Policies & Procedures
These Policies and Procedures, in their present form and as amended at the sole discretion of Ethona, LLC (hereafter "Ethona" or the "Company"), are incorporated into, and form an integral part of, the LifeStylist Agreement. Throughout these Policies, when the term "Agreement" is used, it collectively refers to the Ethona Independent LifeStylist Agreement Terms & Conditions, these Policies and Procedures, the Ethona Compensation Plan, and the Ethona Business Entity Addendum (applicable only to business entities that apply to become LifeStylists). These documents are incorporated by reference into the Ethona LifeStylist Agreement (all in their current form and as amended by Ethona).
Ethona reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By executing the LifeStylist Agreement, a LifeStylist agrees to abide by all amendments or modifications that Ethona makes. Amendments shall be effective 30 days after publication of notice and posting the amended provision(s). Amendments shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. Notification of amendments shall be published by email or posting in LifeStylists' Back-Offices. The continuation of a LifeStylist's Ethona business, the acceptance of any benefits under the Agreement, or a LifeStylist's acceptance of bonuses or commissions constitutes acceptance of all amendments.
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.
The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of a party to exercise any right or power under the Agreement or to insist upon strict compliance by a LifeStylist 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 the party's right to demand exact compliance with the Agreement. The existence of any claim or cause of action of one party against the other party shall not constitute a defense to a party's right to enforce any term or provision of the Agreement.
To become an Ethona LifeStylist, each applicant must:
- Be at least 18 years of age;
- Reside in the United States, a U.S. Territory, or a country that Ethona has officially announced is open for business;
- Provide Ethona with his or her valid Social Security or Federal Tax ID number;
- Purchase an Ethona Fit Kit; and
- Submit a properly completed LifeStylist Application and Agreement to Ethona either in hard copy or online format.
Ethona reserves the right to accept or reject any LifeStylist Application and Agreement for any reason or for no reason.
Except for the purchase of an Ethona Fit Kit, no person is required to purchase Ethona products, services or sales aids, or to pay any charge or fee to become a LifeStylist. In order to familiarize new LifeStylists with Ethona products, sales techniques, sales aids, and other matters, the Company requires that they purchase a Fit Kit. Ethona will repurchase resalable Fit Kits from any LifeStylist who terminates his or her LifeStylist Agreement pursuant to the terms of Section 7.2.
Once a LifeStylist Agreement has been accepted by Ethona, the benefits of the Compensation Plan and the LifeStylist Agreement are available to the new LifeStylist. These benefits include the right to:
- Sell or solicit orders for Ethona products;
- Participate in the Ethona Compensation Plan (receive bonuses and commissions, if eligible);
- Mentor other individuals as LifeStylists into the Ethona business and thereby, build a Marketing Organization and progress through the Ethona Compensation Plan;
- Receive periodic Ethona literature and other Ethona communications;
- Participate in Ethona-sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable; and
- Participate in promotional and incentive contests and programs sponsored by Ethona for its LifeStylists.
The term of the LifeStylist Agreement is one year from the date of its acceptance by Ethona (subject to prior termination pursuant to Section 10). The Agreement is renewable for successive one year terms. LifeStylists will be sent an email to their email addresses on file reminding them of the upcoming renewal. They will also be reminded of their upcoming renewal through their Back-Offices. At that time, LifeStylists may elect to cancel the Agreement. If a LifeStylist does not cancel, his or her LifeStylist Agreement will be automatically renewed and the renewal fee of forty nine dollars ($49) will be charged to the credit card he/she has on file with the Company.
LifeStylists must adhere to the terms of the Ethona Compensation Plan as set forth in official Ethona literature. LifeStylists shall not offer the Ethona opportunity through, or in combination with, any other system, program, Sales Tools, or method of marketing other than that specifically set forth in official Ethona literature. LifeStylists shall not require or encourage other current or prospective LifeStylists to execute any agreement or contract other than official Ethona agreements and contracts in order to become an Ethona LifeStylist. Similarly, LifeStylists shall not require or encourage other current or prospective LifeStylists to make any purchase from, or payment to, any individual or other entity to participate in the Ethona Compensation Plan other than those purchases or payments identified as recommended or required in official Ethona literature.
All LifeStylists shall safeguard and promote the good reputation of Ethona and its products. The marketing and promotion of Ethona, the Ethona opportunity, the Compensation Plan, and Ethona products must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.
To promote both the products and the tremendous opportunity Ethona offers, LifeStylists must use the Sales Tools produced by or approved by Ethona. The Company has carefully designed its products, product labels, Compensation Plan, and Sales Tools to
ensure that they are promoted in a fair and truthful manner, that they are substantiated, and that the materials comply with the legal requirements of federal and state laws.
Accordingly, LifeStylists may only advertise or promote their Ethona business using approved Sales Tools acquired through Ethona. No approval is necessary to use these approved Sales Tools. If a LifeStylist wishes to design his or her own online or offline Sales Tools of any kind, the proposed designs must be submitted to
the Ethona advertising department email@example.com for consideration and inclusion in the Ethona University. Unless the LifeStylist receives specific written approval from Ethona to use such Sales Tools, the request shall be deemed denied. Go
to the Ethona University tab in your Back-Office for guidelines and to access the library.
LifeStylists who receive authorization from Ethona to produce their own Sales Tools may not sell, lease, or charge a fee of any nature for such Sales Tools to any other Ethona LifeStylist. LifeStylists may make approved Sales Tools available to other LifeStylists free of charge if they wish, but may not charge other Ethona LifeStylists for the Sales Tools.
Approved Sales Tools will be posted in the Ethona University section of LifeStylists' Back-Offices and will be made available to all LifeStylists free of charge. The LifeStylist who submitted the Sales Tool to the Company waives all claims to remuneration for such use and grants Ethona an irrevocable license to use the Sales Tools as the Company deems appropriate. Ethona further reserves the right to rescind approval for any Sales Tools, and LifeStylists waive all claims for damages or remuneration arising from or relating to such rescission.
The name "Ethona" and other names as may be adopted by the Company are proprietary trade names, trademarks and service marks of Ethona. The Company grants LifeStylists a limited license to use its trademarks and trade names in promotional media for so long as the LifeStylist's Agreement is in effect. Upon termination of a LifeStylist's Agreement, his or her license shall immediately expire and the LifeStylist shall immediately discontinue all use of the Company's trademarks and trade names. Under no circumstances may a LifeStylist use any of Ethona's trademarks or trade names in any email address, website domain name, social media handle, social media name or address, or in any unapproved Sales Tools.
Ethona commonly puts on live and recorded events as well as webinars and telephone conference calls. During these events Company executives, LifeStylists, and guests appear and speak. The content of such events is copyrighted material that is owned exclusively by the Company. LifeStylists may not record any Company functions for any reason, whether such event is live, a webinar, via conference call, or delivered through any other medium. In addition, Company produced Sales Tools, videos, audios, podcasts, and printed material is also copyrighted as is any Sales Tools, videos, audios, podcasts, and/or printed materials provided to LifeStylists by any third party vendor that is approved by the Company. LifeStylists shall not copy any such materials for their personal or business use without the Company's or the applicable vendor's prior written approval.
As an independent LifeStylist, you may use the Ethona name in the following manner
Ethona Independent LifeStylist
Ethona Independent LifeStylist
LifeStylists may not use the name "Ethona" in any form in a team name, a tagline, an external website name, a personal website address or extension, in an e-mail address, as a personal name, or as a nickname. Additionally, a LifeStylist may only use the phrase Ethona Independent LifeStylist in telephone greetings or on an answering machine to clearly separate the LifeStylist's independent Ethona business from Ethona.
LifeStylists must not attempt to respond to media inquiries regarding Ethona, its products, or their independent Ethona business. All inquiries by any type of media must be immediately referred to Ethona's Customer Service Department. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.
Ethona does not permit LifeStylists 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 LifeStylist that promotes Ethona, the Ethona opportunity, or Ethona's products must comply with the following:
- There must be a functioning return email address to the sender.
- There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning
- The email must include the LifeStylist's physical mailing address.
- The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
- The use of deceptive subject lines and/or false header information is prohibited.
- All opt-out requests, whether received by email or regular mail, must be honored. If a LifeStylist receives an opt-out request from a recipient of an email, the LifeStylist must forward the opt-out request to the Company.
Ethona may periodically send commercial emails on behalf of LifeStylists. By entering into the LifeStylist Agreement, LifeStylist agrees that the Company may send such emails and that the LifeStylist's physical and email addresses will be included in such emails as outlined above. LifeStylists shall honor opt-out requests generated as a result of such emails sent by the Company.
Except as provided in this section, LifeStylists may not use or transmit unsolicited faxes in connection with their Ethona businesses. The term "unsolicited faxes" means the transmission via telephone facsimile or computer of any material or information advertising or promoting Ethona, its products, its compensation plan or any other aspect of the company which is transmitted to any person, except that these terms do not include a fax: (a) to any person with that person's prior express invitation or permission; or (b) to any person with whom the LifeStylist 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 LifeStylist and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products offered by such LifeStylist; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party.
