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);
- h)Transfer or removal of a portion or all of the Market Partner’s Marketing Organization or downline Market Partners from the offending Market Partner’s Marketing Organization;
- i)Involuntary termination of the offender’s Market Partner Agreement;
- j)Suspension or termination of the offending Market Partner’s access to the Back Office and/or Replicated Website; or
- k)Any other measure expressly allowed within any provision of the Agreement or which MONAT deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Market Partners policy violation or 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 their 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 Compliance Department. The Compliance Department will review the facts and attempt to resolve it.
8.3 - ALTERNATIVE DISPUTE RESOLUTION AND CLASS ACTION WAIVER
Any dispute, claim or grievance which Market Partner may have relating to the Company, the Market Partner’s Agreement or the breach thereof, shall be settled through confidential and binding arbitration.
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. 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 anticipated fees and costs at least 10 days in advance of the mediation. Each party shall pay its own attorney fees, costs and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Doral, Florida 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 American Arbitration Association (“AAA”) under its Commercial Arbitration Rules (available to view at www.adr.org), and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The parties waive all rights to trial by jury or by any court. Copies of the AAA’s Commercial Arbitration Rules will be emailed to Market Partners upon request to MONAT’s Compliance Department. Notwithstanding the rules of AAA, the following shall apply to all arbitration proceedings:
- a)The Federal Rules of Evidence shall apply in all cases;
- b)The parties shall be entitled to all discovery rights permitted by the Federal Rules of Civil Procedure;
- c)The parties shall be entitled to bring motions under Rules 12 and/or 56 of the Federal Rules of Civil Procedure;
- d)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
- e)The parties shall be allotted equal time to present their respective cases, including cross- examinations.
All arbitration proceedings shall be held in the City of Miami, Florida unless the laws of the state in which a Market Partner resides expressly requires venue in such state, in which case the arbitration shall be held in the capital of that state. The arbitration will be administered by the American Arbitration Association (“AAA”) in accordance with its Commercial Arbitration Rules. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions, and who shall be knowledgeable in the Direct Selling Industry, selected from the panel which the AAA provides. If the parties cannot agree on an arbitrator, the AAA will choose an arbitrator from the panel that meets all necessary criteria. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. All issues of arbitrability or whether a matter is properly brought before an arbitrator for arbitration shall be determined solely by the arbitrator.
Each party to the arbitration shall be responsible for its own costs and expenses of arbitration including legal and filing fees. The parties shall equally share the AAA’s administrative fees and the arbitrator’s compensation. However, if the arbitrator determines that a party has generally prevailed in the arbitration proceeding, then the arbitrator shall award to that party its reasonable, out-of-pocket expenses related to the arbitration. Including filing fees, arbitrator compensation, attorney fees and legal costs. 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 Section 8.4 shall survive any termination or expiration of The Agreement.
8.5 - CLASS ACTION WAIVER
No Market Partner shall assert any claim as a class, collective, or representative action. This paragraph shall be enforceable where the applicable law permits reasonable class action waivers and shall have no effect otherwise. In any case this class action waiver provision, as well as any other provision, is severable in the event it is found to be unenforceable or inapplicable in a particular case.
The parties agree that class action claims are not arbitrable under any circumstances; but in the event a court of competent jurisdiction declines to certify a class, all individual plaintiffs shall resolve any and all remaining claims of law by way of individual arbitration.
8.6 - GOVERNING LAW, JURISDICTION AND VENUE
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Dade County, State of Florida. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Florida shall govern all other matters relating to or arising from the Agreement.
8.6.1 - LOUISIANA RESIDENTS
Notwithstanding the foregoing, and the mediation and arbitration provisions in Sections 8.3 and 8.4, residents of the State of Louisiana shall be entitled to bring an action against MONAT in their home forum and subject to Louisiana law.
SECTION 9 - PAYMENT AND SHIPPING
9.1 - RESTRICTIONS ON THIRD PARTY USE OF CREDIT CARDS AND CHECKING ACCOUNT ACCESS
Market Partners shall not permit other Market Partners or Customers to use their credit cards, or permit debits to their checking accounts, to enroll or to make purchases from the Company.
9.2 - SALES 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 enrollment activities. To these ends, MONAT relieves Market Partner of the burdens of collecting and remitting sales taxes, filing sales tax reports, and keeping records relative to sales tax. By virtue of its business operations, MONAT is required to charge sales taxes on all purchases made by Market Partners, VIP Customers and Retail Customers, and remit the taxes charged to the respective states. Accordingly, all orders submitted to the Company must include the appropriate sales taxes. MONAT will collect and remit sales taxes on behalf of Market Partner, based on the Suggested Retail Price of the products, according to applicable tax rates in the state to which the shipment is destined. If a Market Partner has submitted, and MONAT has accepted a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will not be added to the invoice and the responsibility of collecting and remitting sales taxes to the appropriate authorities shall be on the Market Partner. Exemption from the payment of sales taxes is applicable only to orders which are shipped to a state for which the proper tax exemption papers have been filed and accepted. Applicable sales taxes will be charged on orders that are drop shipped to another state. Any sales tax exemption accepted by MONAT is not retroactive.
