SECTION 1 – CODE OF ETHICS
Freefilliate LLC (hereafter “Freefilliate” or the “Company”) has made a commitment to provide the finest direct sales experience backed by impeccable service to its Affiliates and customers. In turn, the Company expects Freefilliate Affiliates to reflect that image in their relationships with customers and fellow Affiliates.
As a Freefilliate Affiliate, you are expected to operate your business according to the highest standards of integrity and fair practice in your role as a Freefilliate Affiliate. Failure to comply with the Code of Ethics can result in your termination as a Freefilliate Affiliate. The Code of Ethics, therefore, states:
As an Independent Affiliate:
SECTION 2 – INTRODUCTION
2.1 – Policies and Compensation Plan Incorporated into Affiliate Agreement
These Policies and Procedures, in their present form and as amended at the sole discretion of Freefilliate, are incorporated into, and form an integral part of, the Freefilliate Affiliate Agreement. Throughout these Policies and Procedures, when the term “Agreement” is used, it collectively refers to the Freefilliate Affiliate Application and Agreement Form, these Policies and Procedures and the Freefilliate Compensation Plan. These documents are incorporated by reference into the Freefilliate Affiliate Agreement (all in their current form and as may be amended by Freefilliate).
2.2 – Purpose of Policies
Freefilliate is a direct sales company that markets products through Independent Affiliates. Independent Affiliates have the ability to receive commissions and bonuses by selling Freefilliate products (see Freefilliate Compensation Plan). It is important to understand that your success and the success of your fellow Affiliates depends on the integrity of those who market our services. To clearly define the relationship that exists between Affiliates and Freefilliate, and to explicitly set a standard for acceptable business conduct, Freefilliate has established the Agreement. Freefilliate Affiliates are required to comply with all of the provisions set forth in the Agreement, which Freefilliate may amend at its sole discretion from time to time, as well as with all federal, state and local laws governing their Freefilliate business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by the Agreement. Please review the information in this document carefully. It explains and governs the relationship between you, as an independent contractor, and the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an answer from the Freefilliate corporate office.
2.3 – Changes to the Agreement
Because laws and the business environment periodically change, Freefilliate reserves the right to amend the Agreement, the products offered, the compensation plan, and the prices at the Company’s sole and absolute discretion. By signing the Affiliate Agreement, an Affiliate agrees to abide by all amendments or modifications that Freefilliate elects to make. Amendments shall be effective 30 days after publication of notice of amendments in official Freefilliate materials. The Company shall provide or make available to all Affiliates a complete copy of the amended provisions by one or more of the following methods: (a) posting on the Company’s official website; (b) electronic mail (email); (c) inclusion in Company periodicals; (d) inclusion with commissions or bonus checks; or (e) special mailings. The continuation of an Affiliate’s Freefilliate business or an Affiliate’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.
2.4 – Delays
Freefilliate shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of supply, government decrees or orders, and acts of God.
2.5 – Policies and Provisions Severable
If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid or unenforceable provision never comprised a part of the Agreement.
2.6 – Waiver
The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of Freefilliate to exercise any right or power under the Agreement or to insist upon strict compliance by an Affiliate with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of Freefilliate’s right to demand exact compliance with the Agreement. Waiver by Freefilliate can be affected only in writing by an authorized officer of the Company. Freefilliate’s waiver of any particular breach by a Affiliate shall not affect or impair Freefilliate’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Affiliate. Nor shall any delay or omission by Freefilliate to exercise any right arising from a breach affect or impair Freefilliate’s rights as to that or any subsequent breach. The existence of any claim or cause of action of an Affiliate against Freefilliate shall not constitute a defense to Freefilliate’s enforcement of any term or provision of the Agreement.
SECTION 3 – BECOMING AN AFFILIATE
3.1 – Requirements to Become an Affiliate
To become a Freefilliate Affiliate, each applicant must:
3.1.1 – Be at least 18 years of age;
3.1.2 – Reside in the 50 United States or other jurisdictions officially opened by the Company;
3.1.3 – Have a valid Social Security or Tax ID number;
3.1.4 – Submit an accepted Freefilliate Affiliate Application and Agreement;
The Company reserves the right to reject any applications for a new Affiliate or applications for renewal. No product purchase is required to become a new Affiliate.
