IT WORKS! INDEPENDENT DISTRIBUTOR AGREEMENT UNITED KINGDOM

 

Published: March 1, 2024

 

INDEPENDENT DISTRIBUTOR TERMS & CONDITIONS

 

It Works! Marketing International UC, 28 Pembroke Street Upper, Dublin 2, Ireland shall be referred to as “IT WORKS!” or “the Company” throughout this Agreement. 

 

1.     BASIS OF THE COOPERATION: 

                 

1.1.              IT WORKS! sells cosmetic products and food supplements to customers by way of direct selling.  Independent Distributors offer consumers the IT WORKS! products for acquisition by way of personal contacts. In this connection the system is based on the IT WORKS! Compensation Plan. This plan stipulates the tasks of the Distributors according to their functional position in the direct selling organisation which is structured as a network of Independent Distributors. Furthermore, the Compensation Plan regulates the performance criteria a Distributor must meet to reach the individual functional positions in the organisation as well as the compensation paid for the successful performance of the contractual tasks. 

 

1.2.              The Distributor and IT WORKS! agree to cooperate in the execution of the IT WORKS! selling system as well as in the protection of the integrity of the system. In this regard the Distributor shall perform their tasks as an independent as well as an entrepreneurially active contractual partner, observing the specifications of the IT WORKS! selling system, of the IT WORKS! Compensation Plan and the terms of this Agreement. IT WORKS! will ensure that all necessary information concerning the products and the systems are made available for the Distributor.

  

1.3.              The Distributors principally have free choice of their sales area, as far as IT WORKS! has introduced officially its products into a particular country. The appropriate list of the countries in question will be delivered by IT WORKS! in case of request. 

 

1.4.              This agreement refers to the Statement of Policies and Procedures as well as the Compensation Plan. These documents are all a part of the Distributor Agreement. If any conflict arises between the Distributor Terms & Conditions and any provision of the Policies and Procedures, the Distributor Terms & Conditions shall prevail.

 

2.     APPOINTMENT, TASKS AND STATUS OF THE DISTRIBUTOR: 

2.1.              APPOINTMENT a.) The person becomes a Distributor when their application is accepted and an ID number is assigned. Entrance fees are not required. The Distributor will purchase a website license and Business Builder Kit with forms, information brochures, other material and products needed for building their business (Business Builder Kit). IT WORKS! sells this Business Builder Kit at the cost price. b.) The Distributor is entitled to cancel their application within a period of fourteen (14) days of entering into the Distributor Agreement – see clause 8.2 below. No purchase is necessary to become an IT WORKS! Distributor other than the purchase of a Distributor Basic Kit. Distributors also receive an online information kit about IT WORKS! and its products and services. 

2.2.              TASKS a.) SELLING ACTIVITY: The Distributor provides customers with the items of IT WORKS! product line. The products may be purchased by customers directly from IT WORKS! or the Distributor, in certain circumstances. b.) STRUCTURING WORK: The Distributor will collaborate on the development of an IT WORKS! selling organisation by recruiting new Distributors and by supporting all Distributors belonging to the ‘Line of Responsibility’ (downline) developed by them by informing, instructing and motivating any such new Distributors in accordance with IT WORKS! company policies. 

 

2.3.              STATUS + STATUS OBLIGATIONS: The Distributor acts as an Independent Contractor and they are responsible for their Social Security contributions, the VAT-ID-Number, as well as all other duties of an entrepreneur such as business registration. 

 

2.4.              BEHAVIOUR TO CONSUMERS:  Distributors will refrain from any misleading behaviour about the purpose of their contacts and will terminate any sales presentation if desired by customers. Distributors will identify themselves with their name and that they are IT WORKS! Independent Distributors.

 

2.5.              Distributors in the United Kingdom (England, Scotland, Northern Ireland, and Wales) may only make or agree to make payments to or for the benefit of IT WORKS! to the value of £200.00, including VAT and shipping and handling, and may not utilize the monthly subscription option for orders, during the seven (7) day period after entering into the Distributor Agreement. After these seven (7) days have passed, the Distributor may utilize the monthly subscription option and make purchases at a value of their choice. 

 

3.     ADVERTISING, SALES PROMOTION AND INTERNET: 

 

3.1.              In the course of their contractual activities the Distributor will present themselves with the job title “IT WORKS! Independent Distributor” and, if applicable, add the title of the functional position they have reached. Each other use of the company name and trademark IT WORKS! as well as of all other IT WORKS! trademarks and product names are prohibited for them if it does not happen in the context of any IT WORKS! advertising and promotional measures approved by IT WORKS!. 

 

3.2.              In the context of both, their selling activities and their structuring work, the Distributor will make only such statements concerning the IT WORKS! products as well as the IT WORKS! selling system which corresponds to the statements in the official IT WORKS! advertising and promotional materials. 

 

3.3.              The installation and commercial use of any internet websites for presentation of IT WORKS! products and/or the IT WORKS! selling system have to meet the quality standards according to the website license. Any such websites may only be created according to IT WORKS! specifications. In particular, it must be ensured that the Distributor’s website is not understood as being an official IT WORKS! website in order to avoid any misunderstandings. The domain address of Distributors may not contain the name “IT WORKS!.”

 

3.4.              The Distributor will not use, sell, distribute, or recommend to the members of the IT WORKS! sales organisation any other materials not issued by IT WORKS! if they deal with the IT WORKS! products or the IT WORKS! distribution system, whether such materials exist in a printed, electronic or another form of reproduction or not. The Distributor will use their own advertising and PR publications in any kind of reproduction (e.g. ads, PR articles, commercials in TV or radio, etc.) only if they correspond to samples provided by IT WORKS! for this purpose or are approved in writing by IT WORKS!. 

 

3.5.              The Distributor will make comments concerning IT WORKS!, the IT WORKS! product line and the IT WORKS! selling system in any print or electronic media only with prior written approval of IT WORKS!.

 

4.     COMPETITION AND SECRECY:

 

4.1.              The Distributor is allowed to sell any other merchandise or services if these offers do not compete with the offers of the given IT WORKS! product line. However, the Distributor is not allowed to present or to advertise the other offers together with the products of the IT WORKS! product line in the context of the same selling or advertising measures or events. The Distributor will inform IT WORKS! in writing about such additional selling activities. 

 

4.2.              However, for the protection of the selling organisation developed and maintained with the help of the Distributor, the Distributor is prohibited from encouraging any members of this organisation to sell other products or services, or otherwise to promote such products or services in addition to or instead of their IT WORKS! business activities. This is valid also if the offers in question do not compete with the IT WORKS! offers. 

 

4.3.              During as well as after the term of this agreement, the Distributor will keep secret all information at their disposal concerning IT WORKS!, any possible other members of the IT WORKS! group, the IT WORKS! product line and selling system if the information is not generally accessible to the public. This obligation includes all data and facts concerning the members of the IT WORKS! selling organisation, whether or not these members belong to the Line of Responsibility of the Distributor. In addition, the Distributor is not allowed to use the information mentioned for any other purpose than for the benefit of IT WORKS!.

 

5.     INCOME, REMUNERATION: 

 

5.1.              For the sale of products to Perks Members and commercial procurement and remunerating the work structure the Distributor receives commissions as well as other remunerations which, according to the IT WORKS! Compensation Plan is calculated on the basis of the given selling results of the members of their Line of Responsibility. The Distributor will check the statements transmitted without any delay and inform IT WORKS! promptly (latest within 60 days) about possible objections. If a customer of the Distributor’s Line of Responsibility returns any products in the context of the execution of a given right of return, IT WORKS! will charge to the Distributor’s account the remunerations which the Distributor had received on the basis of the sale of this product, unless the return is as a result of warranty claim provided by applicable law. 

 

5.2.              In case of VAT requirement communicating their VAT number and presenting a confirmation in writing of the tax office competent for them, the Distributor will inform IT WORKS! immediately as soon as they becomes VAT registered and will provide IT WORKS! with a valid VAT invoice to the extent necessary. Distributors must also notify IT WORKS! immediately if they become de-registered. IT WORKS! reserves the right to self-bill for such commissions on their behalf and the Distributor agrees that they will accept this selfbilling arrangement. From this point of time onwards IT WORKS! will account and pay the remunerations due plus the legal VAT rate.

 

6.     CANCELLATION OF RETAIL CUSTOMER ORDERS: 

 

Customers who purchase product via distance selling means are provided with a 14-day cooling off period from the date on which they receive the products. Even though the products are sold by IT WORKS! directly to the customers, Distributors are also obliged to comply with the provisions of consumer law in their role as IT WORKS! Independent Distributors. If a consumer according to the instruction of their right of cancellation, returns any merchandise to their Distributor, the Distributor on their part is permitted to return the product to IT WORKS! The Distributor in their own interest is obliged to make sure that the consumers observe the rules of the instruction on cancellation. 

 

7. IT WORKS! PRODUCT REFUNDS AND RETURNS POLICY

 

All refunds and returns will be subject to the IT WORKS! Refunds and Returns Policy located at https://static.myitworks.com/legal/pdf/returnspolicy.pdf. 

                 

8.  TERM AND TERMINATION OF THE AGREEMENT:

8.1.  This agreement is concluded for a period of one year and expires on the anniversary of the date of enrolment by IT WORKS! unless the Distributor pays the annual renewal fee.

8.2.  You have the right to cancel this contract within 14 days of entering it without giving any reason and will receive a refund of all paid monies against return of any products, business manuals, kits and training and promotional materials purchased provided the goods remain unsold by you, are in the same conditions as supplied to you (except their external wrappings may be broken) and are returned to the Company at the address for product returns as stated in the IT WORKS! Refunds and Returns Policy located at https://static.myitworks.com/legal/pdf/returnspolicy.pdf within 21 days of the cancellation.   

To exercise the right of cancellation, you must inform us at:

It Works! Marketing International UC

28 Pembroke Street Upper 

Dublin 2, Ireland csintl@itworks.com 

8.3. In addition, each of the contractual parties may terminate this agreement in accordance with the termination provisions set out in the IT WORKS! Policies and Procedures.

8.4. In case of termination under provision 8.3. the Distributor is entitled to return to IT WORKS! any products they have purchased within a period of one (1) year prior to such termination and which remain unsold and are in new, resalable condition to receive from IT WORKS! the price which they have paid. Any such refund shall be on terms whereby the products not already held by IT WORKS! will be delivered within twentyone (21) days of such termination at IT WORKS!’ expense to the address for product returns as stated in the IT WORKS! Refunds and Returns Policy located at https://static.myitworks.com/legal/pdf/returnspolicy.pdf.

9.      LIMITATION OF CLAIMS:

To the fullest extent permitted by law, any claims arising out of or in connection with this Agreement should be notified to IT WORKS! within one (1) year from the point in time at which the Distributor became aware of the circumstance which gave rise to the potential cause of action.  

10.  The UK-Contract (Rights of Third Parties) Act 1999 is hereby excluded and shall not apply to this Agreement.

11.  CHANGE OF CONTRACTUAL RULES OR INSTRUCTIONS; WRITTEN FORM; VALID LAW AND FORUM:

11.1.          IT WORKS! may amend/update the IT WORKS! Compensation Plan and/or the terms of the

Distributorship Agreement from time to time in its sole discretion. If this occurs, the Distributor will be notified of the change by the usual communication tools between IT WORKS! and its Distributors. In this notification, the Distributor will be advised of the effective date of the change and that the change or amendment will become effective if, within one month of the date of the notification, the Distributor does not object to the change in writing by recorded delivery mail. If the Distributor objects to the updated terms, the Distributor agreements shall be cancelled immediately. 

11.2.          The contractual parties agree upon the competence of the courts where the Distributor has their main home residence and the applicability of the law at the Distributors home country or territory. 

12.  FINAL TERMS: 

 

12.1.          This Agreement (including, for the avoidance of doubt the documents incorporated by reference) represent the entire understanding of the parties with the respect to the subject matter of this Agreement and supersede all proposals, oral or written, all negotiations, conversations or discussions between the parties relating to the subject matter of this Agreement and all past course of dealing or industry custom between the parties. 

 

12.2.          If any provision or part-provision of this Agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this clause shall not affect the validity and enforceability of the rest of this Agreement.

 

DATA PROTECTION:

 

Distributor agrees that any personal data provided by them shall be processed in accordance with the IT WORKS! Data Protection Notice for the purposes of enrolling as an IT WORKS! Distributor, sending them any ordered products, sending them information on products or services that we believe may be of their interest in connection with the IT WORKS! business, managing the payments of commissions, and communicating important information. 