LifeStylists may list themselves as an "Ethona Independent LifeStylist" in the white or yellow pages of the telephone directory, or with online directories, under their own name. No LifeStylist may place telephone or online directory display ads using Ethona's name or logo. LifeStylists may not answer the telephone by saying "Ethona", "Ethona Incorporated", or in any other manner that would lead the caller to believe that he or she has reached corporate offices of Ethona. If a LifeStylist wishes to post his or her name in a telephone or online directory, it must be listed in the following format:
Ethona Independent LifeStylist
LifeStylists are provided with a replicated website by Ethona, from which they can take orders, enroll new LifeStylists, and manage their Ethona businesses. LifeStylists may use only replicated websites provided by Ethona to promote their Ethona business, and may not create their own websites to directly or indirectly promote Ethona's products or the Ethona opportunity.
LifeStylists receive an Ethona Replicated Website subscription to facilitate the online buying experience for their customers and enrollments of new LifeStylists. LifeStylists 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.
LifeStylists 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-Ethona products, services or business opportunities. Specifically, a LifeStylist may not alter the look (placement, sizing etc.) or functionality of the following:
- The Ethona Logo
- The LifeStylist's Name
- Ethona Corporate Website Redirect Button
- Artwork, logos, or graphics
- Original text.
Ethona reserves the right to receive analytics and information regarding the usage of your website.
A LifeStylist may change the default ID for his or her Replicated Website and choose a uniquely identifiable website name, but this name must not:
- Be confused with other portions of the Ethona corporate website;
- Confuse a reasonable person into thinking they have landed on an Ethona corporate page;
- Be confused with any Ethona name;
- Contain any discourteous, misleading, or off-color words or phrases that may damage Ethona's image.
LifeStylists are not allowed to use or register "Ethona" or any of Ethona's trademarks, product names, or any derivatives, for any Internet domain name, email address, or online aliases. Additionally, a LifeStylist cannot use or register domain names,
email addresses, and/or online aliases that could cause confusion, or be misleading or deceptive, in that they cause individuals to believe or assume the communication is from, or is the property of Ethona.
If a LifeStylist violates this policy, the LifeStylist shall assign and transfer the domain name, email address, social media handle or name, or online alias to the Company immediately upon the Company's demand, and the LifeStylist shall be responsible for paying all fees and costs, including but not limited to attorney's fees and costs and transfer costs, associated with the assignment and transfer. This remedy is in addition to, and not in place of, other remedies and/or disciplinary measures that the Company may take pursuant to these Policies.
LifeStylists may not monetize their Replicated Website through affiliate programs, adSense or similar programs.
LifeStylists may not use online classifieds (including Craigslist) to list, sell or retail specific Ethona products or product bundles. LifeStylists may use online classifieds (including Craigslist) for informing the public about the Ethona business opportunity, provided Ethona-approved templates/images are used. These templates will identify the LifeStylist as an Ethona Independent LifeStylist. If a link or URL is provided, it must link to the LifeStylist's Replicated Website.
Ethona's products may not be listed on eBay or other online auctions, nor may LifeStylists enlist or knowingly allow a third party to sell Ethona products on eBay or other online auction.
LifeStylists may not list or sell Ethona products on any online retail store or ecommerce site. Nor may a LifeStylist enlist or knowingly allow a third party to sell Ethona products on any online retail store or ecommerce site.
LifeStylists may place banner advertisements or links on a third-party website provided the LifeStylist uses Ethona-approved templates and images and such website is not offensive to or disrespectful of any person or group of people. Whether or not the content of a third-party website is offensive to or disrespectful of any person or group of people shall be determined by the Company at its sole and absolute discretion. In general, a website will be deemed to be offensive or disrespectful if it contains any images, text or other content that is:
- Is sexually explicit, obscene, or pornographic;
- Is offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or otherwise);
- Is graphically violent, including any violent video game images;
- Is solicitous of any unlawful behavior;
- Engages in personal attacks on any individual, group, or entity; or
- Is in violation of any intellectual property rights of the Company or any third party.
All banner advertisements or links must link only to a LifeStylist's Replicated Website. LifeStylists 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 Ethona products or the Ethona opportunity.
When using banner advertisements or links to direct readers to your Replicated Website it must be evident (from a combination of the banner ad or link and the surrounding context, to a reasonable reader) that the link will be resolving to the site of an independent Ethona LifeStylist. Attempts to mislead web traffic into believing they are going to an Ethona corporate site, when in fact they land at a LifeStylist's site (Replicated Website) will not be allowed. The determination as to what is misleading or what constitutes a reasonable reader will be at Ethona's sole discretion.
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 LifeStylist makes on blogs, forums, guest books etc. must be unique, informative and relevant
LifeStylists may upload, submit or publish Ethona-related video, audio or photo content that they develop and create so long as it aligns with Ethona values, contributes to the Ethona community greater good and is in compliance with Ethona's Policies and Procedures. All submissions must clearly identify the submitter as an Independent Ethona LifeStylist in the content itself and in the content description tag, must comply with all copyright/legal requirements, and must state that the submitter is solely responsible for this content. LifeStylists may not upload, submit or publish any content (video, audio, presentations or any computer files) received from Ethona or captured at official Ethona events or in buildings owned or operated by Ethona without prior written permission.
Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to either the sponsoring LifeStylist's Replicated Website. The display URL must also be to the sponsoring LifeStylist's Replicated Website, and must not portray any URL that could lead the user to believe they are being directed to an Ethona Corporate site, or be inappropriate or misleading in any way.
Social Media may be used by LifeStylists to share information about the Ethona. However, LifeStylists who elect to use Social Media must adhere to the Policies and Procedures in all respects.
Social Media sites may not be used to sell or offer to sell specific Ethona products. Profiles a LifeStylist generates in any social community where Ethona is discussed or mentioned must clearly identify the LifeStylist as an Ethona Independent LifeStylist, and when a LifeStylist participates in those communities, LifeStylists must avoid inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. The determination of what is inappropriate is at Ethona's sole discretion, and offending LifeStylists will be subject to disciplinary action. Banner ads and images used on these sites must be current and must come from the Ethona approved library. If a link is provided, it must link to the posting LifeStylist's Replicated Website.
LifeStylists may not use blog spam, spamdexing or any other mass-replicated methods to leave blog comments. Comments LifeStylists create or leave must be useful, unique, relevant and specific to the blog's article.
LifeStylists are personally responsible for their postings and all other online activity that relates to Ethona. Therefore, even if a LifeStylist does not own or operate a blog or Social Media site, if a LifeStylist posts to any such site that relates to Ethona or which can be traced to Ethona, the LifeStylist is responsible for the posting. LifeStylists are also responsible for postings that appear on any blog or Social Media site that the LifeStylist owns, operates, or controls.
When posting to social media, a LifeStylist must disclose his or her full name and conspicuously identify himself or herself as an independent LifeStylist for Ethona. Anonymous postings or use of an alias is prohibited.
Online sales and/or enrollments may only be generated from a LifeStylist's Ethona replicated website. Likewise, LifeStylists shall not use any Social Media site to explain the Ethona Compensation Plan or any component of the Compensation Plan.
Postings that are false, misleading, or deceptive are prohibited. This includes, but is not limited to, false or deceptive postings relating to the Ethona income opportunity, Ethona's products, and/or your biographical information and credentials.
If a LifeStylist uses the trademarks, trade names, service marks, copyrights, or intellectual property of any third party in any posting, it is the LifeStylist's responsibility to ensure that he or she has received the proper license to use such intellectual property and pay the appropriate license fee. All third-party intellectual property must be properly referenced as the property of the third-party, and you must adhere to any restrictions and conditions that the owner of the intellectual property places on the use of its property.
LifeStylists must always respect the privacy of others in their postings. LifeStylists must not engage in gossip or advance rumors about any individual, company, or competitive products or services. LifeStylists may not list the names of other individuals or entities on their postings unless they have the written permission of the individual or entity that is the subject of their posting.
LifeStylists must ensure that their postings are truthful and accurate. This requires that a LifeStylist fact-check all materials that he or she posts online. LifeStylists should also carefully check their postings for spelling, punctuation, and grammatical errors. Use of offensive language is prohibited.
LifeStylists may not make any postings, or link to any postings or other material that:
- Is sexually explicit, obscene, or pornographic;
- Is offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or otherwise);
- Is graphically violent, including any violent video game images;
- Is solicitous of any unlawful behavior;
- Engages in personal attacks on any individual, group, or entity;
- Is in violation of any intellectual property rights of the Company or any third party.
LifeStylists should not converse with anyone who places a negative post against the LifeStylist, other independent LifeStylists, or Ethona. Report negative posts to the Company at firstname.lastname@example.org. Responding to such negative posts often simply fuels a discussion with someone carrying a grudge that does not hold themselves to the same high standards as Ethona, and therefore damages the reputation and goodwill of Ethona.
Because some social media sites are particularly robust, the distinction between a social media site and a website may not be clear-cut. Ethona therefore reserves the sole and exclusive right to classify certain social media sites as websites and require that LifeStylists using, or who wish to use, such sites adhere to the Company's policies relating to independent websites.
