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In addition to global searches for “unauthorized” sellers moving LifeVantage product through online auctions and retailing marketplaces, what else is LifeVantage doing to discourage such activity?

Great question! In order to discourage unauthorized selling, LifeVantage has clarified certain policies and added others. KEEP AN EYE ON COMPLIANCE CORNER! Over the next three weeks we will lay out for you the features and advantages of such new and improved policies.

Section 8.5.12 – Online Auctions and Online Retailing

This section now states (in part): “LifeVantage’s products and program may not be listed or offered for sale on: (1) eBay or any other online auctions; or (2) any retail store or ecommerce site (including without limitation Amazon.com or similar online retailers) . . .”

Section 8.5.13 – Diversion and Sale to Unauthorized Resellers

This section now includes those providing products to “third-parties” who they know, or should have reason to believe are selling over the Internet. It states, “For the safety and satisfaction of those who use LifeVantage products, and to protect the lawful business interests of LifeVantage and its distributors, LifeVantage strictly prohibits the sale of its products to third-parties who will in turn resell the products through any means. Independent Distributors may not, under any circumstances: (1) enlist or allow a third-party to sell LifeVantage products using the Internet (including without limitation through the use of any online retail store, ecommerce site, or auction site); or (2) sell or provide LifeVantage products to any third-party that the Independent Distributor knows or has reason to believe will sell such products over the Internet.”

Section 8.5.13(c) – Cooperation with Investigations

This section requires Distributors who know of such activity to provide LifeVantage with lists and other information that they have of such individuals. It states, “To assist LifeVantage in the important task of identifying the source(s) of potentially diverted product, Independent Distributor agrees that, upon written request from LifeVantage, the Independent Distributor will promptly provide LifeVantage with a list of all persons to whom the Independent Distributor has sold LifeVantage products. Independent Distributor shall keep up-to-date records of such sales, and shall obtain identifying information on all persons to whom products are sold. Furthermore, the Independent Distributor will promptly suspend all sales or shipments of products to any person that LifeVantage identifies in writing as a possible diverter of LifeVantage products.

Look for new requirements targeted at those who know of such illicit selling and the new legal penalties available to discourage any and all who participate in the future as “Compliance Corner” continues its introduction of the new policies targeted at unauthorized online selling!

 

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