ACN POLICIES & PROCEDURESreps.acneuro.com/ACN-Europe_files/docs/policy_procedures/IE-PP.pdf ·...

EUROPE

ACN® POLICIES & PROCEDURESACN P&P-IE-3.4 Effective 1st September 2020

ACNP&P-IE-3.4 Effective 01 September 2020

TABLEOFCONTENTS

INTRODUCTION .................................................................................................................. 5ACNStatementofOperatingPhilosophy...........................................................................................................................5ACNCommitmenttoExcellence........................................................................................................................................5WhatthesePolicies&ProceduresareDesignedtoDo.....................................................................................................5

1. DEFINITIONS ................................................................................................................ 5

2. STARTING AND MAINTAINING YOUR DISTRIBUTORSHIP ...................................... 6YourRelationshipwithACN...............................................................................................................................................6

3. BECOMING AN INDEPENDENT BUSINESS OWNER ................................................ 7RequirementsforAllIndependentBusinessOwners........................................................................................................7AdditionalRequirementsforPermittedBusinessEntities.................................................................................................7RequirementsforIncorporatedEntities............................................................................................................................7ProvisionofInformation....................................................................................................................................................8DistributorshipNames;AssignmentofBusinessID...........................................................................................................8ChangesofOwnershipandDissolutionofPBEs................................................................................................................8Spouses/LifePartnersasIBOs............................................................................................................................................9ResponsibilityforExpenses................................................................................................................................................9RenewingYourDistributorship..........................................................................................................................................9EndingYourDistributorship.............................................................................................................................................10ReinstatingaLapsedDistributorship...............................................................................................................................10SalesofDistributorships..................................................................................................................................................10DeathorIncapacityofanIndependentBusinessOwner.................................................................................................10MultipleDistributorshipsandthe100%Rule..................................................................................................................11

4. INDEPENDENT BUSINESS OWNER OBLIGATIONS ............................................... 11EthicalConductandCompliancewithLaw-GeneralObligations...................................................................................11CompliancewithLawsandRegulations...........................................................................................................................12TaxMatters......................................................................................................................................................................12OperatingOutsideYourHomeCountry...........................................................................................................................13

5. PROMOTION AND SALE OF ACN SERVICES, AND THE ACN OPPORTUNITY .... 13General 13

6. PROMOTION OF ACN SERVICES ............................................................................. 15CompletingandSubmittingCustomerContracts............................................................................................................15CustomerAcceptanceandEffectiveDateofCustomerContracts...................................................................................15

7. PROHIBITED RETAIL SALES CHANNELS ............................................................... 15


8. PROHIBITED PRACTICES ......................................................................................... 15TargetingofVulnerableandHigh-RiskCustomers..........................................................................................................15ChangingCustomer’sProviderwithoutConsent(Slamming)..........................................................................................16PersonalAcquisitionofCustomersand“Stacking”..........................................................................................................16

9. RATES, TERMS, AND CONDITIONS OF ACN SERVICES ....................................... 17General 17ContactwithACNBusinessPartners................................................................................................................................17

10. MARKETING AND ADVERTISING ........................................................................... 17CompanyPhilosophyRegardingMarketing.....................................................................................................................17UseofACN'sIdentityandIntellectualProperty..............................................................................................................17PromotingACNServicesandtheACNOpportunity.........................................................................................................18DevelopmentandUseofMarketingMaterials................................................................................................................18EarningsandIncomeClaims............................................................................................................................................19SavingsorRateGuarantees.............................................................................................................................................19WebsitesandSocialMedia..............................................................................................................................................19ContestsandIncentives...................................................................................................................................................19MediaEnquiriesandAppearances..................................................................................................................................19UseofDistributorshipsforFundraising...........................................................................................................................20Co-BrandingandCo-Marketing.......................................................................................................................................20MarketingEvents.............................................................................................................................................................20

11. BUILDING A SALES TEAM ...................................................................................... 20PresentingtheACNOpportunity.....................................................................................................................................20ChangingSponsors...........................................................................................................................................................21ProhibitiononCross-LineRecruiting................................................................................................................................21SolicitationisProhibited..................................................................................................................................................21TrainingandSupervision..................................................................................................................................................22

12. THE COMPENSATION PLAN ................................................................................... 22GeneralDescription.........................................................................................................................................................22Definitions........................................................................................................................................................................22EligibilityforEarnedPositionsandCompensation..........................................................................................................23EarningCompensation.....................................................................................................................................................23Commissions....................................................................................................................................................................23CustomerAcquisitionBonuses(CABs).............................................................................................................................24OtherBonuses.................................................................................................................................................................24AdministrationFees.........................................................................................................................................................24ReductionorReversalofCompensation..........................................................................................................................24InvoicesandStatements..................................................................................................................................................24

13. COMPLIANCE INVESTIGATIONS AND DISCIPLINARY ACTION .......................... 25ComplianceViolationsandInvestigations.......................................................................................................................25ReportingSuspectedViolations.......................................................................................................................................25InvestigationProcess.......................................................................................................................................................25


DeterminationLetters......................................................................................................................................................26Appeals 26DisciplinaryAction...........................................................................................................................................................26Suspension.......................................................................................................................................................................26Termination.....................................................................................................................................................................26UplineResponsibility........................................................................................................................................................27CooperationwithLawEnforcement................................................................................................................................27DisputesBetweenIBOs....................................................................................................................................................27

14. PROTECTION OF PERSONAL DATA AND CONFIDENTIAL INFORMATION ....... 27

15. SUPPLEMENTAL INFORMATION - IRELAND ........................................................ 28CompliancewithLawsandRegulations...........................................................................................................................28RegisteringYourActivity..................................................................................................................................................28TaxMatters......................................................................................................................................................................29PermittedBusinessEntities.............................................................................................................................................29


INTRODUCTIONACNStatementofOperatingPhilosophyTheFoundersofACNbelieveinleadershipbyexampleratherthanmanagementbydirective.ACN’s leadership has demonstrated a high degree ofintegrity and success at both sales and corporatelevels.Assuch,theyarecommittedtothePoliciesandProceduressetoutbelow.

ACNCommitmenttoExcellenceACNstrivesforexcellenceby:

(a) maintainingthehighestdegreeof integrityateverylevel;

(b) offering quality services at competitiveprices;

(c) providing prompt and courteous servicefromadynamicsupportteam;and

(d) processing all orders in a prompt andefficientmanner.

ACN has set these goals to give each IBO the bestopportunitytodevelopasuccessfulbusiness.ACN will not exclude anyone from this opportunitybasedonrace,age,sex,nationalorigin,religion,sexualorientation , marital status, disability or any othersimilargroundsprescribedorotherwiseprohibitedbylaw.

What these Policies & Procedures areDesignedtoDoTheACNPoliciesandProcedures:

(a) governtheactivitiesofACN's IndependentBusiness Owners (or “IBOs”) throughoutACN'sEuropeanmarkets;

(b) provide important practical guidance tohelp you start and maintain yourDistributorshipandtheprocessesyoumustfollow;and

(c) form part of your contract with ACN andshould be read together with theIndependent Business Owner ApplicationandAgreement (or “IBOAgreement”) andthe Compensation Plan for your HomeCountry.ACN reserves the right to changethesePoliciesandProceduresatanytime.

PleasetaketimetoreadthroughtheentiredocumenttofullyunderstandthePoliciesandProcedures.These Policies and Procedures contain also country-specific informationwhich supplements the standardterms and conditions applicable to yourDistributorship. In case of differences between thestandard terms and the supplemental rules, thesupplementalruleswillprevail.If you have questions about these Policies andProcedures, please, contact your Sponsor, visit ACN’sIBOBackOfficeatwww.acneuro.comorcontactACNIBOServices.ACN may from time to time change and amend theterms of these Policies and Procedureswithout priornotice. All changes are effective immediately aftertheyarepostedontheIBOBackOffice.

1. DEFINITIONS1.1 InthesePoliciesandProcedures:“ACN”, “us” or “we” means the ACN company withwhichyouenteredintoyourAgreementandanyothermember of the ACN Group of companies. “ACNGroup” means all legal persons under commonownership with the ACN company with which youenteredintoyourAgreement.“ACN Business Tools” means training and marketingmaterials produced by ACN or by an ACN BusinessPartnerexclusivelyforACNandavailableaspartoftheMonthlyBusinessSupportFee..“ACN Business Partner” is a person with whom theACN Group contracts for the provision of ACNServicesACN Business Tools or the ACN Opportunity.IBOsarenotACNBusinessPartners.“ACN Services” means telecommunications, energy,homesecurity,orotherservicesofferedtoCustomersbyACNoranACNBusinessPartner.“ACN Opportunity” means the business opportunityprovidedbyACNtopromoteandsellACNServicesandtheACNOpportunity.“Annual Renewal Fee” see definition in yourIndependent Business Owner Application andAgreement“Compensation Plan” means the current country-specific commissions and bonuses plan by which anIBOisremuneratedbyACNforsuccessfullypromotingorsellingACNServices.“Customer” means a person who purchases ACNServices. IBOs are considered Customers when theypurchaseACNServicesfortheirownuse.


“CustomerContract”meansanagreementbetweenaCustomerandACNoranACNBusinessPartnerforthepurchaseofACNServices“DSA” refers toaDirect SellingAssociation.DSAsaretrade associations that represent the direct sellingindustry. “DSA Code” refers to a code of conductestablished by a DSA. DSA Codes contain rulesgoverning direct selling that are binding on ACN andIBOs.“Distributorship”,“Activity”or“Position”meansyourbusinessactivityasanIBO.“Downline”means:

(a) allIBOsdirectlysponsoredbyyou;and(b) all other IBOs sponsored by those

persons. Together those IBOs form yourACNsalesteam.

“EffectiveDate”meansthedatethatanIndependentBusiness Owner Application and Agreement isaccepted by ACN and the IBO is notified of suchacceptance.“General Data Protection Regulation” means theEuropeanUnionRegulation2016/679“Home Country” means the country in which aDistributorshipisoriginallyestablished.“IBO Back Office” means www.acneuro.com or anyotherwebsiteprovidedbyACNwhereanIBOcanfindsupport tools and other materials to help themmaintaintheirACNActivity.“IBOStarter Fee” see definition in your IndependentBusiness Owner Application and Agreement.“IndependentBusinessOwner”,“IBO”or“you”refersto a person – an Individual or a Permitted BusinessEntity – that has established an ACN Distributorship.An “Individual” is a natural person and a “PermittedBusinessEntity”(or“PBE”) isa legalentity,suchasacorporationorapartnership.“IntellectualProperty”meansall trademarks,servicemarks, trade names, logos, copyrighted materials,know-how, business documentation, operationmethods, processes and systems and otherproprietary rightsownedby anymemberof theACNGroup.“ModelWithdrawal Formand Instructions”meansatemplate form provided by ACN which IBOs canprovidetotheirCustomerswhensellingACNServices.“MonthlyBusinessSupportFee”seedefinitioninyourIndependent Business Owner Application andAgreement.“LifePartner”meansapersonwhoisinacivilunionor

registereddomesticpartnershipwithan IBOandactsin the same manner as a spouse for legal, tax andother purposes. To be considered a Life Partner, therelationship between the IBO and the Life Partnermust be registered with the relevant governmentalauthority in the IBO’s Home Country. If the IBO’sHome Country does not permit the registration ofsuchrelationshipsoutsideofmarriage,theIBOshouldcontact ACN IBO Services to determinewhat optionsmaybeavailable.“Online Shop” means an IBO’s personal websitehostedandmadeavailablebyACNwhichIBOscanusetopromoteACNServices.“Term”means:

(a) theperiodstartingontheEffectiveDateand expiring 12 months from the datethe IBO paid the IBO Starter Fee (the“InitialTerm”);or

(b) any 12-month renewal period (the“RenewalTerm”).

