If requested upon cessation of a Direct Seller’s relationship with a Company, Companies shall buy back any unsold, re-saleable Product inventory, promotional material, sales aids and kits, purchased within the previous twelve months and refund the Direct Seller’s original cost, less a handling charge to the Direct Seller of up to 10% of the net purchase price. The Company may also deduct the cost of any benefit received by the Direct Seller based on the original purchase of the returned goods. This inventory repurchase policy must be clearly communicated to Direct Sellers.

It shall be considered an unfair and deceptive recruiting practice for a company or salesperson to require or encourage an independent salesperson to purchase unreasonable amounts of inventory or sales aids.

The Code Administrator may employ any appropriate remedy to ensure any individual salesperson shall not incur significant financial loss as a result of such prohibited behaviour.

The Code Administrator, upon finding a member company has engaged in false, misleading or deceptive recruiting practices, may employ any appropriate remedy to ensure any complainant shall not incur significant financial loss as a result of such prohibited behaviour, including but not limited to requiring such member company to repurchase any and all inventory, promotional materials, sales aids and/or kits which a complainant has purchased.

All monies due shall be paid and any withholdings made in a commercially reasonable manner.

Earnings paid to Direct Sellers shall be derived from sales of products or services to consumers. Earnings of Direct Sellers may be based on the sales and personal consumption by the Direct Sellers and their downlines.

Direct Sellers shall not receive earnings for recruiting other Direct Sellers into a sales system; except that companies may provide Direct Sellers with minimal incentives which are in accordance with New Zealand law.

2) Earnings representations and sales figures must be:

a) truthful, accurate, and presented in a manner that is not false, deceptive or misleading, and

b) based upon documented and substantiated facts in the relevant market.

3) Potential direct sellers must

a) be informed that actual earnings and sales will vary from person to person and will depend upon the skills of the seller, the time and effort put in and other factors and;

b) be provided with sufficient information to enable a reasonable evaluation of the opportunity to earn income.

Any fees charged to become a Direct Seller shall relate directly to the value of materials, products or services provided in return.

No company shall require product purchases as part of the application process unless included in the starter kit. However, where not prohibited by law, mandatory purchase of a starter kit is permitted.

Any required fees charged to become or remain a Direct Seller including any required additional service offered by the company ( e.g. on-line training , e-commerce or other internet solutions, shipment costs ) shall be fully refundable (less any commission earned by the Direct Seller ) in the event the Direct Seller terminates his/her distributorship within 30 days of payment.

The refundable fees are limited to those paid by the Direct Seller in the 30 days prior to the distributor termination.”

Any commissions paid on fees charged to become or stay a Direct Seller, which are, in effect, remuneration for recruiting Direct Sellers into a sales system, shall be prohibited