you for taking the time to read and understand Lifestyles’ Policies and
Procedures manual. This is an important document, as it describes legally
binding standards that all Lifestyles’ Distributors must adhere to in order to
build and maintain a successful and ethical business.
have any questions about the contents of this manual or are unsure if you have
the most recent version, please write to Lifestyles at:
4th Floor - Alphaland Southgate Mall
2258 Chino Roces cor. EDSA,
Makati City, Philippines 1232
Lifestyles Independent Distributor, I understand and agree to adhere strictly
to the Company’s Policies & Procedures and Code of Ethics during the
operation of my Lifestyles distributorship. Any violation of the Code of Ethics
and/or Policies and Procedures may lead to the immediate termination of your
• I will uphold and observe Lifestyles’ Policies & Procedures at all times
• I will become familiar with all aspects of my business so that I can best
serve the needs of Customers and other Lifestyles Distributors
• I will conduct myself with the highest standards of integrity, sincerity and
responsibility at all times
• I will operate my business in a manner that does not compromise the
opportunity for other Distributors, such as undercutting prices or
misrepresenting the opportunity in any way
• I will always be prompt and tactful in attending to the needs of Lifestyles
Distributors and my Customers
• I will cooperate with and support the Company’s Management in their efforts
to help me advance and develop my distributorship and the Company’s Network
• I will make my best effort to attend Company training programs so that I am
better equipped to train Distributors to be successful
• I will never attend, condone, or conduct, closed meetings
• I will always treat my distributorship as the prestigious enterprise that it
is and will truthfully and honestly present the Lifestyles Opportunity and
products as described in official Company literature
• I will not become involved with any company or program that is in competition
with Lifestyles, nor will I induce Lifestyles Distributors to join any other
company or program
• I will not use contacts made through my Lifestyles business to participate in
any other business activities
• I will not criticize the Company, its Management, other Lifestyles
Distributors, or competing companies or products
• I will never take actions that could harm the image of the Company or the MLM
ONE – LEGAL DISCLAIMERS INTRODUCTION
International Holdings Corporation and its Affiliates, subsidiaries and related
companies (hereinafter called "Lifestyles") is a group of companies
marketing health, nutritional, personal care and other products exclusively
through a Multi-Level Marketing Business model using a network of Independent
Distributors (here in after called "Distributor(s)". The Policies and
Procedures in this manual apply to all Distributors of Lifestyles.
These Policies and Procedures and the Lifestyles Independent Distributor Code
of Ethics are incorporated into and form a part of the Lifestyles Independent
Distributor Application and Agreement. It is the responsibility of each
Distributor to read, understand, adhere to, and ensure that he/she is aware of
and operating under the most current version of these Policies and Procedures and
Code of Ethics.
purpose of the Distributor Agreement and Policies
and Procedures is:
I. To deﬁne the relationship between Lifestyles and the Independent
II. To set standards of acceptable business behaviour;
III. To assist Distributors in building and protecting
We know that some Distributors already have a great deal of experience running
their own business, and others are taking this step for the ﬁrst time.
Our Policies and Procedures have been carefully designed to protect the legal
rights and interests of Lifestyles, and also those of our Distributors.
Our goal is to help you achieve success. Please read this manual carefully so
that you understand the rules under which our businesses operate. In addition,
please take special note of the helpful hints we have provided in this
document. These will not only help you understand the Policies and Procedures,
but will also make it easier to achieve your Lifestyles success.
rules are reasonably related to the laws of your local Lifestyles office and
shall be governed in all respects thereby. (The parties agree that jurisdiction
and venue shall lie with the place of acceptance of the Independent Distributor
Agreement, deemed to be your local Lifestyles office. Distributors moving into
a jurisdiction different from the one in which they originally signed their
application are required to sign an Independent Distributor Agreement for that
jurisdiction and agree to follow the laws applicable there.
*Superseded by local laws and regulations
Lifestyles expressly reserves the right to alter or amend Prices, Ethics, Rules
and Regulations, Policies and Procedures, product availability and the
Lifestyles Career and Compensation Plan. Amendments shall be effective upon
notiﬁcation of the changes in official Lifestyles publications
distributed to all active Distributors, by mailing to the most recent
Distributor address in the records of Lifestyles. Such amendments are
incorporated as part of the agreement between Lifestyles and the Distributor.
The Distributor Agreement and Policies and Procedures may vary as to the exact
wording for speciﬁc items depending on local market requirements.
Lifestyles shall not be responsible for delays and/or failures in performing
its obligations due to circumstances beyond its reasonable control, such as
strikes, labor difficulties, riots, war, ﬁre, death, curtailment or
interruption of a source of supply, government decrees or orders, “Acts of
statement of Policies and Procedures is incorporated into the Independent
Distributor Agreement and constitutes the entire agreement of the parties
regarding their business relationship.
AND PROVISIONS SEVERABLE
any provision of the Distributor Agreement and Policy and Procedure as it
currently exists or as may be amended is found to be invalid, illegal, or
unenforceable for any reason, only the invalid provision will be severed from
the Distributor Agreement and Policy and Procedure; the remaining terms and
provisions shall remain in full force and effect and shall be construed as if
such invalid, illegal, or unenforceable provision never comprised
a part of the Distributor Agreement and Policy and Procedure.
titles and headings to these Policies are for reference purposes only and do
not constitute, and shall not be construed as, substantive terms of the
Distributor Agreement and Policy and Procedure.
Lifestyles never gives up its right to insist on compliance with these rules or
with the applicable laws governing the conduct of a business. This is true in
all cases, both speciﬁcally expressed and implied, unless an officer of
Lifestyles who is authorized to bind Lifestyles in contracts or agreements
speciﬁes that Lifestyles waives any of these provisions. In addition,
any time Lifestyles gives permission for a breach of the rules, that permission
is speciﬁc to the single occurrence, unless otherwise stated, and does
not extend to future breaches. This provision deals with the concept of
"waiver", and the parties agree that Lifestyles does not waive any of
its rights under any circumstances short of the written conﬁrmation
alluded to above.
AND PRIVACY OF INFORMATION
Distributor hereby consents to allow Lifestyles International Holdings
Corporation, its Affiliates and any company owned in whole/part or any of their
Affiliates ("Lifestyles"), to process and utilize the Distributor
Information as submitted in the signed Independent Distributor Application and
agreement (or as same may be amended from time to time) for business purposes
related to the Lifestyles business. The Distributor has the right of access to
their Distributor Information and to request updates and amendments. The
Distributor hereby consents to Lifestyles disclosing, now or in the future,
their Distributor Information to Companies who Lifestyles may, from time to
time, deal with to deliver information to its Independent Distributors or to
improve its marketing and promotional efforts. The Distributor hereby provides
their express consent to being contacted by Lifestyles, its employees and other
Independent Lifestyles Distributors, relating to justify the products,
services, business opportunities, and events that may be offered by Lifestyles
from time to time.
the case of a dispute, Policies and Procedures, as published and modiﬁed
from time to time in English, shall be considered the standard for determining
and resolving disputes and issues.
TWO - OPERATING AS AN INDEPENDENT LIFESTYLES DISTRIBUTOR
Distributor is one who has completed a Lifestyles application and agreement, who
has been accepted by Lifestyles as an Independent Distributor, and who meets
the following criteria:
I. Be at least the age of majority in their country or region of residence;
II. Reside in a geographic area where Lifestyles has been approved for business;
III. Read the Lifestyles Agreement and Policy and
Procedures and Lifestyles Career and Compensation Plan;
IV. Submit an original signed Distributor Application and Agreement and
Application Fee to Lifestyles.
Lifestyles reserves the right to accept or reject any application for any
OF HOUSEHOLD MEMBERS OR AFFILIATED INDIVIDUALS
any member of a Distributor’s immediate household engages in any activity,
which if performed by the Distributor would violate any provision of the Distributor
Agreement, such activity will be deemed a violation by the Distributor.
TO LAWS AND ORDINANCES
Distributors should conduct themselves and must operate their business and
distributorship in accordance with all laws and regulations in each of the
foreign and local jurisdictions in which they operate their business.
TO THE LIFESTYLES CAREER AND COMPENSATION PLAN
Distributors must adhere to the terms of the Lifestyles Career and Compensation
Plan as set forth in official Lifestyles literature. Distributors shall not
offer the Lifestyles Opportunity through, or in combination with, any other
opportunity or unapproved method of marketing. Distributors shall not require
or encourage other current or prospective Customers or Distributors to
participate in Lifestyles in any manner that varies from the
program as set forth in official Lifestyles literature. Distributors shall not
require or encourage other current or prospective Customers or Distributors to
execute any agreement or contract other than official Lifestyles agreements and
contracts in order to become a Lifestyles Distributor or Preferred Customer.