“Sponsor”means the IBOunderwhoseBusiness IDanewIBO is registered inACN’sdatabase.Thismaybethe person who introduced a new IBO to ACN oranother IBO to whom the new IBO is transferredsubsequently.“Upline”means:

(a) yourSponsor;and(b) allotherIBOsaboveyourSponsorinthe

sameACNSalesTeam.

2. STARTING AND MAINTAINING YOUR

DISTRIBUTORSHIPYourRelationshipwithACN2.1 AsanIBO,youareaself-employedindependent

contractor.2.2 AnIBO:

(a) isnotanemployee,apartner,anagent,oralegalrepresentativeofACN;

(b) may select their own means, methodsandmannerofworkandmaychoosethehours and locations of their activities,subjectonlytotheobligationsoftheIBOAgreement and these Policies andProcedures;and

(c) maynotstate, implyorrepresenttoanypersonthattheyareanemployeeofACNor state, imply or represent to a


prospectiveIBOthattheywillbecomeanemployeeofACN.

2.3 Insomecountries,ACN is requiredtowithholdtaxesand/orsocialcontributionsfromamountspaid to IBOs and to pay those amounts togovernmentalauthorities.

2.4 This does not imply the existence of anemployer-employeerelationship.

3. BECOMING AN INDEPENDENT BUSINESSOWNER

Requirements for All Independent BusinessOwners3.1 Youmay become an IBO as an Individual or a

PermittedBusinessEntity.3.2 TobecomeanIBO,youmust:

(a) complete the Independent BusinessOwner Application and Agreementavailableatwww.acneuro.com;

(b) paytheIBOStarterFeeandtheMonthlyBusinessSupportFee;;and

(c) provide any additional information anddocumentsrequiredbyACN.

3.3 The Agreement must be submitted by theIndividualwhoseekstobecomeanIBO.

3.4 ForaPBE,theAgreementmustbesubmittedbythepersonwhohas the authority to supervisethePBE’sactivities(whichwecallthe“PrimaryContact”).

3.5 AnIndividualIBOmustbe:(a) atleast18yearsofage;(b) a legal resident of their Home Country;

and(c) have authority to work as an

independent contractor in their HomeCountry.

3.6 PBEsmustbe:(a) formed under the law of the country in

which the Distributorship is established;and

(b) must be in existence at the time theAgreementissubmitted.

3.7 TheEffectiveDateofyourDistributorshipisthedate that you are notified by ACN that yourApplicationisaccepted.

3.8 If yourApplication is incompleteor inaccurate,yourDistributorshipwillbeputonholduntilthe

required information and documents arereceivedbyACN.

Additional Requirements for PermittedBusinessEntities3.9 An IBO may operate a Distributorship by

establishingaPBE.3.10 PBEs vary by country; however, ACN generally

allows business partnerships, soleproprietorships, and limited liability companiestobecomeIBOs.

3.11 Public/listed companies, incorporatedassociations and societies, and non-profitorganizationsmaynotbecomeIBOs.

3.12 ACNhassolediscretionastowhetheraspecifictypeoflegalentitymaybecomeanIBO.SeetheSupplementalInformationinclause15formoreinformationaboutyourcountry.

3.13 PBEsmustmeettheobligationsinclauses3.1to3.6andtherequirementssetoutinclauses3.17to3.23.

3.14 An IBOwhoconvertsaDistributorship fromanIndividual to a PBE status must meet theadditional obligations at the time of theconversion.AneworconvertedDistributorshipwillbeputonholduntiltheserequirementsaremet.

3.15 If a Distributorship is owned by a legal entitythat is not a PBE, ACN may require theDistributorship to be transferred to a PBE orACN will suspend or terminate theDistributorship.

3.16 PBEsandtheirshareholders,beneficialowners,directors and partners must comply with therulesonmultipledistributorshipsandthe100%Ruleinclauses3.74to3.75.Eachshareholders,beneficialowner,directorandpartner inaPBEis jointly and severally responsible to ACN fortheactionsofthePBE.

RequirementsforIncorporatedEntities3.17 A PBE organized as an incorporated entity

(limitedliabilitycompany,businesspartnership,sole proprietorship, etc.) must provide at aminimum the following information anddocuments(“BusinessPaperwork”)toACN:(a) a copies of (i) an excerpt issued by the

Register of Companies and (ii) thepartnership agreement, the company’sbylaws and Deed of Incorporation; a


certificate of formation or otheracceptable document to ACN thatevidencestheexistenceofthePBE;

(b) the names, addresses, and ownershipamounts of all persons with a 5% orgreater legalorbeneficial interest in thePBE;and

(c) the names and addresses (address,phone numbers and e-mail address) ofthe general partner or directors of thePBE.

3.18 ACN may, at its discretion, request additionalinformationordocuments.

3.19 The PBE must designate one of its partners,directorsorofficersas thePrimaryContact fortheDistributorship.

3.20 ThePrimaryContact:(a) must submit the Independent Business

OwnerApplicationandIBOAgreement;(b) confirms that operating the

DistributorshipiswithinthescopeofthePBE’s authorized business activities, asset forth in the company’s BusinessPaperwork acceptable under clause3.17(a)(ii);and

(c) is responsible for supervising the PBE’sactivities and for all communicationswithACN.

3.21 The PBE may designate other shareholders,partners, directors or officers as OtherContacts.

3.22 The Primary and Other Contacts have fullauthoritytoactfortheDistributorship.

3.23 APBEmayalsodesignatepersonswhoarenotIBOs and have no ownership interests in theDistributorship as “Authorised Contacts”. AnAuthorisedContacthas limitedauthoritytoactonbehalfofthePBEand,inanyevent,cannot:(a) change Distributorship information

(biographical data, bank details,passwords,etc.);

(b) cancel, renew, or terminate theDistributorship;

(c) transfer Customers or Downline IBOs toorfromtheIBO’saccount;

(d) promoteor sellACNServicesor sponsornewIBOs;or

(e) add or change Other Contacts orAuthorizedContacts.

ProvisionofInformation3.24 A prospective IBO must ensure that all

information submitted to ACN is accurate andcomplete.Inaccurateorincompleteinformationmay lead to the Agreement being rejected orput on hold until correct or completeinformationisprovided.

3.25 AnIBOmust:(a) keep the information provided to ACN

regarding their Distributorship current;and

(b) promptly report any change of name,address, telephone number, e-mailaddress or bank account information toACN.

3.26 Mostchangescanbesubmittedonlinethroughthe IBO Back Office or by contacting IBOServices.

Distributorship Names; Assignment ofBusinessID3.27 If you are an Individual, your Distributorship

mustbeinyourpersonalname.3.28 For PBEs, your Distributorship name must be

reflected in your Business Paperwork. ACNreserves the right to reject a Distributorshipnameforanyreason.

3.29 Upon becoming an Independent BusinessOwner, the IBO will be assigned a uniquenumber,calleda“Business ID”which identifiestheIBO’sDistributorship.

3.30 IBOsshould:(a) encourage their Customers include their

Business ID on all Customer Contracts;and

(b) include their Business ID on any IBOAgreement for which they are theSponsor.

3.31 FailuretoprovideyourBusinessIDmayresultinyounotreceivingcreditforCustomerpurchasesor in IBOs not being included in your salesteam.

Changes of Ownership and Dissolution ofPBEs3.32 PBEs must obtain prior approval from ACN of

anychangesinownershipof20%ormore.3.33 Once the change is complete, the PBE must

providenewBusinessPaperworktoACN.


3.34 Changesinlegalorbeneficialownershipof50%or more are considered sales subject to therequirementsofclauses3.64to3.69.

3.35 A PBE may replace a departing shareholder,director, partner or beneficiary if the newshareholder,director,partnerorbeneficiaryhasnot been associated with another IBO for theprevious12months.

3.36 ThePBEmustprovidenewBusinessPaperwork.Thedepartingshareholder,director,partnerorbeneficiarymayestablishanewDistributorship,provided that, if the new Distributorship isformed within 12 months from departure, itmustbesponsoredbythePBE.

3.37 If a PBE with more than one shareholder orpartnerisdissolved,theDistributorshipmaybetransferred to the remaining shareholders orpartners subject to compliance with the 100%Rule in clauses 3.74 to 3.75 and provided thatthetransfereesmeetthelegalandprofessionalrequirements under clause 3. If the transferresultsintheviolationofthe100%Rule,oneormoreDistributorshipsmustbeterminated.

Spouses/LifePartnersasIBOs3.38 MarriedcouplesandLifePartnersmayjoinACN

as IBOs and operate under the same orseparate Distributorships (Note: In Italy andFrance separate Distributorships are requiredforlegalandtaxreasons.).

3.39 If Spouses or Life Partners operate the sameDistributorship, both namesmust be listed ontheDistributorship.

3.40 If Spouses or Life Partners operate separateDistributorships, one Spouse or Life PartnermustbetheSponsoroftheother.

3.41 ACN may require the transfer of aDistributorshiptoensurecompliancewiththeserequirements.

3.42 If IBOs with separate Distributorships becomeSpousesor LifePartners,oneof the IBOsmustsellorterminateitsDistributorshipand:(a) be added to the other IBO’s

Distributorship;or(b) open a new Distributorship under the

sponsorship of the other IBO’sDistributorship.

3.43 The sale of a Distributorship is subject to therequirements of clauses 3.64 to 3.69. The

Customers andDownline remainwith the soldorterminatedDistributorship.

3.44 ACNmay, in its absolute discretion, terminatethemost recent Distributorship if the IBOs donotcomplywithclause3.43.

3.45 In case of divorce or termination of a LifePartnership, the IBOs must notify ACN of theeffect on the Distributorship(s) by providing awrittenstatementsignedbybothIBOsorwithacourtorder.

3.46 IntheeventofadisputebetweenIBOsovertheownership of a Distributorship, ACN may puttheDistributorshiponholdpendingresolution.

3.47 If a joint Distributorship is cancelled, non-renewed or terminated, neither partner maystartanewDistributorshipfor12months.

3.48 The partner with authority to act for theDistributorshipmay request reactivationof theoriginalDistributorship,whichACNmaygrantinits discretion and provided that such partnermeets the legal and professional requirementsunderclause3.

ResponsibilityforExpenses3.49 As an IBO, you conduct business for your own

account and are solely responsible for allexpenses, debts and liabilities incurred inconnectionwithyourDistributorship.

3.50 Suchexpensesmayinclude,butarenotlimitedto, licenses or permits required by you tooperateabusiness; fees for legal, tax,orotherprofessional advice; insurance; office rental,equipment and expenses; travel, meals,entertainment and accommodation; andexpenses associated with marketing orpresenting ACN Services and the ACNOpportunity to prospective Customers andIBOs.