 

Where the Distributor, as part of the fulfilment of its obligations under this Agreement, processes personal data as a data processor on behalf of IT WORKS! acting as a data controller, the Distributor shall do so in accordance with the terms of the Data Protection Addendum attached hereto. 

 

NOTICE: A Monthly Subscription is an optional program and not required in the UK. However, you may find it an easy and convenient way to ensure your revenues with your customers for IT WORKS! commissions and bonuses.

 

By and through this Agreement the Distributor acknowledges:

 

IT WORKS! is the trading name of IT WORKS! Marketing International UC (referred to in the Agreement as “IT WORKS!” or “the Company”) which is the promoter of this trading scheme in Europe. The products and services which are supplied under this scheme are skin care products supplied by IT WORKS! and such other related products or services as IT WORKS! may market from time to time (referred to as “the Products” and/or “the Services”). Sales of these Products/Services are made by an IT WORKS! Distributor, who participates in the scheme as explained in the Distributor Terms & Conditions.  The only financial obligation to become an IT WORKS! Independent Distributor is the purchase of a Distributor Basic Kit and website license and all purchases of products for resale are optional. I hereby apply to become an IT WORKS! Distributor (in the following “Distributor”). I confirm that the information given through the online application process is correct and that I am of legal age to enter into this Agreement. My signature certifies that I have read the Terms and Conditions, the Policies and Procedures (including the Rules and Regulations) and the Compensation Plan (collectively, “the Agreement”) before signing the application and that I agree that there is no requirement beyond the receipt and acceptance by IT WORKS! of the application and purchase of a Basic Kit/website license to become an IT WORKS! Distributor, and that any purchases of services, product inventory, sales aids, literature, etc. are strictly voluntary. Monthly Subscription is an optional program and not required. I agree that if I choose to sponsor others to participate in the IT WORKS! business opportunity, I will not receive any compensation whatsoever for the act of sponsoring or recruiting, and that I will be compensated based upon the activities of other

Distributors only to the extent of sales of the Products/Services to customers. I agree to the Distributor Terms & Conditions contained herein. Further, I agree to the Statement of Policies and Procedures and the Compensation Plan and acknowledge that these form the Distributorship Agreement.

 

IT IS ILLEGAL FOR A PROMOTER OR A PARTICIPANT IN A TRADING SCHEME TO PERSUADE ANYONE TO MAKE A PAYMENT BY PROMISING BENEFITS FROM GETTING OTHERS TO JOIN A SCHEME. DO NOT BE MISLED BY CLAIMS THAT HIGH EARNINGS ARE EASILY ACHIEVED. 

 

If you enter into this contract you have 14 days in which to cancel and get your money back.

 

 

 

It Works! Marketing International UC

Commercial Registry in Ireland #535880

VAT ID #3263610DH

 

For Customer Support:

https://itworkseu.com/contactus

 

IT WORKS! is a member of the Direct Selling Association of the UK and requires its Distributors

to comply with the codes of the DSA.

 

 

 

Data Processing Addendum

1. Definitions

In this Addendum the following expressions shall, unless the context otherwise requires, have the meanings given below:

 

"Data Protection Legislation" means all laws relating to the processing of Personal Data, privacy and security including, without limitation, the General Data Protection Regulation (EU) 2016/679 ("GDPR") and, where the context so requires, equivalent or replacement legislation of any applicable jurisdiction, delegated legislation of other national data protection legislation, and any pertinent requirements of and guidance by any competent Supervisory Authority;

 

"Distributor Agreement" the IT WORKS! Independent Distribution Agreement;  

 

"Processing" has the meaning given in the Data Protection Legislation. The terms "Process", "Processing" and

"Processed" in this Addendum shall have a corresponding meaning;

 

"Supervisory Authority" means the Data Protection Commissioner and, where context so requires, any other applicable data protection regulator in any European Union jurisdiction and any bodies which may succeed or replace such bodies from time to time;

 

The terms "Personal Data", "Controller", "Processor", "Process" (including "Processing and Processed"), "Personal Data Breach", "Data Subject", "Data Protection Impact Assessment" shall have the meanings given to such terms in the GDPR;

 

"IT WORKS! Personal Data" means any and all Personal Data that is supplied or otherwise made available by IT WORKS! to the Distributor or collected or generated by the Distributor on behalf of IT WORKS! under this Addendum.

2.       Scope and Purposes of this Addendum 

2.1   The Processing of Personal Data pursuant to the Distributor Agreement ("Distributor Services") shall take place within the framework of this Addendum and only to the extent that IT WORKS! has instructed the Distributor to do so pursuant to this Addendum.  

2.2   The subject matter, the nature and purpose of the processing of IT WORKS! Personal Data and the duration of processing of IT WORKS! Personal Data are determined by and in the Distributor Agreement.  The Distributor will not process IT WORKS! Personal Data in a way that is incompatible with this Addendum.  

2.3   For any Personal Data Processed by the Distributor in connection with the Distributor Services, the Parties acknowledge that IT WORKS! shall be the Controller and Distributor shall be the Processor.  

3.       Obligations of Distributor 

As the performance of the Distributor Services involves the Processing of IT WORKS! Personal Data, the Distributor agrees and warrants that they:

 

3.1   shall only process IT WORKS! Personal Data in accordance with the instructions of IT WORKS!, or as otherwise notified by IT WORKS! to the Distributor from time to time; 

3.2   complies and will comply with their obligations as a Processor under the Data Protection Legislation and in respect of IT WORKS! Personal Data under this Addendum, and will not do, or permit anything to be done, which might cause IT WORKS! to be in breach of the Data Protection Legislation; 

3.3   IT WORKS! Personal Data are confidential in nature and the Distributor shall, unless otherwise directed in writing by IT WORKS!: 

3.3.1          process IT WORKS! Personal Data on behalf of IT WORKS! exclusively for the performance of the Distributor Services pursuant to the Distributor Agreement and the provisions of this Addendum but for no other purposes whatsoever;  

3.3.2          ensure that each of its employees, agents and/or temporary contractors engaged in processing Personal Data will be under appropriate confidentiality obligations in respect of the Processing of the IT WORKS! Personal Data;   

3.3.3          ensure that the processing of IT WORKS! Personal Data takes place exclusively in the European Economic Area ("EEA") unless such processing is carried out by IT WORKS! or is done with the prior written and explicit consent of IT WORKS! (in each case) and then only in a manner which is compliant with Data Protection Legislation applicable to IT WORKS!; and

3.3.4          assist IT WORKS! as reasonably required in a timely manner to comply with its data protection obligations.

3.4   The Distributor shall:  

3.4.1          promptly notify and assist IT WORKS! in relation to any legally binding request for disclosure of IT WORKS! Personal Data or any request to exercise Data Subject rights; 

3.4.2          maintain written records of IT WORKS! Personal Data processed by them; and

3.4.3          provide reasonable assistance to IT WORKS! with any Data Protection Impact Assessments which are required under the GDPR including any prior consultations to any Supervisory Authority of IT WORKS!.  

 

4.       Obligations and Rights of IT WORKS! 

4.1   IT WORKS! agrees that it will comply with its obligations as a Controller under the Data Protection Legislation.    

4.2   IT WORKS! may carry out an audit or inspection in relation to the Processing of the Personal Data by the Distributor to satisfy itself that the Distributor is complying with the Data Protection Legislation in respect of the Distributor Services and its compliance under this Addendum.

 

5.       Security, Technical and Organisational Measures

5.1   The Distributor shall immediately (but in any event within 24 hours of becoming aware of it) notify IT WORKS! if any Personal Data is lost, is disclosed without authorisation, becomes corrupted, is damaged or is deleted accidentally, or if the Distributor reasonably suspects that any of the same has occurred. 

5.2   The Distributor agrees that they shall, having regard to the state of the art and the costs of implementation and the nature, scope context and purposes of Processing as well as the risk of varying likelihood and severity for the rights and freedoms of the Data Subjects, implement appropriate security, technical and organisational measures to ensure a level of security appropriate to the then current risk to IT WORKS! Personal Data.  

6.       Sub-Processing

6.1   The Distributor shall not subcontract its Processing obligations performed on behalf of IT WORKS! under this Addendum to a sub-processor without the prior written consent of IT WORKS!.  

6.2   At the choice of IT WORKS! immediately delete or return IT WORKS! Personal Data at the end of the provision of the Distributor Services relating to processing unless and only to the extent that national or European Union Law requires the retention of any IT WORKS! Personal Data by Distributor and then only for that limited purpose.

 

 

 

STATEMENT OF POLICIES AND PROCEDURES

 

SECTION 1 - INTRODUCTION

 

1.1 - Policies and Compensation Plan Incorporated into Distributor Agreement

These Policies and Procedures, in their present form and as amended, are incorporated into, and form an integral part of, the IT WORKS! Distributor Agreement. When the term “Agreement” or “Distributor Agreement” is used, it collectively refers to the IT WORKS! Independent Distributor Terms & Conditions, these Policies and Procedures, and the IT WORKS! Compensation Plan. These documents are incorporated by reference into the It Works! Distributor Agreement (all in their current form and as amended by IT WORKS!). It is the responsibility of each Distributor to read, understand, adhere to, and ensure that they are aware of and operating under the most current version of Policies and Procedures. When sponsoring or enrolling a new Distributor, the sponsoring Distributor should confirm that the applicant has online access to and has reviewed the most current version of the Distributor Agreement prior to signing. 

 

1.2 - Purpose of Policies

IT WORKS! is a direct sales company that markets its products and services through Independent Distributors (hereafter “Distributor” or “Distributors”). To clearly define the relationship that exists between Distributors and IT WORKS! and to explicitly set a standard for acceptable business conduct, IT WORKS! has established the Agreement. 

 

IT WORKS! Distributors are required to comply with the Agreement as well as all legal preconditions governing their IT WORKS! business and their conduct.  Review the terms in this Agreement carefully. It explains and governs the relationship between you, as an independent contractor, and the Company. If you have any questions regarding any part of the Agreement, contact your Enroller or Compliance at compliance@itworks.com.

 

1.3 - Changes to the Agreement

IT WORKS! may from time to time, in its discretion, which shall be exercised reasonably and in good faith, amend the Agreement. Amendments will be effective the sooner of: thirty (30) days after notice to Distributor that the Agreement has been modified; or the Distributor reviews and signs the Agreement in their back office. IT WORKS! will provide Distributors notification of the amendments by one or more of the following methods: (1) e-mail at the address on file with IT WORKS!; (2) posting in the Distributor’s back office; or (3)  special mailings. Amendments will be communicated by providing reference to the specific sections amended, providing a summary of the specific amendments, or providing a complete copy of the amended Agreement. Distributors agree that thirty (30) days after such notice, any modification becomes effective and is automatically incorporated into the Agreement as an effective and binding provision. A Distributor may opt out of any proposed amendments by cancelling their Agreement prior to the effective date of such proposed amendments. A Distributor’s continued participation in their IT WORKS! business as authorized under the Agreement on or after the effective date of any amendment constitutes acceptance of the amended Agreement. Unless expressly agreed to by a Distributor, amendments shall not be retroactive to conduct that occurred prior to the effective date of the amendment.

 

1.4 - Delays 

IT WORKS! shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labour difficulties, riot, war, fire, death, curtailment of a party’s source of supply, or government decrees or orders.

 

1.5 - Waiver 

No party gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of a party to exercise any right or power under the Agreement or to insist upon strict compliance by the other party, or custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of a party’s right to demand exact compliance with the Agreement. Waiver can be effectuated only in writing by an authorized representative of the party against whom the waiver is sought be enforced.  A party’s waiver of any breach shall not affect or impair its rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Distributor. 

 

The existence of any claim or cause of action of a Distributor against IT WORKS! shall not constitute a defense to IT WORKS!’ enforcement of any term or provision of the Agreement. 

