STATEMENT OF POLICIES AND PROCEDURES
Effective September 21, 2017
SECTION 1 – INTRODUCTION
1.1 Code Of Ethics
1.2 Policies Incorporated Into Associate Agreement
1.3 Changes To The Associate Agreement, Policies And Procedures, Or Compensation Plan
1.5 Policies And Provisions Severable
SECTION 2 –BECOMING AN ASSOCIATE
2.1 Requirements To Become An Associate
2.2 New Associate Registration By Internet
2.3 Associate Benefits
SECTION 3 – INCOME DISCLOSURE POLICY
SECTION 4 – ADVERTISING
4.1 Adherence To The Genusity Compensation Plan
4.2 Use Of Sales Aid
4.3 Intellectual Property
4.4 Web Policy
4.5 Domain Names And Email Addresses
4.6 Advertised Price
4.7 Generic Business Advertisements
4.8 Media And Media Inquiries
4.9 Unsolicited Email And Fax Communication
SECTION 5 –OPERATING AN Genusity BUSINESS.
5.1 - Business Entities
5.1.1 Changes to a Business Entity
5.1.2 Change of Sponsor
5.1.3 Change of Placement
5.2 Unauthorized Claims And Action
5.2.2 Endorsement of Genusity Services
5.3.2 Sale of Competing Goods or Services
5.3.3 Targeting Other Direct Sellers
5.3.4 Privacy and Confidentiality
5.3.5 The Data Management Rule
5.4 Cross Sponsoring
5.5 Governmental Approval Or Endorsement
5.7 Income Taxes
5.8 Independent Contractor Status
5.9 Bonus Buying
5.11 One Genusity Business Per Associate
5.13 Sale, Transfer, Or Assignment Of a Genusity Business
5.14 Separation of a Genusity Business
6 RESPONSIBILITIES OF AN ASSOCIATE
6.1 Change Of Address, Telephone No., Email-Address
6.2 Sponsoring Associate Responsibilities
6.2.1 Initial Training
6.2.2 Ongoing Training Responsibilities
6.4 Reporting Policy Violations
7 AUTOMATIC BILLING
8 BONUSES AND COMMISSIONS
8.1 Bonus And Commission Qualifications
8.2 Errors Or Questions
8.3 Bonus Buying Prohibited
8.5 Refund Policy
9 DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 Disciplinary Sanctions
9.4 Governing Law, Jurisdiction, And Venue
10 EFFECT OF CANCELLATION
10.1 Effect Of Cancellation And Termination
STATEMENT OF POLICIES AND PROCEDURES
Effective September 21, 2017
SECTION 1 – INTRODUCTION
1.1 - Code of Ethics
Genusity, L.L.C. (hereafter “Genusity” or “the Company”) is a values-based company that prides itself on the quality and character of its Associates (hereinafter “Associate” or “Agreement”). The following guidelines help ensure a uniform standard of excellence throughout our organization. Every Genusity Associate is expected to practice the following ethical behavior when acting in the name of the company:
A. I will be respectful of every person I meet while doing Genusity related business.
B. At all times I will conduct myself and my business in an ethical, moral, legal, and financially sound manner.
C. I will not engage in activities that would bring disrepute to Genusity, any Genusity corporate officer or employee, myself, or other Associates.
D. I will not make discouraging or disparaging claims toward other Genusity Associates. I will ensure that in all Genusity business dealings I will refrain from engaging in negative language. I will refrain from making any type of slanderous statements.
E. I will provide support and encouragement to my Customers to ensure that their experience with Genusity is a successful one. I understand that it is important to provide follow-up service and support to my downline.
F. I will correctly represent all the bonus/compensation plans available through Genusity and the income potential represented therein. I understand I may not use my own income as an indication of others’ potential success, or use compensation checks as marketing materials. I further understand that I may only disclose my Genusity income to recruit a potential Associate(s) after I have given a copy of the Income Disclosure Statement to the potential Associate(s).
G. I will abide by all of Genusity’s Policies & Procedures now and as they may be amended in the future.
1.2 - Policies Incorporated into Associate Agreement
These Policies and Procedures (“Policies”), in their present form and as amended at the sole discretion of Genusity, are incorporated into, and form an integral part of, the Genusity Associate Agreement (hereafter “Associate Agreement”). Throughout these Policies, when the term “Agreement” is used, it collectively refers to the Genusity Associate Agreement, these Policies, and the Genusity Compensation Plan. These documents are incorporated by reference into the Associate Agreement (all in their current form and as amended by Genusity). It is the responsibility of each Associate to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies. When sponsoring a new Associate, it is the responsibility of the sponsoring Associate to provide the most current version of these Policies and Procedures prior to his or her execution of the Associate Agreement.