RenewingYourDistributorship3.51 TheInitialTermofanIBO’sDistributorshipis12

monthsfromtheEffectiveDate.3.52 If an IBO desires to continue their

Distributorship, they must submit a renewalrequest (available in the IBO Back Office) andpaytheAnnualRenewalFee.

3.53 ACN reserves the right to reject a renewalrequestinitssolediscretion.


3.54 Renewal shall constitute a new Agreementbetween an IBO and ACN subject to themostcurrenttermsandconditionsofACN.

3.55 TheRenewalTermis12monthsfrom:(a) thedateof expiryof the Initial/Renewal

Terms;or(b) thedatetheAnnualRenewalFee ispaid

iftheDistributorship isrenewed30daysafterexpiryoftheInitial/RenewalTerm.

3.56 AnIBOwhofailstopaytheAnnualRenewalFeeby the date of expiry of the Initial/RenewalTerm(the“RenewalDate”)waivestheirrighttoqualificationsandcompensation for theperiodbetween the Renewal Date and the date theAnnualRenewalFeeispaid.

3.57 If theDistributorship is not renewedwithin 12months of the Renewal Date, theDistributorship will become inactive and theIBO will be required to form a newDistributorship.

EndingYourDistributorship3.58 Youmay terminate yourDistributorship at any

time by giving ACN 14 days advance writtennotice.

3.59 By terminating your Distributorship, you arerelieved of your obligations as an IBO andforfeitallrightsasanIBO,includingtherighttopaymentofearnedbutunpaidcompensation.

3.60 If you terminate yourDistributorship in the 14days following the conclusion of your IBOAgreement,you:(a) will receive a full refund of your IBO

Starter Fee and the Monthly BusinessSupportFee;and

ReinstatingaLapsedDistributorship3.61 A former IBO who re-joins ACN within 12

months after cancellation, non-renewal ortermination of their Distributorshipmay do soonlyunderthesameSponsor(or,iftheoriginalSponsor is no longer an IBO, the first activeUplineIBO).

3.62 If the IBO has been transferred to a newSponsor as described in clauses 13.17 to 3.23,theIBOmust:(a) reinstate their Distributorship under the

transfereeSponsor;and

(b) execute a new IBO Agreement and paythe initial IBO Starter Fee again and theMonthlyBusinessSupportFee.

SalesofDistributorships3.63 Sales of Distributorships must be approved by

ACN.3.64 To request approval, an IBO must send a

written request to ACN that includes thenames, addresses and contact details of theseller and buyer and a description of theamounttobepaid.

3.65 Upon receipt of a sale request under clause3.65, ACN will send the IBO the requireddocumentation to be completed by the sellerandbuyer.

3.66 Aproposedbuyermustmeettherequirementsof clauses 3.1 to 3.37, including the applicablelegal and professional requirements underclause3,andmaynothavepreviouslybeenanACNIBO.

3.67 ACNreservestherighttorejectaproposedsaleforanyreason.

3.68 ThesellingIBOwillbechargedaprocessingfeeifthesaleisapproved.

Death or Incapacity of an IndependentBusinessOwner3.69 If an IBO dies or becomes incapacitated, the

rightstotheDistributorshipmaybetransferredto the IBO’s designated successor on apermanentortemporarybasis.

3.70 The successormaybe required to enter into anewIBOAgreement(Note: InPolandandItaly,thesuccessorwillalsobeissuedanewIDcard).If the successor is under 18 years old, theDistributorship may, with the written consentof ACN, be operated by a trustee until thesuccessorreaches18years.

3.71 In the event of temporary transfer of aDistributorshipdue to incapacity, responsibilityfor the Distributorship will be returned to theIBOuponnoticetoACNthattheincapacityhasended.

3.72 IfanIBOdiesorbecomesincapacitatedandhasnotdesignateda successor, theDistributorshipwill be put on hold until ACN receives a courtorder or other notice advising it of thedispositionoftheDistributorship.


MultipleDistributorshipsandthe100%Rule3.73 An Individual or a PBE may own, manage, or

participate in one (1) Distributorship at anytimeexceptaspermittedby thesePoliciesandProceduresandwiththepriorwrittenapprovalofACN.

3.74 Inaddition: (a) a person may only be entered as a

Primary Contact of a Distributorshiponce;

(b) a bank account used for payment ofcompensation to an IBO may be usedonly for a single Distributorship exceptforseparateDistributorshipsoperatedbySpousesorLifePartners;

(c) a person may not submit an IBOAgreement or be involved with theDistributorship of another IBO if theyhave an existing Distributorship or haveowned, managed or participated inanother Distributorship in the past 12months;and

(d) a personwho leaves a PBEmay open anew Distributorship only if 12 monthshaspassedsincedeparturefromthePBEor if the new Distributorship is directlysponsoredbythePBE.

3.75 IfACNpermitsaperson toparticipate inmorethan one (1) Distributorship, the person’scombined interest in all Distributorships maynot exceed 100% and all Distributorships inwhichthe individualhasan interestmustbe inthesamesales teamandbedirectSponsorsofeachother.

4. INDEPENDENT BUSINESS OWNER

OBLIGATIONSEthical Conduct andCompliancewith Law -GeneralObligations4.1 ACNconductsbusiness in anopen,ethical and

trustworthy manner and expects that IBOs dothesame.

4.2 IBOs are expected to adhere to the highestethical standards in their dealings withCustomers,otherIndependentBusinessOwnersandACN.

4.3 IBOsarerequiredtofollowtheletterandspiritofthesePoliciesandProcedures.

4.4 Thefollowingisanon-exhaustivelistofactionsthatACNconsidersunethical:(a) providing false information or forging a

signatureonanydocumentsubmittedtoACN–this includeselectronicsignatureson any ACN customer portal, as well asonlineAgreements;

(b) encouraging a Customer to purchaseACN Services when you know or havereason to know that the Customer doesnotintendtocompletethepurchase;

(c) submitting a Customer Contract or anIBO Agreement without the knowledgeorconsentoftheCustomerortheIBO;

(d) submitting an order for ACN Servicesusing the Business ID of another IBOwithout the knowledge and consent oftheotherIBO;

(e) presenting the ACN Opportunity asnothing less than an equal opportunityregardless of ethnic background,sexuality,gender,nationalityor religiousorpoliticalbeliefs;

(f) promoting, discussing or offering ACNServicestheACNOpportunityorACN,itsstaff and IBOs in general together withany religious, spiritual or politicalorganizationsorindividualswhichimpliesany business or social associationbetween ACN and the organization orindividual;

(g) making false, exaggerated ormisleadingstatements or representations to acurrent or prospective Customer or IBOregarding ACN Services or the ACNOpportunity;

(h) engaging in pressure sales or takingadvantage of persons who may bevulnerable, such as the elderly and thedisabled;

(i) taking any action attempting to takeimproper advantage of theCompensationPlan;

(j) pressuring other Customers or IBOs tomake undesired purchases of ACNServices;and

(k) making any harassing, threatening,


insulting or intimidating statementsagainst ACN, its employees, its services,ACNBusinessPartnersorotherIBOs.

CompliancewithLawsandRegulations4.5 Directsellingissubjecttolaws,regulationsand

industry codes that are different and oftenmorerestrictivethanthosethatapply tootherindustries.

4.6 In addition, ACN’s telecommunications, utilityandother servicesare subject to regulationbythe European Union and individual MemberStates.

4.7 As an IBO, you must operate yourDistributorshipincompliancewithallapplicablelaws,regulationsandDSACodes.

4.8 Youcanfind informationaboutapplicable lawsandhowyoucancomplyintheIBOBackOfficeand in the country-specific informationprovided as part of these Policies andProcedures. Incaseofdifferencesbetweenthestandard terms and the supplemental country-specific rules, the supplemental rules willprevail.

4.9 Aslawsandregulationschangefrequently,ACNcannot guarantee that the information itprovides is current or accurate. You will beresponsible for keeping yourself duly informedof any change to the laws and regulationapplicabletoyourACNDistributorship.

4.10 You are responsible for understanding andadhering to all European, national and locallaws, regulations and DSA Codes that apply toyour Distributorship. This obligation includesthefollowing:(a) complying with all applicable laws,

regulationsandDSACodesrelatingtothepromotionand saleofACNServicesandthe ACN Opportunity, including relevantconsumer protection laws and privacyrequirements, the codes of conduct ofthe European Direct Selling Association(Seldia) and the DSAs of any country inwhichyouoperateyourDistributorship;

(b) obtaining any permits, trade licences orregistrations required to operate yourDistributorship. For example, somecountries require Individual IBOs toregister as an entrepreneur or self-employedpersonortoregisterwithtax,

social security or other governmentalauthorities;

(c) purchasing any insurance required inconnection with the operation of yourDistributorship;

(d) maintaining all records, such as orderforms, receipts and invoices required inconnection with the operation of yourDistributorship;and

(e) making all registrations, notifications,filingsandpaymentsnecessarytoensuretheproperassessmentandremittanceofpersonal and corporate income taxes,national or local business taxes, value-added taxes, governmental fees andsocial contributions (such as socialsecurityandpensions).

4.11 ACNmayrequirean IBOtoprovidedocumentsandinformationtodemonstratethattheIBOiscomplyingwiththeserequirements.

4.12 ACN also cooperates with requests fromgovernmental and tax authorities regardingcompliance by IBOs with applicable laws andregulations.

TaxMatters4.13 As an IBO, you are responsible for compliance

with the tax laws of your Home Country andanycountryinwhichyoudobusiness.

4.14 As a self-employed person, you may berequiredtomakeperiodicpaymentsof incomeand self-employment taxes or socialcontributionsbasedontheamountspaidtoyoubyACN.

4.15 Unless ACN is required to withhold and remitthese taxes and contributions on your behalf,the calculation and payment of such amountsare solely your responsibility.ACN shall notbeliableforsuchpaymentsoranyfines,penalties,orinterestforlatepaidorunpaidamounts.

4.16 An IBO who uses a PBE may be subject todifferent or additional obligations. It is yourobligation to understand the tax obligationsapplicabletoyourDistributorship.

4.17 If you sell ACN Services directly to Customers,youmaybeobligated to charge the applicableValue Added Tax on those sales and to remitsuchamountstothecompetentTaxauthorities.See clause 8 for more information. The IBO issolely responsible for the calculation and


collectionofVATfromCustomersforsuchsales,the filingofanyrequired formstothenationaltaxauthorities,andthepaymentofVATtosuchauthorities.

4.18 ACN cannot provide individual tax advice toIBOs. Questions regarding tax matters shouldbedirectedtoyourpersonaltaxadvisor.

OperatingOutsideYourHomeCountry4.19 AkeyadvantageoftheACNOpportunityisthat

you can operate your Distributorship in everycountrywheretheACNGroupoperates.

4.20 Subjecttoclauses4.21,4.22and4.27,eachIBOhas the non-exclusive right to promote ACNServices and the ACN Opportunity in anycountryinwhichACNoperates.

4.21 Some ACN Services may be intended for saleonlywithinspecificcountries.

4.22 Sales limitations will be indicated in the IBOBackOffice. It is prohibited to promote or sellACNServicesinanycountrywheretheyarenotauthorizedforsale.