 

SECTION 2 - BECOMING A DISTRIBUTOR

 

2.1 -  Requirements to Become a Distributor

To become an IT WORKS! Distributor, each applicant must:

 

a)       Be of the age of majority in their state or country of residence;

b)      Reside in any country or territory that IT WORKS! has officially announced is open for business;

c)       Have a valid Social Security or VAT number and/or National Insurance or other means of identification to prove identity and residency in countries or territories opened for business by IT WORKS!;

d)      Purchase an IT WORKS! Sales Kit; and

e)       Submit a properly completed Distributor enrolment to IT WORKS!. 

f)        When enrolling, the first and last name fields must contain the first and last name of the Distributor who is enrolling. If enrolling a legal body (company), the first and last name of the person responsible for the business must be entered.  Any company that is not registered in the trade register may be used on the replicated website but may not be entered on the account as an entity name

 

2.2 - No Product Purchase Required

No Distributor is required to purchase IT WORKS! products, services or sales aids, or to pay any charge or fee to become a Distributor other than purchase of an at cost Basic Kit. To familiarize new Distributors with IT WORKS! products, services, sales techniques, sales aids, and other matters, the Company recommends that they purchase a Business Builder Kit.  IT WORKS! will repurchase Resalable kits or products from any Distributor who cancels their Distributor Agreement pursuant to the terms of Section 7.3.

 

2.3 - Distributor Benefits 

Once a Distributor enrolment has been accepted by IT WORKS!, the Distributor is eligible to receive benefits including the right to:

 

a)       Sell IT WORKS! products and services;

b)      Participate in the IT WORKS! Compensation Plan (and receive bonuses and commissions, if eligible);

c)       Enrol other individuals as Customers or Distributors and build a Marketing Organization and progress through the IT WORKS! Compensation Plan;

d)      Receive IT WORKS! literature and communications and have access to IT WORKS! online sales and business tools;

e)       Participate in IT WORKS!-sponsored support, service, training, motivational and recognition functions; and

f)        Promotional and incentive contests and programs.

 

2.4 - Term and Renewal of Your IT WORKS! Business

The term of the Distributor Agreement is one year from the date of its acceptance by IT WORKS! (subject to prior cancellation or reclassification pursuant to Section 10). Distributors must renew their Distributor Agreement each year by paying an annual renewal fee of £34 on or before the anniversary date of their Distributor Agreement. If the renewal fee is not paid on or before the anniversary date, the Distributor’s account will be placed on renewal hold for sixty (60) days. If the annual renewal fee is not paid on or before the expiration of the 60-day non-renewal hold, the Distributor account will be canceled.

 

SECTION 3 - OPERATING AN IT WORKS! BUSINESS

 

3.1 - Adherence to the IT WORKS! Compensation Plan

Distributors must adhere to the terms of the IT WORKS! Compensation Plan. Distributors shall not offer the IT WORKS! opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official IT WORKS! literature.  

                 

3.2 - Advertising

3.2.1 - General

All Distributors shall safeguard and promote the good reputation of IT WORKS!, the IT WORKS! brand, and its products.  The marketing and promotion of IT WORKS! shall be consistent with the public interest and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices. 

 

Distributors should only advertise and use Company sponsored promotions or sales and may only advertise or promote their IT WORKS! business using the sales and support materials produced or approved by IT WORKS!. Any Distributor created ads or marketing material must be submitted to the IT WORKS! Compliance Department for approval before they may be used. Any designs or images in your back office available for download are the exclusive property of the Company and are to be used strictly in the format provided. Unauthorized use of these designs and/or the images is a violation of the Agreement and copyright laws and can lead to cancellation of your Distributor account.

 

3.2.2 - IT WORKS! Independent Distributor Logo / Identity

If you use an IT WORKS! logo in any communication, you must use the Independent Distributor version of the logo found in your back office. Using any other IT WORKS! logo requires written approval.

 

3.2.3 - Distributor Websites

The Company provides each Distributor with a replicated website to help run their business. If a Distributor desires more personalization than the replicated website provides, they may utilize a landing page to further promote their business if the landing page directly links to the replicated website. A landing page combined with the replicated website permits Distributors to advertise on the Internet with personalized content. Other than through the use of a landing page, no Distributor may independently design a website that uses the names, logos, or product descriptions of IT WORKS! or otherwise promotes (directly or indirectly) IT WORKS! products or the IT WORKS! opportunity. A Distributor may not use ‘blind’ ads on the Internet that make IT WORKS! product or income claims. You are solely responsible and liable for the content that you provide and must regularly review the content to ensure it is accurate and does not make any non-compliant claims.

 

When directing readers to your replicated website through use of a landing page, the link and surrounding context must expressly demonstrate to a reasonable reader that the link will be directed to the website of an Independent Distributor and not an IT WORKS! corporate site. Attempts to mislead web traffic into believing they are going to the IT WORKS! corporate site, when in fact they land at an Independent Distributor’s replicated website, is not allowed. 

 

You may place banner advertisements on a landing page. All banner advertisements must link to your replicated website.

 

Sponsored links or pay-per-click ads (PPC) are acceptable. The destination and display URL must be to either your landing page or replicated website. PPCs must not portray any URL that could lead the user to assume they are being led to an IT WORKS! corporate site.

 

It is expressly prohibited for any Distributor to engage in paid search bidding on any IT WORKS! branded product names or trademarks. This includes, but is not limited to, bidding on keywords or phrases in any paid search platforms (such as Google AdWords, Bing Ads, etc.) that are directly associated with the IT WORKS! brand and branded products. This will prevent conflicts and competition in search engine marketing between the Company and its Distributors, ensuring a more cohesive and efficient marketing strategy.

 

Websites and web promotion activities and tactics that mislead or are deceptive are not allowed. This could include spam linking (or blog spam), improper search engine optimization (SEO) tactics, misleading clickthrough ads, unapproved banner ads, and unauthorized press releases.

3.2.4 - Blogs, Chat Rooms, Social Networks, Online Auctions, and other Online Forums

Except as expressly provided in these Policies and Procedures, Distributors shall not use online blogs, chat rooms, social networks, online auction sites, or any other online forum to sell IT WORKS’ products or services. 

  

3.2.5 - Domain Names and Email Addresses

Distributors may not use or register a domain name or email address that utilizes any of IT WORKS!’ trade names, trademarks, service names, service marks, product names, or any derivative thereof. If any Distributor owns or otherwise controls domain names or email addresses related to the Company name, its business, or products and services, Company reserves the right to require the Distributor to transfer ownership and control to Company at the cost Distributor paid for the domain names or email addresses.  

 

3.2.6 -  Social Media

Social Media may be used by Distributors to help promote their IT WORKS! business; however, Distributors who elect to use social media must adhere to the requirements set forth below as well as other rules set forth in those particular social media websites.

 

Distributors are personally responsible for their own posts and all other online Distributor business activity. If a Distributor posts a comment to any site that relates to IT WORKS!, the Distributor is responsible for the post. No claims as to therapeutic or curative properties about the products may be made except those officially approved in writing by the Company or as contained in official Company literature.  

 

Distributor must disclose their name and identify themselves as a Distributor for IT WORKS! on all social media postings related to IT WORKS! and the business. Anonymous postings or use of an alias is prohibited.

 

Posts and other online marketing activities must be truthful, accurate, and not deceptive. This includes, but is not limited to, false or deceptive posts relating to the IT WORKS! income opportunity, IT WORKS!

products and services, or the Distributor’s biographical information and credentials.

 

Distributors must not engage in gossip or spread rumors about any individual, company, or competitive products or services. Distributors should not respond to anyone who posts something negative about them, another Independent IT WORKS! Distributor, or the Company. Report any negative posts to the Compliance Department. 

 

Any religious, political, or other personal views or opinions made by Distributors are not necessarily representative of IT WORKS!. If you believe an offensive comment is posted about the Company, its Distributors, or Company products, then contact the Compliance Department at compliance@itworks.com

 

 Distributors may not make any comments or link to any posting or other material that:

       Is sexually explicit, obscene, or pornographic;

       Is offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or otherwise);

       Is graphically violent, including any violent video game images;

       Solicits any unlawful behavior;

       Engages in personal attacks or that is disparaging on any individual, group, or entity;

       Is in violation of any intellectual property rights of the Company or any third party.

 

We encourage Distributors to view, like, comment, and share content provided to you from our corporate social media. However, Distributors are prohibited from posting their website link, phone number, or social media URL on corporate IT WORKS! social media pages. 

Distributors may use social media sites to share information about IT WORKS! products and opportunity, and for prospecting and sponsoring. However, these sites may not be used to sell products directly. 

 

Any video content placed on social media must be submitted and approved by the Compliance Department prior to posting. Decisions may take up to four weeks, depending on content. These submissions must clearly identify you as an Independent Distributor (either in the content itself and/or in the content description tag), must comply with all advertising policies, legal requirements, and must state that you are solely responsible for this content and not IT WORKS!. You may not upload, submit, or publish any content (video, audio, presentations, or any computer files) received from IT WORKS! or captured at official corporate events or in buildings owned or operated by IT WORKS! without prior written permission from the IT WORKS! Compliance. You agree to promptly remove any video on social media upon request by IT WORKS! and this provision survives cancellation of your Agreement.

 

3.2.7 Trademarks and Copyrights

IT WORKS! will not allow the use of its trade names, trademarks, designs, or symbols without its prior written permission. Distributors may not produce or reproduce for sale or distribution any video or audio recordings of Company events, presentations, trainings, and speeches without written permission from IT WORKS!.

 

The name IT WORKS!® is a trademark of It Works! Marketing International UC, is of great value to the Company, and is supplied to IT WORKS! Independent Distributors for use only in an authorized manner. Use of the IT WORKS! name on any item not produced or authorized by the Company is prohibited.

 

Distributors may use the IT WORKS! name in the following manner:

 

Distributor’s Name

Independent Distributor, IT WORKS! or: IT WORKS! Independent Distributor Example:

Sarah Jones

Independent Distributor, IT WORKS!

 

3.2.8 - Use of Third-Party Intellectual Property

If you use the trademarks, trade names, service marks, copyrights, or intellectual property of any third party in any post you must ensure that you receive the proper license to use such intellectual property and have paid the appropriate license fee, if any. All property must be properly identified as the property of the third party and must adhere to any restrictions and conditions that the owner of the intellectual property places on the use of its property.

 

3.2.9 Media and Media Inquiries

IT WORKS! Independent Distributors are not authorized to speak to any media source, including but not limited to radio, television, reporters for newspapers or magazines, and advertisement outlets, or bloggers. Distributors must not attempt to respond to media inquiries regarding IT WORKS!, its products or services, or their independent IT WORKS! business. All media requests or inquiries must be immediately referred to the IT WORKS!’ Public Relations Department at PR@itworks.com. IT WORKS!’ PR Department will review the media inquire and decide the proper course of action.

 

Distributors may not utilize the media for advertising, distribution or promotion of IT WORKS! products or opportunity without the express written consent of IT WORKS! PR or Compliance Departments. 

 

Without written approval, IT WORKS! does not allow its Distributors to use celebrity pictures or endorsements indicating use of IT WORKS! products or services. IT WORKS! also does not allow Distributors to make claims on images that are not their own or for which they do not have permission. 

 

3.2.10 -  Unsolicited Email

IT WORKS! does not permit Distributors to send unsolicited emails unless such emails are confirmed explicitly (opt-in) by the recipient before and strictly comply with applicable laws and regulations. Any email sent by a Distributor that promotes IT WORKS!, the IT WORKS! opportunity, or IT WORKS! products and services must comply with the following:

 

a)       There must be a functioning return email address to the sender.

b)      There must be a notice in the email that advises the recipient that they may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to them (a functioning ‘opt-out’ notice).

c)       The email must include the Distributor’s physical mailing address.

d)      The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.

e)      The use of deceptive subject lines and/or false header information is prohibited.

f)        All opt-out requests or revocations of opt-in permissions, whether received by email, regular mail or otherwise, must be honored. If a Distributor receives an opt-out request from a recipient of an email, the Distributor must forward a copy of the opt-out request to the Company at compliance@itworks.com.

 

3.2.11 - Unsolicited Faxes, Telephone Calls or Other Messaging

 Except as provided in this section, Distributors may not use or transmit unsolicited faxes, telephone calls, SMS/text messages, or use an automatic telephone dialing system relative to the operation of their IT WORKS! businesses. In general, Distributors may send SMS/text messages to customers with whom they have an existing business relationship; however, sending such messages using technology that has automatic dialing capabilities requires the customer’s prior express written consent as specifically required by law. Any text message sent by a Distributor relating to the promotion of their business or IT WORKS! products must clearly identify the sender as an Independent Distributor. In addition, Distributors may not use an automatic telephone dialing system to call a customer’s cellular phone in connection with the operation of their IT WORKS! businesses without first obtaining the customer’s prior express written consent as specifically required by law. The term ‘automatic telephone dialing system’ means equipment which has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers. The term ‘unsolicited faxes’ means the transmission via telephone facsimile of any material or information advertising or promoting IT WORKS!, its products, the Compensation Plan or any other aspect of the Company which is transmitted to any person, except that these terms do not include a fax to any person with that person's prior express invitation or permission. 