In addition to meeting all other requirements specified in these Policies, should a LifeStylist utilize any form of social media, including but not limited to Facebook, Instagram, Twitter, Linkedin, YouTube, or Pinterest, the LifeStylist agrees to each of the following:
- No product sales or enrollments may occur on any social media site. To generate sales, a social media site must link only to the LifeStylist's Ethona Replicated Website.
- Other than Pinterest and similar social media sites, any social media site that is directly or indirectly operated or controlled by a LifeStylist that is used to discuss or promote Ethona's products or the Ethona opportunity may not link to any website, social media site, or site of any other nature, other than the LifeStylist's Ethona replicated website.
- During the term of this Agreement and for a period of 12 calendar months thereafter, a LifeStylist may not use any social media site on which they discuss or promote, or have discussed or promoted, the Ethona business or Ethona's products to directly or indirectly solicit Ethona LifeStylists for another party plan, direct selling or multilevel or network marketing program (collectively, "direct selling"). In furtherance of this provision, a LifeStylist shall not take any action that may reasonably be foreseen to result in drawing an inquiry from other LifeStylists relating to the LifeStylist's other direct selling business activities. The provision in this bullet point does not apply to a LifeStylist's personally mentored LifeStylists. Violation of this provision shall constitute a violation of the Nonsolicitation Policy in Section 3.12.
- A LifeStylist may post or "pin" photographs of Ethona products on a social media site, but only photos that are provided by Ethona and downloaded from the LifeStylist's Back-Office may be used.
- If a LifeStylist creates a business profile page on any social media site that promotes or relates to Ethona, its products, or opportunity, the business profile page must relate exclusively to the LifeStylist's Ethona business and Ethona products. If the LifeStylist's Ethona business is cancelled for any reason or if the LifeStylist becomes inactive, the LifeStylist must deactivate the business profile page.
A corporation, limited liability company (LLC), partnership or trust (collectively referred to in this section as a "Business Entity") may apply to be an Ethona LifeStylist by submitting a LifeStylist Agreement along with a properly completed Business Entity Addendum. 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 Ethona, compliance with the Ethona Policies and Procedures, compliance with the Ethona LifeStylist Agreement, and all other obligations to Ethona.
To prevent the circumvention of Sections 3.25 (regarding transfers and assignments of an Ethona business) and 3.6 (regarding Mentorship Changes), if any Affiliated Party wants to terminate his or her relationship with the Business Entity or Ethona, the Affiliated Party must terminate his or her affiliation with the Business Entity, notify Ethona in writing that he or she has terminated his or her affiliation with the Business Entity, and must comply with the provisions of Section 3.25. In addition, the Affiliated Party foregoing his or her interest in the Business Entity may not participate in any other Ethona business for six consecutive calendar months in accordance with Section 3.6.3. If the Business Entity wishes to bring on any new Affiliated Party, it must adhere to the requirements of Section 3.25.
Each LifeStylist must immediately notify Ethona of all changes to type of business entity they utilize in operating their businesses and the addition or removal of business Affiliated Parties. LifeStylists may modify their existing LifeStylist Agreements (i.e., change Social Security number to Federal I.D. number, or change the form of ownership from an individual proprietorship to a business entity owned by the Distributor) by submitting a written request, a properly executed Distributor Application and Agreement, and appropriate supporting documentation.
There is a $25.00 fee for each change requested, which must be included with the written request and the completed LifeStylist Agreement. Ethona may, at its discretion, require notarized documents before implementing any changes to an Ethona business. Please allow thirty (30) days after the receipt of the request by Ethona for processing. Note that the modifications permitted within the scope of this Section do not include a change of mentorship. Changes of mentorship are addressed in Section 3.6, below.
Ethona strongly discourages changes in mentorship. Accordingly, the transfer of an Ethona business from one into another is rarely permitted. Requests for change of mentorship must be submitted in writing to the LifeStylist Services Department, and must include the reason for the transfer. Transfers will only be considered in the following circumstances:
In cases in which the new LifeStylist is mentored by someone other than the individual he or she was led to believe would be his or her Mentor, a LifeStylist may request that he or she be transferred to another organization with his or her entire Marketing Organization intact. Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made within three days from the date of enrollment. The LifeStylist requesting the change has the burden of proving that he or she was placed beneath the wrong Mentor. It is up to Ethona's discretion whether the requested change will be implemented.
The LifeStylist seeking to transfer submits a properly completed and fully executed Mentorship Transfer Form which includes the written approval of his or her immediate three (3) upline LifeStylists. Photocopied or facsimile signatures are not acceptable. All LifeStylist signatures must be notarized. The LifeStylist who requests the transfer must submit a fee of $50.00 for administrative charges and data processing. If the transferring LifeStylist also wants to move any of the LifeStylists in his or her Marketing Organization, each downline LifeStylist must also obtain a properly completed Mentorship Transfer Form and return it to Ethona with the $50.00 change fee (i.e., the transferring LifeStylist and each LifeStylist in his or her Marketing Organization multiplied by $50.00 is the cost to move a Ethona business.) Downline LifeStylists will not be moved with the transferring LifeStylist unless all of the requirements of this paragraph are met. Transferring LifeStylists must allow thirty (30) days after the receipt of the Mentorship Transfer Forms by Ethona for processing and verifying change requests.
A LifeStylist may legitimately change organizations by voluntarily canceling his or her Ethona business and remaining inactive (i.e., no purchases of Ethona products for resale, no sales of Ethona products, no mentoring, no attendance at any Ethona functions, no participation in any other form of LifeStylist activity, no operation of any other Ethona business, and no income from the Ethona business) for six (6) full calendar months. Following the six month period of inactivity, the former LifeStylist may reapply under a new Mentor, however, the former LifeStylist's Marketing Organization will remain in the original line of mentorship. Ethona will consider waiving the six month waiting period under exceptional circumstances. Such requests for waiver must be submitted to Ethona in writing.
In cases in which the appropriate mentorship change procedures have not been followed, and a downline organization has been developed in the second business developed by a LifeStylist, Ethona 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 Mentors is often extremely difficult. Therefore, LIFESTYLISTS WAIVE ANY AND ALL CLAIMS AGAINST ETHONA, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM ETHONA'S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW A LIFESTYLIST THAT HAS IMPROPERLY CHANGED LINES OF MENTORSHIP.
A LifeStylist is fully responsible for all of his or her verbal and written statements made regarding Ethona products and the Compensation Plan that are not expressly contained in official Ethona 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. LifeStylists agree to indemnify Ethona and Ethona's directors, officers, employees, and agents, and hold them harmless from all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Ethona as a result of the LifeStylist's unauthorized representations or actions. This provision shall survive the termination of the LifeStylist Agreement.
When presenting or discussing the Ethona Compensation Plan, LifeStylists must make it clear to prospective LifeStylists that financial success with Ethona requires commitment, effort, and sales skill. Conversely, LifeStylists 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 LifeStylists do not make these or any other representations that could lead a prospective LifeStylist to believe that he or she can be successful as an Ethona LifeStylist without commitment, effort, and sales skill.
Because Ethona LifeStylists do not have the data necessary to comply with the legal requirements for making income claims, a LifeStylist, when presenting or discussing the Ethona opportunity or Compensation Plan to a prospective LifeStylist, may not make income projections, income claims, or disclose his or her Ethona income (including, but not limited to, the showing of checks, copies of checks, bank statements, or tax records).
Ethona products may only be sold in their original packaging. LifeStylists may not repackage, re-label, or alter the labels on Ethona products.
LifeStylists may not sell Ethona products from a commercial outlet, nor may LifeStylists display or sell Ethona products or literature in any retail or service establishment. 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 Ethona products.
LifeStylists may display and/or sell Ethona products at trade shows and professional expositions. Before submitting a deposit to the event promoter, LifeStylists must contact the LifeStylist Services Department in writing for conditional approval, as Ethona's policy is to authorize only one Ethona business per event. Final approval will be granted to the first LifeStylist who submits an official advertisement of the event, a copy of the contract signed by both the LifeStylist 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 requests to participate in future events must again be submitted to the LifeStylist Services Department. Ethona 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 Ethona 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 Ethona wishes to portray.
The parties agree that any violation of these Conflicts of Interest policies shall cause Ethona irreparable harm for which there is no adequate remedy at law, and that such harm will outweigh any injury to LifeStylist should injunctive relief be granted to the Company. Ethona shall therefore be entitled to immediate and permanent equitable relief to prevent further violations of the policy.
Ethona LifeStylists are free to participate in other party plan, direct selling or multilevel or network marketing business ventures or marketing opportunities (collectively "direct selling"). However, during the term of this Agreement, LifeStylists may not directly or indirectly Recruit other Ethona LifeStylists for any other direct selling business.
Following the cancellation or transfer of a LifeStylist's Independent LifeStylist Agreement for any reason, and for a period of 12 calendar months thereafter, with the exception of a LifeStylist who was personally mentored by the former LifeStylist, a former LifeStylist may not Recruit any Ethona LifeStylist for another direct selling business.
