Important Notice: Amendments to Sales Performance Plan, Policies and Procedures, Brand Affiliate Agreement, Member Agreement and ARO Agreement

JAN 1, 2025

 

Dear Sales Leaders and Members,

 

All Hong Kong & Macau Brand Affiliates and Members should read this notice carefully as this notice announces Amendments to the Nu Skin Sales Performance Plan, Policies and Procedures, Brand Affiliate Agreement (applicable to Brand Affiliates), Member Agreement (applicable to Member) and the Automatic Re-Ordering Program Enrollment Agreement (“ARO Agreement”) (applicable to Brand Affiliates/Members who have subscribed the ARO Program (“ARO member”)) for Hong Kong & Macau market which may affect your rights as a Brand Affiliate, Member and/or an ARO member.  These amendments will take effect on 1 January 2025.

 

If you are a Brand Affiliate, please read

 

I. Amendments to Sales Performance Plan, Policies and Procedures and Brand Affiliate Agreement carefully. 

 

If you are a Member, please read

II. Amendments to the Member Agreement carefully. 

 

If you are an ARO member, please read

III. Amendments to the ARO Agreement carefully.

 

All capitalised terms used in this document have the same meanings as those defined in the Nu Skin Sales Performance Plan, Policies and Procedures, Brand Affiliate Agreement, Member Agreement and the ARO Agreement for Hong Kong & Macau market.

 

I. Amendments to Sales Performance Plan, Policies and Procedures and Brand Affiliate Agreement

 

A.      Sales Performance Plan

 

Overview of the Amendments

 

Effective on January 1, 2025, the Nu Skin Sales Performance Plan for Hong Kong & Macau market will be revised as follows: any Brand Affiliate account that does not achieve 50 points of Direct Customer Sales Volume in the most recent 6 months (the “DCSV Requirement”) will be terminated and, unless your account is held by a business entity, you will become a Member. (Note: If your account is held by a business entity, your Brand Affiliate account will be terminated but will not be converted to a Member account.) When your Brand Affiliate account is terminated, your Brand Affiliates, Members and Retail Customers will move to the Brand Affiliate directly above you. To become a Brand Affiliate again, you can submit a new Brand Affiliate Agreement.

 

If your Brand Affiliate account is converted to a Member account, you can continue to purchase our Products at the Member Price but you can purchase Products only for personal consumption and not for resale. Additionally, you can neither sponsor Brand Affiliates nor earn commissions under the Nu Skin Sales Performance Plan. If you would like to terminate your Member Account, you may do so any time without penalty by giving us written notice.

 

The first conversion of Brand Affiliate Accounts to Member Accounts is planned to take place in July 2025 for those Brand Affiliate Accounts that do not achieve 50 points of Direct Customer Sales Volume in the 6-month period from January to June 2025.

 

Below are the details of the amendments to the Nu Skin Sales Performance Plan for Hong Kong & Macau market:

 

Details of the Amendments

 

1.     The definition of “Brand Affiliate” in Section 1.2 will be replaced by the following:

 

“Brand Affiliates can (i) purchase Products at the Member Price for personal consumption or resale, and (ii) register Registered Customers who purchase Products directly from Nu Skin. To remain a Brand Affiliate, you must have 50 points or more of Direct Customer Sales Volume within the most recent six months. Otherwise, your Brand Affiliate Account will be terminated and, unless your account is held by a business entity, you will become a Member. When your Brand Affiliate account is terminated, your Brand Affiliates, Members and Retail Customers will move to the Brand Affiliate directly above you. To become a Brand Affiliate again, you can submit a new Brand Affiliate Agreement.”

 

2.     The following new terms will be added to the Glossary:

 

“Direct Customer: Your Direct Customers are your first-level Retail Customers and Members. A Brand Affiliate is not considered a Direct Customer.”

 

“Direct Customer Sales Volume: The sum of all Product points from purchases made by your Direct Customers. Another way to think about this is the Sales Volume from purchases of your first-level Retail Customers and Members that purchase Products through Nu Skin Systems. Direct Customer Sales Volume for Retail Customer purchases is attributed only to the Brand Affiliate responsible for the Product sale. Direct Customer Sales Volume for Member purchases is attributed only to the sponsoring Brand Affiliate.”

 

“Nu Skin Systems: Any process or location designated by Nu Skin for the purchase or sale of officially designated Nu Skin Products, including through the Nu Skin Vera app, Nu Skin Stela app, Nuskin.com, MySite, Personal Offer Tool, or any other Nu Skin approved platform.”

Please refer to the revised Sales Performance Plan (effective on 1 January, 2025) here .