 

3.2.12  - Spam Linking

 Spam linking is not allowed and is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites, or other publicly accessible online discussion boards or forums. Any comments you make on blogs, forums, guest books, etc. must be unique, informative, and relevant. You may not use blog spam, spamdexing, or any other mass-replicated methods to leave blog comments.

 

3.2.13  - On-Line or Digital Advertisements

The following rules apply to all on-line, print and digital advertising, including social media: a) No advertisement may imply that a ‘job’ or ’position’ is available.

b)      No specific income may be promised.

c)       Advertisements must contain no misleading facts or distortions of the Company opportunity or product line.  

 

3.2.14  - Marketing, Coaching, Training, and Lead Generation Systems

a)       All systems created or introduced by Distributor (“Offering Distributor”) or offered by third parties to any IT WORKS! Distributor or customer that involve marketing, coaching, training, personal development, sales aids, and lead-generation (“System”) must be submitted to Compliance@itworks.com for review and approval before being offered to Distributors and customers. If after the initial approval, changes or modifications are made, the Offering Distributor must notify Compliance and obtain a second approval. 

b)      The System shall make no product or income claims regarding IT WORKS! products or the IT WORKS! Compensation Plan.

c)       Unless the Distributor receives specific written approval for the System, the request shall be deemed denied. 

d)      Once the System is approved, the Offering Distributor is responsible for vetting each System enrollee to determine their status as an IT WORKS! Distributor. If the enrollee is an active IT WORKS! Distributor, then the entire System including separate tiers, must be offered, at no cost to that Distributor. If an active Distributor mistakenly pays for any part of System and Offering Distributor is notified, then Offering Distributor must refund 100% of System payment. Failure to refund the full amount shall subject Offering Distributor to immediate disciplinary action up to and including cancellation. 

e)       All Systems are subject to Compliance review on a random basis. Changes made to System without approval may subject Offering Distributor to immediate disciplinary action up to and including cancellation of the distributorship. 

f)        IT WORKS! reserves the right to use any material that is in a System for training purposes. If IT WORKS!

decides to use a part of the Distributor’s System for corporate training purposes, IT WORKS! agrees to first notify the Distributor. 

g)       Without permission from IT WORKS!, Distributors are prohibited from reproducing or copying written documents or marketing materials, films, or sound recordings identical or similar to any materials produced by the Company, including use in any System.

h)      IT WORKS! reserves the right to rescind approval for any System, and Distributors waive all claims for damages or remuneration arising from or relating to such rescission.

 

3.3 - Bonus Buying Prohibited

Bonus buying is strictly prohibited. ‘Bonus buying’ includes: (a) the enrolment of individuals or entities without the knowledge of and/or execution of an Independent Distributor Agreement by such individuals or entities; (b) the fraudulent enrolment of an individual or entity as a Distributor or Customer (“fraudulent” includes but is not limited to enrolling an individual or entity without the individuals or entity’s consent or knowledge or by misrepresenting the individual or entity’s details); (c) the enrolment or attempted enrolment of non-existent individuals or entities as Distributors or Customers; (d) purchasing excessive amounts of goods or services that cannot reasonably be used or resold in a month; (e) attempt to cross sponsor or re-enrol an existing customer or distributor; or (f) any other mechanism to qualify for rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona fide product or service purchases by end user consumers. A Distributor is allowed a total of 5 order transfer requests per month with a total bonus volume limit of 1,000 BV without violating this provision. An order transfer is where a Distributor places an order under themselves and then requests that this order be moved under another Distributor. The order can only be transferred to a distributor in the downline of the distributor requesting the order transfer. Orders may only be transferred in full and may only be transferred once. An order transfer is where a Distributor places an order under themselves and then requests that this order be moved under another Distributor. Once a Distributor has reached the limit of 5 requests for the month, all other requests will be denied. Orders may not be moved to or from a Perks Member or Retail Customer. Distributors are prohibited from placing orders directly on another Distributor or Perks Member account using their own or a prepaid credit card to make payments or use another account to ship orders to themselves. All bonuses, product rewards, product credits, and commissions earned belong to the account holder and can only be redeemed by the account holder.  

 

3.4 - Business Entities

A sole trader, company, partnership or trust may apply to be an IT WORKS! Distributor by submitting its Certificate of Incorporation, Memorandum and Articles of Association, Partnership Agreement, trust documents along with a properly completed Distributor enrolment. 

 

To prevent the circumvention of Section 3.28 (regarding transfers and assignments of IT WORKS! business), if an additional partner, shareholder, member, or other business entity affiliate is added to a business entity, the original applicant must remain as a party to the original Distributor Agreement. If the original Distributor wants to cancel their relationship with the Company, they must transfer or assign their business in accordance with Section 3.28. If this process is not followed, the business shall be canceled upon the withdrawal of the original Distributor. All bonus and commission payment will be sent to the account of record of the original Distributor. Please note that the modifications permitted within the scope of this paragraph do not include a change of enroller. Changes of enroller are addressed in Section 3.5 below. There is a £34 administration fee for each change requested, which must be included with the written request and the completed Distributor enrolment. Please allow thirty (30) days after the receipt of the request by IT WORKS! for processing.

 

3.4.1 - Changes to a Business Entity 

An IT WORKS! business may change its status from a sole trader to a partnership, company or trust, or from one type of entity to another. There is a £34 fee for each change requested, which must be included with the written request and the completed Distributor enrolment.  Such changes are effective once the form is submitted, processed and approved. In addition, Distributors operating their IT WORKS! businesses utilizing a business entity must notify IT WORKS! of the addition or removal of any officers, directors, shareholders, managers, members or business associates of the business entity.

 

3.5 - Change of Enroller or Placement

To protect the integrity of all IT WORKS! Marketing Organizations, requests for enroller or placement changes from one Distributor to another are rarely if ever permitted.

 

Requests for change of enroller or placement must be submitted in writing via ticket submission and must include the reason(s) for the change.  Changes may only occur in the following two circumstances:

 

a)       In cases in which the new Distributor or new Perks Member is enrolled by someone other than the individual they were led to believe would be their Enroller, the account holder may request that thy be transferred to another organization. If approved, Distributor’s entire personally enrolled Marketing Organization will remain intact.  Requests for transfer under this policy will be evaluated on a case-bycase basis and must be made by contacting Customer Service within 24 hours from the date of enrolment. The account holder requesting the change has the burden of proving that they were placed under the wrong Distributor.

 

b)      In the event of placement error during enrolment, placement changes for Distributors and Perks Members must be requested through Customer Support within 5 days of enrolment. For security purposes, changes can only be requested by the original Enroller or the Distributor/Perks Member being moved.   

 

Requests for enrolment or placement corrections cannot be made for those who have a start date prior to the enrolment date of the Perks Member or Distributor they are requesting to be moved under. Only one request for enrolment or placement correction for a new Perks Member or Distributor will be honored. Retail Customers cannot be moved.

 

IT WORKS! reserves the sole and exclusive right to decide the proper enrolment and placement. DISTRIBUTORS WAIVE ANY AND ALL CLAIMS AGAINST IT WORKS! THAT RELATE TO OR ARISE FROM THE IT WORKS! DECISION REGARDING ANY CHANGE TO ANY MARKETING ORGANIZATION.   

 

3.5.1 - Cancellation and Reapplication

A Distributor may change organizations by voluntarily cancelling their IT WORKS! business and remaining inactive (i.e., no sales of IT WORKS! products, no advertising of IT WORKS! products or business opportunity, no sponsoring, no attendance at any IT WORKS! functions, and no participation in any other form of Distributor activity or operation of any other IT WORKS! business) for three (3) months. This three-month prohibition applies to spouses, immediate family members and businesses. Following the three-month period of inactivity, the former Distributor may reapply under a new Enroller; however, the former Distributor’s Marketing Organization will remain in the original line of sponsorship. 

 

3.6 - Unauthorized Claims and Actions

3.6.1 - Indemnification

A Distributor is fully responsible for their verbal and written statements made regarding IT WORKS! products, services, and the Compensation Plan which are not expressly contained in official IT WORKS! documents. Distributors agree to indemnify IT WORKS! and IT WORKS!’ directors, officers, employees, and agents, and hold them harmless from any and all liability including judgments, civil penalties, refunds, professional fees, court costs, or lost business incurred by IT WORKS! as a result of the Distributor’s unauthorized representations or actions. This provision shall survive the cancellation of the Distributor Agreement.

 

3.6.2 - Product Claims and Testimonials

No claims (which include personal testimonials) as to therapeutic, curative or beneficial properties of any products offered by IT WORKS! may be made except those contained in official IT WORKS! literature. In particular, no Distributor may make any claim that IT WORKS! products are useful in the cure, treatment, diagnosis, mitigation or prevention of any diseases. Not only do such claims violate IT WORKS! policies, but they potentially violate applicable laws and regulations, including EU Directive 2001/83/EC as amended by EU Directive 2004/27/EC and EU Directive 2004/24/EC. Company products may only be advertised and used according to the label specifications at the specified dosage.  Unless the label specifically states that the product is suitable for children, Company products are to be used by adults only.  

 

3.6.3 - Before and After Photos 

IT WORKS! recommends using corporate approved Before and After photographs. These Before and After photos are preapproved for use and have the proper disclaimers attached. If you wish to create your own Before and After photos, images must be of IT WORKS! product users. If you use an image other than your own, you must have written permission to use the image. A Consent Form located in your back office shall be used to obtain written permission. If you do not have written permission, you must not post (or re-post) a picture on social media. 

 

All Before and After photos must meet company branding standards. Please reference the Before and After Photo Guidelines in your back office. 

 

3.6.4 - Income Claims and the Income Disclosure Statement

A Distributor is prohibited from making income guarantees or false income statements. When presenting or discussing the IT WORKS! opportunity or Compensation Plan with a prospective Distributor, a Distributor must use Company provided documentation. A Distributor shall not make their own income projections, income claims, or disclose their IT WORKS! income (including back office summaries, commission statements, commission emails, checks, copies of checks, bank statements, or tax records) unless approved by IT WORKS!.

The only exception to this section is that a Distributor may post emails received from Company that reflect weekly bonuses actually received.

 

 When discussing income and the business opportunity with a prospective Distributor, the Distributor must provide the prospect with a copy of the current IT WORKS! Income Disclosure Statement (the “IDS”).

 

 The terms income representation and/or earnings representation (collectively “income claim”) include: (1) statements that a specific amount of income has been or may be achieved, (2) statements that, although not specifically stating a given income level has been or may be achieved, imply that such income is possible, (3) statements of earning ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of statements of non-average earnings include, “Our number one Distributor earned XXX dollars last year.”

 

A lifestyle income claim typically includes statements (or pictures) involving large homes, luxury cars, exotic vacations, or other items suggesting or implying wealth. References to the achievement of one's dreams, having everything one always wanted, and that are phrased in terms of “opportunity” or “possibility” or “chance” are examples of improper lifestyle claims. Claims such as “My IT WORKS! income exceeded my salary after six months in the business,” or “Our IT WORKS! business has allowed my wife to come home and be a full-time mom” also fall within the category of ‘lifestyle’ claims.

 

A hypothetical income claim exists when you attempt to explain the operation of the Compensation Plan through the use of a hypothetical example. Certain assumptions are made regarding the: (1) number of Distributors sponsored, (2) number of downline Distributors, (3) average product volume per Distributor, and (4) total organizational volume. Running these assumptions through the Compensation Plan yields income figures which constitute income claims. 

 

In any non-public meeting (e.g., a home meeting, one-on-one, regardless of venue) with a prospective Distributor or Distributors in which the Compensation Plan is discussed or any type of IT WORKS! provided income claim is made, you must provide the prospect(s) with a printed copy of the IDS. 

 

Copies of the IDS may be printed or downloaded without charge through your back office and is also viewable on the corporate website at www.itworkseu.com/Legal/Income/. 