3.2 – Affiliate Benefits
Once the Affiliate Application and Agreement have been accepted by Freefilliate, the following benefits are available to the new Affiliate:
SECTION 4 – OPERATING A Freefilliate BUSINESS
4.1 – Adherence to the Freefilliate Compensation Plan
Affiliates must adhere to the terms of the Freefilliate Compensation Plan as set forth in official Freefilliate literature.
Affiliates shall not offer the Freefilliate opportunity through, or in combination with, any other system, program or method of marketing other than that specifically set forth in official Freefilliate literature. Affiliates shall not require or encourage other current or prospective customers or Affiliates to participate in Freefilliate in any manner that varies from the program as set forth in official Freefilliate literature. Affiliates shall not require or encourage other current or prospective customers or Affiliates to execute any agreement or contract other than official Freefilliate agreements and contracts in order to become a Freefilliate Affiliate. Similarly, Affiliates shall not require or encourage other current or prospective customers or Affiliates to make any purchase from, or payment to, any individual or other entity to participate in the Freefilliate Compensation Plan other than those purchases or payments identified as recommended or required in official Freefilliate literature.
4.2 – Bonus Buying Prohibited
Bonus buying is strictly and absolutely prohibited. “Bonus buying” includes:
(a) the enrollment of individuals without their knowledge and agreement and/or without execution of a Affiliate Application;
(b) the fraudulent enrollment of an individual as an Affiliate;
(c) the enrollment or attempted enrollment of non-existent individuals as Affiliates;
(d) the use of a credit card by or on behalf of an Affiliate or customer when the Affiliate or customer is not the account holder of such credit card;
(e) purchasing Freefilliate products on behalf of another Affiliate, or under another Affiliate’s ID number, to qualify for commissions or bonuses.
4.3 – Business Entities
A Partnership, LLC or Corporation may hold an Affiliate business upon completion of the Affiliate Application form, and providing on that form in the appropriate space, a Federal tax ID number. However, an individual may not participate in or have any beneficial interest in more than one (1) Affiliate business of any kind. The person signing the application on behalf of a business entity must have the authority of said entity for entering into the transaction. In addition, by signing for as a business entity, you certify that no person with an interest of debt or equity in the business has had an interest in an Affiliate business with Freefilliate within six (6) months of the date of signature.
4.4 – Changes to a Freefilliate Business
4.4.1 – General
Each Affiliate must immediately notify Freefilliate of all changes to the information contained in his or her Affiliate Application and Agreement. Affiliates may modify their existing Affiliate Agreement Form by submitting a written request and appropriate supporting documentation.
4.4.2 – Change of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all Affiliates, Freefilliate does not allow changes in sponsorship for active Affiliates. Maintaining the integrity of sponsorship is critical for the success of every Affiliate and marketing organization. Accordingly, the transfer of a Freefilliate business from one sponsor to another is not permitted.
Exception – A request for a change in sponsor, due to Freefilliate error, will be accepted within 30 days of the submission of the new Affiliate application.
4.4.3 – Cancellation and Re-application
An Affiliate may legitimately change organizations by:
a) Voluntarily canceling his or her Freefilliate Agreement and remaining inactive (i.e., no purchases of Freefilliate products; no sales of Freefilliate products; no sponsoring; no attendance at any Freefilliate functions, no participation in any other form of Affiliate activity, and no operation of any other Freefilliate business) for 6 full calendar months.
Following the 6 calendar month period of inactivity, the former Affiliate may reapply under a new sponsor. However the former Affiliate will permanently lose any and all right to their former Affiliate Downline organization. “Downline” shall mean the organization of Independent Affiliates that enroll and are placed under any Independent Affiliate.
4.5 – Unauthorized Claims and Actions
4.5.1 – Indemnification
A Freefilliate Affiliate is fully responsible for all of his or her verbal and written statements made regarding Freefilliate products, services, and the Compensation Plan that are not expressly contained in official Freefilliate materials. Affiliates agree to indemnify Freefilliate and Freefilliate’s directors, officers, employees and agents and hold them harmless from any and all liability, including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by Freefilliate as a result of the Affiliate’s unauthorized representations or actions. This provision shall survive the termination of the Affiliate Agreement.
