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What additional consents were agreed to by Herbalife when working with the FTC; in addition to the differentiation between preferred customers and distributors and the collection of retail sales information?

The third of seven consents in the settlement concerned detailed training of the distributors. The areas highlighted include:

1) The importance of purchasing only the amount of product that the distributor expects to sell in the near future;

2) Prohibitions and consequences for falsifying sales;

3) How to calculate a profit and loss;

4) How to create a budget;

5) Prohibited and permissible representations to distributors and prospective distributors;

6) How to receive a return product;

7) How to submit a complaint to the company.

With the ongoing concern as to what can be trained while maintaining the Independent Distributor status of our distributors, LifeVantage leaves much of the mechanical business training to the individual business or account holder. (Simply stated, protecting the independent contractor status of the Distributor is very important. If LifeVantage controls too much of the way our distributors do business, then they might be considered employees rather than independent contractors). In order to protect each distributor and LifeVantage too, what claims can and cannot be made about earnings and products, are found in the LifeVantage Policies and Procedures, see Sections 8.3.2 – Product Claims and 8.3.3 – Income Claims, and are also addressed at certain trainings such as during breakout sessions at the Company Convention, and are featured articles in this Compliance Corner section of the weekly newsletter.

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