1.3 - Changes to the Associate Agreement, Policies and Procedures, or Compensation Plan
Because federal, state, and local laws, as well as the business environment, periodically change, Genusity reserves the right to amend the Agreement and the prices in its Genusity Product Price List in its sole and absolute discretion. Notification of amendments shall appear in Official Genusity Materials. Amendments shall be effective upon publication in Official Genusity Materials, including but not limited to, posting on Genusity’s website, e-mail distribution, publication in Genusity’s newsletter, product inserts, or any other commercially reasonable method. The continuation of an Associate’s Genusity business or an Associate’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments. The ability to modify the agreement does not extend to the dispute resolution section in these Policies (Section 9), as those provisions can only be modified by way of mutual consent.
1.4 - Delays
Genusity shall not be responsible for delays and failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, flood, and death, curtailment of a party’s source of supply, or government decrees or orders.
1.5 –Policies and Provisions Severable
If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid, or unenforceable provision never comprised a part of the Agreement.
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 Genusity to exercise any right or power under the Agreement or to insist upon strict compliance by an Associate 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 Genusity’s right to demand exact compliance with the Agreement. Waiver by Genusity can be effectuated only in writing by an authorized officer of the Company.
SECTION 2 – BECOMING AN ASSOCIATE
2.1 - Requirements to Become an Associate
To become an Genusity Associate, each applicant must:
A. Be of the age of majority in his or her state of residence;
B. Reside in the United States or other countries, which have been officially opened by Genusity;
C. Have a valid Social Security Number or Federal Tax Identification Number;
D. Submit a properly completed and signed hard or electronic copy of the Associate Agreement to the Company.
2.2 - New Associate Registration by the Internet
A prospective Associate may self-enroll on the sponsor’s web site. In such event, instead of a physically signed Associate Agreement, Genusity will accept the agreement by accepting the “electronic signature” stating the new Associate has accepted the terms and conditions of the Associate Agreement. Please note that such electronic signature constitutes a legally binding agreement between the Associate and Genusity.
2.3 - Associate Benefits
Once an Associate Agreement has been accepted by Genusity, the benefits of the Compensation Plan and the Associate Agreement are available to the new Associate. These benefits include the right to:
A. Sell Genusity services;
B. Participate in the Genusity Compensation Plan (receive bonuses and commissions, if eligible);
C. Sponsor other individuals as customers or Associates into the Genusity business and thereby build an organization and progress through the Genusity Compensation Plan;
D. Receive periodic Genusity literature and other Genusity communications;
E. Participate in Genusity-sponsored support service training, motivational and recognition functions; and
F. Participate in promotional and incentive contests and programs sponsored by Genusity for its Associates.
SECTION 3 – INCOME DISCLOSURE POLICY
In an effort to conduct best business practices, Genusity has developed the Income Disclosure Statement (“IDS”). The Genusity IDS is designed to convey truthful, timely, and comprehensive information regarding the income that Genusity Associates earn. In order to accomplish this objective, a copy of the IDS must be presented to all prospective Associates.
A copy of the IDS must be presented to a prospective Associate (someone who is not a party to a current Genusity Associate Agreement) anytime the Compensation Plan is presented or discussed, or any type of income claim or earnings representation is made.
The terms “income claim” and/or “earnings representation” (collectively “income claim”) includes the following: (1) statements of average earnings, (2) statements of non-average earnings, (3) statements of earnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of “statements of non-average earnings” include, “Our number one Associate earned over a million dollars last year” or “Our average ranking Associate makes five thousand per month.” An example of a “statement of earnings ranges” is “The monthly income for our higher-ranking Associates is ten thousand dollars on the low end to thirty thousand dollars a month on the high end.”
In any meeting that is open to the public in which the Compensation Plan is discussed or any type of income claim is made, you must provide every prospective Associate with a copy of the IDS. Copies of the IDS may be printed or downloaded without charge from the company website.
SECTION 4 – ADVERTISING
4.1 - Adherence to the Genusity Compensation Plan
Associates must adhere to the terms of the Genusity Compensation Plan as set forth in Official Genusity Materials. Associates shall not offer the Genusity opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically stated in Official Genusity Materials. Associates shall not require or encourage other current or prospective customers or Associates to participate in Genusity in any manner that varies from the program as set forth in Official Genusity Materials. Associates shall not require or encourage other current or prospective customers or Associates to execute any agreement or contract other than official Genusity agreements and contracts in order to become an Genusity Associate. Similarly, Associates shall not require or encourage other current or prospective customers or Associates to make any purchase from, or payment to, any individual or other entity to participate in the Genusity Compensation Plan other than those purchases or payments identified as recommended or required in Official Genusity Materials.