 

B.      Policies and Procedures

 

The revised Policies and Procedures for Hong Kong & Macau market (effective on 1 January, 2025) can be found here . You should review it carefully. Below are the highlights on the key amendments:

 

(1)    A new Section 5 (Terminating Brand Affiliate Account and Conversion to Member Account under Sales Performance Plan) will be added under Chapter 1 of the Policies and Procedures:

 

In relation to the above amendments to the Sales Performance Plan, the new amendments to the Policies and Procedures provide more details on the termination of Brand Affiliates Accounts and the conversion to Member Accounts (only for Brand Affiliate Accounts not held by business entities) when the DCSV Requirement is not met.

 

In summary, Brand Affiliates should check their Direct Customer Sales Volume regularly to make sure they can meet the DCSV Requirement in order to maintain their Brand Affiliate status. If any Brand Affiliate Account failed to meet the DCSV Requirement:

 

  1. for the Brand Affiliate account which is held by a business entity, it will be terminated. To continue to enjoy the Member Price, the previous individual Brand Affiliates under the terminated Brand Affiliate Account may sign up as a Member; and
  2.  
  1. for the Brand Affiliate account which is not held by a business entity, it will be converted to a Member account. The previous owner or Principal Brand Affiliate of the Brand Affiliate Account will become the sole owner of the new Member account, and with their permission, other previous Brand Affiliates under the terminated Brand Affiliate account may purchase Products from the Company under the new Member Account.
  2.  

The following new terms will also be added to the Glossary of Defined Terms in Addendum A of the Policies and Procedures:

 

“Member Account: The Member account created when an individual enters a contractual relationship with the Company for being a Member.”

 

“Member Agreement: The Member agreement that governs the contractual relationship between a Member with the Company.”

 

For details of the above, please refer to (i) the new Section 5 under Chapter 1; and (ii) the revised Addendum A of the Policies and Procedures.

 

(2)  Terms under “Product Refunds and Exchanges” in Section 4, Chapter 2 of the Policies and Procedures will be updated:

 

The new amendments to the Polices and Procedures also provide modification to (i) the policy for product refund and exchange; and (ii) the policy for uncollected/undelivered products, to provide more clarity and details on the timeline and procedures for product refund and exchange.

 

(3)    For details of the above, please refer to the revised Section 4, Chapter 2 of the Policies and Procedures. Other Amendments:

 

                        i.         References to “Sales Compensation Plan” in the original Policies and Procedures are updated to “Sales Performance Plan” ; and

 

                       ii.         Miscellaneous amendments to address inconsistencies.

 

C.      Brand Affiliate Agreement

 

Below are the highlights on the key amendments to the Brand Affiliate Agreement: 

(1) Terms under the “Automatic Re-Ordering Program Enrollment Agreement” in Clause 5, Section C are revised to provide more clarity on the ordering and delivery arrangement;

 

(2) Terms under “Uncollected/Undelivered Nu Skin Products” in Clause 6, Section C are revised to provide more clarity on the policy for uncollected/undelivered products; and

(3) Miscellaneous amendments to correct typographical errors or to address inconsistencies between the Chinese and English versions.

 

For details of the above, please refer to the revised Brand Affiliate Agreement (effective on 1 January, 2025) here.

 

These amendments are important to you as a Brand Affiliate. You should read them carefully. If you do not agree to the above amendments, you may terminate your Brand Affiliate account any time by giving us written notice. 

 

II. Amendments to the Member Agreement

 

Overview of the Amendments

 

Effective on January 1, 2025, (1) Nu Skin International, Inc. will be introduced as a party to the Member Agreement jointly with Nu Skin Enterprises Hong Kong, LLC; (2) A new section regarding ownership of Member account will be introduced; and (3) the policy for product refund and exchange, and the policy for uncollected/undelivered products will be modified.

 

Below are the details of the amendments to the Member Agreement for Hong Kong & Macau market:-

 

Details of the Amendments

 

1.     Addition of Nu Skin International, Inc. as a Contracting Party:

 

Nu Skin International, Inc. will be introduced as a party to the Member Agreement. Accordingly, your Member Agreement will be an agreement entered into between Nu Skin International, Inc., Nu Skin Enterprises Hong Kong, LLC (collectively “Nu Skin”) and you, the Member.

 

2.     A new Section 4 will be added to the Member Agreement:

 

“4. Owner of Member Account. If you have a Member account as a result of your Brand Affiliate account converting to a Member account pursuant to the Sales Performance Plan, your Member account may, besides you being the owner of the Member account, have other individuals registered under your Member account. These individuals may purchase products under your Member account as permitted by you being the owner of such Member account but you shall be responsible for all activities conducted under such Member account.”

 

3.   Terms under “Refunds and Exchanges” in Section 5 of the original Member Agreement will be replaced by the following:

 

“6. Refunds and Exchanges.