4.23 AnIBOmustnot:(a) promoteorsellACNServicesortheACN

Opportunity in countries where ACNdoesnotoperate.

4.24 The countries in which ACN operates areidentifiedintheIBOBackOffice.

4.25 Thelaws,regulations,andDSACodesapplicabletothepromotionofACNServicesandtheACNOpportunityvaryamongcountries.

4.26 An IBO who operates their Distributorshipoutside their Home Country is responsible forunderstanding and adhering to all applicablelaws, regulations and DSA Codes in thosecountries.

5. PROMOTIONANDSALEOFACNSERVICES,ANDTHEACNOPPORTUNITY

5.1 Acquisition of Customers is the key to successwithACN.

5.2 EarningsasanACNIBOarebasedsolelyuponthe successful sale of services to customersand their usage of those services. Individualswill incur expenses in operating their ACNbusiness, such as the IBO Starter Fee, theMonthlyBusinessSupportFee,andtheAnnualRenewal Fee, as well as other possibleoperating expenses. As with any business,

earnings and success at ACN are notguaranteed but depend primarily on theindividual’s commitment, persistence andeffort. Individuals may not earn income andmaylosemoneyasanIBO.

5.3 ACN reserves the right to reviewand retractany and all Qualifications, CABs, Bonuses &commissionswhereACN’sacceptableusage isnot being met or the customer cancels theirservicewithin90days..

5.4 It iscriticalthat IBOspresentACNServicesandthe ACN Opportunity clearly and fully toprospective Customers and IBOs so that theymaymakeaninformeddecisionaboutwhethertopurchaseACNServicesor to joinACNas anIBO.

5.5 IBOs must not state or imply to prospectiveIBOs that the purchase of ACN Services forpersonaluseisrequired.

5.6 IBOs who do choose to purchase ACN do sosubject to the same terms and conditionsapplicabletootherCustomers.

General5.7 Network marketing is a proven sales method

that is valued by consumers for its “personaltouch”andbydirectsellersfortheopportunityit provides to build a business and generateearnings.

5.8 Aggressiveandunethicalsalestacticsbyasmallnumber of companies and individuals hascaused governmental authorities to impose avariety of requirements on direct sellingcompanies and IBOs to ensure that consumersareprotected.

5.9 Seldia and national DSAs have alsoimplementedCodesofconductfordirectsellingcompanies and direct sellers that must befollowedbyallIBOs.

5.10 TheselawsandDSACodesaregenerallyeasytofollow. To do so, IBOs must adhere to thefollowingpractices:(a) fromtheirfirstcontactwithaprospective

Customer or IBO, an IBO must identifythemselves as an ACN IBO (Note: InPolandandItaly,thisincludesshowingtheCustomer or the IBO their ACN-issued IDcard)andexplainthereasonthatthe IBOiscontactingtheprospectiveCustomerorIBO;


(b) an IBO must inform the prospectiveCustomerorIBOthatACNisamemberofSeldiaorthenationalDSA(a listofACN’sDSA memberships is available in the IBOBackOffice;

(c) if a prospectiveCustomeror IBO is beinginvitedtoasalesortrainingevent,anIBOshall disclose the purpose of the eventandidentifythehost;

(d) whenpresentingtheACNOpportunity,anIBOshallnotgivethe impressionthattheACN Opportunity relates to anemployment opportunity, shall not implythat the invitation is to a “social event”and shall not disguise the invitation as a“marketsurvey”;

(e) an IBO shall not promote the ACNOpportunity as a business relationshipwith an individual or a legal entity otherthanACN;

(f) an IBOmust informprospective IBOsthatthere are legal requirements andobligationsforthecarryingoutoftheACNDistributorship;

(g) anIBOmustnotrepresentthatIBOshavetheexclusiverighttopromoteorsellACNServicesinaparticulargeographicarea;

(h) an IBO must not imply that a successfulACN Distributorship can be built in theform of a “wholesale buying club” (“St.Anthony’s chain”) or other structure inwhich the only services bought and soldarethosetransferredtootherIBOs;

(i) an IBO shall provide full, truthful, andclear information about ACN and theterms, conditions and prices of ACNServices and the ACN Opportunity andaboutACN’safter-salesservice;

(j) anIBOshallnotusemisleading,deceptiveor unfair sales practices or make false,misleading or exaggerated claims aboutACNServicesortheACNOpportunity;

(k) an IBOshallonlymakesuchclaimsaboutACNServicesandtheACNOpportunityasare contained inofficialACNmaterials orotherwiseauthorisedbyACN;

(l) an IBO shall advise potential Customersand IBOs of their right towithdraw froman IBO Agreement or Customer Contract

(asdetailedinthetermsandconditionsofthe IBO Agreement or CustomerContract);

(m) an IBO shall offer to demonstrate ACNServices;

(n) an IBO shall advise of ACN’s complaint-handlingprocedures;

(o) anIBOshalladviseoftheexistenceofDSACodesthatbindtheIBOandACN;

(p) an IBO shall provide Customers and newIBOs with access to or copies of anyrequired documents, including the IBOAgreement or Customer Contract, termsandconditions,pricesandaninvoice;and

(q) an IBOshall takeextracarewhendealingwith potentially vulnerable persons (suchastheelderlyordisabled).

5.11 IBOs shall ensure that prospective Customershave the opportunity to review the terms andconditions and price lists for the ACN Servicesthattheyintendtopurchasepriortosubmittinganorder.

5.12 IfaCustomerplacesanorder forACNServicesdirectlywithan IBO, the IBOmustprovide thefollowing documents and information to theCustomeratthetimeofpurchase:(a) awrittencopyoftheCustomerContract

(if applicable) and/or the terms andconditionsandtheprices;and

(b) the Model Withdrawal Form andInstructions.

5.13 IBOsshallspecificallyadvisesuchCustomersoftheir right to revoke their purchases of ACNServices.

5.14 UponrequestanIBOshallprovideacopyoftheDSACodeofConductapplicable in theirHomeCountry to Customers. Copies of thesedocumentsareavailableintheIBOBackOffice.For purchases made through an IBO’s OnlineShop, all required information and documentswill be provided directly to the Customer byACN.

5.15 IBOs shall ensure that prospective IBOs havethe opportunity to review the IBO Agreement,including the terms and conditions, thesePoliciesandProceduresand theCompensationPlanpriortosubmittingtheApplication.


6. PROMOTIONOFACNSERVICESCompleting and Submitting CustomerContracts6.1 To purchase ACN Services, a Customer must

submit a completed and signed CustomerContract to ACN or complete the onlinepurchaseprocess.

6.2 IBOsare required toprovideCustomerswithacopy of the Customer Contracts or the onlinepurchaseprocessesmadeavailablebyACNandACNBusiness Partners. The IBOsmust provideadditionally the applicable terms andconditions,pricelistsaswellasanyinformationpertinent to the purchase. Customer orderssubmittedinanyotherwaymayberejected.

6.3 A Customer must personally complete theirCustomerContract.

6.4 IBOs may assist Customers in completingCustomerContractsandmaysubmitcompletedCustomer Contracts to ACN at the expressrequestoftheCustomer.

CustomerAcceptance and EffectiveDateofCustomerContracts6.5 ACN andACNBusiness Partners have absolute

discretion to accept or reject a CustomerContract.

6.6 ACNmaynotbeheldliablebyIBOsforrejectedCustomers.

6.7 For purposesof determiningqualifications andremuneration under the Compensation Plan,the date and time a Customer Contract isprocessedbyACNwill be theeffectivedateoftheCustomerContract.

6.8 To ensure that you receive timely credit forpurchasesofACNServices,ACNmustreceiveaCustomerContractno later than14:00CentralEuropeanTimeon the lastbusinessdayof themonth.

6.9 If the last day of the month is a Saturday,Sunday or a bank holiday, the precedingbusiness day will be considered the lastbusinessdayofthemonth.

7. PROHIBITEDRETAILSALESCHANNELS7.1 IBOs may promote and sell ACN Services only

usingnetworkmarketingtechniques.7.2 Promotion ACN Services via the sales channels

below will be permitted only with the priorwrittenapprovalofACN:(a) retailshops,(b) trade fairs, athletic, community events,

flea markets, swap meets or similarevents;and

(c) Internetsales(exceptforanIBO’sOnlineShop).Thisincludes,butisnotlimitedto,sales via online market or auction sites(such as eBay and Amazon), socialnetworking sites (such as Facebook andTwitter), social media sites (such asInstagram and YouTube), online forums,message boards, blogs, wikis andpodcasts. IBOs may promote their ACNDistributorshipsviatheInternetprovidedthattheydosoinaccordancewithclause10ofthesePoliciesandProcedures.

8. PROHIBITEDPRACTICES8.1 Provision of False Customer Contracts

or InformationAn IBO who encourages orpermits a Customer to provide false orincompleteinformationtoACNshallbesubjectto compliance action under these Policies andProcedures.

8.2 Any compensation or qualifications earned byanIBOortheIBO’sUplineasaresultofafalseCustomer Contract or false Customerinformationmayberescinded.

Targeting of Vulnerable and High-RiskCustomers8.3 IBOsmay not promote or sell ACN Services to

persons:(a) undertheageof18;or(b) whose physical, mental, or emotional

condition render them unable tounderstand the terms, conditions andprices of the ACN Services or ACNOpportunityormakethemsusceptibletopressuretopurchase.

8.4 An IBO is responsible for ensuring thatCustomers who are not fluent in the official


language(s) of the Customer’s country fullyunderstandthe terms,conditionsandpricesofACNServicesortheACNOpportunity.

8.5 AnIBOwhoisfoundtotargetCustomerswhoseservices were terminated by another serviceproviderfornon-paymentorlatepaymentorisfound to have an above average level ofuncollectible debt from their Customers, anddoesnottakereasonablestepstoaddresssuchsituationuponrequestbyACN,maybesubjectto compliance action under these Policies andProcedures.

Changing Customer’s Provider withoutConsent(Slamming)8.6 Any practice that causes a person’s

telecommunicationsorenergy serviceprovidertobechangedwithouttheperson’sknowledgeandconsentiscalled“Slamming”.

8.7 Slamming is illegal and is a violation of thesePoliciesandProcedures.

8.8 ACN has zero tolerance for Slamming and asingleincidentmayresult intheterminationoftheIBO’sDistributorship.

8.9 CustomersacquiredasaresultofSlammingwillbe removed from your Personal Customer List(or “PCL”) and any compensation orqualifications earned by you and your Uplinewillberescinded.

8.10 In addition to clause 10.9, in many countriesSlamming is a criminal offense and ACNcooperates with the police and judicialauthoritiesthatinvestigatesuchmatters.

8.11 ToavoidSlamming,IBOsshould:(a) always provide full and accurate

information to prospective CustomersaboutACNServices;

(b) make sure that a prospective Customerunderstands that submitting aCustomerContract for ACN Services will causethemtobetransferredfromtheircurrenttelecommunications or energy providerto ACN or the relevant ACN BusinessPartner;

(c) confirm that the person who submits aCustomer Contract has the authority tochange the Customer’s service provider.For residential customers, the best wayto do this is to ask to see a copy of the

Customer’s current telephone or energybill. For business customers, IBOs mustensure that the person submitting theorder has legal authority to act for thebusiness;and

(d) review their PCL regularly. The PCL listsall customers thatwere acquired by theIBO and it is the basis for earnedpositions and remuneration under theCompensation Plan and is availableonline in the IBO Back Office. It is theIBO’s responsibility to ensure that thePCL is correct. If you suspect that aCustomerappearingon thePCLwasnotacquired by you, immediately contactACNIBOServices.