Similarly, Distributors shall not require or encourage other current or
prospective Customers or Distributors to make any purchase from, or payment to,
any individual or other entity to participate in the Lifestyles Career and
Compensation Plan, other than those purchases or payments identiﬁed as
recommended or required in official Lifestyles literature. Manipulation of the
Lifestyles Career and Compensation Plan in any form is strictly prohibited.
term of the Distributor agreement is one year, with an anniversary date of the
date the Independent Distributor Application and Agreement was processed in the
Lifestyles “Lifelink” System. Renewal is not automatic. Both the Distributor
and Lifestyles reserve the right to renew or not renew the contract. The
Distributor shall apply to renew the contract annually and renewal will be
subject to acceptance by Lifestyles. See Item 29 below for further details on
annual renewal of the Independent Distributor Agreement
TO DISTRIBUTOR CONTACT INFORMATION
is the responsibility of the Distributor to provide and update Lifestyles with
current and accurate information about their distributorship, including but not
limited to, name(s), addresses, email addresses, and telephone/fax number(s).
All information changes must be submitted to the local Lifestyles office in
writing. Changes that will, impact mailings, royalties, or bonuses should be
received at least thirty (30) days in advance to allow sufficient time for
processing. Please inform your Lifestyles office if there is any change in your
contact information. We want to play an active role in your success. That’s why
it’s vital that we are always up-to-date about you and your business.
Where required, Lifestyles Distributors are to provide their valid Social Security
or Federal Tax ID number, or Business Number or the Tax ID Number applicable to
their jurisdiction of residence on the
Independent Distributor Application and Agreement.
Lifestyles receives and accepts a Distributor’s original Application and
Agreement, Lifestyles will assign a unique Distributor Number to that
Distributor. Distributors must use their Distributor
Number whenever they call a Lifestyles Distributor Relations Representative to
place orders or track commissions and bonuses. Assigning you a unique
Distributor Identiﬁcation Number helps ensure that you will receive the
beneﬁts you are entitled to.
NUMBER CHANGES – CHANGE OF COUNTRY OF PERMANENT RESIDENCE
a Lifestyles distributorship permanently changes their residency from one
Lifestyles authorized market to another authorized market, the Distributor must
advise their original local office of their intent to move to another market
and their change in residence information including the effective date of the
change. The Distributor must notify their new local office within ten(10) days
of their arrival in the new market and execute a new
Distributor Application and Agreement for their new market of residence. The
Distributor retains his/her original Distributor Number. Moving to another
country does not mean that your Lifestyles business comes to an end. We operate
in many countries around the world, so chances are you can continue your path
to better health and better wealth in your new home. Just be sure to follow the
advice contained in the paragraph above.
Lifestyles accepts a Distributor’s Application and Agreement, the
beneﬁts of the Lifestyles Career and Compensation Plan and the
Independent Distributor Agreement are available to the new Distributor. These
beneﬁts include the right to:
I. Purchase Lifestyles products and services at the Independent Distributor
II. Participate in the Lifestyles Career and Compensation Plan (receive bonuses
and wholesale adjustments/ overrides, if eligible);
III. Sponsor other individuals as Customers or Distributors into the Lifestyles
business and thereby build a down-line organization and progress through the
Lifestyles Career and Compensation Plan;
IV. Receive Lifestyles literature and other Lifestyles communications;
V. Participate in Lifestyles-sponsored support, service, training,
motivational, and recognition functions upon payment of appropriate charges, if
VI. Participate in promotional and incentive contests and programs sponsored by
Lifestyles for its Distributors;
VII. Retail Lifestyles products or services and proﬁt from these sales.
Distributors are independent representatives of Lifestyles and are not to be
considered purchasers of a franchise or a distributorship. The agreement
between Lifestyles and its Distributors does not create an employer /employee
relationship, agency, partnership, or joint venture between Lifestyles and the
Distributors. Each Distributor shall hold harmless Lifestyles from any claims,
damages or liabilities arising out of the Distributor’s business practices.
Lifestyles Distributors have no authority to bind Lifestyles to any obligation.
Each Distributor is encouraged to set up his/her own hours and to determine
his/her own methods of sale, so long as he/she complies with the Policies and
Procedures of Lifestyles.
STATUS – ONE INDEPENDENT DISTRIBUTOR
Lifestyles distributorship consists of the Distributor and spouse.
21. The Lifestyles Distributor expressly agrees and understands that his/her
distributorship may be terminated for any actions taken by Distributor or
spouse. Once a Distributor resigns or is terminated, his/her spouse is
22. The act of any participant in a distributorship is attributable to the
distributorship and remedies, including termination of the contractual
relationship, necessitated by the act may be applied to the distributorship.
Some of the world’s most successful businesses are family businesses. We are
happy to help you sponsor a spouse or other family members who can contribute
to your Lifestyles success.
Lifestyles reserves the right to approve or disapprove Distributor’s change of
business names, formation of partnerships, corporations, and trusts for tax,
estate planning, and limited liability purposes. If Lifestyles
approves such a change, the new organization’s name must appear on the
Independent Distributor Agreement along with a valid Social Security or Federal
Tax ID number, or the Business Number or Tax ID Number
applicable to the Distributor’s jurisdiction of residence. In a fast paced
world, we understand the need for business changes from time to time. We offer
ﬂexibility and a willingness to help you adapt your distributorship to
your changing needs.
Information concerning a Distributor’s own or another’s down-line organization
is proprietary. It shall not be used for anything other than Lifestyles
authorized purposes and shall never be disclosed to a third party.
Distributors are responsible for actively protecting the privacy of other
individuals and to retain conﬁdentiality of any personal information and
any organizational or sales information they encounter. Furthermore,
Distributors shall ensure their contact with prospective Customers and
Distributors is conducted during reasonable hours, and is made with careful
consideration of the contact’s privacy. All requests to cease contact with a
prospect must be honoured. Distributors must comply with privacy regulations
within their local market and other markets they do business in. It is the
responsibility of the Distributor to advise their local home office in writing
of any Distributor or Customers in the organization who have requested not to
be contacted so we can update our records accordingly Lifestyles is committed
to respecting the privacy of our Distributors and Customers. As a Distributor,
you must a lso be careful to protect the privacy of those you deal with.
Distributor applicant may call Lifestyles to receive a temporary Distributor
Number and temporary authorization as a new Independent Distributor. The
applicant must provide Lifestyles with all the necessary information to
complete the Independent Distributor Application and Agreement. The applicant
may order a Distributor’s Kit at that time using a valid credit card.
27. The new Distributor’s temporary Distributor Number and authorization will
be valid for ﬁve (5) business days, pending Lifestyles receipt of the
Distributor’s original signed Application and Agreement. Once Lifestyles
receives the original Independent Distributor Application and Agreement,
Lifestyles will designate the temporary Distributor Number as a permanent
Distributor Number and extend the initial Independent Distributor authorization
period to one full year.
person is required to purchase Lifestyles’ products to become a Distributor.
However, to familiarize new Distributors with Lifestyles’ products, services,
sales techniques, sales aids, and other matters, Lifestyles provides new
Distributors with a Distributor’s Kit as a part of their Application Fee,
except where prohibited by law. The Distributor’s Kit is unproﬁtable.
This sum is not a service or franchise fee, but rather is strictly to offset
costs incurred by Lifestyles for educational and business materials required
for a Distributor of Lifestyles. Lifestyles will repurchase any resalable kits
from Distributors who terminate their Independent Distributor Agreement. Data
processing fees, if any, will be deducted from commissions and bonuses. See
items 45 and 48 below for further details.
OF INDEPENDENT DISTRIBUTOR AGREEMENT
Lifestyles charges Distributors an annual Independent Distributor renewal fee
(may be referred to as a subscription fee in certain markets) that varies by
market. A Distributor can agree to allow Lifestyles to automatically deduct the
fee from their Commission Check or to charge the fee to the Distributor’s
credit card or checking account on ﬁle with Lifestyles on the
anniversary date of the Distributor’s application. Distributors without a
credit card or checking account on ﬁle must renew by phone or mail and
may use cash or a bank deposit as forms of payment. The annual renewal fee
I. Automatically renew your subscription to Lifestyles Career and Compensation
II. Renew your Distributor Agreement and maintain your line of sponsorship;
III. Allow you to continue to Purchase Lifestyles products at your Distributor
discount level, except where governed differently by local regulation;
IV. Allow you to continue to enjoy Lifestyles service support programs;
V. Allow you to continue to participate in company promotions, contests, and
recognition; and attend Company events.
30. If a
Distributor elects not to renew his/her Distributor agreement, all rights to
bonuses, marketing position, and wholesale purchases cease. The non-renewed Distributor’s
volumes ﬂow up- line to the next active distributorship.
THREE - ORGANIZATIONAL INFORMATION
Lifestyles corporate information (i.e. commission reports, down-line reports,
etc.) is the property of Lifestyles and cannot be used, distributed or sold
without prior written permission from Lifestyles.
REPORTS AND TOOLS
Business Reports, updated on a regular basis, are available to all Distributors
on the Essentials and Executive Packages on their Personal Business Center. Any
Distributor may sign up for access to a Personal Business Center. Business
Reports contain trade secret information which is proprietary to Lifestyles
Global Networks. Please refer to section 78 for restrictions on using these
Commission Statements are printed for all active Distributors receiving a
commission payment. They are mailed along with the commission payment or
conﬁrmation, and addressed to the name of the registered Distributor
based on their unique ID number. Commission Statements are not optional.
