A. Permissible Activity in Unopened Markets. Prior to the official opening of an Open Local Market, permissible Wellness Advocate activity in an unopened Local Market is limited to providing business cards and conducting, organizing or participating in meetings where the number of attendees at any given meeting, including the Wellness Advocate, does not exceed five (5). Participants in such meetings must be personal acquaintances of the Wellness Advocate or personal acquaintances of the Wellness Advocate’s personal acquaintances in attendance at the meeting. The meetings must be held in a home or a public establishment but may not be held in a private hotel room. All cold calling techniques (soliciting persons who are not prior personal acquaintances of the contacting Wellness Advocate) are strictly prohibited in unopened Local Markets.
B. Prohibited Acts in Unopened Local Markets.
1. A Wellness Advocate may not import or facilitate the importation of, sale, gift, or distribution of, Company products, services, or product samples.
2. A Wellness Advocate may not place any type of advertisement or distribute promotional materials regarding the Company, its products or the opportunity, except Company approved Sales Aids, which are specifically authorized for distribution in unopened Local Markets.
3. A Wellness Advocate may not solicit or negotiate any agreement for the purpose of committing a citizen or resident of an unopened Local Market to the opportunity, a specific Enrolling Sponsor or specific line of sponsorship. Furthermore, Wellness Advocates may not sign up citizens or residents of unopened Local Markets in an Open Local Market or by using Wellness Advocate Agreements from an Open Local Market, unless the citizen or resident of the unopened Local Market has, at the time of sign up, permanent residence and the legal authorization to work in the Open Local Market. It is the Enrolling Sponsor’s responsibility to ensure compliance with residency and work authorization requirements. Membership or participation in, or ownership of a corporation, partnership or other legal entity in an Open Local Market does not by itself fulfill the residency or legal authorization to work requirements. If a participant to a Distributorship fails to provide verification of residency and work authorization when requested by the Company, the Company may, at its election, declare a Wellness Advocate void from its inception.
4. A Wellness Advocate may not accept money or other consideration, or be involved in any financial transaction with a potential Wellness Advocate which rents, leases, or purchases facilities for the purpose of promoting or conducting Company-related business.
5. A Wellness Advocate may not promote, facilitate, or conduct any type of activity which exceeds the limitations set forth in this Policy Manual or which the Company, in its sole discretion, deems to be contradictory to the Company’s business or ethical interests in international expansion.
C. Foreign Corrupt Practices Act. All doTERRA Wellness Advocates must comply with the United States Foreign Corrupt Practices Act (FCPA) as well as any similar or equivalent laws in the local market such as the UK’s Bribery Act. For a full explanation of the FCPA, see the doTERRA handout on the tools menu of the doTERRA website. A person or organization is guilty of violating the FCPA if there is:
1. A payment, offer, authorization, or promise to pay money or anything of value;
2. To a foreign government official (including a party official or manager of a state-owned concern), or to any other person, knowing that the payment or promise will be passed on to a foreign official;
3. With a corrupt motive;
4. For the purpose of (i) influencing any act or decision of that person, (ii) inducing such person to do or omit any action in violation of his lawful duty, (iii) securing an improper advantage, or (iv) inducing such person to use his influence to affect an official act or decision; 5. In order to assist in obtaining or retaining business for or with, or directing any business to any person.
D. No Exclusive Local Markets or Franchises. There are no exclusive Local Markets or franchises. A Wellness Advocate has the right to operate anywhere in the Wellness Advocate’s country of residence.
E. Prohibited Local Markets. The Company reserves the right to designate certain Local Markets wherein all pre-marketing conduct is expressly prohibited. It is the responsibility of each Wellness Advocate, prior to each instance of conducting pre-market opening activities in an unopened market, to verify through current contact with the Company that the Local Market in which he or she plans to conduct those activities is not a prohibited Local Market. A Wellness Advocate may obtain a list of prohibited Local Markets by calling the Company.
F. Breach of International Policy. In addition to other remedies allowed by the Contract, a Wellness Advocate who fails to comply with any provision of this Section 14 may be prohibited from participating in the affected international market for a period deemed appropriate by the Company. This prohibition could include but is not limited to the following:
1. The Wellness Advocate may have no right to international distribution/sponsorship rights in the affected Local Market;
2. The Wellness Advocate and the Wellness Advocate’s upline may not be entitled to Bonuses generated by the Wellness Advocate and the Wellness Advocate’s Downline Organization in the respective Local Market;
3. Additionally, in all markets, for a period of up to one year, the Wellness Advocate may not be entitled to privileges traditionally afforded Wellness Advocates such as recognition at corporate events or in corporate literature, and receipt of new Wellness Advocate sign up materials prior to the official opening of any new market. A Wellness Advocate who has been unable to participate in a market because of non-compliance with Section 14 of this Policy Manual must petition the Company in writing for written permission to participate in the market after the period of prohibition has passed.
G. No Waiver of Other Rights. The provisions of this Section 14 do not waive the Company’s rights as set forth elsewhere in the Contract.