Personal Acquisition of Customers and“Stacking”8.12 EachIBOmustpersonallyacquireandconclude

sales with Customers to qualify for earnedpositions and remuneration under theCompensationPlan.

8.13 “Stacking” is the act of putting the name orBusiness ID on a Customer Contract when theIBOdidnotpersonallyacquiretheCustomer.

8.14 Stacking is a violation of these Policies andProcedures and is considered an attempt tomanipulate the Compensation Plan. It alsoviolatestheconsumerprotectionlawsofmanycountries.

8.15 ACNhaszerotoleranceforStackingandasingleincident may result in the termination of theIBO’sDistributorship.

8.16 Stacked Customers will be removed from theIBO to whom they were assigned and anycompensation or qualification earned by theIBOandtheirUplinewillberescinded.

8.17 ToavoidStacking,IBOsshould:(a) ensure that Customers use your name

and Business ID when they submit aCustomerContract;

(b) notalloworencourageCustomerstousethe nameor Business ID of another IBOon a Customer Contract unless that IBOwaspersonallyinvolvedinthesaletotheCustomer;

(c) never“buy”or“sell”aCustomerfromorto another IBO, including your Sponsor;


and(d) reviewyourPCLregularly.

9. RATES,TERMS,ANDCONDITIONSOFACN

SERVICESGeneral9.1 ACN seeks to establish rates, terms and

conditions for ACN Services that arecompetitive with other providers in thecountriesinwhichACNoperates.

9.2 Rates,termsandconditionsforservicesofferedby ACN Business Partners are established bythosepartners.

9.3 IBOs are required to promote ACN Services inaccordancewiththerates,termsandconditionsestablishedbyACNorACNBusinessPartners.

9.4 IBOs are required to provide Customers withfull and accurate information about ACNServices and are prohibited frommisrepresenting or exaggerating the rates,termsandconditionsofanyACNService.

9.5 IBOsarespecificallyprohibitedfromadvisingorimplyingtopotentialCustomersthatACNisthelowest-cost provider or that Customers willobtainsavingsbypurchasingACNServices.

9.6 ACNandACNBusinessPartnersmaychangetheratesandthetermsandconditionsofanyACNServiceandmaydiscontinuetheofferorsaleofanyACNServiceatanytimewithoutliabilityorobligationtoIBOs.

9.7 ItistheIBOsresponsibilitytopromotetheACNServices only under the most current rates,termsandconditions.

ContactwithACNBusinessPartners9.8 Maintaining good relations with ACN Business

Partners is critical to ACN’s ability to providequalityservices.

9.9 IBOs must not contact ACN Business Partnersforanyreason.

9.10 IBOs’ inquiries regarding services provided byACNBusinessPartnersmustbedirectedtoACN.

9.11 Customer inquiries must be directed to thededicated Customer Support line of the ACNBusinessPartner.

9.12 Violations of these rules may result indisciplinary action under these Policies andProcedures.

10. MARKETINGANDADVERTISINGCompanyPhilosophyRegardingMarketing10.1 ACN has developed a successful global sales

system based on solid experience with andknowledgeof the services and themarkets inwhichitoperates.

10.2 ACN has created materials and activities tosupportIBOsinpromotingACNServicesandtheACNOpportunity.

10.3 IBOs are encouraged to use only marketingmaterials provided by ACN or ACN BusinessPartners. IBOs may use or distribute othermarketingmaterialsonlyasprovidedinclauses10.18to10.26.

Use of ACN's Identity and IntellectualProperty10.4 ACN’sbrandidentityisoneofitsmostvaluable

assets.10.5 ACN’s name, trademarks, trade names, logos,

marketing materials, processes, copyrights,corporate image and goodwill and otherproprietary information (“IntellectualProperty”) are protected by law and ownedexclusivelybyACN.

10.6 Each IBO has a limited, non-exclusive right touse ACN’s Intellectual Property only for thepromotion of ACN Services and the ACNOpportunity.Thislimitedrightdoesnotconveyownership or other rights in the IntellectualProperty.

10.7 All rights to use the Intellectual Propertyterminate when you cease to be an IBO. IBOsshall not useor register anyname, trademark,tradename, logo,marketingmaterial, process,copyright, domain name, corporate image ordistinctive mark which can be confused withthoseofACN.

10.8 ACNBusinessPartnersoftenimposerestrictionsontheuseoftheirIntellectualPropertybyACNandIBOs.

10.9 IBOs may not use the Intellectual Property ofanyACNBusinessPartnerexceptasspecificallypermittedbyACN.GototheIBOBackOfficefordetails.


Promoting ACN Services and the ACNOpportunity10.10 ACN is a direct selling and network marketing

company thatemphasizes theuseof relationalmarketing, more commonly called “WarmMarketing”.

10.11 Warm Marketing means promoting ACNServicesandtheACNOpportunity ina face-to-face manner to individuals or businesses withwhomyouhave an existing relationship at thetimeofthepromotionalactivity.

10.12 AnIBOswarmmarketis:(a) broadly described as all persons with

whom you have personal contact or anexistingrelationship;and

(b) not limited to your “family and friends”although they form part of your warmmarket.

10.13 A single contact with a person in a personal,business, or social context is sufficient toconsider that individual part of your warmmarket.

10.14 Referrals from your existing warm market arealsopartofyourwarmmarket.

10.15 “ColdMarketing” isanyuninvitedpromotionalactivitytowardindividualswithwhomyouhaveno existing personal, business or socialrelationship.

10.16 Examples of Cold Marketing include massadvertising, purchased leads, door-to-doorselling, telemarketing, pamphlet distributionanduseofauto-dialers.

10.17 ACN does not permit IBOs to use ColdMarketing sales techniques for thepromotionof ACN Services or the ACN Opportunity. Forthe avoidance of doubt, this clause prohibitsIBOs:(a)acquiringcustomersornewIBOsusingColdMarketingsalestechniques;and(b) recruiting as a new IBO any employees oroutside salespeople of any ACN carrier orvendor;and(c)visitingtheretailstoresofanyACNcarrierorvendor unless they are a customer of thatcarrier.

Development and Use of MarketingMaterials10.18 ACN has created a variety of marketing

materials for use by IBOs in promoting ACNServicesandtheACNOpportunity.

10.19 ACNmarketingmaterials:(a) are based on ACN’s experience in the

directsalesindustryandhavebeenusedsuccessfullyaroundtheworld;and

(b) complywith applicable laws, regulationsandDSACodes, to ensure that IBOswillnot inadvertentlyviolateapplicable legalandregulatoryrequirements.

10.20 Some ACN marketing materials are availablefreeofchargeintheIBOBackOfficeandothersareavailableforpurchase.

10.21 The purchase of marketing materials is notrequired to become an IBO or to earncompensationandqualifications.

10.22 ACN recognizes that itmay be appropriate forIBOs to create and distribute their ownmarketingmaterials.

10.23 In order to promote a consistent marketingmessage, preserve the ACN brand and ensurecompliance with advertising, consumerprotection and other applicable laws andregulations, IBOs may create their ownmarketingmaterialsonlyif:(a) the IBO has obtained prior written

approvalfromACN;(b) thematerialsdonotmakeanyclaimsor

warranties other thanwhat is publishedinofficialACNmarketingmaterialfortherelevantcountry;

(c) the materials adhere to these PoliciesandProcedures;and

(d) the materials comply with applicablelaws, regulations and DSA Codes in thecountryinwhichtheywillbeused.

10.24 The requirements in clause 12.23 apply to allprinted, broadcast and electronic materialsused to promote ACN Services or the ACNOpportunity, including advertisements,brochures, videotapes, audiotapes, flyers,banners, flags, websites, apps, social mediapages, telephone recordings, e-mails,presentationmaterials,andapparel.


10.25 More information and requirements forobtainingapprovalarefoundintheAdvertisingGuidelines and Internet Guidelines available intheIBOBackOffice.

10.26 IBOsmaynot sell or otherwiseprofit from thecreationordistributionofmarketingmaterials.

EarningsandIncomeClaims10.27 Success as an IBO depends primarily on the

individual efforts of each IBO and is notguaranteed.

10.28 It isprohibitedforIBOstopromise,guaranteeor suggest that a prospective IBOwill ormayearnacertainlevelofsuccessorearningswithACN.

10.29 Theprohibitioninclause12.28extendstooral,printandelectroniccommunications. IBOsmaynotusehypothetical earningsexamplesexceptforthosecontainedinACN-createdmaterials.

SavingsorRateGuarantees10.30 ACN and ACN Business Partners seek to price

their services competitively. However,CustomerusageofACNServicesvariesandnotall Customers will save money using ACNServices.

10.31 IBOsmaynotpromise,guaranteeorsuggesttocurrentorprospectiveCustomersthatthattheywill savemoneyorwill save a specific amountorpercentagebyusingACNServices.Bywayofexample,statementslike“ACNwillsaveyou5%onyourtelephonebill”arenotpermitted.

10.32 IBOs are prohibited from creating or providingprice comparisons between the servicesprovidedbyACNandthoseofotherproviders.Price comparisons are strictly regulatedby lawand there is a high chance that suchcomparisonswillbeincorrect.

WebsitesandSocialMedia10.33 Websites and social media pages can be

important tools for IBOs to expand theirDistributorships.

10.34 It is important that these types of mediapresentACNServicesandtheACNOpportunityin accordance with these Policies andProceduresandapplicablelaws,regulationsandDSACodes.

10.35 ACN makes an Online Shop available to eachIBOwhentheyjoinACN.

10.36 YourOnlineShopmakesiteasyforprospectiveCustomers to obtain the information that theyneedaboutACNServices.

10.37 ACNencouragesIBOstousetheirOnlineShopsfortheirInternetpresence.

10.38 AnIBOwhowishestocreatetheirownwebsite,app, Facebook, Instagram or similar page orotherwiseutilize the Internet and socialmediain connection with their Distributorship, mustadhere to the marketing and otherrequirements set forth in these Policies andProcedures and ACN’s Advertising Guidelinesand Internet Guidelines (available in the IBOBackOffice)andmustsubmitawrittenrequestfor approval to ACN IBO Services prior tolaunch.

ContestsandIncentives10.39 IBOsmaynotusecontests,lotteriesorgamesof

chancetopromoteACNortheACNOpportunityunlessauthorizedbyACN.

10.40 IBOsareprohibitedfromofferingorprovidingamonetary or non-monetary incentive,promotion, prize, bonus or other benefit to acurrent or prospective Customer unless thebenefit is made in accordance with the IBOAgreement and the Compensation Plan or asotherwiseauthorizedbyACNinwriting.

MediaEnquiriesandAppearances10.41 Conveying an accurate, consistent andpositive

public image is important to preserve thereputation of ACN and the value of the ACNOpportunity.