LifeStylists and the Company recognize that because direct selling 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, LifeStylists and Ethona agree that this non-solicitation provision shall apply nationwide and to all international markets in which Ethona LifeStylists are located. This provision shall survive the termination or expiration of the Agreement.
The term "Recruit" means the actual or attempted mentorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Ethona LifeStylist to enroll or participate in another direct selling opportunity.
If a LifeStylist is engaged in other non-Ethona business or direct selling programs, it is the responsibility of the LifeStylist to ensure that his or her Ethona business is operated entirely separate and apart from all other businesses and/or direct selling programs. To this end, the LifeStylist must adhere to the following:
- LifeStylists must not sell, or attempt to sell, any competing non-Ethona programs, products or services that are sold through another direct selling program to Ethona LifeStylists. Any program, product or services in the same generic categories as Ethona products or services is deemed to be competing, regardless of differences in cost, quality or other distinguishing factors.
- LifeStylists shall not display Ethona promotional materials, sales aids, or products with or in the same location as any non-Ethona promotional materials, sales aids, products or services.
- LifeStylists shall not offer the Ethona opportunity or products to prospective or existing LifeStylists in conjunction with any non-Ethona program, opportunity, product or service.
- LifeStylists may not offer any non-Ethona opportunity, products, services or opportunity at any Ethona-related meeting, seminar, convention, webinar, teleconference, or other function.
Confidential information includes, but is not limited to, the identities of Ethona LifeStylists, contact information of Ethona LifeStylists, LifeStylists' Personal Volume, Team Volume, and/or Downline Volumes, and LifeStylist rank and/or achievement levels. Confidential Information is, or may be available, to LifeStylists in their respective Back-Offices. LifeStylist access to such Confidential Information is password protected, and such Confidential Information constitutes proprietary business trade secrets belonging to Ethona. Such Confidential Information is provided to LifeStylists in strictest confidence and is made available to LifeStylists for the sole purpose of assisting LifeStylists in working with their respective Marketing Organizations in the development of their Ethona business. Each LifeStylist and Ethona agree that, but for this agreement of confidentiality and nondisclosure, Ethona would not provide Confidential Information to the LifeStylist.
To protect Confidential Information, a LifeStylist shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
- Directly or indirectly disclose any Confidential Information to any third party;
- Directly or indirectly disclose the password or other access code to his or her Back-Office to any third party;
- Use any Confidential Information to compete with Ethona or for any purpose other than promoting his or her Ethona business; or
- Recruit or solicit any Ethona LifeStylist listed on any report or in the LifeStylist's Back-Office, or in any manner attempt to influence or induce any LifeStylist to alter their business relationship with Ethona.
Ethona does not condone LifeStylists specifically or consciously targeting the sales force of another direct sales company to sell Ethona products or to become LifeStylists for Ethona, nor does Ethona condone LifeStylists 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 a LifeStylist engage in such activity, the LifeStylist bears the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought against a LifeStylist by a third party alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, or in any way violated their contract with the third party, Ethona will not pay any of the LifeStylist's defense costs or legal fees, nor will Ethona indemnify the LifeStylist for any judgment, award, or settlement. Should the third party bring or threaten legal action against Ethona based on the conduct of the LifeStylist, the LifeStylist agrees that it shall indemnify Ethona for all judgments, settlements, payments of any other nature, litigation costs, and attorney's fees that Ethona incurs in relation to such legal action or threat of legal action.
If a LifeStylist has questions about or believes any errors have been made regarding commissions, bonuses, genealogy lists, enrollments, or charges, the LifeStylist must notify Ethona in writing within 60 days of the date of the purported error or incident in question. Ethona will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.
State and federal regulatory agencies and officials do not approve or endorse any party plan, direct selling, multilevel, or network marketing companies or programs. Therefore, LifeStylists shall not represent or imply that Ethona or its Compensation Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency.
Each LifeStylist is responsible for paying local, state and federal taxes on any income generated as an Independent LifeStylist. If a LifeStylist's Ethona business is tax exempt, the Federal tax identification number must be provided to Ethona. Every year, Ethona will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000.
Ethona cannot provide LifeStylists with any personal tax advice. LifeStylists should consult with their own tax accountant, tax attorney, or other tax professional.
LifeStylists are independent contractors. The agreement between Ethona and its LifeStylists does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the LifeStylist. LifeStylists shall not be treated as an employee for his or her services or for Federal or State tax purposes. All LifeStylists are responsible for paying local, state, and federal taxes due from all compensation earned as a LifeStylist of the Company. The LifeStylist has no authority (expressed or implied), to bind the Company to any obligation. Each LifeStylist shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the LifeStylist Agreement, these Policies and Procedures, and applicable laws.
You may wish to arrange insurance coverage for your business. Your homeowner's insurance policy does not cover business-related injuries, or the theft of or damage to inventory or business equipment. Contact your insurance agent to make certain that your business property is protected. This can often be accomplished with a simple "Business Pursuit" endorsement attached to your present homeowner's policy.
LifeStylists are authorized to sell Ethona products and enroll LifeStylists only in the countries in which Ethona is authorized to conduct business, as announced on the Company's official website or other official Company literature. Ethona products or Sales Tools may not be shipped into or sold in any foreign country that the Company has not announced is officially open for business. LifeStylists may sell, give, transfer, or distribute Ethona products or Sales Tools only in their home country. In addition, no LifeStylist may, in any unauthorized country: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential LifeStylists; or (c) conduct any other activity for the purpose of selling Ethona products, establishing a Marketing Organization, or promoting the Ethona opportunity.
LifeStylists 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 LifeStylist to buy more products than they can reasonably use or sell to customers in a month. In addition, bonus buying is strictly prohibited. Bonus buying includes any mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona fide product purchases by end user consumers. Bonus buying includes, but is not limited to, purchasing products through a straw man or other artifice.
LifeStylists 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 LifeStylists because of the nature of their business. However, LifeStylists must obey those laws that do apply to them. If a city or county official tells a LifeStylist that an ordinance applies to him or her, the LifeStylist shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department of Ethona.
A LifeStylist may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Ethona business. No individual may have, operate or receive compensation from more than one Ethona business. Individuals of the same Household may maintain, own, and operate their own Ethona Businesses.
If any member of a LifeStylist's immediate household engages in any activity which, if performed by the LifeStylist, would violate any provision of the Agreement, such activity will be deemed a violation by the LifeStylist and Ethona may take disciplinary action pursuant to these Policies and Procedures against the LifeStylist. Similarly, if any partner, shareholder, member, or other individual ownership or management capacity (collectively "Affiliated Individual) in a corporation, partnership, LLC, trust or other entity (collectively "Business Entity") violates the Agreement, such action(s) will be deemed a violation by the Business Entity and each Affiliated Individual, and Ethona may take disciplinary action jointly and severally against the Business Entity and/or each Affiliated Individual.
Any request from a LifeStylist for copies of invoices, applications, downline activity reports, or other records will require a fee of $1.50 per page per copy ($2.50 per page for non-U.S. residents). This fee covers the expense of mailing and time required to research files and make copies of the records.
When a vacancy occurs in a Downline due to the termination of a LifeStylist's LifeStylist Agreement, the Downline of the terminated LifeStylist may be compressed up to the terminated LifeStylist's Mentor as provided herein.
When a vacancy occurs in a Downline due to the termination of a LifeStylist at the Title of Manager or lower, each LifeStylist in the first level immediately below the terminated LifeStylist on the date of the cancellation will be moved to the first level ("front line") of the terminated LifeStylist's Mentor. For example, if A mentors B, and B mentors C1, C2, and C3, if B terminates her business, C1, C2, and C3 will compress up to A and become part of A's first level.
If the terminated LifeStylist was paid-as a Director or higher in each of the four calendar months immediately preceding the date of the termination (whether voluntarily or involuntarily), the former LifeStylist's Downline will be compressed (as described above) only under one of the following conditions:
- If the former LifeStylist's Mentor has been paid-as a Director or higher at least once in the four full calendar months preceding the termination date, then the Downline will immediately be compressed as described above.
- If the Mentor has not been paid-as a Director or higher at least once in the four full calendar months preceding the termination date, then the Mentor will be given the following six calendar months to be paid-as a Director or higher at least twice in the said six month period. If the Mentor promotes to Director or higher in the last month of the six month period, then the Mentor will be given the following period to again qualify as a Director or higher (to meet the 2 months of being paid-as Director or higher).
If the Mentor qualifies under one of the above conditions, then the Downline of the canceled LifeStylist will be compressed up upon the completion of the qualifications. If the Mentor does not qualify under these conditions, then the position of the canceled LifeStylist will remain permanently vacant.
Although an Ethona business is a privately owned and independently operated business, the sale, transfer or assignment of an Ethona business, and the sale, transfer, or assignment of an interest in a Business Entity that owns or operates an Ethona business, is subject to certain limitations. If a LifeStylist wishes to sell his or her Ethona business, or interest in a Business Entity that owns or operates an Ethona business, the following criteria must be met:
- The selling LifeStylist must offer Ethona the right of first refusal to purchase the business on the same terms as agreed upon with a third-party buyer. Ethona shall have fifteen days from the date of receipt of the written offer from the seller to exercise its right of first refusal.