 

3.7 - No e-Commerce or On-Line Retailing

Distributors may not stock and sell IT WORKS! products or develop an e-commerce environment that facilitates this model. Distributors or another party acting on Distributor’s behalf may not use any online retail store, ecommerce site, online auctions, social media buy, sell, trade pages, or online classifieds to advertise, list, sell or retail the IT WORKS! product line. All orders must be placed through the Distributor’s official IT WORKS! replicated website or back office. It is expressly against Company policy for a Distributor to accept PayPal, credit cards, or other payment solutions for the purchase of Company product.

 

3.8 - Commercial Outlets

In general, Distributors may not sell IT WORKS! products from a commercial outlet, nor may Distributors display or sell IT WORKS! products or literature in any retail establishment. The exception to this rule involves sales in service establishments where the nature of the business is to service customers and no competing products are sold by the facility. These types of businesses include, but are not limited to, salons, doctor offices, and health clubs. The sale of products within these facilities must be conducted by a Distributor whereby the prospect is introduced to the products and opportunity just as if they met outside of the retail facility. Only Company-produced literature, banners and signage may be used Company products may not be rebranded in any way, and all Company trademarks must be displayed. No Company product may be marketed as a generic product or service for resale purposes.  

 

3.9 - Trade Shows, Expositions and Other Sales Forums

 Distributors may display and/or sell IT WORKS! products at trade shows and professional expositions in the countries we are officially open for business. The Company policy is to authorize only one IT WORKS! business per event. Company recommends registering under the name “IT WORKS! Independent Distributor” and inquiring if there are any other registrants using that name. IT WORKS! further reserves the right to refuse authorization to participate at any function which it does not deem a suitable forum for the promotion of its products, services, or the IT WORKS! opportunity. No Distributor may sell or promote the Company's products or business opportunity at swap meets, garage sales, flea markets or farmers markets as these events do not portray an appropriate professional image of IT WORKS! and its product line. 

 

3.10 - Conflicts of Interest

3.10.1 - Non-Disclosure

IT WORKS!’s relationship with its Distributors is a valuable asset to the Company. IT WORKS! provides extensive support to aid its Distributors in achieving their goals, including access to IT WORKS!’s sensitive, confidential and proprietary information and trade secrets. At the same time, IT WORKS! seeks to protect this information as well as its goodwill. Therefore, IT WORKS! and its Distributors agree as follows:

 

 A Distributor shall not disclose to any third party Confidential Information (as defined in Section 11). All such Confidential Information is the property of IT WORKS! and is not owned by IT WORKS! Distributors. A Distributor shall use the same degree of care to protect Confidential Information that they use to protect their own sensitive and proprietary information. Both during the term of their Agreement and indefinitely thereafter, a Distributor shall use Confidential Information only for the purposes of performing their obligations or exercising rights under their respective Agreement. Distributor expressly agrees to not use for their own benefit, disclose, or disseminate Confidential Information after the cancellation of this Agreement. Notwithstanding the foregoing, a Distributor may disclose Confidential Information to the extent they are legally compelled to do so, provided, however, that prior to any such compelled disclosure, the Distributor notifies IT WORKS! and fully cooperates with IT WORKS! in protecting against or limiting the disclosure of Confidential Information.

 

3.10.2 - Non-Solicitation

Distributor agrees that they will receive significant benefits from IT WORKS! including the opportunity to participate in specialized training on IT WORKS! products, access to support systems containing Confidential Information, and other benefits of the IT WORKS! network. In consideration for the benefit of IT WORKS!’s access to Confidential Information and investment in the development of its Distributors each Distributor, to the fullest extent allowed by applicable law, agrees that the following restrictions apply to Distributor:

 During the term of the Agreement, and for a period of twenty-four (24) months after the cancellation of the Agreement for any reason, a Distributor may not directly or indirectly Recruit (as defined below) any Distributors or customers to participate in any way in any Competing Direct Sales Company. 

 

 Distributors and the Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entirety of Europe and internationally, and business is commonly conducted via the internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Distributors and IT WORKS! agree that this non-solicitation provision shall apply to all markets in which IT WORKS! conducts business.

 

 The term Recruit means the actual or attempted sponsorship, solicitation, enrolment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another IT WORKS! Distributor or Perks Member to enrol or participate in another multilevel marketing, network marketing or direct sales opportunity. The conduct described in the preceding sentence constitutes recruiting even if the Distributor’s actions are in response to an inquiry made by another Distributor or Perks Member. This includes any action that would cause the cancellation or curtailment of the business relationship between any Distributor or customer and an announcement that a Distributor is joining a new network marketing opportunity on their Facebook page or other social media site also constitutes Recruiting as such announcements are veiled efforts to induce inquiries from others about the new opportunity that the Distributor has joined.

 

If a former Distributor is found to have violated any of the provisions of this Section 3.10.2, Distributor agrees that the non-solicitation period applicable to them shall be extended by a period of time equal to the period of such violation. It is the intent of this paragraph that the running of the any non-solicitation period shall be tolled during any period of violation so that the Company may obtain the full and reasonable protection for which it contracted.

 

3.10.3 - Distributor Participation in Other Direct Sales Companies

Distributors may participate in other Direct Sales businesses provided they remain compliant with these Policies & Procedures.  

 

If a Distributor participates in a Competing Direct Sales Company, the Distributor acknowledges and agrees that:

 

       The Distributor may not recruit current Distributors or Customers to participate in the Competing Direct Sales Company (See Section 3.10.2, above);

       Except as provided in 3.10.4 below, the Distributor may not directly or indirectly sell, offer to sell, or promote the products of the Competing Direct Sales Company to any current Distributor or Customer through any means, including, but not limited to, the use of any website, or social media site on which they discuss or promote, or have discussed or promoted, the Company or its Products; and

       Except as provided in 3.10.4 below, Distributors that reach the lifetime rank of Triple Diamond or above must notify Compliance within five (5) business days of enrolling in any Competing Direct Sales Company.

 

Distributors that have achieved the lifetime rank of Triple Diamond and above are provided with access to additional confidential and trade secret information, support, and compensation. By participating in one or more Direct Sales businesses, Triple Diamond and above Distributors may forfeit one or more of the following:  

 

a)       VIP assigned Perks Members/Retail Customers/Distributors;

b)      Incentives/specialty bonuses offered by the Company for VIP Triple Diamonds and above;

c)       Other VIP incentives as determined by IT WORKS!.

 

If a Distributor is engaged in other non-IT WORKS! direct selling programs, it is the responsibility of the Distributor to ensure that their IT WORKS! business is operated separately and apart from any other program in which the Distributor participates whether online or offline. To this end, the following must be adhered to:

 

a)       The Distributor shall not display IT WORKS! promotional materials, sales aids, products or services with or in the same location as any non-IT WORKS! promotional materials, sales aids, products or services.

b)      The Distributor may not offer the IT WORKS! opportunity, products or services to prospective or existing Customers or Distributors in conjunction with any non-IT WORKS! program, opportunity, product or service.  

c)       For clarity purposes, the only time an IT WORKS! Distributor may promote a non-IT WORKS! product or service on a social media platform that Distributor promotes or has promoted the IT WORKS! business opportunity or its products in the past is contained in Section 3.10.4 below.

 

The Company has provided Distributor with access to its Confidential Information, which is valuable and confidential to the Company, and specialized training and sales and marketing strategies. The Distributor thereby agrees that Sections 3.9.2 and 3.9.3 are fair and reasonable, necessary to protect the business of the Company and its affiliates, and do not preclude the Distributor from earning a living.

 

3.10.4 - Distributor Participation in Affiliate Programs

Distributors of any rank may participate in affiliate programs with companies that pay commissions on a single level only. The affiliate program must not reward participants for referring a customer or building a team or downline (otherwise, the company would be considered direct sales and would be bound to the terms in 3.10.3 above). Compensation may only be earned by marketing and selling the products of the affiliate company.

 

Distributors may not post links or advertise competing affiliate products on any social media page utilized in the past or present to promote IT WORKS!, its products and business opportunity.

 

3.10.5 - Downline Activity (Genealogy) Reports and Back Office Access

Downline Activity Reports are available for Distributor access and viewing at the Company back office of each Distributor’s replicated IT WORKS! website. Furthermore, access to a Downline Activity Report is a privilege and not a right. IT WORKS! reserves the right to suspend a Distributor’s access to a Downline Activity Report if the Company reasonably believes that the Distributor is utilizing, sharing, or posting the Downline Activity Report inappropriately. All Downline Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to IT WORKS!. The Distributor and IT WORKS! agree that, but for this agreement of confidentiality and nondisclosure, IT WORKS! would not provide Downline Activity Reports to the Distributor. A Distributor shall not, on their own behalf, or on behalf of any other person or entity:

 

a)       Directly or indirectly use or disclose any Confidential Information, including information contained in any Downline Activity Report or their back office to any third party;

b)      Directly or indirectly disclose the password or other access code to their back office;

c)       Use the Confidential Information, including information contained in any Downline Activity Report or back office to compete with IT WORKS! or for any purpose other than managing or supporting their IT

WORKS! business; or

d)      Use Confidential Information to recruit or solicit any Distributor or Customer, or in any manner attempting to influence or induce any Distributor or Customer to alter their business relationship with IT WORKS!.

 

 Upon demand by the Company, any current or former Distributor will return the original and all copies of Confidential Information or other information originated by the Company to the Company.

 

3.11 - Targeting Other Direct Sellers

IT WORKS! does not condone Distributors specifically or consciously targeting the sales force of another direct sales company to sell IT WORKS! products or to become Distributors for IT WORKS!, nor does IT WORKS! condone Distributors’ solicitation or enticement of members of the sales force of another direct sales company to violate the terms of their agreement with such other company. Should Distributors engage in such activity, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought against a Distributor alleging that they engaged in inappropriate recruiting activity of its sales force or customers, IT WORKS! will not pay any of Distributor’s defense costs or legal fees, nor will IT WORKS! indemnify the Distributor for any judgment, award, or settlement.

                 

3.12 -  Cross-Sponsoring

Actual or attempted cross-sponsoring is prohibited. ‘Cross-sponsoring’ is defined as the enrolment of an individual or entity that already has a current Customer account or Distributor Agreement on file with IT WORKS!, or who has had such an agreement within the preceding three (3) calendar months, within a different line of sponsorship or leadership level Enrollers. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, ID numbers, fictitious ID numbers or any straw-man or other means to circumvent this policy is prohibited. Distributors shall not demean, discredit or defame other IT WORKS! Distributors to entice another Distributor to become part of the first Distributor’s Marketing Organization. This policy shall not prohibit the transfer of an IT WORKS! business in accordance with Section 3.28.

 

If cross-sponsoring is discovered, it must be brought to the Company’s attention immediately.  IT WORKS! may take disciplinary action against the Distributor that changed organizations and/or those Distributors who encouraged or participated in the cross- sponsoring. IT WORKS! may also move all or part of the offending Distributor’s Marketing Organization to their original Marketing Organization if the Company deems it equitable and feasible to do so. However, IT WORKS! is under no obligation to move the cross-sponsored Distributor’s Marketing Organization and the ultimate disposition of the organization remains in the sole discretion of IT WORKS!. Distributors waive all claims and causes of action against IT WORKS! arising from or relating to the disposition of the cross-sponsored Distributor’s Marketing Organization.

 

3.13 - Errors or Questions

Distributors must notify the Company within three (3) days following month end if they believe volume and/or rank is incorrect.  After verifying rank and volume, if a Distributor believes any errors have been made regarding commissions or bonuses, the Distributor must notify IT WORKS! in writing within 30 days of the date of the purported error or incident in question. IT WORKS! will not be responsible for any errors, omissions or problems not reported to the Company after these dates.

 

3.14 - Governmental Approval or Endorsement

No governmental regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Distributors shall not represent or imply that IT WORKS! or its Compensation Plan have been “approved,” “endorsed” by any government agency.

 

3.15 - Holding Enrolments or Orders

Distributors must not manipulate enrolments of new applicants and purchases of products. All Distributor enrolments and product orders must be sent to IT WORKS! within 72 hours from the time they are signed by a Distributor or placed by a Customer, respectively. Any changes in placement of volume must be completed within 24 hours of entry of product orders. 

 

3.16 - Identification

Distributors may use valid VAT-ID or passport number. Upon enrolment, the Company will provide a unique Distributor Identification Number to the Distributor by which they will be identified.  This number will be used to place orders and track commissions and bonuses.

 

3.17 - Income Taxes

Each Distributor is responsible for paying their own VAT, income taxes, national insurance contributions, pay related social insurance, universal social charge and other similar taxes on any income generated as a Distributor. 

