Fiona has just joined NU SKIN and has a clear vision as well as great ambition to build a successful NU SKIN business. She hopes her quality of life can be improved by joining NU SKIN and she wants to participate in the company’s overseas incentive trips with her partners. Fiona knows it well that people nowadays loves sharing information via the internet so she thinks that it would be a great trading platform to sell NU SKIN products and reach potential customers from literally every corner of the world. Therefore, Fiona opened an online shop at the Yahoo Auction website. In addition to selling some of the NU SKIN products, she also helps customers purchasing full range of NU SKIN products and even provides ordering services of overseas NU SKIN products to satisfy consumers’ diversified demands. Since the products provided by Fiona are sold below the market price, Fiona’s online shop has attracted lots of consumers since its opening. Her online shop makes Fiona believes that going for overseas incentive trips will no longer be a dream……..
(Quiz Time)
1. Does Fiona’s act of selling NU SKIN products via the auction site comply with the company’s Policies & Procedures?
A. Yes. The business can be developed quickly through internet selling. It is an essential tool for opening a market.
B. No. Direct Selling business emphasizes personal relationship and all-round after-sales services as well as education. Thus, Chapter 3 of the Policies & Procedures clearly states that Distributors are prohibited from selling NU SKIN products via the internet.
2. Does Fiona’s act of unauthorized importation of NU SKIN products from overseas and reselling in Hong Kong violate the company’s Policies & Procedures and the local laws/regulations?
A. It violates the company’s Policies & Procedures. In addition to the breach of the company’s Policies & Procedures and the terms and conditions of the Resident Country Product Purchase Agreement (please refer to the Distributor and International Sponsor Agreement (“Distributor Agreement”) for details), unauthorized importation of NU SKIN products from overseas may also violate the laws and regulations of Hong Kong relating to importation, customs and licensing as well as taxation.
B. It does not violate the company’s Policies & Procedure and the law. There is no violation of the company’s Policies & Procedure and the existing laws if only a small quantity of overseas NU SKIN products are imported.
3. Besides prohibition of selling NU SKIN products via the internet, does the company allows the Distributors to use the internet to promote the company, products or the sales compensation plan?
A. Permitted subject to conditions. NU SKIN’s policies on the use of the internet are clearly stated in the Chapter 3 of the Policies & Procedures. The main point is that the Blue Diamond Distributors must have submitted an Application for Registration for the Blue Diamond Internet Marketing Site and received a Notice of Registration from the company for such Blue Diamond Internet Marketing Site first in order to have his/her own marketing site.
B. Not permitted. Any forms of internet sales of NU SKIN products are not permitted.
(Answers)
1.B 2.A 3. A
(Explanation)
Dear Business Fellows, selling NU SKIN products via the internet will violate company’s internet use policies which are stated in Chapter 3 of the Policies & Procedures. In addition, unauthorized importation of NU SKIN products from overseas and resale in local country will breach the s3.11 of Chapter 2 of the Policies & Procedures and the terms and conditions of the Resident Country Product Purchase Agreement (please refer to sB-5 & sC-2(C) of the Distributor Agreement for details) . If distributors would like to know how to use the internet for promoting NU SKIN business properly or about the regulations of creating a Blue Diamond Internet Marketing Site, please read Chapter 3 of the Policies & Procedures or contact your Executive Partners/ EL of SLA for more information. We need our Distributors to practice high standards of business ethics and have self-discipline philosophy so that our NU SKIN business can have sustainable development in a stable and healthy market. Fellows, are you ready? We hope all NU SKIN fellows make efforts in self-regulation and everybody can be the model of integrity in the direct selling industry.
*Please refer to the following sections in NU SKIN’s Policies & Procedures and the section of Resident Country Product Purchase Agreement in the Distributor Agreement for relevant provisions:
Policies & Procedures:
Chapter 2 s3.11 Retailing of Products
Chapter 3 s7.1 Use of the Internet in Distributor Business
Chapter 3 s7.2 Permitted Internet Activities
Chapter 3 s7.3 Blue Diamond Internet Marketing Content
Chapter 3 s7.4 Additional Restrictions on Internet Use
Chapter 3 s7.5 Internet Video and Audio
Chapter 3 s7.6 Internet Selling
Resident Country Product Purchase Agreement (please refer to sB-5 & sC-2(C) of the Distributor Agreement for details)