4.2 - Use of Sales Aids
To promote both the services and the opportunity Genusity offers, Associates must use the sales aids and support materials produced by Genusity. If Genusity Associates develop their own sales aids and promotional materials (which includes Internet advertising), notwithstanding Associates’ good intentions, they may unintentionally violate any number of statutes or regulations affecting an Genusity business. These violations, although they may be relatively few in number, could jeopardize the Genusity opportunity for all Associates. Accordingly, Associates must submit all written sales aids, promotional materials, advertisements, websites and other literature to the Company for Company’s approval prior to use. Unless the Associate receives specific written approval to use the material, the request shall be deemed denied. All Associates shall safeguard and promote the good reputation of Genusity and its services. The marketing and promotion of Genusity, the Genusity opportunity, the Compensation Plan, and Genusity services shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.
4.3 -Intellectual Property
Genusity will not allow the use of its trade names, trademarks, designs, or symbols outside of corporate produced and approved sales aids by any person, including Genusity Associates, without prior written authorization from Genusity. Furthermore, no Associate may use, publish, reproduce, advertise, sell, or display in any manner the name, picture or likeness, or voice of another Associate without prior written consent from the named Associate. This consent must be on file with Genusity’s Compliance department prior to any use.
4.4 –Web Policy
If an Associate desires to utilize an Internet web page to promote his or her business, he or she may do so through Company authorized services only.
It is your obligation to ensure your online marketing activities are truthful, are not deceptive and do not mislead customers or potential Associates in any way. Websites and web promotion activities and tactics that mislead or are deceptive, regardless of intent, will not be allowed. This may include representation in any manner that you are an authorized representative for Genusity, spam linking (or blog spam), unethical search engine optimization (SEO) tactics, misleading click-through ads (i.e., having the display URL of a PPC campaign appear to resolve to an official Genusity Corporate Site when it goes elsewhere), unapproved banner ads, and unauthorized press releases. Genusity will be the sole determinant of truthfulness as to whether specific activities are misleading or deceptive.
B. Domain Names, email Addresses and Online Aliases
You 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 Genusity by showing up as the sender of an email.
Examples of the improper use include but are not limited to:
Genusity@msn.com; www.GenusityDirect.com; www.facebook.com/Genusity or derivatives as described herein.
Examples of permitted URLs, email addresses, and online aliases might appear as follows: facebook.com/iloveGenusity; jimsmithGenusityAssociate@gmail.com.
Determinations as to what could cause confusion, mislead or be considered deceptive is at the sole discretion of Genusity. If you have a question whether your chosen name is acceptable, you may submit it to compliance@Genusity.com for review before use.
C. Approved Associate Websites
The term Associate Website refers to the Associate website offered by Genusity or an approved vendor to affiliates. The term Social Media website refers to any site that is not specifically prohibited within the terms and conditions of this Agreement, such as Facebook.com, MySpace.com, Twitter.com, YouTube.com, personal blogs or other personal websites.
D. Online Classifieds
You may not use online classifieds (including Craigslist) to list, sell or promote specific Genusity services. You may use online classifieds (including Craigslist) for prospecting, recruiting, sponsoring, and informing the public about the Genusity opportunity provided you follow the other requirements of this agreement such as identifying yourself as an Associate of Genusity, only using approved images and versions of any trademarked logos and without using fraudulent or misleading product or income claims. If a link or URL is provided, it must link to your Associate Website or your Social Media website.
E. Online Retailing
Approved affiliate websites are intended to provide the affiliates with the tools and means for generating leads, prospecting business, communicating with others, selling products and services, and otherwise advancing your Genusity business. You may not sell Genusity services on any other online retail store or ecommerce site, nor May you enlist or knowingly allow a third party (customer) to sell Genusity products on any online retail store or ecommerce site.
Social Media sites such as Facebook may also be used to promote your Genusity business. You must provide approved Genusity links to your Associate replicated website for sales and order processing. All online sales of Genusity products must take place and be produced through the Associate Replicated website (or corporate site).
F. Banner Advertising
You may place banner advertisements on a website provided you use Genusity-approved templates and images. All banner advertisements must link to your Associate Website. You may not use blind ads or web pages that make non-compliant product or income claims that are ultimately associated with Genusity products or the Genusity business opportunity.
G. Spam Linking
Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites or other publicly accessible online discussion boards or forums and is not allowed. This includes blog spamming, blog comment spamming and/or spamdexing. Any comments you make on blogs, forums, guest books etc. must be unique, informative and relevant.
H. Social Networking Sites
You may use social networking websites (Facebook, LinkedIn, blogs, forums and other social shared interest sites) to share information about the Genusity product, mission and business opportunity and for prospecting and sponsoring. However, these sites may not be used to sell or offer to sell specific Genusity services.