Lifestyles may deduct an accounting service fee from the commission of who wish
to receive their statement by mail rather than through their online Personal
Business Center (“PBC”). As a Lifestyles Distributor, take full advantage of
all of the beneﬁts of your Personal Business Center. It is an easy and
convenient way to keep track of your commissions and the growth of your
organization. To register, go to www.lifestyles.net.
CHECK RULES AND PAYMENT CURRENCY
rules and payment currency for commission
payments are as follows:
I. Commission checks are valid for a period of six (6) months from their date
of issue. Stale dated cheques will not be replaced;
II. Lost checks within this six (6) month period will be replaced, less an
III. Commissions for sales volume and organizational activity in your local
market are calculated and paid in your local currency;
IV. Commissions for sales volume and organizational activity in markets other
than your local market are calculated and paid in United States Dollar.
FOUR – PARTNERSHIP & CANCELLATION
partnership or corporation may be a Distributor. However, no individual may
participate in more than one (1) distributorship in any form.
I. A distributorship may change status under the same Sponsor from individual
to partnership or corporation with proper and complete documentation.
II. To form a new distributorship as a partnership or corporation, or to change
status to one of these forms of business, you must request a
partnership/corporation form from the corporate home office. This form must
detail all partners, stockholders, officers or directors in the partnership or
corporation. The partner or officer who submits the form must be authorized to
enter into binding contracts on behalf of the partnership or corporation. In
addition, by submitting the partnership/corporation form, you certify that no
person with an interest in the business has had an interest in a Lifestyles distributorship
within six (6) months of the submission of the form (unless it is the
continuation of an existing distributorship that is changing its form of doing
business and as discussed in item 37 below).
AND CORPORATE GUARANTEE FOR OWNERS
Although Lifestyles has offered Distributors the opportunity to conduct their
distributorship as corporate or partnership entities, it is agreed that since
the distributorship entity is under the control of its owners and principals,
the actions of individual owners as they may affect Lifestyles and the
distributorship are also critical to Lifestyles business. Therefore, any
actions by corporate shareholders, officers, directors, agents or
employees and the actions of partnership partners, agents or employees, which
conﬂict with the Lifestyles Distributor agreement and Policies and
Procedures will be attributable to the corporate or partnership entity.
OF INDEPENDENT DISTRIBUTOR AGREEMENT
Independent Distributor Agreement may be cancelled at any time and for any
reason by a Distributor by notifying Lifestyles in writing of the election to
every Lifestyles Distributor to be happy and to enjoy building their business.
But in the unlikely event that you no longer wish to continue your business,
you may simply cancel your Distributor Agreement.
OF A JOINTLY HELD DISTRIBUTORSHIP
Distributors wish to dissolve their jointly held distributorship, they must do
so in such a way as to not disturb the income or interests of their up-line and
down-line organizations. Distributors should consider the following when
deciding whether or not to dissolve a jointly held distributorship:
I. If a jointly held distributorship is dissolved, either of the parties may
continue to operate the distributorship, but the other joint owners must
relinquish their rights to, and interests in, the distributorship;
II. Lifestyles cannot divide a down-line organization, nor can it split
commission or bonus cheques between the joint owners;
III. If a jointly owned distributorship is dissolved, the individual(s) who
relinquished their interest in the original distributorship may apply as new
Distributors under any sponsor after a six (6) month waiting period. However,
they may not purchase or join an existing distributorship.
38. If a
Distributor dies or becomes incapacitated, his/her rights to commissions,
bonuses, and down- line organization, together with all Distributor
responsibilities, will pass to his/her successor(s).
The following qualifications apply:
I. Upon death or incapacitation, the successor(s) must present the Lifestyles
Compliance Committee with proof of death or incapacitation, along with proof of
succession, such as a Valid Will, Grant of Probate or an Enduring Power of
Attorney, and a properly completed Distributor Application and Agreement;
II. You may inherit another distributorship even though you currently own or
operate a distributorship. However, you must then elect which distributorship
you will continue to operate,and then sell, dispose of or resign the other
distributorship at the time of presentation to the Compliance Committee;
III. In the case of a Distributor who held the title of National Marketing
Director or above and whose distributorship was qualified in each of the
previous six (6) months, Lifestyles will ensure the Distributor is qualified in
the month the Company was notified,
as well as for the month immediately following the month in which the Company
was notified. Following this, it is the responsibility of the spouse or heir to
notify Lifestyles whether they will let the distributorship lapse, or whether
it will be taken over by an heir or designee. If the party taking over the
distributorship already has an active distributorship, they will be required to
resign from it before assuming the deceased’s distributorship.
A successful business should be able to continue thriving, even after its
founders are gone. That’s why we’re pleased to help your heirs continue the
legacy of your organization.
DISPOSITION OF BUSINESS
Distributor may not sell, assign or otherwise transfer his or her
distributorship, marketing position or other Distributor rights without written
application and approval by Lifestyles. A Distributor who sells his or her
distributorship shall not be eligible to re-apply as a Distributor for a period
of at least six (6) months after the sale. Lifestyles, reserves the right to
review any sale agreement. An individual may not participate in more than one
(1) distributorship, in any form. Therefore any existing Distributor who agrees
to purchase a distributorship must sell or resign from their current
distributorship at the time of purchase of the new distributorship.
Being flexible and respectful of our Distributors is one of the keys to our
success. That’s why your business is treated as your own, and in most cases,
you have the right to sell it if you so choose.
FIVE – ORDERS, RETURNS AND TRANSACTIONS
Distributors may place orders by telephone, fax, mail, E-mail, Internet, or
through the Autoship Program.
II. When ordering by phone — provide all information related to the
distributorship such as; ID number, shipping address, phone number, etc.
Payments may be made by credit card or electronic bank draft.
III. When ordering by fax or by mail — print information clearly on the order
form and use the top copy to fax or mail in. Payment may be made by electronic
bank draft, credit card or check.
IV. Keep a copy of the order form for your records.
V. A Distributor may not place an order using any Distributor ID number other
than their own.
VI. On phone, fax or mail-in orders with invalid or incorrect payment,
Lifestyles will attempt to contact the Distributor by telephone and/or mail to
obtain proper payment. If these attempts are unsuccessful after ﬁve (5)
business days, the order will be returned unprocessed.
VII. No C.O.D. (Cash On Delivery) orders will be accepted.
VIII. Lifestyles maintains no minimum order requirements.
IX. Products and sales aids may be combined.
forms and authorizations must be accompanied
by the Distributor’s signature.
I. Cashier’s Checks, Money Order and Personal Check - Make payable to
Lifestyles for the full amount of the order, including applicable sales tax and
shipping and handling charges and have the current date.
a) Any check returned unpaid to Lifestyles may result immediately in suspended
personnel check payment privileges and a service fee will be charged to the
Distributor for the returned check.
b) Failure to promptly resolve the issue may result in termination and may be
subject to legal action. Lifestyles may choose to deduct uncollected amounts
from future commissions.
II. International Bonus Check – A Distributor may use their International Bonus
Check to pay for an order. Any balance not used against a purchase will not be
refunded to the Distributor.
III. Credit Cards - Lifestyles accepts a variety of credit cards. Please
conﬁrm which cards are accepted for payment in your local office. In the
event that the charge is declined, the order will not be accepted. Using
someone else’s credit card without their express, written permission is
prohibited and may be grounds for cancellation or termination of a
distributorship. Lifestyles will attempt to contact the card holder for
permission. If contact cannot be made, the order will not be accepted.
IV. Electronic Bank Draft Payment Program (where available) - The Electronic
Bank Draft Program authorizes Lifestyles to draft against a Distributor’s or
Preferred Customer’s account for the amount of the order. To apply for
participation in the Electronic Bank Draft Program, you must be on Autoship.
You must also complete the Electronic Bank Draft Program form and submit it to
Lifestyles along with a void check.
Direct Distributor or above must purchase his/her products directly from
Lifestyles in order to receive the sales volume credits associated with that
purchase. All orders are applied to the calendar month in which they are
received. To be included in a particular month's volume, the order must be
received no later than the close of business on the last working day of that
month. Non-Direct Distributors must purchase their product from their up-line
Direct or above or through appropriate Lifestyles office. All non-Direct orders
are considered the volume of their up-line Direct or above.
42. As a
general rule, Lifestyles will back-order out-of- stock items that are
associated with volume accumulation and ship these items as soon as they are
Failure to notify Lifestyles of any shipping discrepancy or damage within seven
(7) days of shipment will cancel a Distributor’s right to request a correction.
To correct a shipping discrepancy, please use the Distributor Product Exchange
or Return Form available at your local Lifestyles office.