4.5.2 – Income Claims and Marketing
In their enthusiasm to enroll prospective Affiliates, some Affiliates are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of network marketing. This is counterproductive because new Affiliates may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved.
Moreover, the Federal Trade Commission and the States have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in network marketing. While Affiliates may believe it is beneficial to provide copies of checks, or to disclose their earnings or others, such approaches have legal consequences that can negatively impact Freefilliate as well as the Affiliate making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because Affiliates do not have the data necessary to comply with the legal requirements for making income claims, a Affiliate may NOT make income projections, income claims or disclose his or her Freefilliate income (including the showing of checks, copies of checks, bank statements or tax records).
When promoting the products and the tremendous opportunity Freefilliate offers, Affiliates must use only the sales tools and support materials produced by Freefilliate. The Company has carefully designed its products, product labels, Compensation Plan and promotional materials to ensure that they are promoted in a fair, truthful manner; that they are substantiated and the material complies with the legal requirements of federal and state laws. Accordingly, Affiliates must who produce their own literature, advertisements, sales tools, promotional materials, Internet Web pages, blogs, and/or social media pages must submit them to the company for approval.
4.5.3 – Claims of Illegal Use
When promoting Freefilliate products, Affiliates shall not make any verbal or written statement regarding the use—or potential use—of Freefilliate products for any illegal purpose. This includes, but is not limited to, statements regarding knowledge of the illegal use of Freefilliate products by the Affiliate or any third party, the compatibility of Freefilliate products with any other product known to be used for illegal purposes, or the potential compatibility of Freefilliate products with any other product known or unknown that would facilitate any practice prohibited by law. Affiliates agree to indemnify Freefilliate and Freefilliate’s directors, officers, employees and agents and hold them harmless from any and all liability, including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by Freefilliate as a result of any such statements made by the Affiliate.
4.6 – Conduct at Freefilliate Corporate Events
4.6.1 – No Selling or Recruiting at Freefilliate Events
Selling and recruiting at official Freefilliate corporate events is not permitted. These activities take away from the primary focus of the event, and can negatively reflect on the professional image of Freefilliate as a company. You may, however, offer a business card and/or catalog.
4.6.2 – No Selling or Recruiting for Other Companies at Freefilliate Events
Freefilliate Affiliates shall not sell any products or recruit for any business during Freefilliate events. This restriction most specifically applies to sales and recruitment efforts for any other direct sales or marketing program, regardless of the product category, including those that do not compete with Freefilliate’s product line.
4.7 – Conflicts of Interest
4.7.1 – Competition Policy
Freefilliate Affiliates are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”), with the exception of those products in the same generic category as Freefilliate products. Affiliates may not display Freefilliate products with any other products or services in a fashion that might in any way confuse or mislead a prospective customer or Affiliate into believing there is a relationship between the Freefilliate and non-Freefilliate products or services.
4.7.2 – Non-solicitation
During the term of this Agreement, Affiliates may not recruit other Freefilliate Affiliates or customers for any other network marketing business. Following the cancellation of this Agreement for any reason, and for a period of one year thereafter, a former Affiliate may not recruit any Freefilliate Affiliate or customer for another network marketing business, with the exception of an Affiliate who is personally sponsored by the former Affiliate. The Affiliates and Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States, and business is commonly conducted via the Internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, the Affiliates and Company agree that this non-solicitation provision shall apply to all markets in which Freefilliate conducts business.
The term “recruit” means actual or attempted solicitation, enrollment, encouragement or effort to influence in any other way, either directly or through a third party, another Freefilliate Affiliate or customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.