10.42 Part of enhancing the ACN brand is managingtheCompany’srelationshipwiththemedia.

10.43 ACN’s Marketing Department is trained inmediarelations.

10.44 If youarecontactedby themediaasa subjector source for a story on ACN or direct selling,please, contact [email protected].

10.45 In communicatingwith themedia, an IBOmaytalk about their own activities andDistributorshipbutmaynotspeakonbehalfofACN or present themselves as an ACNspokesperson.

10.46 IBOs are not permitted to use the media,including news releases, articles, editorials,advertising, infomercials/advertorials and


television or radio appearances to promote orpublicize ACN, ACN Services, the ACNOpportunity or their Distributorships withoutpriorwrittenapprovalofACN.

UseofDistributorshipsforFundraising10.47 ACN contributes to charitable organizations

around the world and encourages its IBOs tocontributetocharitiesoftheirchoice.

10.48 ACN discourages promoting the ACNOpportunity to charities or non-profitorganizationsforfundraisingpurposes,asthesetypes of programs do not work well withinACN’ssalesmodel.

Co-BrandingandCo-Marketing10.49 ACNprohibits the co-marketingor co-branding

of any other business, product or service withACN Services or the ACN Opportunity exceptpursuant to an agreement between ACN andACNBusinessPartners.

MarketingEvents10.50 ACN encourages the use of “Regional Training

Events”, “Super Saturdays”, “BusinessOpportunity Meetings” and “Private BusinessReceptions” as ways to introduce prospectiveCustomers and IBOs to ACN and to teachcurrent andprospective IBOshow they canbesuccessfulwiththeACNOpportunity.

10.51 The events noted in clause 12.60 must beconducted with professionalism and integrityand must comply with these Policies andProcedures.

10.52 Attending IBO-sponsored or ACN-sponsoredevents is voluntary and IBOsmay not state orimply to prospective or current IBOs thatattendance at such events is required tosucceedwiththeACNOpportunity.

10.53 IBO-sponsored events are not intended toprovide additional income to the hosts of theevents and must be conducted on a not-for-profit basis. Entrance fees may be no higherthanwhatisrequiredtocoverthehost’sdirectexternalcostsandexpenses.

11. BUILDINGASALESTEAM11.1 Building a sales team is a common feature of

network marketing companies and ACNencourages IBOs to promote the ACNOpportunityandtobuildaDownline.

11.2 Being a Sponsor requires hard work andimposes additional obligations on the SponsorandtheUpline.

11.3 A Sponsor is responsible for training,supervising, and supporting the IBOs in theirDownline to ensure that their DownlinesunderstandandcomplywiththesePoliciesandProceduresandapplicablelaws,regulationsandDSA Codes, that they are familiar with ACNServices and promote them properly toprospectiveCustomers.

11.4 Sponsors must maintain regular contact withtheirDownlinesin-person,verballyandthroughwrittencommunications.

11.5 Important Note: Sponsoring IBOs is notrequiredforsuccesswithACN.

11.6 IBOs do not earn qualifications orcompensation for the recruitment of newIBOs.AllcompensationisbasedonthesaleofACNServicesandtheCustomers’usageofACNServices.

PresentingtheACNOpportunity11.7 AnIBOmustensurethattheACNOpportunityis

presented to prospective IBOs fully andaccurately.

11.8 IBOs may not make any false, exaggerated ormisleadingclaimsorstatementsconcerningtheACNOpportunity.

11.9 IBOs may use only materials provided orapproved by ACN to present the ACNOpportunity.

11.10 IBOs are prohibited from making any claim,guarantee or inference to a prospective IBOthattheIBOwillormayobtainacertainlevelofsuccessorearningsasanACNIBO.

11.11 SponsoringIBOsmustexplainthatsuccesswithACN depends primarily on the IBO’s efforts,commitment and skills and that success mayalso be affected by external factors such aseconomic conditions and the competitiveenvironmentof the countries inwhich the IBOworks.

11.12 IBOs must explain the Compensation Plan toprospective IBOs and advise them that allremunerationbyACNundertheCompensationPlan isbasedupon the saleofACNServices toCustomers and the Customers’ usage of ACNServices.


11.13 Direct sales and networkmarketing arewidelyaccepted asways of conducting business in allcountries in which ACN operates and ACNendeavours to comply fully with all applicablelaws.

11.14 No governmental authority reviews, endorsesor approves the sales model or compensationplanofdirectsalescompanies,includingACN.

11.15 When presenting the ACN Opportunity, IBOsmustnotclaimorimplythatanygovernmentalauthority has reviewed or approved the ACNOpportunity.

11.16 If potential IBOs have questions regarding thelegal status of direct sales or the ACNOpportunity, IBOsmust refer themtoACN IBOServices.

ChangingSponsors11.17 ACN believes that it is important to maintain

and protect the relationship between an IBOandtheirSponsor.

11.18 AnIBOmaychangetheirSponsororre-joinACNunderanewSponsoronly:(a) aspartofanewDistributorship;(b) after a minimum of 12 months have

passed from the date of cancellation,non-renewal or terminationof the IBO’spreviousDistributorship;and

(c) if the IBO has had no involvement withanother Distributorship during the 12-monthperiod.

11.19 As an exception to clause 13.18, an IBO whosponsorsanewIBOmayrequestthetransferofthe new IBO to another IBO in the originalSponsor’s Downline for 60 days following thenewIBO’sStartDate.

11.20 To request a transfer under clause 13.19 theoriginal Sponsor must send a request throughthe IBO Back Office. The original Sponsor willneed toprovide thenameand theBusiness IDoftheIBObeingtransferredandthenameandBusinessIDofthenewSponsor.

11.21 A new IBO can be transferred one time onlyand, once completed, a transfer cannot bereversedorchanged.

11.22 ACN will notify the original Sponsor and thenewIBOaboutthechangeofSponsorfollowingits completion. Spouses and Life Partners maynot be transferred under this rule (see clauses3.38to3.48forfurtherdetails).

11.23 ACN reserves the right to change an IBO’sSponsor tocorrecterrorsby the IBOorACN insubmittingorprocessinganIBOAgreementorifan IBOwas recruited using illegal or unethicalpractices,orforanyotherreasonatACN'ssolediscretion.

ProhibitiononCross-LineRecruiting11.24 IBOs are encouraged toworkwith other IBOs,

including IBOs in other sales teams, for thedevelopment of their respectiveDistributorships.

11.25 It is important that such activities be done onthebasisofmutualrespect.

11.26 Recruiting IBOs from another sales team isunethicalanddamagesACNandotherIBOs.

11.27 An IBO may not recruit, solicit or encourage,directlyor indirectly, another IBO to leaveoneSponsor or sales team to join another duringtheexistenceofanIBO’sDistributorshipandfor12monthsaftertheendoftheDistributorship.

11.28 IBOsmaynot solicit, requestorencourageanyperson to become an IBO if that person hasalreadybeencontactedbyanotherIBO.

SolicitationisProhibited11.29 Asindependentcontractors,IBOsarepermitted

to work as distributors for other direct sellingcompanies.

11.30 However, neither you nor anyone associatedwith your Distributorship may, directly orindirectly, solicit, request or encourage aformer, current or prospective IBO toparticipate in a direct selling program offeredby another company, regardless of whethersuch company offers services that competewithACNServices.

11.31 IBOswhohaveachievedaTeamCoordinatororabove level and anyone associated with theirDistributorshiparereasonablyexpectedto:(a) exclusively sell ACN Services, promote

the ACN Opportunity and train andsuperviseIBOsintheirDownline;and

(b) notengage inanydirectsellingprogramofferedbyanothercompany.

11.32 If you or anyone associated with yourDistributorshipchoosetoparticipateinadirectselling program offered by another company,youagree:


(a) to notify ACN within 5 business daysfromthedayyoustartsaidactivity;

(b) that you will not be eligible for thepayment of commissions on levels 4through7inyourSalesTeamasprovidedforintheCompensationPlan;

(c) to refund any commissions paid to youafter the day you start said activity,regardless ofwhether you have notifiedACNornot;and

(d) that ACN has the right to recover anycommissions paid to you by offsettingsuch amounts against any otherpayments (past, present or future) thatmay be payable to you under theCompensationPlan.

11.33 FailuretonotifyACNofyourengagementinanydirect selling program offered by anothercompany for any other Direct Sales Companywill be considered a violation of these PoliciesandProcedures andmay result inother actionbeingtakenACN, includingterminationofyourDistributorship.

TrainingandSupervision11.34 As a Sponsor or Upline IBO, one of your

responsibilitiesistotrainIBOsinyourDownlinewithrespecttoACNServicesandthesePoliciesandProcedures.

11.35 SponsoringIBOsshouldcommunicateregularly,ina reasonablemannerandduring reasonablehours to avoid intrusiveness, with their salesteamsinwritingandpersonallyaboutACN,theproper presentation of can Services and IBO’slegalandethicalobligations.

11.36 Sponsors should stay informed about newserviceandproductdevelopmentsandtrainingopportunities so that they can inform theirDownlines.

12. THECOMPENSATIONPLANGeneralDescription12.1 It takes dedication and hard work to succeed

withanybusinessendeavor.12.2 As an IBO, your success depends primarily on

theefforts,commitmentandskillsthatyouandyoursalesteamputintoyourACNbusinessbutmay also be affected by general economic

conditionsand thecompetitiveenvironment inthecountrieswhereyouoperate.

12.3 Success and earnings as an IBO are notguaranteed and, unfortunately, some IBOs donotsucceed.

12.4 Qualifications and earnings under theCompensation Plan are based solely on thesuccessfulsaleofACNServicesandtheusageofACNServicesbyCustomers.

12.5 IBOs do not earn qualifications orcompensation for the recruitment of newIBOs.

12.6 This section summarizes ACN’s compensationsystem.

12.7 Additional information and requirements forearning remuneration are detailed in theCompensation Plan for your Home CountrywhichformspartofyourIBOAgreement.

12.8 The current Compensation Plans for allcountriesareavailableintheIBOBackOffice.

Definitions12.9 The definitions below apply to the

CompensationPlan:(a) Commissionable Value (or CV): A value

assigned to each ACN Product and ACNService for the purposes of calculatingcommissions under the CompensationPlan. Compensation is calculated as apercentageoftheassignedCV.

(b) Earned Position: Any position in theCompensationPlan.

(c) MinimumMonthlyDownlineBilling:Theminimum monthly total gross revenuegenerated within an IBO’s Downlinerequiredforthepurposesofqualificationfor certain Earned Positions under theCompensationPlan.

(d) Team Customer Points: The combinedvalue of ACN Services purchases by youand Customers using your Business IDplus the Personal Points of all IBOs inyourDownline.

(e) Personal Customer Points: Thecombined value of ACN Servicespurchases by you and Customers usingyourBusinessID.

(f) Customer Point(s): A value assigned toeach ACN Service for qualificationpurposesundertheCompensationPlan.


(g) IBO TheenteringPositionof a newACNIBO.

Eligibility for Earned Positions andCompensation12.10 EachnewIBObeginsasanIBO.12.11 An IBO joining ACN is eligible to advance to

Earned Positions and receive remunerationunder the Compensation Plan provided thatthey:(a) haveanactiveDistributorship;(b) meet the Personal Customer Points,

Team Customer Points, if applicable,team structure requirements, ifapplicable, and the Minimum MonthlyDownline Billing requirements, ifapplicable, for the Earned Position. Seethe Compensation Plan for your HomeCountryformoredetails;and

(c) comply with these Policies andProcedures.