Profiles you generate in any social community where you mention or discuss Genusity must clearly identify you as an Genusity Associate and must appear as described herein. When you participate in those communities you 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 Genusity’s sole discretion, and offending Associates will be subject to disciplinary action and/or termination.
You agree that you will immediately take down a non-compliant site at the request of Genusity. Appeals regarding compliance may be submitted after the site has been taken down. Appeals should be directed to the email address set forth in the policy addressing dispute resolutions.
I. Sponsored Links / Pay-Per-Click (PPC) Ads
Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to your Associate Website. The display URL must also be to your Associate Website and must not portray any URL that could lead the user to assume they are being led to an Genusity Corporate site, or be inappropriate or misleading in any way.
J. External Websites
You are allowed external websites to promote your Genusity business and the Genusity opportunity. If you wish to use an external website you must do the following:
a.) Identify yourself as an Associate for Genusity.
b.) Use only the approved images and wording authorized by Genusity.
c.) Adhere to the branding, trademark, and image usage policies described in this document.
d.) Agree to modify your website to comply with current or future Genusity policies.
You are solely responsible and liable for your own website content, messaging, claims, and information and must ensure your website appropriately represents and enhances the Genusity brand and adheres to all Genusity guidelines and policies. Additionally, your website must not contain disingenuous popup ads or promotions or malicious code. Decisions and corrective actions in this area are at Genusity’s sole discretion. You are encouraged to use the approved Genusity images that are available through the business suite.
K. Genusity Associate Image Mandate
When using a Social Media or external website it must contain:
a.) AN Genusity Associate Logo from the approved templates.
b.) Your Name and Title (example: Joan Arc, Associate, Genusity).
c.) A link to your Associate Replicated website.
Although Genusity brand themes and images are desirable for consistency, anyone landing on your page needs to clearly understand that they are at an Associate site, and not an Genusity Corporate page.
4.6 - Advertised Price
You may not advertise any of Genusity’s services at a price LESS than the highest company published price of the equivalent service. No special enticement advertising is allowed. This includes but is not limited to offers of free membership or other such offers that grant advantages beyond those available through the Company.
4.7 - Generic Business Advertisements
If you advertise via newspaper or other advertising venues, the following rules apply:
A. No advertisement may imply that a job, position, salary, or any type of employment is allowed.
B. No advertisement may promote, represent, or imply salaried positions, management positions, hourly wages, full or part-time employment, or guaranteed incomes. The Genusity opportunity is not a job, and may not be presented as such. Terms such as “manager trainee,” “management positions available,” “travel provided,” “call for interview,” “positions available,” “now hiring,” and other misleading statements are not allowed.
C. No specific income can be promised or implied, and any references to compensation must use the word “commissions” to indicate the independent contractor status of Associates.
D. Advertisements may not contain references to Genusity or its services and may not use any of Genusity’s trademarks or trade-names.
Any requests for variances from the above rules must be submitted to Genusity and approved in writing prior to publication. Please direct any inquiries to compliance@www.Genusity.com, or by fax to the attention of the Compliance department at.
4.8 -Media and Media Inquiries
Associates must not initiate any interaction with the media or attempt to respond to media inquiries regarding Genusity, its services, or their independent Genusity business. All inquiries by any type of media must be immediately referred to Genusity’s Compliance department. This policy is designed to ensure that accurate and consistent information is provided to the public, as well as a proper public image.
4.9 - Unsolicited Email and Fax Communication
Genusity does not permit Associates to send unsolicited emails unless such emails strictly comply with applicable laws and regulations, including, without limitation, the federal CAN SPAM Act. Any email sent by an Associate that promotes Genusity, the Genusity opportunity, or Genusity services, must comply with the following:
A. There must be a functioning return email address to the sender.
B. There must be a notice in the email that advises the recipient that they 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 “opt-out” notice).
C. The email must include the Associate’s physical mailing address.
D. The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
E. The use of deceptive subject lines and/or false header information is prohibited.
F. All opt-out requests, whether received by email or regular mail, must be honored. If an Associate receives an opt-out request from a recipient of an email, the Associate must forward the opt-out request to the Company. Genusity may periodically send commercial emails on behalf of Associates. By entering into the Associate Agreement, Associate agrees that the Company may send such emails and that the Associate’s physical and email addresses will be included in such emails as outlined above. Associates shall honor opt-out requests generated as a result of such emails sent by the Company. Except as provided in this section, Associates may not use or transmit unsolicited faxes or use an automatic telephone dialling system relative to the operation of their Genusity businesses.
SECTION 5 – OPERATING AN Genusity BUSINESS.
