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SECTION 3 – LEGAL COMPLIANCE
3.1 Legal Compliance.
All FFi distributors shall comply with all federal and state statutes, regulations and local ordinances and regulations concerning the operation of their business. All distributors are responsible for their own managerial decisions and expenditures. Since distributors are not FFi employees, FFi will not be responsible for payment or co-payment of any employee benefits.
3.2 No Exclusive Territories.
There are no exclusive territories for recruiting purposes nor shall any distributor imply or state that he/she has any exclusive territory rights. There are no geographic limitations on distributor sponsoring except in those foreign countries that have not officially been opened by FFi.
3.3 Representation of Government Endorsements.
Federal and state regulatory agencies do not endorse direct selling programs or their products or services. Therefore, distributors may not represent directly or indirectly that the FFi Compensation Program or its products or services have been approved, reviewed or endorsed by any government agency.
3.4 Medical Treatment, Approval and Therapy.
A FFi distributor must understand that he/she may not say directly or indirectly that any FFi product is FDA approved, or discuss or suggest that any diagnosis, evaluation, prognosis, description, treatment, therapy, or management or remedy of illness, ailment or disease can be improved by consumption, use or application of the product. Distributor must understand that FFi products are not offered, intended or considered as medicinal treatment of any disorder or disease, either mental or physical. FFi distributors may make no claims regarding FFi products except as expressly authorized in writing by FFi.
3.5 Personal Information.
Personal information such as the distributor ID number, a distributor’s address, telephone number, and etc. will be treated as confidential and will not be used except in connection with FFi’s business, unless required by law. In the event of an emergency, the inquiring party may contact FFi Compliance Department, who will advise the distributor that someone is attempting to contact him/her.
3.6 Non-Solicitation.
During the term hereof and for a period of twelve (12) months after the termination or expiration of the Distributor Agreement, for any reason whatsoever, a distributor shall not on, his/her own behalf, or on behalf of any other person, or other entity, hire, solicit or enroll any employee, distributor, customer (including preferred customers), manufacturer, or supplier of FFi or any of its affiliates, or in any manner attempt to influence or induce any employee, distributor, customer, manufacturer or supplier of FFi or any of its affiliates, to alter or terminate their employment or business relationship with FFi or its affiliates or to join another network marketing company. No distributor shall use or disclose to any person any information of FFi obtained while the Distributor Agreement was in effect including names and addresses of FFi’s or any affiliates’ employees or distributors. It is agreed that this provision shall survive the termination or expiration of the Distributor Agreement. Solicitation includes, but is not limited to, (i) producing or offering any promotional materials for another network marketing company which is used to solicit FFi distributors to such company; (ii) promoting or selling products which compete with FFi products to FFi customers or distributors; (iii) introducing or presenting, directly or indirectly, another network marketing company business to any FFi distributor; or (iv) offering any other company’s products or business opportunity at any FFi meeting or event.
3.7 Non-Competition.
Each distributor agrees not to compete with the protectable business interests of FFi by selling or promoting other products or opportunities (except as detailed under Other Services and Products) during the term of the Distributor Agreement. Distributor acknowledges and recognizes these restrictions are necessary for FFi to protect its valuable interests and agrees that any injunction and/or other remedy is necessary and appropriate for FFi to protect such interests.
3.8 Vendor Confidentiality.
FFi business relationships with its vendors, manufacturers and suppliers are confidential. A distributor shall not contact, directly or indirectly, speak with, or communicate with any representative or any supplier, manufacturer, or vendor except at a FFi sponsored event which the representative is present at the request of FFi.
3.9 Endorsements.
No endorsements by any third parties may be alleged, except as expressly communicated in FFi literature and communications. A FFi distributor may not state, directly or indirectly, that any FFi product is approved by the EPA or other governmental agency or may make any claim regarding its products not expressly authorized in writing by FFi.
3.10 Liability.
Violation of any of the Agreement may be grounds for suspension and/or termination of that individual’s distributorship. The violator also may be subject to civil or criminal liability resulting from violation of the Distributor Agreement, the Code of Professional Ethics, the Policies and Procedures of FFi, or state or federal law. Additionally, FFi may withhold payment to any FFi distributor to offset any damages suffered by FFi as the result of a distributor’s violation of the Distributor Agreement, the Code of Professional Ethics, the Policies and Procedures of FFi, or state or federal law.
3.11 Other Services and Products.
Distributors are not restricted from selling the services and products of other companies during the term of the Agreement. However, direct or indirect promotion of those products and services to FFi distributors is limited to those personally sponsored by a distributor.
3.12 Crossline Recruiting.
Recruiting others directly or indirectly whether through written, spoke or implied means from one (1) FFi distributor organization to another is strictly prohibited.
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