 

3.18 - Independent Contractor Status

Distributors are independent contractors and are not purchasers of a franchise or a business opportunity. The agreement between IT WORKS! and its Distributors does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Distributor. Distributors shall not be treated as employees for their services or for income tax purposes. All Distributors are responsible for paying income taxes due from all compensation earned as a Distributor of the Company. The Distributor has no authority (expressed or implied), to bind the Company to any obligation. Each Distributor shall establish their own goals, hours, and methods of sale, so long as they comply with the terms of the Distributor Agreement, and applicable laws.

 

The name of IT WORKS! and other names as may be adopted by IT WORKS! are proprietary trade names, trademarks and service marks of IT WORKS!. As such, these marks are of great value to IT WORKS! and are supplied to Distributors for their use only in an expressly authorized manner and only for so long as the Distributor remains a Distributor under this Agreement. Use of the IT WORKS! name on any item not produced by the Company is prohibited.

 

3.19 - Insurance

You may wish to arrange insurance coverage for your business. Normally, your homeowners insurance policy may not cover business-related injuries or the theft of or damage to inventory or business equipment. Contact your insurance agent to make certain that your business property is protected.  The Company maintains product liability insurance for all of its products. A copy of the Vendor Insurance Form can be found in your back office under the Forms section of the Documents tab. If the event you are attending requires a named insured, please complete the Liability Certificate of Insurance form that includes: date of event, all names to be insured, event holder name and address, and address where event is being held. This form mut be submitted to the address contained on the form. Once completed a copy of the Vendor Insurance form will be emailed to the Distributor that submitted the form. Please make sure to submit your request no later than 10 business days prior to your event.

 

3.20 - International Marketing

Because of critical legal and tax considerations, IT WORKS! must limit the resale of IT WORKS! products and services, and the presentation of the IT WORKS! business to prospective Customers and Distributors located within those countries that the Company has announced are officially opened for business. 

 

Accordingly, Distributors are authorized to sell IT WORKS! products and services and enrol Customers or Distributors only in the countries in which IT WORKS! is authorized to conduct business.  IT WORKS! products or sales aids cannot be shipped into or sold in any country that has not been officially opened to do business. Distributors may sell, give, transfer, or distribute IT WORKS! products or sales aids only in the country in which the Company is authorized to conduct business. Anyone found enrolling a customer or distributor in an unopened country shall be subject to recovery and the illegally enrolled leg shall be cancelled. Any illegally enrolled Customer or Distributor account will be cancelled. For further information regarding Company international policies, see each opened country’s legal documents located on the website or in your back office. 

 

3.21 - Inventory Loading

Distributors must never purchase more products than they can reasonably use or sell in a month and must not influence or attempt to influence any other Distributor to buy more products than they can reasonably use or sell in a month. The Company follows the 70% industry standard whereby Distributors may not order additional product unless they have sold or used for personal or family use at least 70% of previously purchased product. Although the primary function of the Company is to sell products to the general consuming public, the Company realizes that its Distributors may wish to purchase product for personal or family use in reasonable amounts. For this reason, the Company defines a retail sale to include sales to non-participants as well as purchases for personal or family use in reasonable amounts, which are not made for purposes of qualification or advancement. 

                 

3.22 - Adherence to Laws 

Distributors should comply with all legal preconditions in the conduct of their businesses. Many countries have laws regulating certain home-based businesses. In some cases, these laws are not applicable to Distributors because of the nature of their business. However, Distributors should obey those laws that do apply to them.  If a governmental official tells a Distributor that they are in breach of any applicable law, the Distributor should cooperate, and immediately send a copy of the correspondence to the Legal Department at legal@itworks.com

 

3.23 - Minors 

A person who is recognized as a minor in their country of residence may not be an IT WORKS! Distributor.  Distributors shall not enrol or recruit minors into the IT WORKS! program.

 

3.24 - One IT WORKS! Business Per Distributor 

A Distributor may operate or have an ownership interest, legal or equitable, in only one IT WORKS! business. No individual may receive compensation from more than one IT WORKS! business. Except as described below, individuals of the same family unit may not have an interest in more than one IT WORKS! business. The Company allows a husband and wife to each have an account as long as separate Social Security (or equivalent) numbers are on file and the businesses are operated separately. Further, one spouse must be enrolled by and placed directly beneath the other’s account in the same leg. The Company reserves the right to grandfather existing multiple accounts or may require that multiple accounts be consolidated.  

                 

3.25 - Actions of Household Members or Affiliated Individuals

If any member of a Distributor’s immediate household engages in any activity which, if performed by the Distributor, would violate any provision of the Agreement, such activity will be deemed a violation by the Distributor and IT WORKS! may take disciplinary action. If a Distributor’s position is cancelled, then no member of the immediate household may join the Company without waiting the required three (3) month time period. 

 

3.26 - Requests for Records

Except for accounting documents or in respect of a subject access request under applicable data protection laws, any request from a Distributor for copies of invoices, enrolments, Downline Activity Reports, or other records will require a fee of £1 per page per copy. 

 

3.27 - Roll-up of Marketing Organization 

When a Distributor’s position is cancelled the downline distributor’s position in the organization does not change, but the volume will compress up for commission purposes. See the Compensation Plan for further details.  

 

3.28 - Sale, Transfer or Assignment of an IT WORKS! Business

If a Distributor wishes to sell, transfer or assign (“Sell” or “Sale”) their IT WORKS! business, they must comply with the following requirements:

 

a)       The Selling Distributor must notify IT WORKS! at transfers@itworks.com of their intent to Sell. 

b)      The Selling Distributor must pay a £187 fee for initiating the request to Sell an IT WORKS! business.

c)       The sale or transfer must be documented in writing.

d)      The Selling Distributor must acknowledge in the document that the Sale is subject to recission if crosssponsoring occurs, as protection of the existing line of sponsorship is critical. After signing the agreement, the parties must submit a copy to IT WORKS! Compliance. IT WORKS! reserves the right to request additional documentation that may be necessary to analyze the transaction between the buyer and seller.  

e)       The buyer or transferee must become a qualified IT WORKS! Distributor. If the buyer or transferee is an active IT WORKS! Distributor, they may be required to first cancel their original IT WORKS! distributorship and wait three (3) months before acquiring any interest in a different IT WORKS! business.

f)        Before the Sale can be approved, any obligations the selling Distributor has with IT WORKS! must be satisfied.

g)       The Selling Distributor must be in good standing and not in violation of the Agreement to be eligible to Sell an IT WORKS! business.

h)      The Company always maintains the right to purchase or assume control of the position at the same price or pursuant to the same terms as the purchaser or transferee. 

i)         If cross-recruiting occurs at any time, IT WORKS! reserves the right to take all appropriate legal action, including cancellation of the affected IT WORKS! business.

 

IT WORKS! will, in its sole discretion, approve or deny the Sale within thirty (30) days after its receipt of all necessary documents from the parties.

 

If the parties fail to obtain Company approval for the transaction, the transfer or sale shall be voidable at the option of Company. The purchaser or transferee of the existing Company business will assume the obligations and position of the Selling Distributor. A Distributor who Sells their company business shall not be eligible to re-apply as an IT WORKS! Distributor for a period of at least three (3) months after the date of the sale or transfer.

 

The status of the transferred account will remain the same and not viewed as a New Distributor. Therefore, the account will not be eligible for any New Distributor bonuses, nor will the purchaser receive any remaining bonus payouts from what was achieved by the original account holder. 

 

3.29 - Separation of an IT WORKS! Business

IT WORKS! Distributors sometimes marry each other or operate their IT WORKS! businesses as husband-wife partnerships, regular partnerships, companies, or trusts (“Entities”). Marriages may end in divorce or Entities may dissolve. Therefore, arrangements must be made to assure that any separation or division of the business is accomplished to keep from adversely affecting the interests of other businesses up or down the line of sponsorship.  If the act of separation harms either the best interests of other Distributors or the Company, IT WORKS! may cancel the Distributor Agreement.

 

During the divorce, legal separation or entity dissolution process, the parties must adopt one of the following methods of operation:

 

a)       One of the parties may, with consent of the other(s), operate the IT WORKS! business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize IT WORKS! to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.

 

b)      The parties may continue to operate the IT WORKS! business jointly on a ‘business-as-usual’ basis, and all compensation paid by IT WORKS! will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings.  This is the default procedure if the parties do not agree on the format set forth above.

 

Under no circumstances will the Marketing Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will IT WORKS! split commission and bonus payments between divorcing spouses or members of dissolving entities.  IT WORKS! will recognize only one Marketing Organization and will issue only one commission payment per IT WORKS! business per commission cycle. Commission payments shall always be issued to the same individual or entity.  In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business as determined by the Company, the Distributor Agreement may be cancelled. 

 

If a former spouse has completely relinquished all rights in the original IT WORKS! business pursuant to a divorce, they are thereafter free to enrol under any Enroller of their choosing without waiting three (3) calendar months. The former spouse shall have no rights and may not recruit any Distributors in their former organization. They must develop the new business in the same manner as would any other new Distributor.

 

3.30 - Sponsoring

All active Distributors in good standing have the right to sponsor and enrol others into IT WORKS!. Each prospective customer or distributor has the ultimate right to choose their own Enroller. If two Distributors claim to be the Enroller of the same new Distributor or Customer, the Company shall regard the first account received by the Company as controlling.

 

3.31 - Succession

Upon the death or incapacitation of a Distributor, their business may be passed to their estate. Appropriate legal documentation must be submitted to the Company to ensure the transfer is made to the correct beneficiaries. Accordingly, a Distributor should consult a solicitor or a lawyer in their jurisdiction to assist them in the preparation of a trust, will or other testamentary instrument. Whenever an IT WORKS! business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Distributor’s Marketing Organization provided the following qualifications are met. The beneficiaries must.

 

a)       Complete and execute a Distributor Agreement;

b)      Comply with terms and provisions of the Agreement; and

c)       Meet the rank qualifications for the deceased Distributor. 

 

Bonus and commission payments of an IT WORKS! business transferred pursuant to this section will be paid in a single payment. The beneficiaries must provide IT WORKS! with bank account numbers to which all bonus and commission payments will be sent. If the business is bequeathed to joint beneficiaries, they must form a business entity. IT WORKS! will issue all bonus and commission payments to the business entity.

 

3.32 - Transfer Upon Incapacitation of a Distributor

To effectuate a transfer of an IT WORKS! business because of incapacity, the representative of the incapacitated Distributor must provide all necessary documentation to establish the right of the representative to receive payments. The representative must complete and execute a Distributor Agreement and meet the other requirements set forth in Section 3.31. 

 

3.33 - Telemarketing Techniques 

Distributors must not engage in telemarketing in the operation of their IT WORKS! businesses. The term ‘telemarketing’ means the placing of one or more telephone calls to an individual or entity to induce the purchase of an IT WORKS! product or service or to recruit them for the IT WORKS! opportunity. ‘Cold calls’ made to prospective customers or Distributors that promote either IT WORKS’ products or services or the IT WORKS! opportunity constitute telemarketing and are prohibited.  However, a telephone call(s) placed to a prospective Customer or Distributor (a ‘prospect’) is permissible under the following situations:

a)       If the Distributor receives written and signed permission (opt-in) from the prospect authorizing the Distributor to call.  The authorization must specify the telephone number(s) which the Distributor is authorized to call.

 

b)      In addition, Distributors shall not use automatic telephone dialing systems relative to the operation of their IT WORKS! businesses. The term ‘automatic telephone dialing system’ means equipment which

has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers.

 

3.34 - Back Office Access

IT WORKS! makes online back office services available to its Distributors. Back office services provide Distributors access to confidential and proprietary information that may be used solely and exclusively to help build a Distributor’s IT WORKS! business and to increase sales of IT WORKS! products. However, access to a back office is a privilege, and not a right. IT WORKS! reserves the right to deny Distributors’ access to the back office at its sole discretion.

 

SECTION 4 - RESPONSIBILITIES OF DISTRIBUTORS

 

4.1 - Change of Contact Information

To ensure timely delivery of products, support materials, and commission payments, it is important that Distributor information is up to date. Correct street addresses are required for shipping. Distributors planning to move should update their mailing address via their back office. To guarantee proper delivery, the Distributor should provide two weeks’ advance notice to IT WORKS! on all changes.  