12.12 Additional criteria may apply to specificbonusesandcommissions.

12.13 Qualification for Earned Positions andremuneration under the Compensation Plan isbasedonthesaleofACNServicetoCustomersandtheCustomers’usageofACNServices.

12.14 It is important that your Customers provideyourBusinessIDwhentheypurchaseservices.

12.15 Toreceivecompensation inagivenmonth,theCustomer and IBO information must bereceived by ACN by 14:00 Central EuropeanTimeonthelastbusinessdayofthemonth.

12.16 With respect to ACN Services, only Customerswith active Customer Accounts are used todeterminequalificationsandcompensation.

12.17 Customers who cancel their ACN Service, areterminatedordonotusetheirACNService for3 consecutive months are not consideredactive.

12.18 ACustomerAccountcoversallACNServicesofthe same type (e.g.: fixed, DPS or mobile)providedtoasingleCustomername,addressorhousehold.

12.19 Customers who purchase more than one typeof ACN Service will have more than oneCustomerAccount.

12.20 Remunerationunder theCompensationPlan ispaidinarrears.

12.21 Additional information regarding the timing ofremuneration can be found on theCompensationPlanandtheIBOBackOffice.

EarningCompensation12.22 Under the Compensation Plan, IBOs can earn

compensationfromACNinthree(3)ways:(a) RetailBonuses(asdefinedbelow);(b) CommissionsfromsalesbyYouandyour

Downline,ifapplicable.;and(c) Customer Acquisition Bonuses (“CABs”).Theterms and conditions applicable to thequalifications for Earned Positions andcompensation may be changed at ACN’sdiscretionasmaytheCVsandCustomerPointsforACNServices..

Commissions12.23 IBOs earn commissions based on the sales of

ACNServicesandtheusageofACNServicesbytheir Customers. IBOs and other EarnedPositions also earn commissions based on thesalesofACNServicesbytheirDownlines.

12.24 Commissions vary based on an IBO’s PositionandtheCVoftheACNServicessold.

12.25 CVs for all ACN Services are set forth in theProductandServiceListing.

12.26 TheCV forACNServices isapercentageof thegrossmonthlybillingtoaCustomerless:(a) taxes;(b) surcharges;and(c) anallowanceforbaddebt.

12.27 For some ACN Services, primarily thoseprovidedbyACNBusinessPartners, theCVwillbeafixedmonthlyamount.

12.28 Please,consulttheProductandServicesListingsforyourcountryavailableintheIBOBackOfficeformoredetails.

12.29 Commissionable Value is calculated accordingto the Compensation Plan for the country inwhich a Customer is located, specifically, thedeliveryaddressfortheACNServices.

12.30 ThecommissionspayabletoIBOsonanyEarnedPositionaredeterminedby:(a) aggregating the CV from the Customers

of the IBO and his sales team in eachcountry in accordance with theCompensationPlan;


(b) converting each aggregated amount tothecurrencyoftheIBO’sHomeCountry;and

(c) applying the personal commissionschedule in in the IBO’s Home CountryCompensationPlan.

12.31 Commissionsarepaidinarrearsupto3monthslater forACNServices (becauseof provisioningandbillingtimelines).

12.32 Commissions for ACN Services are calculatedafterthefirstFridayofeachmonthandarepaidon the first business day following the thirdFridayofeachmonth.

12.33 Commissions are paid only when they exceedthe minimum amount established by ACN foryour Home Country. Commissions below thisamountwillbehelduntil thecommissionsduetoanIBOexceedtheminimum.

12.34 Any debits or credits applicable to yourDistributorship will be applied prior to thepayment.

CustomerAcquisitionBonuses(CABs)12.35 IfanIBOonanExecutiveTeamLeaderorabove

Position sponsors a new IBO and helps themqualify for a Customer Qualified IBO or abovePosition within the first 30 days from joiningACN,theIBOmaybeeligibleforaCAB.

12.36 The CABs are a fixed one-time paymentwhichdependson:(a) yourEarnedPosition;and(b) yourEarnedPositionwithrespect tothe

qualifyingIBO.12.37 See the Compensation Plan for your Home

Countryformoredetails.

OtherBonuses12.38 ACN may offer product-specific, country-

specific, promotional and other bonuses fromtimetotime.

12.39 The qualification requirements and terms ofpayment of these bonuses vary. Consult yourCompensationPlanandtheIBOBackOfficeforcurrentbonusesinyourHomeCountryandtheothercountriesinwhichyouoperate.

AdministrationFees12.40 A processing fee is deducted from each

compensationpaymentmadetoanIBO.

ReductionorReversalofCompensation12.41 ACNreservestherighttoreducecompensation

to an IBO if any Commissionable Revenue isdeemed uncollectible. The amount deductedmay be based on the bad debt ratio for acountryortheCompanyoveralloronaspecificCustomerAccount.

12.42 ACNmay adjust, rescind or require repaymentofcompensationifACNdeterminesthatanIBOwas not entitled to payment because they oranother IBO in their Downline failed to qualifyora saleofACNServicesused forqualificationwasrejectedorwasinvalid.

12.43 ACN also may reverse any position earned bytheIBOortheIBO’sUpline.

12.44 ACN is not required to use the complianceprocess set forth in clause 13 to reverse orrescindpayments.

InvoicesandStatements12.45 As independent contractors, IBOs are

responsible for invoicing ACN for the servicesthat they provide, including the sale of ACNServices and ACN Product, in order to obtainpayment.

12.46 Invoices must comply with the laws of thecountryinwhichtheyareissued.

12.47 To ensure compliance and as a service to itsIBOs, ACN prepares and sends all requiredinvoices, also referred to as “Statements”, toIBOsinaprocessknownasself-billing.

12.48 IBOsmustconsenttoself-billingaspartoftheirIBOAgreement.

12.49 An IBOauthorizesACNEuropeB.V. to prepareStatements in the name of the ACN Companywith which the IBO entered into the IBOAgreementfortheamountsowedtotheIBOforthesuccessfulsaleofACNServicesandtoissuethemtotheIBO.

12.50 A copy of each Statement will be madeavailable to the IBO in the IBO Back Officepromptly after the end of the relevantcompensationcycle.

12.51 ACN will send an IBO an e-mail to the e-mailaddress provided by the IBO to ACN advisingthe IBO that the Statement is available.Statements are available in electronic formatonly.TheIBOshallbedeemedtohaveacceptedtheStatementunlesstheyobjecttoitinwriting


within 15 days of the date mentioned on theStatement.

12.52 Statements are issued using a separatesequentially-numberedseriesforeachIBO.

12.53 Each IBO must ensure that the informationnecessary for ACN to prepare invoices on hisbehalfiskeptcurrentandaccurate.

12.54 If an IBO has provided a VAT number to ACN,anyamountspaidtotheIBOshallincludeVAT.

12.55 IftheIBOdidnotprovideaVATnumbertoACN,any amounts paid shall be deemed not toincludeVAT.

12.56 ACN shall not refund any tax or socialcontributionsthathavebeenwithheldfromtheIBO as a result of erroneous or incompleteinformationprovidedbythe IBOandACNshallbeentitledtorecoverfromtheIBOanyamountpaid to any government authority for tax orsocialcontributionsasa resultof the failureoftheIBOtokeephisbillinginformationaccurateandcurrent.

13. COMPLIANCE INVESTIGATIONS AND

DISCIPLINARYACTION13.1 As an IBO you are expected to adhere to the

highestethicalandlegalstandards.13.2 You and anyone operating under your

Distributorship are required to adhere to theIBO Agreement, these Policies and ProceduresandtheCompensationPlanandtocomplywithallapplicablelaws,regulationsandDSACodes.

ComplianceViolationsandInvestigations13.3 The ACN Compliance Department investigates

alleged or suspected compliance violations tothe best of its ability and seeks to do so in athorough,efficientandfairmanner.

13.4 ACNmayinitiateacompliance investigationonits own initiative or based on informationreceived from a Customer, an IBO, consumerprotection organizations, police, judicial orother governmental agencies or any otherperson.

13.5 ACNcommitstotreatingIBOswhoareinvolvedin a compliance investigation fairly andrespectfully.

13.6 IBOs are required to cooperate fully withcomplianceinvestigationsandtorespondtoallinquiriesfromACNtruthfullyandcompletely.

13.7 ItisaviolationofthesePoliciesandProceduresfor an IBO to refuse or fail to cooperate fullywith a compliance investigation or to providefalseorincompleteinformationtoACN.

13.8 Failuretorespondtoacomplianceinquiryortocooperatefullywithacompliance investigationmay lead to suspensionor terminationof yourDistributorship.

ReportingSuspectedViolations13.9 If you believe that an IBO has committed a

compliance violation, we urge you to contactthatIBOtoaddresstheissuedirectly.

13.10 Some violations may be unintentional or theresultofanIBO’slackofunderstandingoftheirobligations.

13.11 Serious compliance violations, such as thosethatmayinvolvetheviolationofapplicablelawsor regulations, should always be reported toACN.

13.12 Ifyouareunabletoresolvetheissuedirectlyorare uncomfortable approaching the IBO, youshouldreportthesuspectedviolationinwritingtoACN.

13.13 Your submission under clause 13.12 mustinclude your name, the name of the IBOinvolved, the date, location, and nature of thesuspected violation and any supportingevidence.

13.14 In order to ensure fair treatment, verbal oranonymous complaints will not be accepted.However, your name will not be disclosedwithoutyourpermission.

InvestigationProcess13.15 Suspected compliance violations will be

investigated following the proceduresestablishedbyACN.

13.16 The procedures to be followed in a given caseareatthediscretionofACN.

13.17 Typically, IBOs suspected of a complianceviolation and witnesses for such investigationswillbecontactedbyACNbypost,telephone,e-mailorothermeans inorder todetermine therelevantfacts.

13.18 IBOs are required to respond fully andaccurately within the time stated in thecommunicationfromACN.

13.19 An IBO’s failure to respond to a complianceinquiry shall be deemed an admission of the


factsknowntoACNandshallsubjecttheIBOtodisciplinaryaction.

DeterminationLetters13.20 Upon review of the available information

regarding the alleged violation, ACN willdeterminewhether the IBO shall be subject todisciplinary action. ACN shall send the IBO adetermination letter by post, e-mail or othermeans, setting forth the results of theinvestigation and the intended disciplinaryaction.

Appeals13.21 An IBO may request review of a compliance

decision by submitting an appeal inwriting nolater than 15 days following the date of thedeterminationletter.

13.22 For an appeal to be considered, the IBOmustprovide relevant information that was notavailable to the IBO during the initialinvestigation.

13.23 AnAppealwillnormallynotbeconsiderediftheIBO failed to respond during the complianceinvestigation.

13.24 ACN will promptly review the appeal andrespondtotheIBOinwritingwithitsdecision.

DisciplinaryAction13.25 A findingbyACN thatan IBOhas committeda

complianceviolationmayresultinadisciplinaryaction.