GUARANTEES, EXCHANGES RETURNS AND INVENTORY REPURCHASE
Lifestyles warrants the quality of its products and shall exchange any
defective product. A Distributor returning a damaged or defective product must
contact Lifestyles Distributor Relations in their local region within thirty
(30) days of receipt of the original product to receive an authorization prior
to returning the product(s). The product must then be returned within five (5) business
days of receipt of authorization.
Resalable Condition means unopened and in a condition that the product can be re-sold
without requiring any re-packaging, with the original packaging intact in
complete case lots based on the unit of measure in which the product was sold.
(30) DAY RETURN POLICY – RETAIL CUSTOMERS
Lifestyles obligates its Distributors to honour the Company’s 100%,
unconditional, thirty day (30), money-back guarantee to all Retail and
Wholesale Customers. Distributors shall promptly and courteously investigate
any and all Customer complaints, and shall take appropriate action to remedy
all such complaints. If for any reason a Retail or Wholesale Customer is
dissatisﬁed with any Lifestyles product, he/she may return the product
to the Distributor from whom the product was purchased within thirty (30) days
from the date of purchase for a replacement, exchange, or full refund of the
purchase price. If the Retail Customer requests a refund, the Distributor who
sold the product to the Retail Customer must immediately refund the Retail
Customer’s purchase price. (Retail and Wholesale Customers must return
merchandise to the Distributor who sold it to them; Lifestyles will not accept
returned merchandise directly from Retail and Wholesale Customers.) The
Distributors, in turn, must contact Lifestyles Distributor Relations in their
region to receive an authorization prior to returning the product(s) and return
it along with the original sales receipt and returned merchandise to
Lifestyles. Lifestyles will then replace the returned merchandise with like
product and ship it to the Distributor. All Retail and Wholesale Customers must
be provided with a copy of an official Lifestyles sales receipt at the time of
47. Notwithstanding Lifestyles longer Retail Customer guarantee policy and in
jurisdictions where applicable, all retail sales must comply with the Local
Trade Commission Cooling Off Rule, which requires statutory language and notice
of cancellation on the retail sales receipt. The right of cancellation, where
applicable, must be orally explained to the Customer and the Customer must
receive a copy of the notice of cancellation form.
The best businesses in the world are the ones that treat their Customers with
respect and courtesy. That’s why we ask you to make exceptional customer
service a high priority for your Lifestyles business.
48. If a
Distributor elects to cancel his/her distributorship during the thirty day (30)
period immediately following his/her enrollment, Lifestyles will refund 100% of
the price of the Distributor’s Kit and all products purchased as part of the
Distributor’s initial order (excluding shipping). The cancelling Distributor
must return the products in a resalable condition, as described in item 45 and
the entire Distributor’s Kit to Lifestyles, shipping prepaid, along with a
letter explaining that he/she wishes to terminate his/her distributorship and
receive a refund. Please note that this 100% refund (less shipping) does not
apply once a Distributor places his/her second product order. If a Distributor
returns product after the second order then the terms of item 98 will apply. If
a Distributor returns his/her Distributor’s Kit and/or merchandise equal to, or
exceeding US$100, for a refund, the return constitutes a Voluntary Cancellation
of his/her Distributor Agreement. Moreover, the Company will adjust the
appropriate Distributors’ Sales Volume in accordance with the Lifestyles Career
and Compensation Plan.
After the initial order, a Distributor may return Lifestyles products,
including promotional materials and sales aids, purchased within the past
thirty (30) days for a refund of eighty-ﬁve percent (85%) of the
purchase price (less handling and delivery charges) if the merchandise is in
resalable condition, unless otherwise required by law. However, returns that result
in refunds in excess of US$100 may result in the termination of the Independent
Distributor Agreement. Moreover, Lifestyles may deduct from the amount of the
refund any commissions or bonuses the Distributor may have received as a result
of the products that he/she is returning.
AND REPURCHASES - PROCEDURE
receive a refund, exchange, or replacement on product purchased a Distributor
I. Obtain authorization from the Distributor Relations Department. This number
must accompany all returned products;
II. Return the product with the original packing slip to Lifestyles;
III. Use proper shipping carton(s) and packaging materials to return the
product to Lifestyles. The Distributor is responsible for tracing your return
shipment should that be necessary.
IV. If a Distributor returns product from a Retail
Customer, he/she must:
a) Send the product to Lifestyles within ﬁve (5) days of the Customer’s
b) The package must be accompanied by an explanation of why the Customer is
dissatisﬁed, a copy of the original sales receipt, and the unused
portion in the original container.
V. Only the Distributor who ordered the product from Lifestyles may return it.
VI. Lifestyles is not responsible for the shipping or handling fees on returned
product and will not accept any returns for which shipping and handling has not
been pre-paid or billed to the shipper directly.
VII. Lifestyles is not liable for items lost or damaged in transit.
Lifestyles encourages each Distributor to keep accurate sales records. The
Lifestyles Career and Compensation Plan is based upon retail sales to the
ultimate consumers and personal use product; therefore, all forms of
stockpiling or pyramiding are prohibited. Products are offered to Distributors
only for personal consumption and for resale to consumers.
Distributors should report any observed violations of a policy to Lifestyles to
ensure that the integrity and ongoing business operations of Lifestyles are
AND RESOLVING PROBLEMS AND ERRORS
the event a Distributor has questions about or believes that any errors have
been made regarding commissions, bonuses, down-line Genealogy Reports, orders,
or charges, the Distributor must notify Lifestyles within thirty (30) days of
the date of the purported error or incident in question. Lifestyles will not be
responsible for any error, omission, or problem not reported within thirty (30)
54. If you have any questions regarding shipments, orders, commissions and
bonuses, or the Lifestyles Career and Compensation Plan, please write or call
the Distributor Relations Department.
Distributors and Preferred Customers in good standing may participate in the
Lifestyles Autoship Program. To enroll in this program, complete the Autoship
Agreement (Form #4177), identifying the eligible products you wish Lifestyles
to automatically send to you on the same date each month. The credit card or
bank account from which you authorize payment will be automatically charged the
amount of the order plus applicable shipping and sales tax. Distributors must
ensure that they have adequate funds in their account the week prior to placing
their Autoship order. Only eligible products may be purchased under the Autoship
Program. Lifestyles maintains a minimum order requirement in each market. In
order to participate in the Autoship Program, please contact your local
Lifestyles office for speciﬁc minimum order requirement.
The Autoship program is a convenient way to help ensure that you have adequate
inventory for your business at all time.
initiated, the program will remain in effect until a written cancellation is
received at your local Lifestyles Head Office.
I. Any changes or cancellation must be received in writing no later than the
Tuesday of the week prior to the Autoship.
II. Participation in the Autoship Program is optional and does not relieve a
Distributor from compliance with the retail sales requirement or from
compliance with the seventy percent (70%) resale rule.
III. Autoship orders are limited to purchases of commissionable product only;
sales aids will not be included in Autoship orders.
IV. To ﬁnd out the timing of shipment and payment, call Distributor
Relations for the monthly recurring date of your Autoship. Credit Cards are
billed and bank drafts are deposited seven (7) days in advance of this date.
SIX – ADVERTISING AND MARKETING ACTIVITIES
promote your Lifestyles business, you will often want to use our name and logo.
This helps increase people’s awareness of the exceptional products and business
opportunity that you have to offer.
REMEMBER THAT YOU MUST OBTAIN OUR CONSENT TO DO SO.
Distributor, as an independent contractor, is fully responsible for all of
his/her verbal and written statements made regarding the marketing of the
products and the Lifestyles Business Opportunity which are not expressly
contained in writing in the current Distributor agreement, and advertising or
promotional materials supplied directly by Lifestyles. The Distributor agrees
to indemnify Lifestyles and hold it harmless from any and all
liability including, but not limited to, judgments, civil penalties, refund,
attorney fees, court costs or lost business incurred by Lifestyles as a result
of Distributor’s unauthorized representations.
58. Distributors must avoid all discourteous, deceptive, fraudulent,
misleading, illegal, unethical, or immoral statements, conduct or practices in
their marketing and promotion of Lifestyles, the Lifestyles Opportunity, income
potential, the Lifestyles Career and Compensation Plan, and Lifestyles’
59. Only Distributors who have achieved the rank of National Marketing Director
or higher may produce, with express written approval of Lifestyles, individual
sales, marketing, and support materials to market or promote Lifestyles, the
Lifestyles Opportunity, the Lifestyles Career and Compensation Plan,
Lifestyles’ products, or their Lifestyles’ businesses. All other Distributors
may only use sales aids and support materials produced or currently approved by
Lifestyles. Sales, marketing, and support materials include, but are not
limited to, training and recruiting information, business opportunity or
product presentations, brochures, ﬂyers, pamphlets, posters, postcards,
letters, classiﬁed advertisements, etc. promoting Lifestyles’ products
and programs, as well as E-mail messages, voice mail message recordings, and
Internet home pages used to publicize Lifestyles, its products, services, or the
Lifestyles Career and Compensation Plan.
Our goal is to maintain a positive image for Lifestyles, and to produce
consistent marketing materials that help you build your business. That’s why we
ask you to work with us on your advertising and promotional activities.