4.7.3- Downline Activity (Genealogy) Reports
Downline Activity Reports made available for Affiliate access and viewing through Freefilliate’s official website are considered confidential. Affiliate access to their Downline Activity Reports is password protected. All Downline Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to Freefilliate. Downline Activity Reports are provided to Affiliates in the strictest of confidence and are made available to Affiliates for the sole purpose of assisting Affiliates in working with their respective Downline Organizations in the development of their Freefilliate business. Affiliates should use their Downline Activity Reports to assist, motivate and train their Downline Affiliates. The Affiliate and Freefilliate agree that, but for this agreement of confidentiality and nondisclosure, Freefilliate would not provide Downline Activity Reports to the Affiliate. An Affiliate shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
• Directly or indirectly disclose any information contained in any Downline Activity Report to any third party;
• Directly or indirectly disclose the password or other access code to his or her Downline Activity Report;
• Use the information to compete with Freefilliate or for any purpose other than promoting his or her Freefilliate business;
• Recruit or solicit any Affiliate or Customer of Freefilliate listed on any report or in any manner attempt to influence or induce any Affiliate or customer of Freefilliate to alter their business relationship with Freefilliate;
• Use or disclose to any person, partnership, association, corporation or other entity any information contained in any Downline Activity Report.
Upon demand by the Company, any current or former Affiliate will return the original and all copies of Downline Activity Reports to the Company.
4.8 – Cross-Sponsoring
Actual or attempted cross-sponsoring is strictly prohibited. “Cross-sponsoring” is defined as the enrollment of an individual or entity that is already a current Customer or Affiliate of Freefilliate, or who has had such an agreement within the preceding 6 calendar months, within a different line of sponsorship. The use of a spouse or relative’s name, a straw man, trade names, assumed names or fictitious ID numbers to circumvent this policy is prohibited. Affiliates shall not demean, discredit or defame other Freefilliate Affiliates in an attempt to entice another Affiliate to become part of the first Affiliate’s marketing organization. If a prohibited organization transfer occurs, Freefilliate shall take disciplinary action against the Affiliate(s) who engaged, acquiesced and/or knowingly participated in the improper cross-sponsoring. However, it shall be entirely within Freefilliate’s discretion where in the genealogical structure, the cross-sponsored organization in question shall be placed or otherwise distributed.
Because equities often exist in favor of both Upline organizations, AFFILIATES WAIVE ANY AND ALL CLAIMS AND CAUSES OF ACTION AGAINST THE COMPANY FOR ITS DECISION REGARDING THE FINAL DISPOSITION OR PLACEMENT OF THE CROSSSPONSORED ORGANIZATION. “Upline” shall mean the organization of Independent Affiliates enrolled and placed above any Independent Affiliate.
4.9 – Errors or Questions
If an Affiliate has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Affiliate must notify the Freefilliate Affiliate Support Department at email@example.com, in writing, within 15 days of the date of the purported error or incident in question. Freefilliate will not be responsible for any errors, omissions or problems not reported to the Company within 15 days.
4.10 – Sales Aids Use
Absolutely no use of the Freefilliate name may be used on marketing materials, including any social media such as Facebook or Instagram. To ensure that Affiliates are not encumbered with Company Sales Aids, such Sales Aids may be returned to Freefilliate upon the Affiliate’s cancellation pursuant to the terms of Section 8.2.
4.11 – Governmental Approval or Endorsement
No federal or state regulatory agencies or officials approve or endorse any direct selling program. Therefore, Affiliates shall not represent or imply that Freefilliate or its Compensation Plan have been “approved,” “endorsed” or otherwise sanctioned by any government agency.
4.12 – Holding Applications or Enrollments
Affiliates must not manipulate enrollments of new Affiliates or customer orders. All Affiliate Applications and Agreements must be sent within 72 hours from the time they are signed by a Affiliate.
4.13 – Identification
All Affiliates are required to provide their Social Security Number or Federal Tax Identification Number to Freefilliate on the Affiliate Application and Agreement.
Upon enrollment, the Company will provide a unique Affiliate Identification Number to the Affiliate by which he or she will be identified. This number will be used to place orders and track commissions and bonuses.
4.14 – Income Taxes
Each Affiliate is responsible for paying local, state and federal taxes on any income generated as an Affiliate. Every year, Freefilliate will provide IRS Form 1099 (non-employee compensation) earnings statement to each U.S. resident who had earnings of over $600 in the previous calendar year.