 

4.2 - Continuing Development Obligations

4.2.1 - Ongoing Training

All Distributors must assist and train their Marketing Organization. Distributors must have ongoing contact and communication with the Distributors in their Marketing Organizations. Examples of such contact and communication may include:  Zoom meetings, social media private messaging, personal meetings, telephone calls, electronic mail, and the accompanying of downline Distributors to IT WORKS! meetings, training sessions, and other functions.  Upline Distributors are encouraged to motivate and train new Distributors in IT WORKS! product knowledge, effective sales techniques, the IT WORKS! Compensation Plan, and compliance with Company Policies and Procedures. Any Distributor hosting organizational training calls must do so at times that does not conflict with Company corporate training or informational calls. 

 

Distributors are encouraged to monitor the Distributors in their Marketing Organizations to guard against downline Distributors making improper product or income claims or engaging in any illegal or inappropriate conduct.

 

4.2.2 - Increased Training Responsibilities

As Distributors progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the IT WORKS! program. They will be encouraged to share this knowledge with lesser experienced Distributors within their organization. 

 

4.2.3 - Ongoing Sales Responsibilities 

Regardless of their level of achievement, Distributors are encouraged to continue to promote sales through the generation of new customers and through servicing their existing customers.

 

4.2.4 - Residual Income

 Nothing contained in Section 4.2, 4.2.1, 4.2.2 or 4.2.3 is intended to limit or prohibit a Distributor from receiving their organizational residual income as long as compensation plan requirements are met.  

 

4.3 - Non-Disparagement

The Company wants to provide Customers and Distributors with the best products, and Distributors with the best Compensation Plan, and service in the industry. Any negative comments about products or compensation should be submitted in writing to the Compliance Department. Distributors must not disparage, demean, or make negative remarks about Company, other Company Distributors, Company products, the Compensation Plan, or employees. 

 

4.4 -  Providing Documentation to Applicants 

In addition to documents reviewed during enrollment, Distributors must describe the location of the most current version of the Compensation Plan to individuals whom they are enrolling to become Distributors before the applicant signs a Distributor Agreement. If the individual requests a hard copy, Distributors must provide a copy of the requested material. 

 

4.5 - General Conduct

Distributors must not engage in any activity outside of their IT WORKS! business that may, in IT WORKS!’ discretion, damage the Company reputation or community standing. Therefore, IT WORKS! reserves the right to cancel any Distributor’s Agreement if the Distributor is convicted of, or pleads no contest to, any charge, or finding of liability, for any act or omission involving a claim of fraud, physical or sexual misconduct, theft, use, sales or distribution of a controlled substance, or any other act or omission that involves moral turpitude or a criminal felony.

 

4.6 - Reporting Policy Violations 

Distributors observing any policy violation should report the violation directly to the attention of the Compliance Department at compliance@itworks.com or submit it through the Compliance reporting link Compliance.itworks.com. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.

 

4.7 - Vendor Confidentiality/ Communications

IT WORKS!’ business relationships with its vendors, suppliers, associates or former employees within or outside the corporate workplace are confidential, proprietary, and not to be circumvented by the Distributor. A Distributor shall not contact, directly or indirectly, or speak to or communicate with any representative of any supplier or manufacturer except at a Company-sponsored event at which the representative is present at the request of Company or as otherwise expressly permitted in writing by Company. Violation of this section may result in cancellation of the Distributor account and possible claims for damages against the Distributor. Questions regarding any of these business relationships should be directed to the Compliance Department.

 

SECTION 5 - SALES REQUIREMENTS

 

5.1 - Product Sales

The IT WORKS! Compensation Plan is based on the sale of Company products and services to end consumers.  Distributors must fulfill personal and retail sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement.   It is recommended that at least 70% of a Distributor’s total monthly Personal Sales Volume be sold to personal customers.

 

No compensation is paid to Distributors based upon enrolling or recruiting Distributors without product sales.  

 

5.2 - No Territory Restrictions

There are no exclusive territories granted to anyone. No franchise fees are required.  

 

5.3 - Sales Receipts

If Distributor sells any product directly, Distributor must provide their Customers with two (2) copies of an IT WORKS! sales receipt at the time of the sale. Distributors must maintain all Retail sales receipts for a period of six (6) years and furnish them to Company at the Company’s request. Records documenting the purchases of Distributors’ direct customers must be maintained by Distributors. In addition, Distributor must inform the buyer of the specific information as required under applicable law, including in respect of any applicable cooling off period or right of cancellation.

 

5.4 - Product Repackaging, Rebranding and Sampling Prohibited

The Company’s products may not be rebranded, resold or repackaged in any way. No Distributor shall alter, change or remove the label, packaging or instructions intended by Company to accompany any product. No sampling programs are allowed other than through Company-approved packaging. Providing Company products at parties for testing purposes is exempt from this section.

 

5.5 - Product Source

All products shall be purchased exclusively from the Company. A Distributor is prohibited from reselling products that have been purchased from another Distributor.

 

SECTION 6 - BONUSES AND COMMISSIONS

 

6.1 - Bonus and Commission Qualifications

Distributor must be active and in compliance with the Agreement to qualify for bonuses and commissions.  So long as a Distributor complies with the terms of the Agreement, IT WORKS! shall pay commissions to such Distributor in accordance with the Compensation Plan in British Pounds. To be commission qualified on a monthly basis, a Distributor must have either 150 PBV or process an optional minimum 80 BV Monthly Subscription no later than the 25th of the month. The minimum amount for which IT WORKS! will issue a commission payment is £9. If a Distributor’s bonuses and commissions do not equal or exceed £9, the Company will accrue the commissions and bonuses until they total £18.  A payment will be issued once £9 has been accrued.

 

6.1.1 - Deadlines for Qualifications

 

                Online Orders: 11:59 pm CST (-5 GMT) on the final day of the month               Faxed Orders:  1:00 pm CST (-5 GMT) on the final business day of the month

         Phone Orders:  5:00 pm CST (-5 GMT) on the final business day of the month

 

 The Company is not responsible for orders placed after published deadlines and will not alter order data to accommodate Distributors who do not meet the deadlines or make mistakes on their orders. We encourage Distributors to qualify early and to use their back office so they can track their business. It is the Distributor’s responsibility to make sure they are qualified. Mistakes must be corrected before the end of the month.

 

 Accounts that are in commission hold status at the time of the commission processing will be sent with the next commission run following the release of the hold status. If a Distributor fails to resolve the issue(s) that led to the commission hold within three (3) months of the hold being placed on the account, the Distributor forfeits any commissions earned and the Distributorship may be cancelled.

 

6.1.2 -  Commission Payments

 All commissions and bonuses except for weekly Quick Start Bonuses are paid monthly by the 15th day of the following month by 5:00 pm CST (-5 GMT).  Weekly Quick Start Bonuses are paid based upon a Saturday to Friday weekly period with payment on the following Friday by 5:00 pm CST (-5 GMT). No commission payments will be paid to Distributors whose distributorships have expired and were not renewed during the renewal period.  Further, no commissions will be paid to Distributors who resign or whose accounts are cancelled during the commission period. 

 

 All commissions and bonuses are paid via a Distributor’s IT WORKS! Pay account. IT WORKS! will deduct from all bonus and commission payments issued to a Distributor a data processing fee of £1. A Distributor’s IT WORKS! Pay account is automatically created at the time of their first commission or bonus payment and an activation email is sent to the Distributor. The Distributor must activate their IT WORKS! Pay account to receive commission payments. If a Distributor’s Agreement expires and is not renewed, the Distributor has ninety (90) days following expiration to complete the activation of their IT WORKS! Pay account to receive any unpaid commissions or bonuses. If the Distributor does not activate their IT WORKS! Pay account within ninety (90) days of expiration of the Distributor’s Agreement, the Distributor forfeits any commissions earned.

 

6.2 - Adjustment to Bonuses and Commissions

6.2.1 - Adjustments for Returned Products and Cancelled Services

 Distributors receive bonuses and commissions based on the actual sales of products and services to end consumers.  When a product is returned to IT WORKS! for a refund, or a service is cancelled and the Customer is entitled to a refund, with the exemption of a Customer’s warranty claim, either of the following may occur at the Company’s discretion: (1) the bonuses and commissions attributable to the returned product or the refunded service will be deducted from the Distributors who received bonuses and commissions on the sale of the refunded produce or cancelled service in the month in which the refund is given and continuing every pay period thereafter until the bonuses and commissions are recovered; or (2) the Distributors who earned commissions or bonuses based on the sale of the returned product or cancelled service will have the corresponding volume deducted from their Group Volume in the next month and all subsequent months until completely recovered. 

 

6.3 - Reports

All information provided by IT WORKS! including, but not limited to, personal and group sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including, but not limited to, the possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic cheque payments; returned products; and credit card and electronic cheque chargebacks; the information is not guaranteed by IT WORKS! or any persons creating or transmitting the information.

                 

ALL PERSONAL AND GROUP SALES VOLUME INFORMATION IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR, BUT WITHOUT LIMITATION, THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT. 

 

TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, IT WORKS! AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY DISTRIBUTOR OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND GROUP SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF IT WORKS! OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  TO THE FULLEST EXTENT PERMITTED BY LAW, IT WORKS! OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO, EXCLUDING GROSSLY NEGLIGENT OR INTENTIONAL ACTS OR ANY OTHER MATTER WHICH CANNOT BE EXCLUDED BY APPLICABLE LAW.

 

Access to and use of IT WORKS!’ online and telephone reporting services and your reliance upon such information is at your own risk.  All such information is provided to you “as is”. If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to IT WORKS!’ back office and your reliance upon the information. 

 

6.4 - Perks Member Rules

a)       Perks Members who share the same address as their Enroller will not count towards bonus qualifications or rewards programs. 

b)      Perks Members with more than one active account cannot be used multiple times for bonus qualifications or rewards programs.

c)       Perks Members must be at least 18 years of age as our products are intended for use by adults only.

d)      Product must be shipped to the Perks Member’s address.

e)       Perks Members can purchase product for personal use only and cannot resell the product for any reason. Only Distributors are authorized to sell and advertise product. Perks Members found to be selling or advertising product will have their rights to buy product terminated.

f)        Distributors are responsible for the proper enrolment of Perks Members. 

g)       If a Distributor places a Perks Member with another Distributor, the original enrolling Distributor shall be considered the Enroller for all Compensation Plan purposes. 

h)      A Perks Member may not be a Distributor at the same time. If a Perks Member becomes a Distributor, then they are no longer considered a Perks Member.

i)         If a Perks Member wishes to upgrade to a Distributor before completion of the Perks Member Agreement, the Perks Member must enrol under the same Distributor their Perks Member account is under.

 

SECTION 7 - PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE

 

7.1 - Product Guarantee

Since our products produce different results for different people, we do not guarantee specific results or offer a money-back guarantee. All refunds and returns will be subject to the IT WORKS! Refunds and Returns Policy located at https://static.myitworks.com/legal/pdf/returnspolicy.pdf.

 

7.2 - Returns by Retail Customers

A Retail Customer who makes a purchase has thirty (30) days after the receipt of the products to cancel the order and receive a full refund consistent with the cancellation notice on the order form.  Where a Distributor is aware a sale has occurred or a Retail Customer has placed an order with IT WORKS! and the Retail Customer cancels or requests a refund within the 30-day period, the Distributor should ensure that the Customer's money is promptly refunded and the products are returned to the Distributor in substantially as good condition as when received. Additionally, Distributors must provide Retail Customers with the information as required under applicable law, including their right to rescind a purchase or an order from IT WORKS! within 30 days and in the manner prescribed by applicable law, and ensure that the date of the order or purchase is entered on the order form.

 

7.3 - Return of Inventory and Sales Aids by Distributors Upon Cancellation

Upon cancellation of a Distributor’s Agreement, the Distributor may return their starter kit and any products and sales aids held in their inventory for a refund. To receive a refund from Company pursuant to this policy, the following requirements must be met: 

 

a)       The returned items must have been purchased by the Distributor from IT WORKS! (purchases from other Distributors or third parties are not subject to refund); 

b)      The items must be in Resalable condition (see Definition of Resalable in Section 11 below); and 

c)       The items must have been purchased from IT WORKS! within one year prior to the date of cancellation. 

 

Upon receipt of a Resalable starter kit or Resalable products and sales aids, the Distributor will be reimbursed 90% of the net cost of the original purchase price(s). Shipping charges incurred by a Distributor when the items were purchased will not be refunded. If the purchases were made through a credit card or wallet, the refund will be credited back to the same account. If a Distributor was paid a bonus or commission based on a product that they purchased, and such product is subsequently returned for a refund, the commission that was paid to the Distributor based on that product purchase will be deducted from the amount of the refund.  

