Use of support materials, sales tools
Marketing materials created by the company as well as other copyrighted materials and trademarks are valuable assets of the company and have a direct bearing on the company’s image. In order to maintain this image you may only use Sales Tools approved by the Company for use on a specific Region.
All independently-created Sales Tools must be submitted to the Company for approval prior to use. Unless you receive specific written approval from the Company, your request shall be deemed denied. Approved independent created Sales Tools will be added, at the discretion of the Company, to the Company’s library of approved Sales Tools for use by all Distributors. If you submit an approved Sales Tool to the Company, you waive all claims to remuneration for such use and grant the Company an irrevocable license to use the Sales Tools as the Company deems appropriate. The Company may rescind its prior approval of a Sales Tool, and may require you to remove from the market at your own cost and obligation a previously approved Sales Tool. Independently created Sales Tools must conform to all applicable laws and cannot be a source of revenue for the Distributor.
Trademarks/copyrighted materials
You may only use the Company’s trademarks, copyrights, and other intellectual property, registered or otherwise, in a way that is specifically authorized. Additionally, you may not use any trademarks or logos that are confusingly similar to that of the Company.
The name “Coral Club” and other names as may be adopted by the Company are proprietary trade names, trademarks, and service marks of the Company. The Company grants you a limited license to use its trademarks and trade names in promotional media for so long as the Agreement is in effect and such materials are approved by the Company pursuant to section 3-1. Upon termination of your Agreement, your license shall immediately expire and you agree that you shall immediately discontinue all use of the Company’s trademarks and trade names. Under no circumstances may you use any of the Company’s trademarks or trade names in any email address, website domain name, social media handle, social media name or address, or in any unapproved Sales Tools.
You may not use the name “Coral Club” in any form in a team name, a tagline, an external website name, a personal website address or extension, in an e-mail address, as a personal name, or as a nickname. Additionally, you shall use only the phrase “Coral Club Independent Distributor” in telephone greetings or on an answering machine to clearly separate your independent Coral Club business from the Company.
The Company commonly puts on live and recorded events, as well as webinars and telephone conference calls. During these events Company executives, Distributors, and guests appear and speak. The content of such events is copyrighted material that is owned exclusively by the Company. You may not record any Company functions for any reason, whether such event is live, a webinar, via conference call, or delivered through any other medium. In addition, Company-produced Sales Tools, videos, audios, podcasts, and printed material are also copyrighted. You shall not copy, alter, or duplicate any such materials for your personal or business use without the Company’s prior written approval. Coral Club marketing materials may only be used to conduct Distributor activities as they relate to the Company.
Coral Club reserves the right to rescind authorization to use any protected materials at any time.
Brand
All printed material must conform to all rules of the Coral Club Brand Book. The Brand Book describes acceptable forms and uses of logos, fonts and marketing materials. Notwithstanding, you must still obtain approval to use any such materials that you produce as specified in this section 3.1.
Selling practices
When promoting Company Products and the business opportunity, you should always conduct yourself in a courteous and respectful manner. Your statements about the Company and its Products should always be truthful. You should not engage in selling or promoting practices that are misleading or involve coercion or deception.
Product handling
Coral Club products may only be sold in their original packaging. You should not relabel, alter or repackage any Products.
You are responsible for properly storing Coral Club Products according to label instructions.
Advice on product usage
As a Distributor, you will need to describe the Products, their usage and key benefits to prospective customers. It is your responsibility to invest the time to be knowledgeable in these areas. Any information that you provide (including testimonials) should be based in fact and should be in accordance with information provided to you by the Company and stated on the Product label. Under no circumstances shall you state or imply that any Coral Club product is useful in the diagnosis, treatment, cure, or prevention of any disease, illness, injury, or other medical condition.
You should encourage customers to seek independent professional advice about product usage, especially if they have any preexisting medical conditions. Unless you are a licensed medical practitioner, you cannot state or imply that your advice is a diagnosis or in any way a professional medical opinion.
Retail sales obligations and limitations
Federal and state law requires that Distributors notify their retail customers that they have three (3) business days (5 business days for Alaska residents and 15 days for residents of North Dakota age 65 or older) within which to cancel their purchase and receive a full refund upon return of the products in substantially as good condition as when they were delivered. Saturday is a business day, while Sundays and legal holidays are not business days.
