Great questions! When such soliciting occurs within the LifeVantage organizations themselves it is called “Cross-Sponsoring.” Cross-Sponsoring is explained in Section 6.3 – Cross-Sponsoring, of the LifeVantage Policies and Procedures.
“Cross-Sponsoring” is defined as the enrollment of an individual or entity that already has a current customer or Independent Distributor Application and Agreement on file with LifeVantage, or that has had such an agreement within the preceding six (6) calendar months, within a different line of sponsorship. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, federal ID numbers, or fictitious ID numbers to circumvent this policy or any other provision of the Agreement is strictly prohibited.”
Please note that using a spouse, a business or other entity, real or fictitious, does not circumvent the policy! Section 6.3 also explains what your responsibility is if you discover or are aware of such activity and, last of all, what can be done to rectify the situation. It states, “If Cross-Sponsoring is discovered, it must be brought to the Company’s attention immediately. LifeVantage may take action against the Independent Distributor who changed Marketing Organizations and/or those Independent Distributors who encouraged or participated in the Cross-Sponsoring. LifeVantage may also move all or part of the offending Independent Distributor’s downline to his or her original Downline organization if the Company deems it equitable and feasible to do so. However, LifeVantage is under no obligation to move the Cross-Sponsored Independent Distributor’s Downline Organization, and the ultimate disposition of the Marketing Organization remains within the sole discretion of LifeVantage. Independent Distributors waive all claims and causes of action against LifeVantage arising from or relating to the disposition of the Cross-Sponsored Independent Distributor’s Downline Organization.”
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