- The buyer or transferee must become a qualified Ethona LifeStylist. If the buyer is an active Ethona LifeStylist, he or she must first terminate his or her Ethona business and wait six calendar months before acquiring any interest in a different Ethona business.
- Before the sale, transfer or assignment can be finalized and approved by Ethona, any debt obligations the selling party has with Ethona must be satisfied.
- The selling party must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer or assign an Ethona business.
Prior to selling an independent Ethona business or Business Entity interest, the selling LifeStylist must notify Ethona's Compliance Department in writing and advise of his or her intent to sell his or her Ethona business or Business Entity interest. The selling LifeStylist must also receive written approval from the Compliance Department before proceeding with the sale. No changes in line of mentorship can result from the sale or transfer of an Ethona business.
Ethona LifeStylists sometimes operate their Ethona businesses as husband-wife partnerships, regular partnerships, LLCs, corporations, trusts, or other Business Entities. At such time as a marriage may end in divorce or a corporation, LLC, partnership, trust or other Business Entity may dissolve, 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 mentorship.
During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
- One of the parties may, with consent of the other(s), operate the Ethona business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize Ethona to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.
- The parties may continue to operate the Ethona business jointly on a "business-as-usual" basis, whereupon all compensation paid by Ethona 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 Ethona split commission and bonus payments between divorcing spouses or members of dissolving entities. Ethona will recognize only one Marketing Organization and will issue only one commission payment per Ethona business per commission cycle. Commission checks shall always be issued to the same individual or entity. In the event that 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 LifeStylist Agreement shall be involuntarily canceled.
If a former spouse has completely relinquished all rights in the original Ethona business pursuant to a divorce, he or she is thereafter free to enroll under any Mentor of his or her 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 LifeStylist. In either case, the former spouse or business affiliate shall have no rights to any LifeStylists in their former Marketing Organization or to any former customer. They must develop the new business in the same manner as would any other new LifeStylist.
When mentoring a new LifeStylist through the online enrollment process, the Mentor 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, Ethona's Policies and Procedures, and the Ethona Compensation Plan. The Mentor may not fill out the online application and agreement on behalf of the applicant and agree to these materials on behalf of the applicant.
Upon the death or incapacitation of a LifeStylist, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, a LifeStylist should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever an Ethona business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased LifeStylist's Marketing Organization provided the following qualifications are met. The successor(s) must:
- Execute a LifeStylist Agreement;
- Comply with terms and provisions of the Agreement; and
- Meet all of the qualifications for the deceased LifeStylist's status.
The devisee(s) must provide Ethona with an "address of record" to which all bonus and commission checks will be sent. If the business is bequeathed to joint devisees, they must form a business entity and acquire a Federal Taxpayer Identification Number. Ethona will issue all bonus and commission payments and one 1099 to the business entity.
To effect a testamentary transfer of an Ethona business, the executor of the estate must provide the following to Ethona: (1) an original death certificate; (2) certified letters testamentary or a letter of administration appointing an executor; and (3) written instructions from the authorized executor to Ethona specifying to whom the business and income should be transferred.
To effectuate a transfer of an Ethona business because of incapacity, the successor must provide the following to Ethona: (1) a copy of the appointment of the trustee; (2) written instructions from the trustee instructing how the proceeds from the business should be paid; and (3) a completed LifeStylist Agreement executed by the trustee.
The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have "do not call" regulations as part of their telemarketing laws. Although Ethona does not consider LifeStylists 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.
Therefore, LifeStylists must not engage in telemarketing in the operation of their Ethona businesses. The term "telemarketing" means the placing of one or more telephone calls to an individual or entity to induce the purchase of an Ethona product, or to recruit them for the Ethona opportunity. "Cold calls" made to prospective customers or LifeStylists that promote either Ethona's products or the Ethona opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or LifeStylist (a "prospect") is permissible under the following situations:
- If the LifeStylist has an established business relationship with the prospect. An "established business relationship" is a relationship between a LifeStylist and a prospect based on the prospect's purchase, rental, or lease of goods or services from the LifeStylist, or a financial transaction between the prospect and the LifeStylist, within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect's purchase of a product or service.
- In response to a prospect's personal inquiry or application regarding a product or service offered by the LifeStylist, within the three (3) months immediately preceding the date of such a call.
- If the LifeStylist receives written and signed permission from the prospect authorizing the LifeStylist to call. The authorization must specify the telephone number(s) which the LifeStylist is authorized to call.
- If the prospect is a family member, a personal friend, or an acquaintance. An "acquaintance" is someone with whom a LifeStylist has at least a recent first-hand relationship within the preceding three months. Bear in mind, however, that if a LifeStylist engages in "card collecting" with everyone the LifeStylist meets and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if a LifeStylist engages in calling "acquaintances," the LifeStylist must make such calls on an occasional basis only and not make this a routine practice.
LifeStylists shall not use automatic telephone dialing systems or software relative to the operation of their Ethona businesses. LifeStylists 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 Ethona products or opportunity.
Ethona makes online back offices available to its LifeStylists. Back offices provide LifeStylists access to confidential and proprietary information that may be used solely and exclusively to promote the development of a LifeStylist's Ethona business and to increase sales of Ethona products. However, access to a back office is a privilege, and not a right. Ethona reserves the right to deny LifeStylists' access to the back office at its sole discretion.
To ensure timely delivery of products, support materials, commissions, and tax documents, it is important that Ethona's files are current. Street addresses are required for shipping. LifeStylists planning to change any of their contact information or move must update their contact information via the Back Office function of the LifeStylist's replicated Ethona website. To guarantee proper delivery, two weeks advance notice must be provided to Ethona on all changes.
Any LifeStylist who mentors another LifeStylist into Ethona must perform a bona fide assistance and training function to ensure that his or her downline is properly operating his or her Ethona business. LifeStylists must have ongoing contact and communication with the LifeStylists in their Marketing Organizations. Examples of such contact and communication may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline LifeStylists to Ethona meetings, training sessions, and other functions. Upline LifeStylists are also responsible to motivate and train new LifeStylists in Ethona product knowledge, effective sales techniques, the Ethona Compensation Plan, and compliance with Company Policies and Procedures. Communication with and the training of downline LifeStylists must not, however, violate Sections 3.1 and/or 3.2 (regarding the development of LifeStylist-produced Sales Tools and promotional materials).
LifeStylists should monitor the LifeStylists in their Marketing Organizations to guard against downline LifeStylists making improper product or business claims, or engaging in any illegal or inappropriate conduct.
As LifeStylists progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the Ethona program. They will be called upon to share this knowledge with lesser experienced LifeStylists in their Marketing Organization.
Regardless of their level of achievement, LifeStylists have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers.
Ethona values constructive criticisms and comments from LifeStylists. All such comments should be submitted in writing to the Customer Service Department. While Ethona welcomes constructive input, negative comments and remarks made in the field by LifeStylists about the Company, its products, or Compensation Plan serve no purpose other than to sour the enthusiasm of other Ethona LifeStylists. For this reason, and to set the proper example for their Marketing Organizations, LifeStylists must not disparage, demean, or make negative remarks about Ethona, other Ethona LifeStylists, the Compensation plan, Ethona products, or Ethona's directors, officers, or employees. Complaints and concerns about Ethona should be directed to the Customer Service Department. Disputes or disagreements between any LifeStylist and Ethona shall be resolved through the dispute resolution process set forth in the Agreement, and the Company and LifeStylists agree specifically not to demean, discredit, disparage, or criticize one another on the internet or any other public forum.
LifeStylists must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are mentoring to become LifeStylists before the applicant signs a LifeStylist Agreement, or ensure that they have online access to these materials.
The Ethona Compensation Plan is based on the sale of Ethona products to end consumers. LifeStylists must fulfill personal and downline organization retail sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement. LifeStylists must satisfy the Personal Volume, Team Volume, and Downline Volume requirements to fulfill the requirements for their rank as specified in the Ethona Compensation Plan. "Personal Volume" includes purchases made by the LifeStylist and purchases made by the LifeStylist's personal customers. Team Volume shall include the total Personal Volume of all LifeStylists in his or her first three (3) Levels, including the LifeStylist's Personal Activity Volume. A LifeStylist's Downline Volume includes the LifeStylist's Personal Volume as well as the Personal Volumes of ALL LifeStylists in her downline, regardless of Rank.
There are no exclusive territories granted to anyone.
All LifeStylists must provide their customers with two copies of an official Ethona sales receipt at the time of the sale. These receipts set forth the Customer Satisfaction Guarantee as well as any consumer protection rights afforded by federal or state law. LifeStylists must maintain all retail sales receipts for a period of two years and furnish them to Ethona at the Company's request. Customers who purchase from a LifeStylist's Replicated Website need not be provided with a sales receipt as the receipt will automatically be sent by the Company via email at the time the order is placed.