60. Any Distributor who has achieved the rank of National Marketing Director or
above who desires to create his/her own promotional and marketing materials
must submit a copy of the proposed materials to Lifestyles working with their
local Lifestyles home office for review and approval before he/she may use the
material publicly. Upon receipt of the proposed material, Lifestyles will
review it carefully for form and content. Lifestyles will promptly notify the
National Marketing Director or higher ranking Distributor in writing regarding
the Company’s decision to approve or disapprove the material for use in
promoting and supporting his/her Lifestyles business activities. National
Marketing Directors and higher ranking Distributors may only use those sales,
marketing, and support materials that Lifestyles has expressly approved. All
advertising copy, direct mailing, radio, TV, newspaper and display copy must be
approved in writing before being disseminated, published or displayed with the
exception of blind ads where no reference is made to the Lifestyles
Opportunity, Lifestyles name(s) or product name(s). The National Marketing
Director and above who received the original approval is responsible for
ensuring that any materials distributed in the organization remain unchanged
when it is distributed.
If you want to promote your Lifestyles business in a public place, we think
that’s a great idea. But please make sure that you do so in compliance with our
Policies and Procedures.
Distributors must fairly and truthfully explain the Lifestyles’ Products,
Opportunity, Lifestyles Career and Compensation Plan, and Policies and
Procedures to prospective Distributors. This includes:
I. Being honest and thorough in presenting material from the Lifestyles Career
and Compensation Plan to all potential Distributors;
II. Making clear that income from the Lifestyles Career and Compensation Plan
is based on product sales and not merely on sponsoring other Distributors;
III. Making use of the Income Disclaimer included in the Card System and other
Lifestyles’ materials, verbally in presentations, and in written form on
registration forms for meetings;
IV. Making estimates of proﬁt that are based on reasonable predictions
for what an average Distributor would achieve in normal circumstances;
V. Representing that past earnings in a given set of circumstances do not
necessarily reﬂect future earnings;
VI. Not misrepresenting the amount of expenditure that a n average Distributor
might incur in carrying on the business;
VII. Not misrepresenting the amount of time an average Distributor would have
to devote to the business to achieve the proﬁt estimated, and not
stating that proﬁts or earnings are guaranteed for any individual
VIII. Never stating or inferring that you will build a down-line organization
for anyone else;
IX. Never stating that proﬁts or earnings are guaranteed for an
individual Distributor; and
X. Never stating that any consumer, business, or government agency has approved
or endorsed the Lifestyles’ products or the Lifestyles Career and Compensation
AND PRESS INQUIRIES
Distributors must refer all media inquiries regarding Lifestyles to their local
Lifestyles office. This will ensure that accurate and consistent information
reaches the general public.
National Marketing Directors and above may advertise on television and radio
subject to Lifestyles prior express written approval.
MEDIA AND INTERNET
Distributors are strictly prohibited from using any form of electronic
advertising (i.e. Internet) to promote or sell Lifestyles’ products except as
set forth in the following.
65. Distributors may use only Lifestyles approved websites when promoting the
Company’s products or opportunity over the Internet.
name of Lifestyles and other names as may be adopted by Lifestyles are
proprietary trade names and trademarks of Lifestyles. A Distributor may not use
the Lifestyles trademark or trade names or corporate logo to promote their
independent business. Rather, they must use the Lifestyles "Independent
Distributor" logo to promote their business. A reproducible copy of the
logo can be obtained from Lifestyles through your online Personal Business
Center, or by contacting your local office.
I. Lifestyles will not permit the use of its copyrights, designs, logos, trade
names, trademarks, etc. without its prior express written permission.
II. Distributors must describe themselves as a Lifestyles "Independent
Distributor" in the business pages of the telephone directory.
III. Distributors should not answer the telephone in any manner that might
indicate or suggest that the caller has reached a Lifestyles corporate office.
IV. Distributors may not record or reproduce materials from any Lifestyles
corporate function, event, speech, etc.
V. Distributors may not record, reproduce, or copy any presentation or speech
by any Lifestyles spokesperson, representative, speaker, officer, director, or
VI. Distributors may not reproduce or copy in whole or in part any recording of
a Lifestyles-produced audio tape or videotape presentation.
VII. Distributors may not publish, or cause to be published, in any written or
electronic media, the name, photograph or likeness, copyrighted materials, or
property of individuals associated with Lifestyles without express written
authorization from the individual and/or Lifestyles.
VIII. A Distributor may not produce, use or distribute any information relative
to the contents, characteristics or properties of Lifestyles product, which has
not been provided directly by Lifestyles. This prohibition includes, but is not
limited to; print, audio, Internet or video media.
IX. Distributors may not publish, or cause to be published, in any written form
or electronic media, the copyrighted materials or property of Lifestyles,
without express written authorization from Lifestyles.
X. Any display ads or institutional or trademark advertising copy, other than
covered in the foregoing rules, must be submitted to Lifestyles and be approved
in writing by Lifestyles prior to publication.
XI. Distributors may not use the names of Lifestyles or any of its registered
products in their e-mails or website addresses.
As someone who uses Lifestyles products, you know how helpful and effective
they are. That’s why there’s no need to exaggerate the facts. Tell people about
your own personal experience with the products, and use the official Lifestyles
literature to help promote the product’s beneﬁts.
AND CLAIMS BY DISTRIBUTORS PRODUCT CLAIMS
Lifestyles’ Distributors may not make claims that Lifestyles’ products have
therapeutic or curative properties except those contained in official
Lifestyles literature. In particular, no Distributor may make any claim that
Lifestyles products are useful in the cure, treatment, diagnosis, mitigation,
or prevention of any diseases. Such statements can be perceived as medical or
drug claims. Not only are such claims in violation of the Distributor Agreement
and Policy’s and Procedures, but they also violate the laws and regulations of
local and international jurisdictions.
Distributors may not make income projections or claims or disclose their
Lifestyles income (including the showing of checks, copies of checks, or bank
statements) when presenting or discussing the Lifestyles Opportunity or The
Lifestyles Career and Compensation Plan, except as set forth in official
Lifestyles literature. Lifestyles believes ﬁrmly that the income
potential is great enough to be highly attractive, without resorting to
artiﬁcial and unrealistic projections. Distributors must ensure that
they use the Lifestyles official Income Disclaimer which is available from your
local office or through your Personal Business Center.
BODIES AND AGENCIES
Local, State/Provincial or Federal regulatory agencies rarely approve or
endorse direct selling programs. Therefore, Distributors may not represent that
any Lifestyles program has been approved or endorsed by any governmental
agency. In the event that the country in which you operate your distributorship
requires Lifestyles to have an MLM License, you may promote the fact that we
have an MLM license and that we are in good standing, as this lends additional
credibility to your business.
AND RE-LABELING PROHIBITED
Distributors may not re-label or alter the labels on any Lifestyles’ products,
information, materials, or programs in any way. Distributors may not repackage
or reﬁll any Lifestyles’ products. Lifestyles’ products must be sold in
their original containers only. Such re- labeling or repackaging would violate
governing laws, which could result in severe criminal penalties. Civil
liability to the Distributor may also result when the persons using the
products suffer any type of injury or their property is damaged as a
consequence of the repackaging or re-labeling of products.
all cases, any reference the Distributor makes to him/herself must clearly set
forth the Distributor’s independent status. For example, if the Distributor has
a business telephone, the telephone may not be listed under Lifestyles name or
in any other manner which does not disclose the independent contractor status
of the Distributor.
AND COMMERCIAL OUTLETS
success as a Distributor is of paramount importance to Lifestyles. That’s why
our products are sold through a personalized MLM model that focuses on helping
each person we encounter. To give your business even more exclusivity and
value, our products are never sold at retail stores.
72. Distributors may display advertising materials and signs about Lifestyles’
products in commercial outlets where professional services are the primary
source of revenue and product sales are secondary.
I. Products may not be displayed and sold in retail establishments where the
nature of the business is to make appointments with Customers (such as salons,
doctors’ offices, health clubs, where appointments are made for personal training
or where classes are scheduled).
II. The sale of Lifestyles’ products within such retail facilities must be
conducted in person by a Distributor and must be preceded by a discussion where
the Distributor introduces the prospect to the products and opportunity, just
as they would if they had met outside of the retail opportunity.
III. Products may not be sold from a shelf or taken from a display for purchase
by a Customer.
IV. Products may not be sold in any retail establishment, even by appointment, if
competitive products are sold in the establishment.
AND BUSINESS CARDS
printed materials, including business cards and stationery, must be approved by
Lifestyles in advance of producing these materials. Criteria for approving
these materials will include a judgment regarding the quality of the materials
as well as properly setting forth the independent status of the Distributor.