When making retail sales you must provide customers with TWO (2) copies of an official Coral Club sales receipt. These receipts set forth the Customer Satisfaction Guarantee as well as any consumer protection rights afforded by federal or state law. You must ensure that the sales receipt is properly completed with the following information:
1. Your name and contact information.
2. Transaction date.
3. Total amount of the transaction.
4. Clear description of the Products and quantities.
5. Indication of which items are taxable and at what rate.
6. Buyer’s name and contact information.
You must keep a copy of all sales receipts for a period of six (6) years. You must verbally inform your customers of his or her order cancellation rights and honor customer’s 3 business day cancellation rights as described above, as well as the Customer Return Policy.
Retail prices
As a Coral Club member, you are able to purchase products at wholesale prices, which represent a 20% discount from retail prices. As a Coral Club Distributor, you are allowed to set any retail price that you choose.
Product claims
Most of the Company’s products (nutritional supplements and cosmetics) fall under the oversight of the Food and Drug Administration (FDA), which enforces regulatory acts that deal with production, labeling and sale of these products. It is important that you follow the FDA’s regulations in making claims about the Company’s products. Our customers’ health and safety are of utmost priority and we strongly encourage you to visit the FDA website (FDA.gov) in order to familiarize yourself with their regulations and guidelines.
Any claims that you make, must be lawful, truthful and not misleading.
The following rules will help ensure that the claims you make are appropriate:
1. Only make claims that are found in the literature distributed by the Company in the USA, the Company website and Product labels.
2. Do not make any express or implied health or medical claims of any kind relating to any Product.
3. Do not prescribe any Product as suitable for a particular ailment.
4. Do not make or imply any claims as to therapeutic or curative properties of any Product.
5. Do not state or imply that any Product is registered or approved by the FDA (or any other regulatory authority).
6. All structure/functional claims must be accompanied by the following disclaimer:
“These statements have not been evaluated by the U.S. Food and Drug Administration or any other local authority. This product is not intended to diagnose, treat, cure, or prevent any disease.”
Structure/function claims may describe the role of a nutrient or dietary ingredient intended to affect the normal structure or function of the human body, for example, “calcium builds strong bones”. In addition, they may characterize the means by which a nutrient or dietary ingredient acts to maintain such structure or function, for example, “fiber maintains bowel regularity”, or “antioxidants maintain cell integrity”.
No Endorsement Claims
No Distributor may imply that the promotion, operation, or organization of the Company has been approved, sanctioned, or endorsed by any governmental regulatory authority. No Distributor should claim or imply that any Product is approved by any governmental agency.
Income Claims Prohibition
The Company’s business model is based on honesty and integrity. Furthermore, the Company’s and its Distributors’ success should be built on sound business practices and not on enticing individuals to join the company with false or misleading information. Legally informing an individual of the potential income opportunity is a very complicated matter. It involves making proper disclosure, which varies from jurisdiction to jurisdiction, and can easily result in a mistake. Because of the legal liability to Distributors and the Company, Distributors are prohibited from making income claims or earnings representations of any kind. Any proposed Sales Tool submitted by a Distributor to the Company for approval that contains any type of income claim or earnings representation will be automatically denied.
For purposes of this policy, an income claim or earnings representation includes:
(1) statements of actual earnings,
(2) statements of projected earnings,
(3) statements of earnings ranges,
(4) income testimonials,
(5) lifestyle claims, and
(6) hypothetical claims.
A lifestyle claim typically includes statements (or pictures) involving large homes, luxury cars, exotic vacations, or other items suggesting or implying wealth. They also consist of references to the achievement of one’s dreams, having everything one always wanted, and are phrased in terms of “opportunity” or “possibility” or “chance.” Claims such as “My Coral Club income exceeded my salary after six months in the business”, or “Our Coral Club business has allowed my wife to come home and be a full-time mom” also fall within the purview of “lifestyle” claims.
Compensation Plan Claims
When presenting or discussing the Coral Club Compensation Plan, Distributors must make it clear to prospective Distributors that financial success with Coral Club requires commitment, effort, and sales skill. Conversely, Distributors must never represent that one can be successful without diligently commiting oneself. Examples of misrepresentations in this area include:
1. It’s a turnkey system;
2. The system will do the work for you;
3. Just get in and your downline will build through spillover;
4. Just join and I will build your downline for you;
5. The company does all the work for you;
6. You don’t have to sell anything or
7. All you have to do is buy your products every month.
The above are just examples of improper representations about the Compensation Plan. It is important that Distributors do not make these or any other representations that could lead a prospective Distributor to believe that he or she can be successful as a Distributor without commitment, effort, and sales skill.