Remember that customers must receive two copies of the sales receipt. In addition, LifeStylists must orally inform the buyer of his or her cancellation rights.
As a LifeStylist, you will receive Personal Information from and about prospective LifeStylists, customers and other individuals. Keeping their Personal Information secure not only helps to ensure your compliance with the law, but it also helps you to maintain current customers' and potential customers' trust, which is an important factor in your success. Personal Information is information that identifies, or permits you to contact, an individual, financial information, and sales data. It includes, but is not limited to, a customer's, potential customer's, LifeStylist or prospective LifeStylist's or other individual's name, address, email address, phone number, credit card information, social security number, purchase history, and other information.
Customers want to know why you are collecting their Personal Information and what you plan to do with it, so tell them what you are collecting, why and with whom you are going to share it. Tell them this before or at the time that you collect their Personal Information, and then be sure that you use and share Personal Information only in the ways you promised.
Collect only the Personal Information that you really need. Review the forms that you use to collect Personal Information, and revise them to remove fields for information you do not need. Less is more. For example, don't collect a credit or debit card number unless your customer actually makes a purchase.
Give customers a choice about how you communicate with them. For instance, find out if a customer wants to receive promotions and other marketing messages from you and, if so, whether he or she would prefer to receive them by email, phone or another method of communication. Respect the customer's wishes: if, for example, a customer tells you that he or she doesn't want to receive emails, then find another way to communicate with him or her.
Keep the customers' Personal Information up-to-date. Remind them to let you know if their Personal Information changes. Keeping your contacts current helps you to stay in touch with them.
Your Back-Office may have information relating to your downline LifeStylist's confidential information. You must not show this information to anyone, nor may you share your Back-Office access with anyone.
Don't share a customers' Personal Information unless you have a real business reason to do so-and then share only what is necessary, and no other information, and make sure that the other person agrees to use the Personal Information only in the ways you have agreed.
A customer's information is a valuable asset. Don't communicate it to the general public or to anyone who doesn't have a legitimate need for it. Protect it from unauthorized access or disclosure.
When you no longer need a customer's Personal Information, stop using it. Dispose of it in a way that makes it unreadable, such as by shredding paper documents.
If sensitive Personal Information such as credit or debit card numbers, social security or Tax ID numbers, fall into the wrong hands, customers could become the victim of fraud or identity theft. Consider these steps to help reduce that risk:
- Pay attention to your surroundings and use good judgment whenever you need to discuss or transmit sensitive Personal Information;
- Do not share (or ask a customer to share) sensitive Personal Information, including payment information, in an unsecure way, such as by email;
- Keep sensitive Personal Information in a secure place, such as a locked drawer. Do not leave it lying around where someone could see or take it;
- Use similar safeguards if you keep sensitive Personal Information on your computer. For example, use passwords that are not easy to guess, install virus protections, and password protect documents that contain sensitive Personal Information;
- Avoid storing Personal Information on your laptop or another portable device that could be lost or stolen, unless the device is encrypted; and
- Unless you have a legitimate business need, do not keep sensitive Personal Information. Keeping it for longer than you need it creates unnecessary risk.
A LifeStylist must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as a LifeStylist complies with the terms of the Agreement, Ethona shall pay bonuses and commissions to such LifeStylist in accordance with the Compensation Plan. The minimum amount for which Ethona will issue a bonus and commission payment is $10. If a LifeStylist's bonuses and commissions do not equal or exceed $10, the Company will accrue the commissions and bonuses until they total $10. Payment will be issued once $10 has been accrued.
Notwithstanding the foregoing, all commissions, bonuses or other compensation owed a LifeStylist, regardless of the amount accrued, will be paid at the last pay period of the year or upon the termination of a LifeStylist's LifeStylist Agreement.
LifeStylists receive bonuses and commissions based on the actual sales of products to end consumers. When a product is returned to Ethona for a refund, or the buyer institutes a credit card chargeback, the following may occur at the Company's discretion: (1) the bonuses and commissions that are attributable to the 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 all LifeStylists who earned bonuses or commissions on the returned product; or (2) the bonuses and commissions attributable to the refunded product may be deducted from any refunds or credits to the LifeStylist(s) who received the bonuses or commissions on the sales of the refunded product.
Ethona reserves the right to withhold or reduce any LifeStylist's compensation as it deems necessary to comply with any garnishment or court order directing Ethona to retain, hold, or redirect such compensation to a third party.
All information provided by Ethona in downline activity or downline genealogy reports, including but not limited to Personal Volume and Team Volume (or any part thereof), and Downline Volume is believed to be accurate and reliable. Nevertheless, due to various factors including but not limited to the inherent possibility of human, digital, and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned products; credit card and electronic check charge-backs; the information is not guaranteed by Ethona or any persons creating or transmitting the information.
ALL PERSONAL VOLUME, TEAM VOLUME, AND DOWNLINE VOLUME INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. 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, ETHONA AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY LIFESTYLIST OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL VOLUME, TEAM VOLUME, AND/OR DOWNLINE 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 ETHONA 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, ETHONA 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 Ethona's 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 use of and access to Ethona's reporting services and your reliance upon the information.
Federal and state law requires that LifeStylists notify their customers that they have three business days (5 business days for Alaska residents and 15 days for residents of North Dakota age 65 or older) within which to cancel their purchase and receive a full refund upon return of the products in substantially as good condition as when they were delivered. Saturday is a business day, Sundays and legal holidays are not business days. LifeStylists shall verbally inform their customers of this right, shall provide their customers with TWO copies of a retail receipt at the time of the sale, and shall point out this cancellation right stated on the receipt.
Customers and LifeStylists may return products to the Company within 30 days of purchase for a full refund (less shipping charges) provided the items are brand new, unwashed, returned in original packaging, and have all tags and SKUs still attached. Hostess rewards, discontinued items, and items purchased with credit are not eligible for return under this policy.
With respect to LifeStylists, this policy applies only to products purchased by a LifeStylist for personal use. It does not apply to starter kits, samples, or add-on kits. Those items may only be returned for a refund pursuant to Section 7.2 below. If a LifeStylist returns more than $500 worth of product for a refund under this policy in any 12 consecutive month period and the Company determines that such returns were made in order to manipulate the compensation plan or that the products were initially purchased in order to qualify for bonuses or commissions, the Company may, at its discretion, terminate the LifeStylist Agreement. In that event, the refund will be processed as a cancellation repurchase under Section 7.2.
Customers and LifeStylists may return products to the Company for exchange within 60 days of purchase provided the items are brand new, unwashed, returned in original packaging, and have all tags and SKUs still attached. (As with the return policy above, this policy only applies to LifeStylist purchases of products for personal use-it does not apply to starter kits, samples, or add-on kits.) If the exchange item is higher in value than the returned item, the difference in price must be paid at the time of exchange. If the exchange item is of lesser value than the returned item, credit on account will be issued to the customer or LifeStylist. Note that Hostess reward items, discontinued items, and items purchased with credit are eligible for exchange for an item of equal or lesser value and no credit on account will be issued. The customer or LifeStylist returning an item for exchange must pay all shipping costs to return the item. Company is responsible for the payment of shipping costs for the exchange item back to customer.
Products damaged in shipping or incorrect products may be returned for exchange only after the purchaser has contacted the Customer Service Department.
Upon cancellation of a LifeStylist's Agreement, the LifeStylist may return Fit Kits, merchandise, and Sales Tools that he or she personally purchased from Ethona (purchases from other LifeStylists or third parties are not subject to refund) that are in Resalable condition (see Definition of "Resalable" below) so long as the products and/or Sales Tools were purchased from Ethona within one year prior to the date of cancellation.
Upon receipt of a Resalable Fit Kit and/or Resalable merchandise and Sales Tools, the LifeStylist will be reimbursed 90% of the net cost of the original purchase price(s). Shipping and handling charges incurred by a LifeStylist when the Fit Kit, merchandise or Sales Tools were purchased, and return shipping fees will be not be refunded. If the purchases were made through a credit card, the refund will be credited back to the same account. If a LifeStylist was paid a bonus or commission based on a product(s) that he or she purchased, and such product(s) is subsequently returned for a refund, the bonus and/or commission that was paid to the LifeStylist based on that product purchase will be deducted from the amount of the refund.
Merchandise and Sales Tools 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; and 3) they are returned to Ethona within one year from the date of purchase (the one year limitation shall not apply to LifeStylists who are residents of Maryland, Massachusetts, Wyoming and Puerto Rico). Any merchandise that is clearly identified at the time of sale as a "closeout", nonreturnable, discontinued, or as a seasonal item, shall not be Resalable. Back-Office and Replicated Website fees are refundable under this policy only to the extent that they have not been used. Any refund of such fees shall be pro-rated based on the number of un-used months in the annual subscription.
A Montana resident may cancel his or her LifeStylist Agreement within 15 days from the date of enrollment, and may return his or her Fit Kit for a full refund within such time period.
The following procedures apply to all returns for refund, repurchase, or exchange:
- All merchandise must be returned by the LifeStylist or customer who purchased it directly from Ethona.