Information relating to the guidelines and samples for creating business cards
and stationery can be found in the Personal Business Center and your
& E-MAIL SOLICITATION
use of Lifestyles name or copyrighted materials with automatic calling devices
or "boiler room" operations to market the Lifestyles Opportunity,
solicit Distributors or Retail Customers is strictly prohibited. Distributors
are also forbidden from sending unsolicited E-mail messages or
"spamming" to sell products, market the Lifestyles Opportunity or
recruit Distributors or Retail Customers. However, the use of these methods in
ways that are legal and are the equivalent of the "blind ads" alluded
to in item 80 below cannot be regulated by Lifestyles.
There are no exclusive territories for marketing Lifestyles’ products or
services, nor shall any Distributor imply or state that he/she has an exclusive
territory to market Lifestyles’ products or services.
Lifestyles is truly a global opportunity! Your business can grow as big as you
want it to. We recognize and protect your freedom to expand your business
beyond your home city and even your home country.
Prior express written approval must be obtained from Lifestyles for a
Distributor to register for or participate in a Trade Show, including the
attending, layout and all literature pertaining to the activities that will
take place at or during the event. Lifestyles produced marketing materials and
products may be displayed in a separate sectioned area in the trade show booth.
All literature displayed at the event must be official Lifestyles literature
and must clearly identify the individual(s) as Independent Distributors. An
income disclaimer must also be used on any materials that contain information
relating to the earnings potential of existing, potential or new Distributors.
Distributors may not sell or promote Lifestyles’ products or business
opportunity at farmers’ markets, ﬂea markets, swap meets or garage
RECRUITING & DISSEMINATION OF INFORMATION
Distributor or Preferred Customer shall not sell or in any way promote
non-Lifestyles products to other Lifestyles’ Distributors, or in any way
promote the opportunities or marketing programs of other companies to
78. On a periodic basis, Lifestyles will supply reports to the Distributor
verbally, in hard-copy and/or electronically, which will provide information to
the Distributor concerning the Distributor’s down-line sales organization,
product purchases and product mix. The Distributor agrees that such information
is proprietary and conﬁdential, and may contain proprietary business
trade secrets of Lifestyles, which are transmitted to the Distributor in
conﬁdence. The Distributor agrees that he or she will not disclose such
information to any third party directly or indirectly, nor use the information
to compete with Lifestyles directly or indirectly. The Distributor and
Lifestyles agree that, but for this agreement of conﬁdentiality and
non-disclosure, Lifestyles would not provide the above conﬁdential information
Lifestyles business relationship with its vendors, manufacturers and suppliers
is conﬁdential. A Distributor shall not contact, directly or indirectly,
or speak to or communicate with any representative of any supplier or
manufacturer of Lifestyles except at a Lifestyles sponsored event at which the
representative is present at the request of Lifestyles. Violation of this
regulation may result in termination and possible claims for damages if the
vendor/manufacturer’s association is compromised by the Distributor contact.
AND INTERNET POLICY
Distributor may not independently design a
website that uses the names, logos, or product descriptions of Lifestyles, nor
may a Distributor use "blind" ads on the Internet making product or
income claims which are ultimately associated with Lifestyles’ products or the
Lifestyles Career and Compensation Plan. Any person is prohibited from using
Lifestyles’ names, logos, trademarks, etc. on the Internet or any other advertising
medium, except as permitted by Lifestyles Rules and Regulations and taking
items 59 and 60 into account.
81. A Distributor may not offer the Lifestyles opportunity or any of its
products for sale over the Internet or through any other electronic medium other
than through their Lifestyles Personal Business Center.
RULES AND PRACTICES
us share the Lifestyles name when operating our businesses. Lifestyles has
earned a reputation for excellent products that help people achieve personal
wellness, along with an exceptional business model that helps motivated
individuals reach their personal ﬁnancial goals and dreams.
That’s why it’s so important that we work together to protect the good name and
positive image of Lifestyles. The following guidelines are meant to ensure the
highest business ethics, standards and practices.
SEVEN – MISCONDUCT AND TERMINATION CONDUCT
the conduct of his/her business, the Distributor shall safeguard and promote
the reputation of the products of Lifestyles and the Lifestyles Corporation and
shall refrain from all conduct which might be harmful to such reputation of
Lifestyles or to the marketing of such products inconsistent with the public
interest, and shall avoid all discourteous, deceptive, misleading, unethical or
immoral conduct or practices. The Distributor agrees to comply with the
Lifestyles Distributor Code of Ethics in conducting their business as outlined
in the beginning of this document.
PURCHASES IN CERTAIN JURISDICTIONS
Certain jurisdictions may restrict cumulative purchases during the ﬁrst
six (6) months of being a Distributor. See speciﬁc addenda to
Independent Distributor Agreement for your local market as to statutory
purchasing limitations, buyback rules and other restrictions, disclosures and
additional Distributor rights and responsibilities.
ACTIONS AND TERMINATION
fairest way to operate a company is to have reasonable rules that everybody
adheres to. At Lifestyles, we promise to maintain a scrupulous regard for our
Policies and Procedures, and we do our utmost to ensure that every Distributor
operates according to the same set of rules.
Distributor who is in breach of any item under the Distributor Agreement and
Policy and Procedures and is under Compliance review will have their cheques
and reports suspended immediately until the investigation under the Distributor
Agreement and Policy and Procedures is complete. A Distributor’s violation of
any Policies and Procedures, the agreement, terms and conditions or any
illegal, fraudulent, deceptive, or unethical business conduct may result, at
Lifestyles discretion, in one or more of the following disciplinary actions:
I. Issuance of a written warning or admonition;
II. Suspension, which may result in termination or reinstatement with a
ﬁne and/or with certain conditions and restrictions;
III. Termination of the distributorship;
IV. All actions relating to Distributors with the rank of National Marketing
Director and above are handled directly through the Compliance Committee which
sits at the Lifestyles Global Office in Toronto.
Lifestyles reserves the right to terminate, at its sole discretion, any
distributorship at any time for cause when it is determined that the
Distributor has violated the provisions of these Policies and Procedures and
Distributor Agreement as they may be amended or the provisions of applicable
laws and standards of fair dealing. Such involuntary termination shall be made
by Lifestyles at its sole discretion. Upon an involuntary termination,
Lifestyles shall notify the Distributor by mail at the latest address listed
with Lifestyles for the Distributor. In the event of a termination, the
terminated Distributor agrees to immediately cease representing him/herself as
a Lifestyles Distributor.
PROCESS AND RESPONSE*
I. When a decision is made to terminate a distributorship, Lifestyles will
inform the Distributor in writing that the distributorship is terminated
effective as of the date of the written notiﬁcation. The termination
notice will be sent by certiﬁed mail to the Distributor’s address on
ﬁle with Lifestyles.
II. The Distributor will have ﬁfteen (15) days from the date of mailing
of the certiﬁed letter in which to appeal the termination in writing.
The Distributor’s appeal correspondence must be received by Lifestyles within
thirty (30) days of Lifestyles termination letter. If the appeal is not
received within the thirty day (30) period, the termination will be deemed
III. If a Distributor ﬁles a timely appeal of termination, Lifestyles
will review and reconsider the termination, consider any other appropriate
action, and notify the Distributor of its decision. The decision of Lifestyles
will be ﬁnal and subject to no further review. In the event the
termination is not rescinded, the termination will be effective as of the date
of Lifestyles original termination notice.
*For local regulations, please contact your local
BETWEEN DISTRIBUTORS GRIEVANCES AND COMPLAINTS
a Distributor has a grievance or complaint with another Distributor regarding
any practice or conduct related to their respective Lifestyles businesses, the
complaining Distributor should ﬁrst discuss the problem with the other
Distributor. If this does not resolve the problem, the complaining Distributor
should report the problem to his/her up- line to resolve the issue at a local
level. If the matter still cannot be resolved, it must be reported in writing
to the local Lifestyles office. For matters that involve a National Marketing
Director or above, the local office will contact the Compliance Committee at
Lifestyles Global Office. The local management will review the complaint and
make a ﬁnal decision where the matter does not involve a National
Marketing Director or above. The complaint should identify speciﬁc
instances of alleged improper conduct and, to the extent possible, identify the
relevant dates and location(s) the event(s) took place, and all persons who
have ﬁrst-hand knowledge of the improper conduct. All grievances and
complaints must be submitted in writing. All information submitted is handled
on a conﬁdential basis.
receipt of a written complaint relating to a National Marketing Director or above,
the Lifestyles Compliance Committee will review all the documentation provided
by local Lifestyles office. The Compliance Committee may also issue
disciplinary sanctions consistent with the provisions of Section 84.
BETWEEN LIFESTYLES AND DISTRIBUTORS ARBITRATION
disputes and claims relating to Lifestyles, the Lifestyles Career and
Compensation Plan, its products, the rights and obligations of its Distributors
and Lifestyles, or any other claim or cause of action relating to product purchase(s)
or performance, either of a Distributor or of Lifestyles under the Distributor
Agreement, shall be settled totally and ﬁnally by arbitration in the
jurisdiction of Lifestyles International Holdings Corporation unless the laws
of the region, state or province in which the Distributor resides expressly
require otherwise. There shall be one arbitrator, an attorney at law, with
expertise in transactional law (there being a strong preference for an attorney
knowledgeable in the direct selling industry), selected from the panel provided
by the Arbitration Panel in the jurisdiction of Lifestyles International
Holdings Corporation. Each party to the arbitration shall be responsible for
its own costs and expenses of arbitration, including legal and ﬁling fees.