Accurate and truthful information
All information provided to prospective Distributors should be accurate, full, and in accordance with information provided in Company printed material and on the Company’s website. Distributors should only make factual statements that can be corroborated and should not make any guarantees.
Participating in Other Direct Selling Programs
Distributors are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”). If you are engaged in other non-Coral Club business or direct selling programs, it is your responsibility to ensure that your Coral Club business is operated entirely separate and apart from all other businesses and/or direct selling programs. To this end, you must adhere to the following:
1. You must not sell, or attempt to sell, any competing non-Coral Club products that are sold through another direct selling program to Coral Club Members or Distributors. Any product in the same generic categories as Coral Club products (dietary supplements, cosmetics, and personal care items) is deemed to be competing, regardless of differences in cost, quality or other distinguishing factors.
2. You shall not display Coral Club promotional materials, sales aids, or products with or in the same location as any non-Coral Club promotional materials, sales aids, or products.
3. You shall not offer the Coral Club opportunity, products or services to prospective or existing customers, Members, or Distributors in conjunction with any non-Coral Club program, opportunity, or product.
4. You may not offer any non-Coral Club opportunity or products at any Coral Club related meeting, seminar, convention, webinar, teleconference, or other function.
General provisions
When advertising, you should only use approved marketing materials (see Section 3-1). You must always represent yourself as an Independent Distributor and you may not in any way imply that you are an employee or agent of the Company (see Section 5.5).
Methods of Advertising
You may advertise using the following means:
1. Newspaper: You may place a generic advertisement in the classified section of a local newspaper promoting the opportunity, provided the advertisement conforms to all applicable laws and regulations.
2. Phone Directory: You may place a text listing your name in the white or yellow pages of a telephone directory followed by “Coral Club Independent Distributor.” Graphic and display ads in telephone directories are prohibited.
3. Electronic Mail Advertisements: All advertisements sent via e-mail, telephone, or facsimile must comply with all anti-spamming laws for the state or country where the intended recipient resides. It is your obligation to research and comply with all laws concerning unsolicited commercial e-mail.
4. Television and Radio: Television and radio advertising requires prior written approval from the Company’s Marketing, Public Relations, and Legal departments. Requests should be submitted through the Distributor Relations department.
5. Celebrity Endorsement: You may use a celebrity endorsement with written approval from the Company and the specific, prior, written approval of the endorsing celebrity for each use of the celebrity’s name.
6. Fairs, Swap Meets, Etc.: You may not sell or promote Products at bazaars, flea markets, fairs, swap meets, or other similar gatherings. You may promote and sell Products at tradeshows, except those where the Company announces on its website that it will have an exclusive presence.
7. Internet Auction Sites: You may not sell or facilitate the sale of Product on Internet websites where an auction is the mode of selling or buying (e.g., eBay), even if the sale is at a fixed price. You may not use a third party to place Product on auction websites or sell Product to a third party if you know, or have reason to know, that such Product will be sold on an auction website. The provisions of this Section survive the termination of the Agreement.
Audio and video recordings
When making audio or video recordings, whether or not with the intent to use them as a promotional tool, you should not mention or display the Company, its Products, its logos and other copyrighted materials without prior written consent from the Company.
Interviews and Media Inquiries
Only authorized Coral Club representatives may interact with mass media and give interviews. If a member of the media contacts you, you should refer them to the Coral Club Public Relations department and notify the Public Relations department that you have been approached. Likewise, you should not invite the media to any event.
Telemarketing
Telemarketing is highly regulated in the USA by, but not limited to, the Federal Trade Commission and the Federal Communications Commission. If you would like to engage in telemarketing activities, you must ensure that you are in compliance with all state and federal laws and any violations are your individual responsibility.
Notwithstanding state and federal laws on the subject, you may not engage in contacting anyone without their prior written consent, clearly stating their desire to be contacted with information about the Company and/or its Products.
If you do engage in telemarketing activities, via telephone or fax, you must ensure that you are not contacting anyone who is on any government Do-not-call list and you must provide the person with the option to request to not be contacted in the future. You are required to maintain your own do-not-call list and ensure that such requests are honored.