5.1 - Business Entities
A corporation, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be an Genusity Associate by submitting an Genusity Associate Application and Agreement along with its Certificate of Incorporation, Articles of Organization, Partnership Agreement or trust documents (these documents are collectively referred to as the “Entity Documents”) to Genusity. An Genusity business may change its status under the same Sponsor from an individual to a partnership, corporation or trust, or from one type of entity to another. To do so, the Associate(s) must provide the Entity Documents to Genusity. The Associate Application must be signed by all of the shareholders, partners or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to Genusity.
5.1.1 - Changes to a Business Entity
Each Associate must immediately notifyGenusity of any changes to the type of business entity they utilize in operating their Genusity business, and the addition or removal of business associates. An Genusity business may change its status under the same sponsor from an individual to a partnership, corporation or trust, or from one type of entity to another. The Associate Agreement form must be signed by all of the shareholders, partners, or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to Genusity.
5.1.2 - Change Of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all Associates, Genusity rarely allows changes in sponsorship, with the rare exception of direct line changes (meaning placement is not affected). A direct line change request must be made by submitting a completed Sponsor Change Request Form within a seven (7) day period from the date of enrollment, and must come from the current listed sponsor.
5.1.3 - Change Of Placement
A request for change of placement must be submitted within seven (7) days of the date of enrollment and must be requested by the current listed sponsor. An Associate can only be moved inside of the same sponsor’s organization. If approved, an Associate is placed in the first available open bottom position on the date that the change is made. Associates who have earned commissions or achieved rank are not eligible for placement changes. Please note that decisions made for any change request (sponsor or placement) are at the sole discretion of Genusity.
5.2 - Unauthorized Claims and Action
5.2.1 - Indemnification
An Associate is fully responsible for all of his or her verbal and/or written statements made regarding Genusity services and the Compensation Plan, which are not expressly contained in Official Genusity Materials. Associates agree to indemnify Genusity and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by Genusity as a result of the Associate’s unauthorized representations or actions. This provision shall survive the cancellation of the Associate Agreement.
5.2.2 –Endorsements of Genusity Services
No claims as to any services offered by Genusity may be made except those contained in Official Genusity Materials.
5.3 - Conflicts
5.3.1 – Non-Solicitations
Genusity Associates are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “Network Marketing”). However, during the term of this Agreement, Associates may not directly or indirectly recruit other Genusity Associates or Customers other than those they have personally sponsored for any other Network Marketing business. Following the cancellation of a Associate Agreement, and for a period of one (1) calendar year thereafter, with the exception of an Associate who is personally sponsored by the former Associate, a former Associate may not recruit any Genusity Associate or Customer for another Network Marketing business.
5.3.2 - Sale of Competing Goods or Services
During this agreement and for six (6) months thereafter, Associates must not sell, or attempt to sell, any competing non-Genusity programs or services to Genusity Customers or Associates. Any program, product, service, or direct selling opportunity in the same generic categories as the Genusityservices are deemed to be competing, regardless of differences in cost, quality or other distinguishing factors.
5.3.3 - Targeting Other Direct Sellers
Should Associates engage in solicitation and/or enticement of members of another direct sales company to sell or distribute Genusity services, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against an Associate alleging that they engaged in inappropriate recruiting activity of its sales force or Customers, Genusity will not pay any of Associate’s defense costs or legal fees, nor will Genusity indemnify the Associate for any judgment, award, or settlement.
5.3.4 - Privacy and Confidentiality
5.3.5- The Data Management Rule
The Data Management Rule is intended to protect the Line of Sponsorship (LOS) for the benefit of all Associates, as well as Genusity. LOS information is information compiled by Genusity that discloses or relates to all or part of the specific arrangement of sponsorship within the Genusity business, including, without limitation, Associate lists, sponsorship trees, and all Associate information generated therefrom, in its present and future forms. The Genusity LOS, constitutes a commercially advantageous, unique, and proprietary trade secret (Proprietary Information), which it keeps proprietary and confidential and treats as a trade secret. Genusity is the exclusive owner of all Proprietary Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by Genusity and its Associates. Through this Rule, Associates are granted a personal, non-exclusive, non-transferable and revocable right by Genusity to use Proprietary Information only as necessary to facilitate their business as contemplated under these Policies and Procedures. The Company reserves the right to deny or revoke this right, upon reasonable notice to the Associate stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of Genusity, such is necessary to protect the confidentiality or value of Proprietary Information. All Associates shall maintain Proprietary Information in strictest confidence, and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain the confidentiality thereof.
5.4 -Cross Sponsoring
Actual or attempted cross-group sponsoring is strictly prohibited. “Cross-group sponsoring” is defined as the enrollment, indirect or otherwise, of an individual or entity that already has a current customer number or IR Agreement on file with Genusity, or who has had such an agreement within the preceding twelve (12) calendar months, within a different line of sponsorship. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, Federal Tax Identification Numbers or fictitious identification numbers to circumvent this policy is prohibited. This policy shall not prohibit the transfer of a Genusity business in accordance with the “Sale, Transfer or Assignment of Genusity Business” section of these Policies and Procedures.