4.15 – Independent Contractor Status
Affiliates are independent contractors and are not purchasers of a franchise or a business opportunity. The agreement between Freefilliate and its Affiliates does not create an employer/employee relationship, agency, partnership or joint venture between the Company and the Affiliate. Affiliates shall not be treated as an employee for his or her services or for federal or state tax purposes. All Affiliates are responsible for paying local, state and federal taxes due from all compensation earned as an Affiliate of the Company. The Affiliate has no authority (expressed or implied) to bind the Company to any obligation. Each Affiliate shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Affiliate Agreement Form, and these Policies and Procedures, and applicable laws.
The name of Freefilliate and other names as may be adopted by Freefilliate are proprietary trade names, trademarks and service marks of Freefilliate. As such, these marks are of great value to Freefilliate and are supplied to Affiliates for their use only in an expressly authorized manner. Use of the Freefilliate name on any item not produced by the Company is prohibited except as follows:
Independent Freefilliate Affiliate
All Affiliates may list themselves as an “Independent Freefilliate Affiliate” in the residential telephone directory (“white pages”) under their own name. Affiliates may not place telephone directory display ads in the classified directory (“Yellow Pages”) using Freefilliate’s name or logo.
Affiliates may not answer the telephone by saying “Freefilliate” or in any other manner that would lead the caller to believe that he or she has reached the corporate offices of the Company.
Advertising is not limited to print media; it also includes internet advertising and other forms of advertising. It is prohibited for an Affiliate to use an internet or email address that utilizes the trade name Freefilliate, or includes Freefilliate in a portion of the address. It is also prohibited for an Affiliate to use any website materials on a website that references or relates to Freefilliate that is not authorized in writing by Freefilliate. It is also prohibited for an Affiliate to place links to unauthorized websites or webpages onto a website or webpage that has been authorized by Freefilliate.
4.16 – Insurance
4.16.1 – Business Pursuits Coverage
You may wish to arrange insurance coverage for your business. Your homeowner’s insurance policy may not cover business related injuries or the theft of or damage to your business. Contact your insurance agent to make sure that your business property is protected.
4.17 – International Marketing
Because of critical legal and tax considerations, Freefilliate must limit the marketing and enrollment of Freefilliate services and the presentation of the Freefilliate business to prospective customers and Affiliates located within the 50 United States of America and any other jurisdiction officially opened by Freefilliate. Affiliates are only authorized to do business in the countries in which Freefilliate has announced are open for business in official Company literature.
4.18 – Laws and Ordinances
Affiliates shall comply with all federal, state and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Affiliates because of the nature of their business. However, Affiliates must obey those laws that do apply to them. If a city or county official tells an Affiliate that an ordinance applies to him or her, the Affiliate shall comply with the law.
4.19 – Minors
Affiliates shall not enroll or recruit individuals under the age of 18 into the Freefilliate program.
4.20 – Actions of Household Members or Affiliated Individuals.
If any member of an Affiliate’s household, family, or other affiliated individual engages in any activity that, if performed by the Affiliate, would violate any provision of the Agreement, such activity will be deemed a violation by the Affiliate and Freefilliate may take disciplinary action pursuant to the Statement of Policies against the Affiliate.
4.21 – One Freefilliate Business Per Affiliate and Household Restrictions
An Affiliate may operate or have an ownership interest in only one Freefilliate business. No individual may have, operate or receive compensation from more than one Freefilliate business. Individuals of the same family unit may enter into or have an interest in more than one Freefilliate Business provided a family member acts as the direct sponsor of the other. A “family unit” is defined as spouses, domestic partners and dependent children living at or doing business at the same address.
An exception to the one-business-per-Affiliate rule will be considered on a case-by-case basis if two existing Affiliates marry. Requests for exceptions to this policy must be submitted in writing to the Compliance Department.
4.22 – Requests for Records
Any request from an Affiliate for copies of invoices, agreements, Downline activity reports or other records/reports will require a fee of $1.00 per page per copy. This fee covers the expense of mailing and time required to research files and make copies of the records.