You agree that you shall not use automatic telephone dialing systems or software relative to the operation of your Coral Club activities. You also agree that you shall not place or initiate any outbound telephone call to any person that delivers any prerecorded message (a “robocall”) regarding or relating to the Coral Club products or opportunity.
Retail Establishments
You may not sell Products or promote the business opportunity through Retail Establishments. It is also prohibited to sell Products to any person who you know, or have reason to suspect, will ultimately sell those Products through Retail Establishments. The display of Independent Distributor information within the premises of a Retail Establishment is acceptable if it complies with all the relevant advertising requirements and with the following:
1. The display may incorporate one of each Product per Retail Establishment, and/or several images of such Products, into a display for the sole purpose of advertising.
2. No Products, including the display, may be sold on the premises of the Retail Establishment.
3. No Retail Establishment shall display or advertise Company Product(s) or opportunities in a manner that is visible from outside the store.
4. The Company-designated disclaimer must be prominently posted near the displayed Products. The disclaimer may not be altered in size, color, content, etc. The disclaimer may be downloaded from the Company website and should state the following: “Thank you for your interest. As a direct selling company, Coral Club products are distributed and sold by Independent Distributors and not in retail stores. Please contact (Distributor’s Name) at (Distributor’s Contact Information) in order to purchase your Coral Club products.”
If the Retail Establishment is a restaurant, café, juice bar, or the like, Products may only be sold in trial amounts (e.g. by the glass, etc.), and you must provide ongoing support to the establishment.
Service Establishments
A service establishment is defined as a business that earns revenue primarily through providing a service, not selling products. Examples of service establishments are health clubs, gyms, beauty salons, and nail salons. You may conduct Distributor activities through a service establishment, provided that the following conditions are met:
1. No Product banners or other Sales Tools may be displayed to the general public in a manner that would attract the public to the establishment.
2. Products sold in a particular establishment must be related to the service provided in that establishment. For example, nutritional supplements can be sold in a health club and cosmetics can be sold in a beauty salon.
3. You must provide proper support to your customers.
The Company has sole discretion in determining whether a business qualifies as a Service Establishment and is a proper place for the sale of Products.
To act as an Enroller of a new Club Member or a Sponsor to a new Distributor, you must meet all the requirements and accept all the responsibilities as outlined in the Contract.
Requirements
1. You are required to present the opportunity truthfully and accurately as described in Section 3-1 Marketing the product and opportunity of this document.
2. You must provide the most current version of the Business Manual and the Compensation Plan to those individuals you are sponsoring before they enter into a Distributor Agreement, or ensure that they have online access to these materials.
3. You can only enroll/sponsor an individual who resides in an Authorized Country.
4. The new Club Member must submit a properly completed Application and/or Agreement.
Sponsor’s obligations
The act of becoming a Sponsor carries with it obligations of training and support to your Downline Organization.
Your responsibilities include, but are not limited to:
1. Make reasonable efforts to ensure that all Distributors in your Downline Organization understand the terms and conditions of the Contract and all applicable national and local laws.
2. Provide bona fide support in the development of your Downline Organization’s business and the sale of Products.
3. Provide regular training to ensure that all Distributors in your Downline Organization are knowledgeable about, and the rules surrounding the promotion of, the Products and the Compensation Plan.
4. Provide bona fide education and instruction so that Product sales and opportunity meetings conducted by Distributors in your Downline Organization are conducted in accordance with the Contract, and with any applicable laws.
5. Give guidance and encouragement to Distributors in your Downline Organization.
6. Make commercially reasonable efforts to privately settle any dispute arising in your Downline Organization.
You shall not:
1. Represent or imply that becoming a Distributor grants any rights of an exclusive territory.
2. Represent or imply that a Distributor can benefit only by sponsoring other individuals.
3. Represent or imply that sponsoring other individuals is the most important Distributor activity instead of selling and promoting the Products.
4. Require a Club Member or imply that it is required to make a purchase, other than a Distributor Kit, in order to become a Distributor.
5. Represent or imply that a Distributor is under any obligation to sponsor other individuals.
6. Systematically sign up customers, who do not make a product purchase within the first calendar month.
7. Take part in your Downline’s activities without their consent.
8. Entice or otherwise assist a Club Member or Distributor to circumvent any Company Policy, including providing false or misleading information on any Company form.
9. You may not discourage, attempt to prevent or prevent direct communication between Club Member or Distributor and the Company.
10. Use dishonest, misleading or in any way unethical recruiting practices.