5.5 -Governmental Approval or Endorsement
Neither federal nor state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Associates shall not represent or imply that Genusity or its Compensation Plan have been “approved,” “endorsed,” or otherwise sanctioned by any government agency.
All Associates are required to provide their Social Security Number, Federal Employer Identification Number, or their Government Issued ID Number to Genusity either on the Associate Agreement or at the company’s request. Upon enrollment, the Company will provide a unique Associate Identification Number to the Associate by which they will be identified. This number will be used to place orders and track commissions and bonuses.
5.7 - Income Taxes
Every year, Genusity will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident as required by the Internal Revenue Service. Each Associate is responsible for paying local, state and federal taxes on any income generated as an Associate. If an Genusity business is tax exempt, the Federal Tax Identification Number must be provided to Genusity. Any Associate that does not provide a valid social security number is subject to the federal backup withholding laws and 28% of their commissions and bonus will be withheld and submitted to the IRS.
5.8 - Independent Contractor Status
You are an independent contractor. You are not an agent, employee, partner, or joint venture with the Company. You may not represent yourself as anything other than an Associate. You have no authority to bind Genusity to any obligation. You are responsible for paying your own self-employment taxes, federal income taxes and other taxes required by law. You must obey any federal, state, and local laws, as well as Company rules and regulations pertaining to your independent Genusity Business or the acquisition, receipt, holding, selling, distributing or advertising of Genusity’s services or opportunity.
Associates may not answer the telephone by saying “Genusity,” “Genusity Limited Liability Company,” or “Genusity Corporate” that would lead the caller to believe that they have reached Genusity’s corporate offices. An Associate may only represent that he/she is an Genusity Associate. Therefore, all correspondence and business cards relating to or in connection with an Associate’s Genusity business shall contain the Associate’s name followed by the term “Associate.”
Paying the membership fees solely for the purpose of collecting bonuses or achieving rank is prohibited.
5.10 – Stacking
Stacking is the unauthorized manipulation of the Genusity compensation system and/or the marketing plan in order to trigger commissions or cause a promotion off a downline Associate in an unearned manner. One example of stacking occurs when a sponsor places participants under an inactive downline participant (who may not know or have any relationship with the clients) in order to trigger unearned qualification for commissioning. Another example of stacking is the manipulative placement of Associates within a downline organization in order to trigger a promotion. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the Associate’s positions of all individuals found to be directly involved.
5.11 - One Genusity Business per Associate
An Associate may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Genusity business. No individual may have, operate or receive compensation from more than one Genusity business. Individuals of the same family unit may each enter into or have an interest in their own separate Genusity businesses, only if each subsequent family position is placed frontline to the first family member enrolled. A “family unit” is defined as spouses and dependent children living at or doing business at the same address.
5.12 - Succession
Upon the death or incapacitation of an Associate, their business may be passed to a designated heir(s). Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Whenever an Genusity business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Associate’s marketing organization provided the following qualifications are met. The successor(s) must:
• Execute an Associate Agreement;
• Comply with terms and provisions of the Agreement;
• Meet all of the qualifications for the deceased Associate’s rank/status;
• Provide Genusity with an “address of record” to which all bonus and commission checks will be sent. Bonus and commission checks of an Genusity business transferred pursuant to this section will be paid in a single check jointly to the successor(s).
• Form a business entity and acquire a federal Taxpayer Identification Number, if the business is bequeathed to joint successors. Genusity will issue all bonus and commission checks and one 1099 to the business entity.
5.13 - Sale, Transfer, or Assignment of an Genusity Business
Although an Genusity business is a privately owned, independently operated business, the sale, transfer or assignment of an Genusity business is subject to certain limitations. If an Associate wishes to sell their Genusity business, the following criteria must be met:
A. Protection of the existing line of sponsorship must always be maintained so that the Genusity business continues to be operated in that line of sponsorship;
B. The buyer or transferee must become a qualified Genusity Associate. If the buyer is an active Genusity Associate, they must first terminate their Genusity business and wait six calendar months before acquiring any interest in the new Genusity business;
C. Before the sale, transfer, or assignment can be finalized and approved by Genusity, any debt obligations the selling Associate has with Genusity must be satisfied; and
D. The selling Associate 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 Genusity business.
Prior to selling an Genusity business, the selling Associate must notify Genusity’s Compliance department of their intent to sell the Genusity business. No changes in line of sponsorship can result from the sale or transfer of an Genusity business. An Associate may not sell, transfer, or assign portions of their business—the position must be sold in its entirety.