 

1)    Refund Policy:

 

Unless otherwise required by applicable laws, Nu Skin will refund to you 90% of the purchase price of those products purchased by you directly from Nu Skin under the Member Program if (i) the returned product is unopened and resalable, and (ii) it is returned within 12 months from the order date. Nu Skin will not refund the original shipping costs on products that are returned by you. You may also return individual products that are purchased as part of a kit or package. The form of the refund will be based on the original form of payment if practicable. If payment was previously made by credit card, a credit card charge back will be arranged. If payment was previously made by cash, a product credit will be arranged. Nu Skin may choose other alternative refund methods as it deems fit.

 

2)    The refund policy may not apply to product promotion. In such case, specific prior notification will be given.

 

3)    Exchange Policy for Products Purchased Directly from Nu Skin:

 

Unless otherwise required by applicable laws, Nu Skin will exchange products purchased directly from Nu Skin that were incorrectly sent, or are damaged or defective, provided that notification is given to Nu Skin by you within the specific time limit. In case of incorrect products, please notify Nu Skin within 14 days from the date of receipt; in case of damaged or defective products, please notify Nu Skin within 12 months from the date of receipt. If an exchange is not feasible, Nu Skin may (i) issue a credit for the amount of the exchanged products, which may be used to purchase other products, or (ii) arrange a full refund of the purchase price.

 

4)    Procedures for Obtaining a Refund or Exchange:

 

In order to obtain a refund or exchange, you must present to Nu Skin in person (or with a proper authorization letter of the Member who purchased the products directly from Nu Skin) the original sales receipt/packing list together with the products for refund or exchange. Nu Skin will not refund the original shipping costs on products returned by you, or any other costs incurred by you for returning the products.”

 

4.     Terms under “Uncollected/Undelivered Products” in Section 6 of the original Member Agreement will be replaced by the following:

 

“7. Policy for Uncollected/Undelivered Products.

 

You acknowledge that, if you purchase products directly from Nu Skin, administrative time and costs will be incurred by Nu Skin to retain products purchased but remain uncollected by and/or undelivered to you. Accordingly, you agree that:

 

1)  when collection is to be made by you and you fail or neglect for whatsoever reason to collect the products from Nu Skin within 14 days from the date of distribution, Nu Skin may, without further reference, notice or account to you, cancel your order of such products and after deducting an administrative fee equivalent to 10 % of the purchase price, refund to you 90 % of the purchase price.

 

2)    when you have requested Nu Skin and Nu Skin has agreed to deliver any products to you but Nu Skin is unable to deliver such products to you due to an incorrect or incomplete delivery address or the unavailability of the named recipient at the address as provided by you, Nu Skin will contact you again for delivery arrangement but will charge you HK$50 as the second delivery fee or the administrative fee for order amendment; If you have requested Nu Skin and Nu Skin has agreed to deliver any products to a SFHK self-operated network point (* including SF Business Stations, SF Stores and SF Lockers) designated by you, but you fail or neglect for whatsoever reason to pick up the products within 24 hours upon receipt of the SMS notification, the products will be returned to Nu Skin as unclaimed. Nu Skin will contact you again for delivery arrangement but will charge you HK$50 as the second delivery fee or as the administrative fee for order amendment. Please note that 3 additional working days for delivery might be required for any change of delivery address. If you fail or neglect for whatsoever reason to receive or collect the products from Nu Skin within 14 days from the date of distribution, Nu Skin may, without further reference, notice or account to you, cancel your order of such products and after deducting an administrative fee equivalent to 10 % of the purchase price, refund to you 90 % of the purchase price.”

 

5.     Other Amendments:

 

Miscellaneous amendments to correct typographical errors or to address inconsistencies. 

 

Your Rights regarding the Amendments

 

These amendments are important to you as a Member. You should read them carefully. Please review the entire Member Agreement (effective on 1 January, 2025) here.

If you do not agree to the above amendments, you may terminate your Member account any time by giving us written notice.

 

III. Amendments to the ARO Agreement

 

Below are the highlights on the key amendments to the ARO Agreement for Hong Kong & Macau market:

1) Paragraph H is revised to provide more clarity on the policy for uncollected/undelivered products;

 

2) Miscellaneous amendments to correct duplicated provisions, typographical errors or to address inconsistencies.

 

For details of the above, please refer to the revised ARO Agreement (effective on 1 January, 2025) here.

These amendments are important to you as an ARO member. You should read them carefully. If you do not agree to the above amendments, you may terminate your ARO Agreement pursuant to its Clause N. 

 

Best Regards,

 

Nu Skin Enterprises Hong Kong, LLC