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 back order 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 and 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 Organization).
Following a Market Partner’s non-renewal of the Market Partner Agreement, or voluntary or involuntary cancellation of the 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 Organization which they operated, or any commission or bonus from the sales generated by the organization. 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 Organization. In the event of cancellation, Market Partners agree to waive all rights they may have, including but not limited to; property rights to their former Marketing Organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of their former Marketing Organization.
Following a Market Partner’s cancellation of the Market Partner Agreement, the former Market Partner shall not hold themself out as a MONAT Market Partner and shall not have the right to sell MONAT products. A Market Partner whose Market Partner Agreement is canceled shall receive commissions and bonuses only for the last full pay period they were active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
10.2 - 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 Organization 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.
10.3 - INVOLUNTARY CANCELLATION
A Market Partner’s violation of any of the Terms of the Agreement, including any amendments that may be made by MONAT in its sole discretion, may result in any of the sanctions listed in 8.1, including the involuntary cancellation of the 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 their attorney, or when the Market Partner receives actual notice of cancellation whichever occurs first.
If involuntarily terminated by MONAT, a Market Partner may not re-apply, under any name or entity, for 12 months from the date of termination. The request will require the express written consent of an officer of MONAT, following a review by MONAT Compliance.
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.
10.4 - VOLUNTARY CANCELLATION
A participant in this Direct Selling program has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address or by email. The written notice must include the Market Partner’s ID Number, signature, printed name, address, and reason for cancelation
10.5 - NON-RENEWAL
A Market Partner may also voluntarily cancel the Market Partner Agreement by failing to renew the Agreement by the anniversary date. The Company may also elect not to renew a Market Partner’s Agreement upon the anniversary date.
10.6 - CODE OF CONDUCT
This Code is designed to protect you, your business, the MONAT brand, and all Consumers.
It is important to understand that your success and the success of your fellow MONAT Market Partners depends on the integrity of the individuals who market our products. MONAT has established standards for acceptable business conduct and you must always communicate honestly, respectfully, accurately and with integrity, allow for and appreciate differences, show fairness, tolerance and respect to all the people associated with MONAT, regardless of race, gender, social class or religion. This allows for an open atmosphere of teamwork, good morale, and community spirit.
You are required to safeguard and promote the good reputation of MONAT and its products.
You must avoid all discourteous, deceptive, misleading, unethical, immoral conduct or practices including off-color words or phrases that may damage MONAT’s image.
You must read and understand the Market Partner Agreement and the Policies and Procedures. You acknowledge you are entering MONAT and the business opportunity voluntarily and of your own free will, assuming all responsibilities and financial risks.
You are required to comply with all of the Policies and Procedures which MONAT may amend from time to time, at its sole discretion, as well as all federal, state and local laws governing your MONAT business and your conduct.
You must always identify yourself as a MONAT Independent Market Partner and not make improper product or business claims or engage in any illegal or inappropriate conduct.
You are to present accurate information and explain the VIP Agreement or Market Partner Agreement, the Compensation Plan and the Policies and Procedures prior to assisting anyone with their enrollment.
You must always inform customers, VIPs and new Market Partners of our 30-day money back guarantee policy.
You should respect each person you encounter; this includes potential customers, other Market Partners, and corporate employees. Use appropriate language, verbally and in writing. Being abusive or using sexually harassing language or behavior is inappropriate.
You are expected to attempt to resolve business issues in a timely and professional manner by using tact, sensitivity, good will and take care not to create additional problems. You should provide the level of service you desire in your interactions.
You should focus on the positive. Making disparaging statements about MONAT, the industry, other companies or their products, other Market Partners, employees, products, sales and marketing campaigns or the Compensation Plan, or making statements that unreasonably offend, belittle, mislead or coerce others serve no other purposes than to damage MONAT and dampen the enthusiasm of other Market Partners.
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 eligibility to receive bonuses and commissions for 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 type of entity that enrolls 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 cause.
The term “Company” as it is used throughout the Agreement refers to MONAT Global.
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, and 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, 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 enrollment activity of each Market Partner’s Marketing Organization. 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.
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
For purposes of MONAT’s Conflict of Interest Policy (3.10), the term recruit means the actual or attempted sponsorship, solicitation, enrollment, encouragement or effort to influence in any other way, either directly, indirectly or through a third party another MONAT Market Partner or VIP Customer to enroll or participate in another multilevel marketing, network marketing or Direct Sales opportunity.
A website provided by MONAT to Market Partners which utilizes website templates developed by MONAT. The cost of the Replicated Website is included in the Starter Kit purchase and annual renewal fee.
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 their Market Partner’s MONAT website.
The method by which a vacancy is filled in an organization 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.
“Career Title” refers to the highest rank a Market Partner has achieved in the MONAT compensation plan at any time. “Paid-As- Title” refers to the rank at which a Market Partner is qualified to earn commissions and bonuses during the current pay period.
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: 08 July 2022