5.14 - Separation of an Genusity Business
Genusity Associates sometimes operate their Genusity businesses as husband-wife partnerships, regular partnerships, corporations, or trusts. At such time as a marriage may end in divorce or a corporation, partnership, or trust (the latter three entities are collectively referred to herein as “entities”) 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 sponsorship. If the separating parties fail to provide for the best interests of other Associates and the Company in a timely fashion, Genusity will involuntarily terminate the Associate Agreement.
During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
A. One of the parties may, with consent of the other(s), operate the Genusity business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners, or trustees authorize Genusity to deal directly and solely with the other spouse or non-relinquishing shareholder, partner, or trustee.
B. The parties may continue to operate the Genusity business jointly on a “business-as-usual” basis, whereupon all compensation paid by Genusity 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. The Company will never remove a party to a position from an Associate account without that party’s written permission and signature. Under no circumstances will the downline organization of divorcing spouses or a dissolving business entity be divided. Under no circumstances will Genusity split commission and bonus checks between divorcing spouses or members of dissolving entities. Genusity will recognize only one downline organization and will issue only one commission check per Genusity 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 Associate Agreement shall be involuntarily cancelled. If a former spouse has completely relinquished all rights in the original Genusity business pursuant to a divorce, they are thereafter free to enroll under any sponsor of their choosing without waiting six (6) 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 an Associate. In either case, however, the former spouse or business affiliate shall have no rights to any Associates in their former organization or to any former customer. They must develop the new business in the same manner as would any other new Associate.
All Active Associates in good standing have the right to sponsor and enroll others into Genusity. Each prospective customer or Associate has the ultimate right to choose his or her own Sponsor. If two Associates claim to be the Sponsor of the same new Associate or customer, the Company shall regard the first application received by the Company as controlling.
SECTION 6 – RESPONSIBILITIES OF ASSOCIATES
6.1 - Change of Address, Telephone, Email-Address
To ensure timely communications, delivery of support materials and commission checks, it is critically important that the Genusity’s files are current. Associates planning to move or change their email address must submit an amended Associate Agreement complete with the new information.
6.2 – Sponsoring Associate Responsibilities
6.2.1 – Initial Training
Any Associate who sponsors another Associate into Genusity must perform a bona fide assistance and training function to ensure that their downline is properly operating their Genusity business. Associates must provide the most current version of the Policies and Procedures, the Income Disclosure Statement, and Compensation Plan to individuals whom they are sponsoring to become Associates before the applicant signs an Associate Agreement.
6.2.2 – Ongoing Training Responsibilities
Associates must monitor the Associates in their downline organizations to ensure that downline Associates do not make improper product or business claims, or engage in any illegal or inappropriate conduct. Upon request, every Associate should be able to provide documented evidence to Genusity of their ongoing fulfilment of the responsibilities of a Sponsor.
6.3 – Non-disparagement
Associates must not disparage, demean, or make negative remarks about Genusity, other Genusity Associates, Genusity’s services, the Compensation plan, or Genusity’s owners, board members, directors, officers, or employees.
6.4 - Reporting Policy Violations
Associates observing a Policy violation by another Associate should submit a written report of the violation directly to the attention of the Genusity Compliance department, complete with all supporting evidence and pertinent information. It is important to understand that information that is submitted will be kept confidential.
SECTION 7 – AUTOMATIC BILLING
7.1 - Billing
The membership program is automatically renewed each month with a credit or debit card maintained on file with Genusity. The Associate may make adjustments to their monthly subscription in the back office of the Genusity website.
SECTION 8 –COMMISSIONS AND REFUND POLICY
8.1 - Bonus and Commission Qualifications
In order to qualify to receive commissions and bonuses, an Associate must be in good standing and comply with the terms of the Agreement and these Policies and Procedures. For more details on how to qualify for commissions, please see the Genusity Compensation Plan.
8.2 - Errors or Questions
If an Associate has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Associate must notify Genusity in writing within thirty (30) days of the date of the purported error or incident in question. Genusity will not be responsible for any errors, omissions, or problems not reported to the Company within thirty (30) days.
8.3 - Bonus Buying Prohibited
Bonus buying is strictly and absolutely prohibited. Bonus buying includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Associate Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as an Associate or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Associates or Customers (“phantoms”); (d) purchasing Genusity services on behalf of another Associate or Customer, or under another Associate’s or Customer’s ID number, to qualify for commissions or bonuses; and/or (f) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.
8.4 - Reports
All information provided by Genusity, including but not limited to personal sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments, an Associate whose Associate Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
An Genusity participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address, or via email to Genusity.
8.5 – Refund Policy
Genusity offers a thirty-day satisfaction guarantee on all initial fees paid to the company. All subsequent fees are nonrefundable. When a refund is requested by an Associate the bonuses and commissions attributable to the refunded service will be deducted from the Associate who received bonuses or commissions on such sales. Deductions will occur in the month in which the refund is given and continue every pay period thereafter until the commission is recovered.