13.26 The disciplinary action in a given case willdepend on the nature and severity of theviolation, the facts surrounding the violation,the degree of cooperation shown by the IBO,whether the violation was intentional orinadvertent, the IBO’s compliance history, ifany,andtheexperienceoftheIBO.

13.27 The appropriate disciplinary action in a givencaseiswithinthesolediscretionofACN.

13.28 Thedisciplinaryactiontobe imposedupontheIBOwillbecommunicatedintheDeterminationLetter.

13.29 Potentialdisciplinaryactionsincludeverbalandwritten warnings, temporary suspension ofcompensation or the IBO’s Distributorship,revocation of earned levels in theCompensation Plan, repayment of previouslypaid compensation, removal of the IBO’s

Downline and termination of the IBO’sDistributorship.

13.30 IBOs may be requested to acknowledge thedisciplinaryactionbyreturningacountersignedcopyoftheDeterminationLetter.

13.31 IBOs who commit compliance violations alsomay be required to pay any cost or expenseincurredbyACNasaresultoftheIBO’sactions,including any settlement payments or creditsmadetoCustomers,otherIBOsorthirdparties,fines or penalties imposed by governmentagencies,andattorneys’ fees.ACNmaydeductsuchamountfromfuturecompensationsduetothe IBO or pursue payment by any availablelegalmeans.

Suspension13.32 ACN may suspend payment of compensation

(“Compensation Hold”) or an IBO’sDistributorship (“Distributorship Hold”) as aresultofacomplianceviolation.

13.33 ACNmayimposeatemporarysuspensionwhilea compliance investigation is pending if thecircumstanceswarrant.

13.34 An IBO subject to Compensation Hold mayoperate their Distributorship and earnqualifications and compensation butcompensation will not be paid until thesuspensionislifted.

13.35 AnIBOonDistributorshipHoldmaynotconductanyactivitiesasan IBO,must ceasepromotingACNServicesandtheACNOpportunityandmaynothold themselvesoutasanACN IBOduringthesuspension.

Termination13.36 Termination of an IBO’s Distributorship is the

mostseveredisciplinaryactiontowhichanIBOmaybesubject.

13.37 AllrightsandbenefitsoftheIBO,includinganyclaim to unpaid compensation, and allobligations of ACN under the IBO Agreementshallceaseonthedateoftermination.

13.38 If the IBO was previously suspended,terminationisretroactivetosuchdate.

13.39 Terminated IBOs shall not be entitled to therefund of IBO Starter Fee or Annual RenewalFee.


UplineResponsibility13.40 If you choose to Sponsor other IBOs and

establish a sales team, you are responsible forensuringthattheyunderstandandcomplywiththese Policies and Procedures and their legalobligations.Seeclause13regardingsponsoringnewIBOs.

13.41 Failure to adequately supervise your Downlineortomonitortheircompliance isaviolationofthesePoliciesandProcedures.

13.42 Ifan IBO is foundresponsible foracomplianceviolation, any benefits earned by that IBO’sUpline as a result of the compliance violationmayberevoked.Thisincludesrevocationofanyearned level in the Compensation Plan andwithholding or reversal and repayment of anycompensationdueorpaidtoanyUplineIBO.

13.43 Upline IBOsalsomayberequiredtoreimburseallcostsandexpensesincurredbyACNifACNisunable to recover such amounts from the IBOwhocommittedthecomplianceviolation.

CooperationwithLawEnforcement13.44 ACN cooperates fully with law enforcement

agencies, courts and other governmentalauthorities investigating alleged violations oflawbyIBOs.

13.45 IBOsmaynotbenotifiedof requests from lawenforcementorotherauthorities.

13.46 If an IBO commits a compliance violation thatACN believes may also violate the law, ACNreserves the right to report the incident to therelevantauthorities.

DisputesBetweenIBOs13.47 ACN urges IBOs to resolve disputes involving

otherIBOsamicablyandprofessionally.13.48 Uponrequestbytheparties,ACNmayagreeto

mediateandresolveadispute.13.49 IBOs agree that ACN’s findings and decision

shall be binding if ACN is involved pursuant toclause15.48.

13.50 ACNwillnotmediatedisputesbetweenpersonsinvolved in the same Distributorship (forexample, between shareholders of a PBE orspouses). In such cases, ACN will acceptinstructions from the Primary Contact or thepersonpreviouslydesignatedasresponsiblefortheDistributorship.

13.51 AdisputebetweenACNandan IBOas to theirrights and obligations under the IBOAgreement, these Policies and Procedures orthe Compensation Plan shall be resolved usingtheproceduressetforthintheIBOAgreement.

14. PROTECTION OF PERSONAL DATA AND

CONFIDENTIALINFORMATION14.1 In connection with ACN Services and the ACN

Opportunity, ACN and IBOs have access topersonal and confidential information aboutCustomersandotherIBOs.

14.2 PersonalData includes information likenames,addresses, gender or e-mail addresses whichrelatetoidentifiedoridentifiablepersons.

14.3 Confidential Data is even broader and caninclude bank account, credit card and othersensitiveinformation.

14.4 PersonalDataandConfidentialDataaresubjectto significant legal protection and failure tohandle such data appropriately can lead toliabilityfortheIBOandACN.

14.5 ACNcollects,maintainsandprocessespersonaldata from IBOs and Customers by electronicand non-electronic means in accordance withourPrivacyPolicy.

14.6 The Privacy Policy is available in the IBO BackOfficeandallACNWebsites.

14.7 PersonalDatacollectedbyACNisusedbyACNfor the discharge of its duties to the IBOpursuanttotheIBOAgreement,including:(a) determination of earned levels and

calculation and payment ofcompensationtotheIBOandotherIBOs;

(b) provisionofservicestotheIBO;(c) communications to the IBO including

marketing opportunities related to ACNServices;

(d) fulfilment of legal, financial, accounting,andadministrativefunctions;and

(e) protectionofACN’slegalandcontractualrights.

14.8 InordertofulfilitsobligationstoIBOs,anIBO’spersonaldatamaybetransferredto:(a) otherACNcompanies;(b) employees, external consultants and

advisorsofACN;(c) otherIBOs;


(d) ACNBusinessPartners;and(e) otherrecipientsaspermittedbylaw.

14.9 Some recipients may be located in countriesoutside the European Union, including theUnitedStates, wherethetransfer ispermittedby the General Data Protection Regulation orotherapplicablelaw.

14.10 ThecollectionofthepersonaldatarequestedintheIBOAgreementisessentialforthedischargeofACN’sobligationsunderthatAgreement.

14.11 Failure by an IBO to provide that data orwithdrawal of consent to use Personal DatamayresultintherejectionoftheApplicationorterminationofanIBO’sDistributorship.

14.12 ACNagreesto:(a) processpersonaldatafairlyandlawfully;(b) takereasonablemeasurestoensurethat

personal data are complete andaccurate;

(c) not use personal data for any unlawfulpurpose;

(d) to collect only personal data necessaryfor the purposes set forth in thesePolicies and Procedures and the IBOAgreement;and

(e) to take reasonable measures to securepersonal data against access by ordisclosuretounauthorizedpersons.

14.13 The IBOmay exercise their rights to access toand correct or delete personal data bycontactingIBOServices.

14.14 InconnectionwithyouractivitiesasanIBO,youmay have access to personal and confidentialinformationofCustomersandotherIBOs.

14.15 In handling such information, the IBO shallabide by all applicable data protection andprivacylaws.

14.16 The IBO shall maintain the confidentiality ofCustomer and IBO data and take appropriatesteps to secure it against access byunauthorized persons, taking by unauthorizedpersons, processing in violation of legalregulations and alteration, loss, damage ordestruction.

14.17 The obligation tomaintain confidentiality shallremain after the non-renewal, cancellation orterminationoftheIBOAgreement.

14.18 Failure tohandleCustomeror IBO informationinanappropriateand legalmannermay result

in compliance action under these Policies andProcedures. Contact ACN IBO Services if youhave questions regarding the handling ofPersonalData.

14.19 In addition to the purposes described above,ACN may collect, maintain and process IBOPersonalDatainordertoconductscientificandmarket research, public opinion polls andsending commercial and marketingcommunications. This Personal Data may betransferredtothirdparties, includingmembersoftheACNGroup,otherIBOsandACNBusinessPartnersforthesepurposes.

14.20 IBOsmaycontrolhowtheirPersonalDataisusedorwithdrawtheirconsenttousetheirPersonalDataforthesepurposesbycontactingACNIBOServices.

15. SUPPLEMENTALINFORMATION-IRELANDCompliancewithLawsandRegulations15.1 AsanIBO,youarerequiredtocomplywithall

laws, regulations, and DSA Codes of yourHomeCountryandanycountry inwhichyouoperateyourDistributorship.

15.2 Thisincludes:(a) obtaining any permits, licenses, or

registrations required to operate yourDistributorship;and

(b) making all registrations, notifications,filings,andpaymentsnecessarytoensuretheproperassessmentandremittanceoftaxesandsocialcontributions.

15.3 You are required tomaintain proper recordsofyouractivityasanIBO.

15.4 ACN may requests copies of all tax-relateddocuments from IBOs in order to verifycompliancewiththisrequirement.

RegisteringYourActivity15.5 Under Irish law, IBOs who operate an

individual business do not need to registerwith the Companies Registration Office(“CRO”). Registrationmay be required if youwishtouseabusinessname.

15.6 More information on the registrationrequirementsisavailableatwww.cro.ie.


TaxMatters15.7 AsanIBO,youareresponsibleformakingall

tax and social contribution registrations,filings, and payments that are required byIrishlaw.

15.8 A registration with the Irish tax authoritiesmayberequired.Youshouldconsultyourtaxadvisor if you have any questions regardingtheserequirements.

15.9 IncomeTax:(a) The compensation you earn as an IBO

willbesubjecttoincometaxinIreland.(b) You are required to report your income

duringtheannualtaxreturnfilings.15.10 ValueAddedTax(VAT):

(a) Asageneralrule,anypersonthatcarriesout an economic activity regularly andindependently in Ireland is responsiblefor collecting and paying VAT to therevenueauthorities.

(b) As an IBO, you may be required toregister as aVATpayer, fileVAT returnsandpayVAT.

(c) Anexemptionmaybeavailabletosmallbusinesses whose revenue is less thanEUR75,000(fromthesupplyofservices)orlessthanEUR37,500(fromthesupplyofservices)overa12-monthperiod.

(d) ACNwillpayVATtoyou for theservicesyouprovidetoACNonlyifyouprovideuswithavalidVATnumber.

(e) More information on VAT complianceand the applicable exemptions isavailableatwww.revenue.ie.

15.11 SocialContributions:(a) As an IBO, You may be responsible for

making regular social securitycontributions.

(b) More information on social securityrequirements is available atwww.welfare.ie.

PermittedBusinessEntities15.12 ThefollowinglegalentitiesmaybecomeIBOs

inIreland:(a) Soletrader(b) Partnership(c) PrivateLimitedCompany

ACN POLICIES & PROCEDURESreps.acneuro.com/ACN-Europe_files/docs/policy_procedures/IE-PP.pdf ·...

Documents

Transcript of ACN POLICIES & PROCEDURESreps.acneuro.com/ACN-Europe_files/docs/policy_procedures/IE-PP.pdf ·...