4.23 – Sale, Transfer or Assignment of Freefilliate Business
4.23.1 – Although a Freefilliate business is a privately owned, independently operated business, the sale, transfer or assignment of an Freefilliate business, and the sale, transfer or assignment of an interest in a Business Entity that owns or operates a Freefilliate Affiliate business, is subject to certain limitations. If an Affiliate wishes to sell his or her Freefilliate business, or interest in a Business Entity that owns or operates a Freefilliate business, the following criteria must be met:
Prior to selling a Business Entity interest, the selling party must notify Freefilliate’s Compliance Department in writing and advise of his or her intent to sell Freefilliate’s business or Business Entity interest. The selling party must also receive written approval from the Compliance Department before proceeding with the sale.
4.24 – Separation of a Freefilliate Affiliate Business
In the event of a dissolution of marriage of a Freefilliate Affiliate, and a spouse, arrangements must be made to assure that any division of the business assets is accomplished so as not to adversely affect the interests and income of other businesses up or down the line of sponsorship. If the separating parties fail to provide for the best interests of other Affiliates and the Company, Freefilliate may be forced to involuntarily terminate the Affiliate Agreement.
4.24.1 – During the pendency of a divorce or dissolution, the Company shall treat the business according to the status quo as existed prior to the filing of the divorce or dissolution.
Under no circumstances will the Downline Organization of divorcing spouses be divided. Similarly, under no circumstances will Freefilliate split commission and bonus checks between divorcing spouses. Freefilliate will recognize only one Downline Organization and will issue only one commission check per Freefilliate business per commission cycle. Commission checks shall always be issued to the individual whose name appears on the Affiliate Agreement.
4.25 – Sponsoring
All active Affiliates in good standing have the right to sponsor and enroll others into Freefilliate. Each prospective Affiliate has the ultimate right to choose his or her own sponsor. If two Affiliates claim to be the sponsor of the same new Affiliate, the Company shall regard the first application received by the Company as controlling.
4.26 – Stacking
“Stacking” is strictly prohibited. The term “stacking” includes: (a) violating the one-business-per-household rule and/or (b) enrolling fictitious individuals or entities into the Freefilliate Compensation Plan, in an attempt to manipulate the Compensation Plan.
4.27 – Telemarketing
The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices.
Both federal agencies (as well as a number of states) have “do not call” regulations as part of their telemarketing laws. While you may not consider yourself a “telemarketer” in the traditional sense of the word, these regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to $11,000.00 per violation).
Therefore, Affiliates must not engage in telemarketing relative to the operation of their Freefilliate businesses. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a Freefilliate product or service, or to recruit them for the Freefilliate opportunity. “Cold calls” made to prospective customers or Affiliates that promote either Freefilliate’s products or services or the Freefilliate opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or Affiliate (a “prospect”) is permissible under the following situations:
• If the Affiliate has an established business relationship with the prospect. An “established business relationship” is a relationship between an Affiliate and a prospect based on the prospect’s purchase, rental or lease of goods or services from the Affiliate, or a financial transaction between the prospect and the Affiliate, within the 18 months immediately preceding the date of a telephone call to induce the prospect’s purchase of a product or service.
• The prospect’s personal inquiry or application regarding a product or service offered by the Affiliate within the 3 months immediately preceding the date of such a call.
• If the Affiliate receives written and signed permission from the prospect authorizing the Affiliate to call. The authorization must specify the telephone number(s) that the Affiliate is authorized to call.
• You may call family members, personal friends and acquaintances. An “acquaintance” is someone with whom you have at least a recent first-hand relationship (i.e., you have recently personally met him or her). Bear in mind, however, that if you make a habit of “card collecting” with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling “acquaintances,” you must make such calls on an occasional basis only and not make this a routine practice.
In addition, Affiliates shall not use automatic telephone dialing systems relative to the operation of their Freefilliate businesses. The term “automatic telephone dialing system” means equipment which has the capacity to (a) store or produce telephone numbers to be called using a random or sequential number generator and (b) to dial such numbers.