- All products to be returned must have a Return Merchandise Authorization (RMA) Number which is obtained by calling the LifeStylist Services Department. This RMA Number must be written on each carton returned.
- The return is accompanied by the original packing slip and a completed and signed Product Return Form.
- Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement, and the best and most economical means of shipping is suggested. All returns must be shipped to Ethona shipping pre-paid. Ethona does not accept shipping-collect packages. The risk of loss in shipping for returned product shall be on the LifeStylist. If returned product is not received by the Company's Distribution Center, it is the responsibility of the LifeStylist to trace the shipment.
Products that are damaged by misuse or abuse may not be returned for refund, repurchase or exchange. Shipping costs are not refundable. No refund or replacement of product will be made if the conditions of these rules are not met.
Violation of the Agreement, these Policies and Procedures, violation of any common law duty, 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 LifeStylist that, in the sole discretion of the Company may damage its reputation or goodwill (such damaging act or omission need not be related to the LifeStylist's Ethona business), may result, at Ethona's discretion, in one or more of the following corrective measures:
- Issuance of a written warning or admonition;
- Requiring the LifeStylist to take immediate corrective measures;
- Ethona may withhold from a LifeStylist all or part of the LifeStylist's bonuses and commissions during the period that Ethona is investigating any conduct allegedly in violation of the Agreement. If a LifeStylist's business is canceled for disciplinary reasons, the LifeStylist will not be entitled to recover any commissions withheld during the investigation period;
- Suspension of the individual's LifeStylist Agreement and independent Ethona business for one or more pay periods (without pay);
- Involuntary termination of the offender's LifeStylist Agreement;
- Suspension and/or termination of the offending LifeStylist's Ethona website or website access; or
- Any other measure expressly allowed within any provision of the Agreement or which Ethona deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the LifeStylist's policy violation or contractual breach.
In situations deemed appropriate by Ethona, the Company may institute legal proceedings for monetary and/or equitable relief.
When a LifeStylist has a grievance or complaint with another LifeStylist regarding any practice or conduct in relationship to their respective Ethona businesses, the complaining LifeStylist should first report the problem to his or her Mentor who should review the matter and try to resolve it with the other party's upline leadership. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the LifeStylist Services Department at the Company. The LifeStylist Services Department will review the facts and resolve it.
For claims and disputes seeking $10,000.00 or more that arise from or relate to the Agreement, prior to filing arbitration as set forth below, the parties shall meet in good faith and attempt to resolve such dispute through confidential non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. If the parties cannot agree on a mediator, the complaining party shall request a mediator be appointed by the American Arbitration Association ("AAA"). 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 shared fees and costs at least 10 days in advance of the mediation. Each party shall pay its own attorney's fees, costs, and individual expenses. Mediation shall be held in Orange County, California, and shall last no more than two business days.
Except as otherwise provided in the Agreement, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled through confidential arbitration. The Parties waive all rights to trial by jury or to any court. This arbitration provision applies to claims that were not successfully resolved through the foregoing mediation process as well as claims for less than $10,000.00 not subject to the mediation requirement. The arbitration shall be filed with, and administered by, the American Arbitration Association ("AAA") in accordance with the AAA's Commercial Arbitration Rules and Mediation Procedures which are available on the AAA's website at www.adr.org. Copies of the AAA's Commercial Arbitration Rules and Mediation Procedures will also be emailed to LifeStylists upon request to Ethona's Customer Service Department. Notwithstanding the rules of the AAA, unless otherwise stipulated by the parties, the following shall apply to all Arbitration actions:
- The Federal Rules of Evidence shall apply in all cases;
- The parties shall be entitled to all discovery rights permitted by the Federal Rules of Civil Procedure;
- The parties shall be entitled to bring motions under Rules 12 and/or 56 of the Federal Rules of Civil Procedure;
- The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of residence of the LifeStylist, without regard to principles of conflicts of laws, shall govern all other matters relating to or arising from the Agreement.
- The arbitration hearing shall commence no later than 365 days from the date on which the arbitrator is appointed, and shall last no more than five business days;
- The parties shall be allotted equal time to present their respective cases; and
- The arbitration shall be brought on an individual basis and not as part of a class or consolidated action.
All arbitration proceedings shall be held in Orange County, California. There shall be one arbitrator selected from the panel that the AAA provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court to which the parties have consented to jurisdiction as set forth in the Agreement. This agreement to arbitrate shall survive the cancellation or termination of the Agreement.
The parties and the arbitrator shall maintain the confidentiality of the arbitration proceedings and shall not disclose to third parties:
- The substance of, or basis for, the controversy, dispute, or claim;
- The substance or content of any settlement offer or settlement discussions or offers associated with the dispute;
- The pleadings, or the content of any pleadings, or exhibits thereto, filed in any arbitration proceeding;
- The content of any testimony or other evidence presented at an arbitration hearing or obtained through discovery in arbitration;
- The terms or amount of any arbitration award; or
- The rulings of the arbitrator on the procedural and/or substantive issues involved in the case.
Notwithstanding the foregoing, nothing in the Agreement shall prevent either party from applying to and obtaining from any court to which the parties have consented to jurisdiction as set forth in the Agreement a temporary restraining order, preliminary or permanent injunction, or other equitable relief to safeguard and protect its intellectual property rights, trade secrets, and/or confidential information, including but not limited to enforcement of its rights under the Nonsolicitation provisions of the Agreement.
Any violation of the confidentiality requirements of these this arbitration provision by a party, his/her counsel, or an agent of a party, shall cause irreparable harm to the non-disclosing party. Damages to the non-disclosing party shall be very real, but shall be difficult to quantify. Therefore, if a party, his/her counsel, or an agent of the party violates the non-disclosure provisions of these Policies, or files an action in any public forum (except an action for equitable relief as is permitted in these Policies), the non-disclosing party shall be entitled to liquidated damages in the sum of $25,000.00 for each violation. The non-disclosing party shall also be entitled to a rebuttable presumption that the disclosure was done with malice and with the intention to harm the reputation and business of the non-disclosing party, and the non-disclosing party may petition the Arbitrator for exemplary damages for the misconduct of the disclosing party. Notwithstanding the foregoing, it shall not be a violation of the confidentiality provisions of this Arbitration policy for a party to show evidentiary documents and/or materials to bona fide witnesses to the case, or to discuss claims and facts involved in the case, with bona fide witnesses, for purposes of developing evidence and testimony for the case or for purposes of rebutting the claims and allegations of a party.
Any action brought by a LifeStylist shall be brought on an individual basis, and not on behalf of a class or on a consolidated basis. LifeStylists waive all rights to bring an action against Ethona, its officers, owners, directors, employees and agents as a class or consolidated action.
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in the State or Federal court located in the county and state in which the LifeStylist resided at the time at which the alleged cause or causes of action first arose. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the state in which the LifeStylist resided at the time at which the alleged cause or causes of action first arose shall govern all other matters relating to or arising from the Agreement.
In any action arising from or relating to the Agreement, the parties waive all claims for incidental and/or consequential damages, even if the other party has been apprised of the likelihood of such damage. The parties further waive all claims to exemplary and punitive damages. Notwithstanding the foregoing, this Damage Limitation shall not apply to claims alleging the breach of the nonsolicitation or confidentiality provisions contained in these Policies.
LifeStylists agree to indemnify Ethona for any and all costs, expenses, consumer reimbursements, fines, sanctions, damages, settlements or payments of any other nature that Ethona incurs resulting from or relating to any act or omission by LifeStylist that is illegal, fraudulent, deceptive, negligent, unethical, or in violation of the Agreement. Ethona may elect to exercise its indemnification rights through withholding any compensation due the LifeStylist. This right of setoff shall not constitute Ethona's exclusive means of recovering or collecting funds due Ethona pursuant to its right to indemnification.
In any case which arises from or relates to the wrongful termination of LifeStylist's Agreement and/or independent Ethona business, the parties agree that damages will be extremely difficult to ascertain. Therefore, the parties stipulate that if the involuntary termination of a LifeStylist's Agreement and/or loss of their independent business held to be wrongful under any theory of law, LifeStylist's sole remedy shall be liquidated damages calculated as follows:
- For LifeStylists at the "Paid As" rank LifeStylist through Team Leader, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to Ethona's Compensation Plan in the six (6) months immediately preceding the termination.
- For LifeStylists at the "Paid As" rank Senior Team Leader through Manager, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to Ethona's Compensation Plan in the twelve (12) months immediately preceding the termination.
- or LifeStylists at the "Paid As" rank Director through National Director, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to Ethona's Compensation Plan in the eighteen (18) months immediately preceding the termination.
Gross compensation shall include commissions and bonuses earned by the LifeStylist pursuant to Ethona's Compensation Plan as well as retail profits earned by LifeStylist for the sale of Ethona merchandise. However, retail profits must be substantiated by providing the Company with true and accurate copies of fully and properly completed retail receipts provided by LifeStylist to customers at the time of the sale.
The Parties agree that the foregoing liquidated damage schedule is fair and reasonable.