If a Distributor ﬁles a claim or counterclaim against Lifestyles, the
Distributor may only do so on an individual basis and not with any other
Distributor or as part of a class action. The decision of the arbitrator shall
be ﬁnal and binding upon the parties and may, if need be, be reduced to
a judgment in any court of competent jurisdiction. This agreement to arbitrate
shall survive any cancellation or expiration of the Independent Distributor
90. Nothing in these Policies and Procedures shall prevent Lifestyles from
applying to and obtaining from any court having jurisdiction a writ of
attachment, temporary injunction, preliminary injunction, permanent injunction,
or other available relief to safeguard and protect Lifestyles interest prior to,
during, or following the ﬁling of any arbitration or other proceeding,
or pending the rendering of a decision or award in connection with any
arbitration or other proceeding.
91. The existence of any Distributor claim or cause of action against Lifestyles
does not preclude Lifestyles from enforcing the Distributor’s covenants and
agreements contained in the Distributor Agreement.
VENUE, AND CHOICE OF LAW
Jurisdiction and venue of any matter not subject to arbitration shall reside in
the jurisdiction of Lifestyles International Holdings Corporation unless the
laws of the region, province or state in which the Distributor resides
expressly require otherwise. By signing the Independent Distributor Application
Agreement, all Distributors consent to jurisdiction within these two forums.
The law of the jurisdiction of Lifestyles International Holdings Corporation
shall govern disputes involving the Distributor Agreement.
EIGHT – RESPONSIBILITIES AND OBLIGATIONS
ONGOING SUPPORT, TRAINING
Distributor who sponsors other Distributors must fulﬁll the obligation
of performing a bona ﬁde supervisory, distributing and selling function
in the sale or delivery of product to the ultimate consumer and in the training
of those sponsored. Consumers must have ongoing contact, communication and
management supervision with his or her sales organization. Examples of such
supervision may include, but are not limited to: newsletters, written
correspondence, personal meetings, telephone contact, coaching, voice mail,
electronic mail, training sessions, accompanying individuals to Lifestyles
meetings, training, sharing genealogy information with those sponsored.
Distributors should be able to provide evidence to Lifestyles semi-annually of
ongoing fulﬁllment of Sponsor responsibilities.
Getting advice from a mentor is one of the most valuable assets a business can
enjoy. That’s why Lifestyles sets high standards of behaviour and support for
Sponsors. Remember, the best Sponsors grow the best Lifestyles businesses!
- BUSINESS PURSUITS COVERAGE
Distributors may obtain private insurance coverage for their business
Distributors may sell and promote Lifestyles’ products, opportunity, and
services as well as recruit and enroll any potential Distributor or Customer
only in countries in which Lifestyles is approved for business. The markets are
as announced in official Lifestyles communications or as approved by Lifestyles
in writing. If a Distributor desires to conduct business in an authorized
country other than the one in which they are registered, he/she must comply
with all applicable laws and regulations for that country.
96. Products are formulated and labeled for individual countries to assure compliance
with all legal and regulatory requirements speciﬁc to that particular
country. Therefore Lifestyles’ products may only be purchased or sold in the
country in which Lifestyles maintains an office. The transportation of
Lifestyles’ products from one sanctioned country to another sanctioned country
by a Distributor is strictly prohibited. The transportation of Lifestyles’
products from a sanctioned country to one in which Lifestyles does not
officially do business, and where the products are not available through a
local office, requires prior written authorization from Lifestyles
International Management for each shipment. Contact your local office for
details on any particular country.
APPLICATIONS OR ORDERS
Distributors must forward to Lifestyles any forms and applications they receive
from other Distributors or applicant Distributors, or Customers, on the next
business day after which the forms or applications are signed. See item 110 for
further information relating to sponsorship.
98. If a
Distributor voluntarily surrenders or terminates his/her Independent
Distributor Agreement and has purchased products for inventory purposes or
sales aids while the Distributor Agreement was in effect, all unencumbered
products in a usable condition when in possession of the Independent
Distributor, which have been purchased within thirty (30) days, unless local
laws dictate a different period, of cancellation and which are in compliance
with the seventy percent (70%) rule, shall be re-purchased. The re-purchase
shall be at a price of not less than eighty-ﬁve percent (85%) of the
original net cost to the participant returning such goods, taking into account
any sales made by or through such participant prior to notiﬁcation to
Lifestyles of the election to cancel. In addition, Lifestyles will honour
statutory mandated buyback requirements of every jurisdiction. Lifestyles is
entitled to recover all bonuses and commissions already paid on the inventory
being returned as indicated in item 49.
setting the proper example for their down-line, Distributors must not disparage
other Lifestyles Distributors, Lifestyles products, the Lifestyles Career and
Compensation Plan, or the Company’s employees. Such disparagement constitutes a
material breach of these Policies and Procedures.
company's program is built upon both retail and wholesale sales to the ultimate
consumer. The company also recognizes that Distributors may wish to purchase
product in reasonable amounts for their own personal or family use. For this
reason, a retail sale for bonus purposes shall include sales to non-
participants as well as sales to Distributors for personal or family use, which
are not made for purposes of qualiﬁcation or advancement. It is company
policy, however, to strictly prohibit the purchase of product or large
quantities of inventory in unreasonable amounts solely for the purpose of
qualifying for bonuses or advancement in the marketing program. Distributors may
not inventory load nor encourage others in the program to load up on inventory.
Distributors must fulﬁll published personal and down-line sales
requirements, including requisite retail sales to non-participants as outlined
in item 101 of the Distributor Agreement and Policy and Procedures, as well as
supervisory responsibilities outlined under the section ‘Down-line Ongoing
Support, Training’ item 93 to qualify for bonuses, overrides or advancements.
70 PERCENT POLICY
Lifestyles sales and marketing program is based upon retail and wholesale sales
to the ultimate consumer. This is reinforced through Lifestyles Preferred
Customer Program. Every aspect of the Lifestyles Career and Compensation Plan
is designed to assist our Distributors in the marketing of ﬁne products
and services to the general consuming public. As a dual consumer safeguard, it
is an important policy of Lifestyles that Distributors purchase products in
commercially reasonable quantities only, and under no circumstances may
Distributors cause others to purchase products in amounts that are not
reasonably expected to be sold to the consuming public or in unreasonable
amounts for personal or family use. In furtherance of these Policies,
Lifestyles has adopted speciﬁc rules on retail sales and retailing
referenced as Lifestyles Retail/seventy percent (70%) Rule. In the interest of
protecting the consumer and the opportunity of its Distributors, Lifestyles
enforces this rule through a veriﬁcation program.
to non-participant Retail Customers - Although the primary function of
Lifestyles is to sell products to the general consuming public, Lifestyles
realizes that its Distributors may purchase products for personal or family use
in reasonable amounts. For this reason, Lifestyles deﬁnes a retail sale
to include sales to non-participants, as well as purchases for personal or
family use in reasonable amounts, which are not made solely for purposes of
qualiﬁcation or advancement. This is a standard followed by leading
direct selling companies. Notwithstanding this policy, Lifestyles, in order to
speciﬁcally further retail selling, has adopted a policy that encourages
Distributors to make at least ﬁve (5) sales per month to non-participant
II. Seventy Percent (70%) Rule - As with other leading direct selling
companies, Lifestyles has adopted a seventy percent (70%) rule. Under this
rule, Lifestyles’ Distributors may not order additional product unless they
have sold or used for personal or family use at least seventy percent (70%) of
previously purchased inventory-type product. This affirmation by the
Distributor is required on each individual purchase by each Distributor.
III. Retail/seventy Percent (70%) Rule Audit Veriﬁcation Program - In
its effort to support and enforce the retail/seventy Percent (70%) rule,
Lifestyles will conduct random audit veriﬁcation follow-ups on a
quarterly basis. Representatives of Lifestyles will contact Distributors to further
verify compliance with the retail/seventy Percent (70%) rule. Distributors
should maintain records and be prepared to assist Lifestyles representatives in
Lifestyles will provide an income and earnings summary (Non-employee Compensation)
to each Distributor as applicable in their local jurisdiction. Where an income
and earnings summary is not required within a local jurisdiction the income and
earnings summary will only be provided through the Personal Business Center.
103. Each Distributor is responsible for paying federal, local, state,
provincial, and territorial taxes on any income generated as an Independent
Distributor. Lifestyles will withhold and remit the appropriate level of income
tax and will provide Distributors with written conﬁrmation of taxes
withheld or income earned as and where required by local law.
Every small business has to deal with taxation issues. However, at Lifestyles,
we try to alleviate the burden wherever possible by deducting the applicable
income taxes for you.
