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What are the protection that the Compliance and Legal Departments offer the LifeVantage Distributors?

In order to better understand a primary protection available, we first need to review what Section 6 of the LifeVantage Policies and Procedures says about a Distributor’s freedom to participate in multiple direct selling companies as long as they abide by certain simple and clear guidelines.

Section 6 – “Conflicts of Interest,” states (in part): Independent Distributors may participate in other . . . Network Marketing Ventures and . . . may engage in selling activities related to non-LifeVantage products and services if they desire to do so. [However] If an Independent Distributors elects to participate in another Network Marketing Venture, [they] must adhere to the following: During the term of the (LifeVantage) Agreement (and for a period of one (1) year following the Cancellation of [the] Agreement), an Independent Distributor shall not engage in any actual or attempted recruitment . . . of a LifeVantage Independent Distributor for other Network Marketing Ventures, either directly or through a third party . . .”

So, what happens if a current, or former, LifeVantage Distributor recruits one of our own and how is Compliance/Legal involved? If a LifeVantage discovers, or is informed, that a Distributor or related 3rd party is recruiting LifeVantage Distributors for a competing company, Compliance will immediately investigate the allegations. Then, depending upon the accuracy and severity of the violation, they will either take appropriate action themselves and suspend the violators account, or, if the evidence warrants, work in cooperation with Legal and seek an injunction and/or other appropriate legal alternatives. All done to stop the illicit recruiting and restore the confidence of any affected LifeVantage organization. Why go to such lengths? For many reasons, not the least of which is to show our appreciation for the hard work and effort put forth by our field of Distributors in building such tremendous marketing organizations in the first place!

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