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 - Disciplinary Sanctions
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 an Associate 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 Associate’s Genusity business), may result, at Genusity’s discretion, in one or more of the following corrective measures:
• Issuance of a written warning or admonition;
• Requiring the Associate to take immediate corrective measures;
• Imposition of a fine, which may be withheld from bonus and commission checks;
• Loss of rights to one or more bonus and commission checks;
• Withholding from an Associate all or part of the Associate’s bonuses and commissions during the period that Genusity is investigating any conduct allegedly contrary to the Agreement. If an Associate’s business is cancelled for disciplinary reasons, the Associate will not be entitled to recover any commissions withheld during the investigation period;
• Suspension of the individual’s Associate Agreement for one or more pay periods;
• Involuntary termination of the offender’s Associate Agreement;
• Any other measure expressly allowed within any provision of the Agreement or which Genusity deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Associate’s policy violation or contractual breach;
• Instituting legal proceedings for monetary and/or equitable relief. Each violation is reviewed on a case-by-case basis, and all disciplinary actions are at the sole discretion of Genusity.
9.2 - Mediation
Prior to instituting arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The 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 ten (10) days in advance of the mediation. Each party shall pay its own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Waxhaw, North Carolina, and shall last no more than two (2) business days.
9.3 - Arbitration
If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by confidential arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Associates waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Waxhaw, North Carolina. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel which the American Arbitration Panel 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 of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement.
NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.
Nothing in these Policies and Procedures shall prevent Genusity from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect Genusity’s interest prior to, during, or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
9.4 - Governing Law, Jurisdiction, and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in North Carolina. The Federal Arbitration Act shall govern all matters relating to arbitration. The laws of North Carolina shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision in this Agreement, residents of the State of Louisiana shall be entitled to bring an action against Genusity in their home forum and pursuant to Louisiana law.
SECTION 10 – EFFECT OF CANCELLATION
10.1- Effect of Cancellation and Termination
So long as an Associate remains active and complies with the terms of the Associate Agreement and these Policies, Genusity shall pay commissions to such Associate in accordance with the Compensation Plan. An Associate’s bonuses and commissions constitute the entire consideration for the Associate’s efforts in generating sales and all activities related to generating sales (including, but not limited to, building a downline organization). Following an Associate’s non-continuation of his or her Associate Agreement, cancellation for inactivity, or voluntary or involuntary cancellation (termination) of his or her Associate Agreement (all of these methods are collectively referred to as “Cancellation”), the former Associate shall have no right, title, claim or interest to the downline organization which he or she operated, or any commission or bonus from the sales generated by the organization. Associates waive any and all rights, including, but not limited to, property rights, in the downline which they may have had. Following an Associate’s cancellation of his or her Associate Agreement, the former Associate shall not hold him or herself out as an Genusity Associate and shall not have the right to sell Genusity products or services. An Associate whose Associate Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
An Genusity participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address, or via email to Genusity. The written notice must include the Associate’s signature, printed name, address, and Associate ID Number.
SECTION 11 – DEFINITIONS
AGREEMENT: The contract between the Company and each Associate; includes the Associate Agreement, the Genusity Policies and Procedures, and the Genusity Compensation Plan, all in their current form and as amended by Genusity in its sole discretion. These documents are collectively referred to as the “Agreement.”
CANCEL: The termination of an Associate’s business. Cancellation may be either voluntary or involuntary.
COMPENSATION PLAN: The guidelines and referenced literature for describing how Associates can generate commissions and bonuses.
CUSTOMER: A Customer who purchases Genusity services and does not engage in building a business or selling the service.
ASSOCIATE: An individual who purchases product, generates sales and business building commissions.
LINE OF SPONSORSHIP (LOS): A report generated by Genusity that provides critical data relating to the identities of Associates, sales information, and enrollment activity of each Associate’s organization. This report contains confidential and trade secret information which is proprietary to Genusity.
ORGANIZATION: The Customers and Associates placed below a particular Associate.
OFFICIAL Genusity MATERIAL: Literature, audio or video tapes, and other materials developed, printed, published, and distributed by Genusity to Associates.
PLACEMENT: Your position inside your Sponsor’s organization.
RECRUIT: For purposes of Genusity’s Conflict of Interest Policy, the term “Recruit” means the actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Genusity Associate or Customer to enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.
SPONSOR: An Associate who enrolls a Customer or another Associate into the Company, and is listed as the Sponsor on the Associate Agreement. The act of enrolling others and training them to become Associates is called “sponsoring.”
UPLINE: This term refers to the Associate or Associates above a particular Associate in a sponsorship line up to the Company. It is the line of sponsors that links any particular Associate to the Company.