SALES TAX (HST, GST, PST OR VAT IN DIFFERENT JURISDICTIONS AS APPLICABLE)
Lifestyles will collect and remit sales taxes on behalf of Distributors at the
invoiced price according to applicable tax rates to which the shipment is destined.
In the event a Distributor has submitted, where applicable under local law, and
Lifestyles has accepted, a Sales Tax Exemption Certiﬁcate with a
photocopy of the Sales Tax Registration License, sales taxes will not be added
to the invoice; the responsibility of collecting and remitting sales taxes to
the appropriate authorities will be upon the Distributor (not applicable in
Canada or the states of Massachusetts and Texas). Exemption from the payment of
sales tax is applicable only to orders which are shipped to a jurisdiction for
which the proper tax exemption papers have been ﬁled and accepted. Sales
taxes will be charged on orders that are drop-shipped to another jurisdiction,
based on the sales tax laws of the destination. Any sales tax exemption
accepted by Lifestyles is not retroactive.
105. Lifestyles has entered into the Alternate Collection Method (ACM), an
agreement with the Canadian Government whereby the Company is required to
charge GST and PST, where applicable, at the retail price level of products
sold to Distributors. Because of the ACM, the Company is not required to charge
the taxes on Distributor commissions and bonuses. Distributors who have not
elected to be Distributors in Canada will not be under the ACM and will need to
register for GST if annual commission payments exceed $30,000CAD. They will
also be charged GST on sales aids and freight that are non-taxable to
Distributors under ACM.
CAREER AND COMPENSATION PLAN
Lifestyles we have detailed systems to track all of your business activities in
order to provide you with the best and most up-to-date analysis of how your
business is doing. This also helps us to pay you promptly and accurately.
106. Royalty overrides and other bonuses, as well as all other monies paid by
the Company to the Distributor, are based on the calendar month. Orders must be
received at the Company's order department by the last working day (non-holiday
weekday) of the month so as to be credited to that month. Lifestyles computer
system tracks your volume and that of your entire down-line, worldwide, and
once a month, on or before the twentieth (20th) of the following month, sends
all invoices, royalty and bonus payments, and organizational reports to you.
Please allow approximately ten (10) working days for delivery. In the event
that you have not received your payment after ten (10) working days, notify
your local office. Replacement payments will be issued after the required
banking procedures are implemented. Payments left unredeemed for more than one
hundred and eighty (180) days will not be honored. An additional processing fee
will be charged for issuing a replacement for lost checks within this period.
In the event that a Distributor resigns or is terminated, Lifestyles’ maintains
the right to hold any forthcoming royalty, bonus or other payments for up to
sixty (60) days, or until the matter is resolved to Lifestyles satisfaction.
107. As with other leading direct selling companies, Lifestyles has adopted
minimum personal and group sales volume requirements in order for a Distributor
to qualify for bonus payments. With respect to tangible products, which may be
offered for purchase for resale, minimum sales volume requirements may also be
fulﬁlled by taking orders from Retail Customers which will be
fulﬁlled or drop-shipped by Lifestyles directly to the Retail Customer.
108. To be eligible for monthly override commissions and bonuses, the
Distributor must comply with:
I. Supervisory responsibility requirements as outlined herein, under item 93;
II. The Lifestyles Career and Compensation Plan requirements;
III. Seventy percent (70%) rule on resale of wholesale product ordered, and
Lifestyles Retail sales rule;
IV. The requirement that his/her down-line has retailed product which has been
purchased at wholesale.
Distributors have the right to sponsor others. In addition, every person has
the ultimate right to choose his/her own Sponsor. If two Distributors claim to
be the Sponsors of the same new Distributor, Lifestyles shall regard the
ﬁrst application received by the Local Lifestyles home office as
I. As a general rule, it is good practice to regard the ﬁrst Distributor
to meaningfully work with a
prospective Distributor as having ﬁrst claim to sponsorship, but this is
not necessarily controlling. Common sense should govern this judgement.
II. As a convenience to its Distributors, Lifestyles may provide various
methods of registering or informing Lifestyles of newly sponsored Distributors,
including telephone registration and online registration. Until such time as
the original documents or the facsimile thereof, containing all appropriate
information, as well as the signature of the proposed new Distributor, are
received, which must be received within ﬁve (5) business days of the
telephone or online registration date, Lifestyles will only consider the
incomplete telephone or online registration in the category of "intended
registration". Thus, although Lifestyles is attempting to create
convenience for its sponsoring Distributors, it is the responsibility of the
sponsoring Distributor to deliver a completed and signed Independent
Distributor Agreement to Lifestyles if the sponsor wishes to be recognized as
the official sponsoring Distributor.
III. There is no "magic" involved in Lifestyles or in any business.
Those who sponsor widely but do not help new Distributors develop their
business meet with limited success. Therefore, a responsibility of sponsorship
is to work with new Distributors, helping them learn the business and
encouraging them during the critical early months.
IV. Sponsors are not required to carry inventory of products or sales aids for
new Distributors. Distributors who do so, however, ﬁnd building a major
sales organization much easier because of the decreased response time in
meeting a new Distributor’s needs.
If you want to sponsor people and have them grow your organization
successfully, it is important to make sure they are registered with your
Lifestyles office promptly. We recommend that you provide them with your full
support, especially during their critical early months in business.
Transfer is rarely permitted and is actively discouraged. Maintaining integrity
is absolutely mandatory for the success of the overall organization. In the
case of unethical sponsoring, the individual may be transferred with their
down-line intact. In all other events, the individual alone is transferred
without any down-line Distributors being removed from the original line of sponsorship.
In all cases relating to the transfer of sponsorship, Lifestyles will be the
WILL GENERALLY BE CONSIDERED IN FIVE (5) CIRCUMSTANCES ONLY:
the case of unethical sponsoring by the original Sponsor;
II. Two previously unrelated individual Distributors become spouses and where
there is either no existing down-line in one of the distributorships or the
request for transfer does not include the down-line organization of the
III. Resigning from Lifestyles entirely and waiting six (6) months to reapply
under the new Sponsor;
IV. Where a request for a change is made within ten (10) days of enrollment. If
you make such a request, you must also submit the written consent of your
Sponsor and that person’s Sponsor. If at the time of the request you have any
down-line organization in place, no change will be permitted in the line of
V. If you have been "inactive" (i.e., no purchases or sales of
Lifestyles products or participation in any other form as a Distributor) for a
period of nine (9) successive months, you may terminate your distributorship in
writing and rejoin immediately under the Sponsor of your choice.
RAIDING OR SPONSORSHIP
Cross-line raiding is strictly prohibited. "Cross-line raiding" is
deﬁned as the enrollment of an individual or entity that already has a
current Independent Distributor Agreement on ﬁle with Lifestyles, or who
has had such an agreement within the preceding six (6) calendar months within a
different line of sponsorship. The use of trade names, assumed names,
corporations, partnerships, trusts, social insurance numbers, tax ID numbers,
social security numbers, or ﬁctitious ID numbers to circumvent this
policy is prohibited. Distributors may not demean, discredit, or invalidate
other Lifestyles Distributors in an attempt to entice another Distributor to
become part of the ﬁrst Distributor’s down-line organization.
Lifestyles wants to protect your business, and that is why we do not allow
cross-sponsoring by anyone. If you are aware of any activity of this nature,
please contact your local Lifestyles office.
Down-line raiding is strictly prohibited. “Down-line Raiding” is deﬁned
as the solicitation of an individual or entity that already has a current
Independent Distributor Agreement or Preferred Customer Agreement on ﬁle
with Lifestyles, or who has had such an agreement within the preceding six (6)
calendar months, into another Company outside of Lifestyles.
OR ‘GHOST’ DISTRIBUTORS
practice of signing ‘Phantom’ or ‘Ghost’ Distributors is strictly prohibited.
Any instances of this practice will result in immediate termination of the
distributorship(s) involved. ‘Phantom’ or ‘Ghost’ Distributors are individuals
or entities that are not aware of or have not given their express agreement by
knowingly signing a Lifestyles Independent Distributor Application and
Agreement or Lifestyles Preferred Customer Application for their enrolment into
Lifestyles as an Independent Distributor or Preferred Customer. In the case
where there is no evidence or means to verify that the information on a
Lifestyles Independent Distributor Application and Agreement or Lifestyles
Preferred Customer Application is valid the application will be deemed to be a
‘Phantom’ or ‘Ghost’ Distributor.
information in this Polices and Procedures manual exists for one reason: to
support the success, ethics, longevity, and positive image of Lifestyles and
its Distributors. If any part of this manual is unclear to you, please contact
your local Lifestyles office for clariﬁcation. Thank you and good luck
in your business!
4th Floor - Alphaland Southgate Mall
2258 Chino Roces cor. EDSA,
Makati City, Philippines 1232
is a leading global network marketing company providing health and wellness
solutions to help people live better every day. Lifestyles develops and
manufactures premium quality, natural source nutritional supplements, healthy
eating and weight loss formulations, beauty and personal care products, sold
through an independent distributor network throughout North America, Asia, and