A LifeStylist's "Paid As" rank is the rank or title at which they actually qualified to earn compensation under the Ethona Compensation Plan during a pay-period. For purposes of this Policy, the relevant pay-period to determine a LifeStylist's "Paid As" rank is the pay-period during which the LifeStylist's business is placed on suspension or terminated, whichever occurs first. The "Paid As" rank differs from the "Title Rank," which is the highest title or rank that a LifeStylist has ever achieved under the Ethona Compensation Plan.
All checks returned by a LifeStylist's bank for insufficient funds will be re-submitted for payment. A $35.00 returned check fee will be charged to the account of the LifeStylist. After receiving a returned check from a customer or a LifeStylist, all future orders must be paid by Credit Card, money order or cashier's check. Any outstanding balance owed to Ethona by a LifeStylist for NSF checks and returned check fees will be withheld from subsequent bonus and commission checks.
Ethona is required to charge sales taxes on all purchases made by LifeStylists, and remit the taxes charged to the respective states. Accordingly, Ethona will collect and remit sales taxes on behalf of LifeStylists, based on the suggested retail price of the products, according to applicable tax rates in the state or province to which the shipment is destined. If a LifeStylist has submitted, and Ethona 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 LifeStylist. Exemption from the payment of sales tax is applicable only to orders that 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 Ethona is not retroactive.
Goods are normally shipped within 3 - 5 business days from the date on which the order is placed.
So long as a LifeStylist remains active and complies with the terms of the LifeStylist Agreement and these Policies and Procedures, Ethona shall pay commissions to such LifeStylist in accordance with the Compensation Plan. A LifeStylist's bonuses and commissions constitute the entire consideration for the LifeStylist's efforts in generating sales and all activities related to generating sales (including building a Marketing Organization). Following a LifeStylist's non-renewal of his or her LifeStylist Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of his or her LifeStylist Agreement (all of these methods are collectively referred to as "cancellation"), the former LifeStylist shall have no right, title, claim or interest to the Marketing Organization which he or she operated, or any commission or bonus from the sales generated by the organization. A LifeStylist whose business is cancelled will lose all rights as a LifeStylist. This includes the right to sell Ethona products and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the LifeStylist's former Marketing Organization. In the event of cancellation, LifeStylists 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 his or her former Marketing Organization.
Following a LifeStylist's cancellation of his or her LifeStylist Agreement, the former LifeStylist shall not hold himself or herself out as an Ethona LifeStylist and shall not have the right to sell Ethona products. A LifeStylist whose LifeStylist Agreement is canceled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
If a LifeStylist fails to personally generate at least 900 PV for 12 consecutive months, his or her LifeStylist Agreement shall be canceled for inactivity.
A LifeStylist shall be exempt from meeting the above activity requirements for a period of four (4) months following the birth or adoption of a child. Appropriate documentation must be provided to the Company upon request.
Military personnel shall be exempt from meeting the above activity requirements while deployed into a foreign country and for a period of one (1) month following the end of such deployment. Appropriate documentation must be provided to the Company upon request.
A LifeStylist's violation of any of the terms of the Agreement, including any amendments that may be made by Ethona in its sole discretion, may result in any of the sanctions listed in Section 8.1, including the involuntary cancellation of his or her LifeStylist Agreement. Cancellation shall be effective on the date on which written notice is mailed, emailed, faxed, or delivered to an express courier, to the LifeStylist's last known address, email address, or fax number, or to his or her attorney, or when the LifeStylist receives actual notice of cancellation, whichever occurs first.
Ethona reserves the right to terminate all LifeStylist Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.
A participant in this network marketing plan has a right to cancel at any time, regardless of reason. If Cancellation is in writing, the Cancellation notice must be submitted to the Company at its principal business address. The written notice must include the LifeStylist's signature, printed name, address, and LifeStylist I.D. Number.
In addition to written cancellation, LifeStylists who have consented to Electronic Contracting will cancel their LifeStylist Agreement should they withdraw their consent to contract electronically.
A LifeStylist may also voluntarily cancel his or her Ethona business by returning $400 or more of merchandise in any 12 month rolling period and seeking a refund for such returns.
A LifeStylist may also voluntarily cancel his or her LifeStylist Agreement by failing to annually renew the Agreement within 30 days of its anniversary date. The Company may also elect not to renew a LifeStylist's Agreement upon its anniversary date.
Active LifeStylist - A LifeStylist who satisfies the minimum Personal Volume requirements, as set forth in the Ethona Compensation Plan, to ensure that he or she is eligible to receive bonuses and commissions.
Active Rank - The term "active rank" refers to the current rank of a LifeStylist, as determined by the Ethona Compensation Plan, for any pay period. To be considered "active" relative to a particular rank, a LifeStylist must meet the criteria set forth in the Ethona Compensation Plan for his or her respective rank. (See the definition of "Rank" below.)
Affiliated Party - A shareholder, member, partner, manager, trustee, or other parties with any ownership interest in, or management responsibilities for, a Business Entity.
Agreement - The contract between the Company and each LifeStylist includes the LifeStylist Agreement, the Ethona Policies and Procedures, the Ethona Compensation Plan, and the Business Entity Addendum (where appropriate), all in their current form and as amended by Ethona in its sole discretion. These documents are collectively referred to as the "Agreement."
Fit Kit - A selection of Ethona training materials and business support materials, and LifeStylist replicated website that each new Independent LifeStylist is required to purchase.
Cancel - The termination of a LifeStylist's business. Cancellation may be either voluntary, involuntary, through non-renewal or inactivity.
Customer - An individual who purchases Ethona products from a LifeStylist but who is not a participant in the Ethona Compensation Plan.
Downline - All of the LifeStylists enrolled below a LifeStylist, regardless of Ranks and Levels, make up the Downline of the LifeStylist.
Downline Leg - Each one of the individuals enrolled immediately underneath you and their respective Marketing Organizations represents one "downline leg" or "leg" in your Marketing Organization.
Downline Volume - A LifeStylist's Downline Volume is comprised of his or her Personal Volume and the Personal Volumes of ALL of the LifeStylists enrolled in his or her Downline.
Household - All individuals who are living at or doing business at the same 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.
Immediate Household - Spouses, heads-of-household, and dependent family members residing in the same residence.
Level - The layers of downline LifeStylists in a particular LifeStylist's Marketing Organization. This term refers to the relationship of a LifeStylist relative to a particular upline LifeStylist, determined by the number of LifeStylists between them who are related by mentorship. For example, if A mentors B, who mentors C, who mentors D, who mentors E, then E is on A's fourth level.
Marketing Organization - The LifeStylists mentored up to three levels and four generations below a particular LifeStylist, depending on the LifeStylist's rank qualification.
Mentor - A LifeStylist who enrolls another LifeStylist into the Company, and is listed as the Mentor on the LifeStylist Agreement. The act of enrolling others and training them to become LifeStylists is called "mentoring." To enroll another LifeStylist and to train him or her is to "mentor" the new LifeStylist.
Official Ethona Material - Literature, audio or video recordings, websites, and other materials developed, printed, published and/or distributed by Ethona to LifeStylists.
Personal Volume (PV) - The total of the Qualifying Volume of Ethona products purchased by: (1) a LifeStylist; and (2) the LifeStylist's personal customers.
Qualifying Volume - Each retail Ethona product has a qualifying volume assigned to it. This amount is equal to the retail price of the product. Thus, a product that has a retail price of $50 has a Qualifying Volume of 50 attached to it. Qualifying Volume is used to determine a LifeStylist's qualification for bonuses and commissions.
Rank - The "title" that a LifeStylist holds pursuant to the Ethona Compensation Plan. "Title Rank" refers to the highest rank a LifeStylist has achieved in the Ethona Compensation Plan at any time. "Paid-As Rank" refers to the rank at which a LifeStylist is qualified to earn commissions and bonuses during the current pay period.
Recruit - For purposes of Ethona's Conflict of Interest Policy (Section 3.12), the term "Recruit" means the actual or attempted mentorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Ethona LifeStylist to enroll or participate in another party plan, direct selling, or multilevel or network marketing opportunity.
Replicated Website - A website provided by Ethona to LifeStylists which utilizes website templates developed by Ethona.
Resalable - Products and Sales Tools 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 Ethona within one year from the date of purchase. Any merchandise that is identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be Resalable.
Retail Sales - Sales to customers.
Sales Tools - Marketing or promotional materials, sales aids, recruitment aids, business marketing or business building services, training material, and/or advertising materials, of any nature that directly or indirectly promote Ethona products and/or the Ethona business.
Social Media - 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, to rate or to comment or respond to content. Examples of Social Media include, but are not limited to, blogs, Facebook, Myspace, Twitter, LinkedIn, Delicious, Pinterest, Instagram, and YouTube.
Team Volume - A LifeStylist's Team Volume is comprised of his or her Personal Volume and the Personal Volumes of ALL of the LifeStylists enrolled on the first three (3) Levels of his or her Downline.
Upline - This term refers to the LifeStylist or LifeStylists above a particular LifeStylist in a mentorship line up to the Company. Conversely stated, it is the line of Mentors that links any particular LifeStylist to the Company.