Unauthorized Claims and Action
An IBO is fully responsible for all of his or her verbal and/or written statements made regarding MELiUS products/services and the Compensation Plan, which are not expressly contained in Company Official Materials. IBOs agree to indemnify MELiUS and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by MELiUS as a result of the IBO’s unauthorized representations or actions. This provision shall survive the cancellation of the IBO Agreement.
Endorsements of Melius Products & Services
No claims as to any services offered by MELiUS may be made except those contained in
Company Official Materials.
MELiUS IBOs are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “Network Marketing”). However, during the term of this Agreement, IBOs may not directly or indirectly recruit other MELiUS Customers or IBOs other than those they have personally sponsored for any other Network Marketing business. Following the cancellation of an IBO Agreement, and for a period of one (1) calendar year thereafter, with the exception of an IBO who is personally sponsored by the former IBO, a former IBO may not recruit any MELiUS Customer or IBO for another Network Marketing business.
Can I target other direct sellers?
Should IBOs engage in solicitation and/or enticement of members of another direct sales company to sell or distribute MELiUS products and services, they bear the risk of being sued by the other direct sales company. If any legal action is brought against an IBO alleging that they engaged in inappropriate recruiting activity of its Customers or sales force, MELiUS will not pay any of IBO’s defense costs or legal fees, nor will MELiUS indemnify the IBO for any judgment, award, or settlement.
Privacy and Confidentiality
What is Data Management Rule?
The Data Management Rule is intended to protect the Line of Sponsorship (LOS) for the benefit of all IBOs, as well as MELiUS. LOS information is information compiled by the Company that discloses or relates to all or part of the specific arrangement of sponsorship within the MELiUS business, including, without limitation, IBO lists, sponsorship trees, and all IBO information generated therefrom, in its present and future forms. The MELiUS LOS constitutes a commercially advantageous, unique, and proprietary trade secret (Proprietary Information), which it keeps proprietary and confidential and treats as a trade secret. MELiUS is the exclusive owner of all Proprietary Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by MELiUS and its IBOs. Through this Rule, IBOs are granted a personal, non-exclusive, non-transferable and revocable right by MELiUS to use Proprietary Information only as necessary to facilitate their business as contemplated under these Policies and Procedures. The Company reserves the right to deny or revoke this right, upon reasonable notice to the IBO stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of MELiUS, such is necessary to protect the confidentiality or value of Proprietary Information. All IBOs shall maintain Proprietary Information in strictest confidence, and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain the confidentiality thereof.
Can I Cross –Group Sponsoring?
Actual or attempted cross-group sponsoring is strictly prohibited. “Cross-group sponsoring” is defined as the enrollment, indirect or otherwise, of an individual or entity that already has a current Customer number or IBO Agreement on file with MELiUS, or who has had such an agreement within the preceding twelve (12) calendar months, within a different line of sponsorship. The use of a fictitious identification number to circumvent this policy is prohibited. This policy shall not prohibit the transfer of a MELiUS business in accordance with these Policies and Procedures.
Do you allow Governmental Approval or Endorsement?
Neither federal nor state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, IBOs shall not represent or imply that MELiUS or its Compensation Plan have been “approved,” “endorsed,” or otherwise sanctioned by any government agency.
What is IBO Identification?
Upon enrollment, the Company will provide a unique IBO Identification Number to the IBO by which they will be identified. This number will be used to place orders and track commissions and bonuses.
What is my work status if I become an IBO with MELiUS?
You are an independent contractor. You are not an agent, employee, partner, or joint venture with the Company. You may not represent yourself as anything other than an independent business owner. You have no authority to bind MELiUS to any obligation. You are responsible for paying any applicable taxes in relations to laws, ordinances, codes, regulations, statutes or treaties. You must obey any and all laws, ordinances, codes, regulations, statutes or treaties, as well as Company rules and regulations pertaining to your independent MELiUS Business or the acquisition, receipt, holding, selling, distributing or advertising of MELiUS' products and services.
IBOs may not answer the telephone by saying “MELiUS,” “MELiUS Headquarters,” or by any other manner that would lead the caller to believe that they have reached the Corporate offices. You may only represent yourself as an independent business owner of MELiUS. Therefore, all correspondence and business cards relating to or in connection with your MELiUS business shall contain your name followed by the term “Independent Business Owner” or simply “IBO.”
Whats is Stacking?
Stacking is the unauthorized manipulation of the MELiUS compensation system and/or the marketing plan to trigger commissions or cause a promotion off a downline IBO in an unearned manner. One example of stacking occurs when a Sponsor places participants under an inactive downline participant (who may not know or have any relationship with a Customer) to trigger unearned qualification for commissioning. Another example of stacking is the manipulative placement of IBOs within a downline organization as to trigger a promotion. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the IBO’s positions of all individuals found to be directly involved.
Can I have another MELiUS Business aside from what I have right now?
An IBO may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one MELiUS business. No individual may have, operate or receive compensation from more than one MELiUS business. Individuals of the same family unit may each enter into or have an interest in their own separate MELiUS businesses, only if each subsequent family position is placed front-line to the first family member enrolled. A “family unit” is defined as spouses and dependent children living at or doing business at the same address.
Can I transfer my MELiUS business account to others?
Although a MELiUS business is a privately owned, independently operated business, the sale, transfer or assignment of a MELiUS business is subject to certain limitations. If an IBO wishes to sell their MELiUS business, the following criteria must be met:
A. Protection of the existing line of sponsorship must always be maintained so that the MELiUS business continues to be operated in that line of sponsorship;
B. The buyer or transferee must become a qualified MELiUS IBO. If the buyer is an active MELiUS IBO, they must first terminate their MELiUS business and wait six (6) calendar months before acquiring any interest in the new MELiUS business;
C. Before the sale, transfer, or assignment can be finalized and approved by MELiUS, any debt obligations the selling IBO has with MELiUS must be satisfied; and
D. The selling IBO must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer, or assign a MELiUS business.
Prior to selling a MELiUS business, the selling IBO must notify MELiUS' Compliance Department of their intent to sell the MELiUS business. No changes in line of sponsorship can result from the sale or transfer of a MELiUS business. An IBO may not sell, transfer, or assign portions of their business—the position must be sold in its entirety.
What is Sponsoring?
All Active IBOs in good standing have the right to sponsor and enroll others into MELiUS. Each prospective Customer or IBO has the ultimate right to choose his or her own Sponsor. If two IBOs claim to be the Sponsor of the same new IBO or Customer, the Company shall regard the first application received by the Company as controlling.