Both. If you have a “material connection” to the manufacturer of the product “LifeVantage” then you can be held liable for claims you make that are unsubstantiated. The fact that you are an Independent Distributor or a Preferred Customer of LifeVantage, receiving discounts or commissions/bonuses/incentives for using and/or selling the product, gives you a “material connection” with the manufacturer. Also, while historically only the manufacturer had the resources (money to advertise in the media) to reach the public directly and was solely liable for such advertising, the presence of the Internet and social media now give individuals unprecedented reach into the public and makes them a candidate for liability too. To protect itself, the Company must do the following: 1) Establish a policy against such unsubstantiated claims; 2) publish and educate the Distributors as to such policy; and, 3) Enforce any breach of the policy. On the other hand, the Distributor/Customer can protect themselves by not making such unsubstantiated claims! (See Sections 8.3.2 – Product Claims and 8.3.3 – Income Claims to read the relevant LifeVantage policies).
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