 

7.4 - Procedures for All Distributor Returns The following procedures apply to all returns:

 

All merchandise must be returned by the Distributor or Customer who purchased it directly from IT WORKS!. 

 

All refunds and returns will be subject to the IT WORKS! Refunds and Returns Policy located at https://static.myitworks.com/legal/pdf/returnspolicy.pdf. No Product Return Credit, refund or replacement of product will be made if the conditions of the IT WORKS! Refunds and Returns Policy are not met. This does not affect your statutory rights.

 

SECTION 8 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

 

8.1 - Disciplinary Sanctions

Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including, but not limited to, any applicable duty of loyalty, any illegal, fraudulent, deceptive, misleading or unethical business conduct, or any act or omission by a Distributor that, in the sole discretion of the Company may damage its reputation or goodwill (such act or omission need not be related to the Distributor’s IT WORKS! business), may result, at the Company discretion, in one or more of the following corrective measures:

 

a)       Issuance of a written warning;

b)      Immediate corrective measures by Distributor;

c)       Withholding of one or more bonus and commission payments as long as harms to It Works! are not settled;

d)      Company may withhold from a Distributor all or part of the Distributor’s bonuses and commissions during the period that Company is investigating any conduct allegedly in violation of the Agreement.  If a Distributor’s business is canceled for disciplinary reasons, the Distributor will not be entitled to recover any commissions withheld during the investigation period; 

e)      Suspension of the individual’s Distributor Agreement for one or more pay periods; 

f)        Transfer of a portion or all of the Distributor’s Marketing Organization or downline;

g)       Involuntary cancellation of the Distributor Agreement;

h)      Any other measure expressly allowed within any provision of the Agreement or which IT WORKS!

deems practicable to implement to equitably resolve issues caused partially or exclusively by the

Distributor’s policy violation or contractual breach; or

i)        Cancelation or suspension of a Distributor’s access to their downline activity report; or

j)        Company may institute legal proceedings for monetary and/or equitable relief.

 

8.2 - Grievances and Complaints

When a Distributor has a grievance or complaint with another Distributor regarding any practice or conduct regarding their respective IT WORKS! businesses, the complaining Distributor should first report the problem to their Enroller who should review the matter and try to resolve it with the other party's upline Enroller. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the Compliance Department, which will review the facts and attempt to resolve it.   

                 

8.3 - Mediation

Prior to instituting any complaint as provided in Section 8.4 below, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation.  One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated fees and costs at least 10 days in advance of the mediation. Each party shall pay its own attorney fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held by electronic media (video conference, internet communication etc.).

 

8.4 - Arbitration

Notwithstanding the foregoing, nothing in these Policies and Procedures shall prevent IT WORKS! and the Distributor from applying to and obtaining from any court having jurisdiction a complaint or injunction. 

 

8.5 - Governing Law, Jurisdiction and Venue

This Agreement is governed by the law of the country where the Distributor has their home place.  

 

SECTION 9 - PAYMENT AND SHIPPING

 

9.1 - Chargebacks

Unless a Distributor first contacts the Company regarding the disputed change, any Distributor or Customer who issues a chargeback is subject to involuntarily cancellation. Distributors must work out returns with Customer Service according to the Company return policy. A £48 fee will be issued to any Distributor who issues a chargeback and the Company will not refund BV or commissions on any chargebacks regardless of the outcome. 

 

9.2 - Restrictions on Third Party Use of Credit Cards and Alternative Payment Methods

A Distributor shall not permit other Distributors or Customers to use their credit card, wallet, or permit debits to their checking accounts, to enrol or to make purchases from the Company unless the Distributor gives the Company express written authorization. Distributors or Customers are not permitted to use a payment method to enrol themselves or make purchases from the Company that does not belong to them.

 

9.3 - VAT

By virtue of its business operations, the Company is required to charge and account for VAT on all EU sales. Accordingly, Company will collect and remit VAT on sales based on sale price of the products according to applicable tax rates in the relevant jurisdiction to which the shipment is destined. Any VAT registered Distributor purchasing products at wholesale pricing and selling them at a higher price will be responsible for reporting and remitting any applicable VAT due.

 

Any payment figure specified in this Policies and Procedures and Distributor Agreement is exclusive of VAT unless otherwise stated.

 

SECTION 10 - INACTIVITY, RECLASSIFICATION, & CANCELLATION

 

10.1 - Effect of Cancellation

So long as a Distributor remains active, is commission qualified and complies with the terms of the Distributor Agreement and these Policies and Procedures, IT WORKS! shall pay commissions to such Distributor in accordance with the Compensation Plan. A Distributor’s bonuses and commissions constitute the entire consideration for the Distributor's efforts in generating sales and all activities related to generating sales (including building a Marketing Organization). Following a Distributor’s non-renewal of their Distributor Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of their Distributor Agreement (all of these methods are collectively referred to as “cancellation”), the former Distributor shall have no right, title, claim or interest to the Marketing Organization which they operated, or any commission or bonus from the sales generated by the organization. A Distributor whose business is cancelled will lose all rights as a Distributor. This includes the right to sell IT WORKS! products and services and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Distributor’s former Marketing Organization. In the event of cancellation, Distributors agree to waive all rights they may have, including, but not limited to, property rights to their former Marketing Organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of their former Marketing Organization.

 

Following a Distributor’s cancellation of their Distributor Agreement, the former Distributor shall not hold themselves out as an IT WORKS! Distributor and shall not have the right to sell IT WORKS! products or services. A Distributor whose Distributor Agreement is canceled shall receive commissions and bonuses only for the last pay period they were active and commission qualified prior to cancellation (less any amounts withheld during an investigation and resulting sanctions preceding an involuntary cancellation). 

 

In the event of cancellation of their Distributor Agreement, the Distributor is required to remove all references to IT WORKS! within five (5) days. Distributors must discontinue using the company name and all of IT WORKS!’ trademarks, trade names, service marks, and other intellectual property, and all derivatives of such marks and intellectual property, in any posts and all social media sites that they utilize. If Distributor posts on any social media site on which they have previously identified themselves as an IT WORKS! Distributor, they must conspicuously disclose that they are no longer an IT WORKS! Independent Distributor.

 

10.2 -  Involuntary Cancellation 

A Distributor’s violation of any of the terms of the Agreement, including any amendments that may be made by IT WORKS! in its sole discretion, may result in any of the sanctions listed in Section 8.1, including termination by IT WORKS! without notice of their Distributor Agreement. Failure to accept modifications to the Distributor Agreement shall result in cancellation. Cancellation shall be effective on the date on which written notice is delivered to the Distributor or to their lawyer. 

 

10.3 - Voluntary Cancellation

A participant in this network marketing plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address. The written notice must include the Distributor’s name, address, and Distributor I.D. Number. 

 

10.4 - Non-Renewal

A Distributor may also voluntarily cancel their Distributor Agreement by failing to renew the Agreement on its anniversary date. 

If a Distributor has an active Monthly Subscription, the Distributor’s Monthly Subscription shall continue unless the Distributor also specifically requests that their Monthly Subscription also be cancelled.

 

10.5 - Company Cancellation

Company reserves the right to cancel all Distributor Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.

 

10.6 - Revocation of Consent to Contract Electronically 

If a Distributor who has consented to contract electronically revokes their consent, the Distributor’s Agreement shall be cancelled.

                 

SECTION 11 - DEFINITIONS

 

Active Distributor — A Distributor who satisfies the minimum Personal Sales Volume requirements, as set forth in the IT WORKS! Compensation Plan, to ensure that they are eligible to receive bonuses and commissions for a particular month.

 

Active Rank — The term active rank refers to the current paid title of a Distributor, as determined by the Company Compensation Plan, for any month. To be considered ‘active’ relative to a particular rank, a Distributor must meet the criteria set forth in the IT WORKS! Compensation Plan for their respective rank.  (See the definition of Rank below.)

 

Agreement — The contract between the Company and each Distributor includes the Distributor Terms and Conditions, the IT WORKS! Statement of Policies and Procedures, and the IT WORKS! Compensation Plan, all in their current form and as amended by IT WORKS! in its sole discretion. These documents are collectively referred to as the “Agreement.”

 

Basic Kit — A selection of electronic IT WORKS! training materials and business support literature that each new Distributor is required to purchase. The Basic Kit is sold to Distributors at the Company’s cost. No product purchase is required. 

 

Cancel - The cancellation of a Distributor’s business. Cancellation may be either voluntary, involuntary, through non-renewal or inactivity.

 

Competing Direct Sales Company – A Direct Sales company that sells nutritional supplements, weight loss products, food and energy products, skincare products, beauty and personal care products, or any other health and wellness products similar to or competing with the Products. 

 

Confidential Information – Information pertaining to the Company’s business that may be provided or made available to Distributors, whether in writing, electronically, orally, or in any other form, that is confidential, proprietary, and/or not generally available to the public, including but not limited to the Company’s trade secrets, intellectual property, identity and contact information of Distributors and Customers, and data included in Downline Activity Report or in the Distributor’s back office.

 

Direct Sales Company — Companies that engage in direct selling, network marketing, multi-level marketing ventures or affiliate programs outside the terms contained in section 3.10.4.

 

Downline Activity Report — A monthly online report generated by IT WORKS! that provides critical data relating to the identities of Distributors, sales information, and enrollment activity of each Distributor’s Marketing Organization. This report contains confidential and trade secret information which is proprietary to IT WORKS!. 

 

Downline Leg — Each one of the Distributors enrolled immediately underneath you and their respective Marketing Organizations represents one “leg” in your Marketing Organization. 

 

Enroller— A Distributor who influences, solicits, or otherwise assists a new Distributor or Customer to join IT WORKS!, and is listed as the Distributor or Perks Member Enroller. 

 

Group Sales Volume — The commissionable value of IT WORKS! products or services sold by a Distributor’s Marketing Organization.  Group Sales Volume includes the Personal Sales Volume of the subject Distributor.  (starter Kits and sales aids have no Sales Volume.) Also called Group Bonus Volume (GBV) in the Company Compensation Plan.

 

Immediate Household — Heads of household and dependent family members residing in the same house.

 

Level — The layers of downline Customers and Distributors in a particular Distributor’s Marketing Organization. This term refers to the relationship of a Distributor relative to a particular upline Distributor, determined by the number of Distributors between them who are related by sponsorship. For example, if A sponsors B, who sponsors C, who sponsors D, who sponsors E, then E is on A’s fourth level.

 

Perks Member — A Customer who purchases product at a discounted price and receives other perks from the IT WORKS! Perks Program Membership.

 

Marketing Organization — The Customers and Distributors sponsored below a particular Distributor.

 

Personal Sales Volume (PSV) — This includes purchases made by the Distributor for resale to their Retail Customers and purchases made by the Distributor’s Perks Members. The commissionable value or volume of services and products sold in a calendar month: (1) by the Company to a Distributor; and (2) by the Company to the Distributor’s level one personally placed Customers. Also called Personal Bonus Volume (PBV) in the Company Compensation Plan.

 

Rank — The ‘title’ that a Distributor has achieved pursuant to the IT WORKS! Compensation Plan. Rank can either be paid-as rank or historic (lifetime) rank.

 

Recruit — For purposes of the Company Conflict of Interest Policy (Section 3.10), the term “recruit” means the actual or attempted sponsorship, solicitation, enrolment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another IT WORKS! Distributor or Customer to enrol or participate in another multilevel marketing, network marketing or direct sales opportunity. The foregoing conduct constitutes recruiting even if the Distributor’s actions are in response to an inquiry by another Distributor or Customer.  

 

Resalable — Products and Sales aids shall be deemed ‘Resalable’ if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) they are returned to IT WORKS! within sixty (60) days for starter Kits and thirty (30) days for product from the date of purchase (unless a longer period is required by law); and (5) the product contains current IT WORKS! labeling.  Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be Resalable.

 

Retail Customer — An individual who purchases IT WORKS! products at full retail price and is not a Perks Member or a Distributor.

 

Sponsor — The Distributor who is directly above you in the genealogy. This can be your Enroller or a Distributor under whom you have been placed. 

 

Upline — This term refers to the Distributor or Distributors above a particular Distributor in a sponsorship line up to the Company.  Conversely stated, it is the line of sponsors that links any particular Distributor to the Company.