SECTION 5 – RESPONSIBILITIES OF AFFILIATES
5.1 – Change of Address or Telephone
To ensure timely delivery of products, support materials and commission checks, it is critically important that Freefilliate’s files are current. Affiliates planning to move should email Freefilliate corporate office, at firstname.lastname@example.org, their new address and telephone numbers. To guarantee proper delivery, two-weeks advance notice to Freefilliate is recommended on all changes.
5.2 – Continuing Development Obligations
5.2.1 – Ongoing Training
Any Affiliate who sponsors another Affiliate into Freefilliate must perform a bona fide assistance and training function to ensure that his or her Downline is properly operating his or her Freefilliate business. Affiliates must have ongoing contact and communication with the Affiliates in their Downline Organizations. Examples of such contact and communication may include, but are not limited to, newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail and the accompaniment of Downline Affiliates to Freefilliate meetings, training sessions, and other functions. Upline Affiliates are also responsible to motivate and train new Affiliates in Freefilliate product knowledge, effective sales techniques, the Freefilliate Compensation Plan and compliance with Company Policies and Procedures. Communication with and the training of Downline Affiliates must not, however, violate Section 4.5.2 (regarding the development of Affiliate-produced sales aids and promotional materials). Affiliates cannot charge for training.
Upon request, every Affiliate should be able to provide documented evidence to Freefilliate of his or her ongoing fulfillment of the responsibilities of a sponsor.
5.2.2 – Increased Training Responsibilities
As Affiliates progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge and understanding of the Freefilliate program. They will be called upon to share this knowledge with lesser-experienced Affiliates within their organization.
5.2.3 – Ongoing Sales Responsibilities
Regardless of their level of achievement, Affiliates have an ongoing obligation to continue to personally promote sales through the generation of new customers or Affiliates and through servicing their existing customers or Affiliates.
5.3 – Non-disparagement
Freefilliate wants to provide its Affiliates with the best products, compensation plan and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the Freefilliate corporate offices. While Freefilliate welcomes constructive input, negative comments and remarks made in the field by Affiliates about the Company, its products or Compensation Plan serve no purpose other than to sour the enthusiasm of other Freefilliate Affiliates. For this reason, and to set the proper example for their Downline, Affiliates must not disparage, demean or make negative remarks about Freefilliate, other Freefilliate Affiliates, Freefilliate’s services, the Compensation Plan or Freefilliate’s directors, officers or employees.
5.4 – Providing Documentation to Applicants
Affiliates must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are sponsoring to become Affiliates before the applicant signs an Affiliate Agreement. Additional copies of Policies and Procedures can be found on the Freefilliate website at https://freefilliate.com/affiliate-policies-procedures, or in your business center under the forms section.
5.5 – Reporting Policy Violations
Affiliates observing a policy violation by another Affiliate should submit a written report of the violation directly to the attention of the Freefilliate Compliance Department. Details of the incident(s), such as dates, number of occurrences, persons involved and any supporting documentation, should be included in the report.
SECTION 6 – SALES REQUIREMENTS
6.1 – Product Sales
The Freefilliate Compensation Plan is based upon the sale of Freefilliate products to end user consumers. Affiliates earn a 50% commission on personally referred customers’ purchases.
6.2 -Sales of Freefilliate products through on-line classifieds or auction sites, such as Ebay or craigslist, are prohibited, without the expressed written consent of Freefilliate.
6.3 – Territory Restrictions
There are no exclusive territories granted to anyone. No franchise fees are required.
SECTION 7 – BONUSES AND COMMISSIONS
7.1 – Bonus and Commission Qualifications
An Affiliate must be active and in compliance with the Agreement and these policies to qualify for bonuses and commissions. So long as an Affiliate complies with the terms of the Agreement and these policies, Freefilliate shall pay commissions to such Affiliate in accordance with the Compensation Plan. The minimum amount for which Freefilliate will issue a commission payment is $25.00. If an Affiliate’s bonuses and commissions do not equal or exceed $25.00, the Company will accrue the commissions and bonuses until they total $25.00. Commissions will be issued once $25.00 has been accrued via check, paycard or direct deposit.
7.2 – Commission Payments and Promotions
7.2.1 – Payments, Calculations, and Bonuses
Commissions on Freefilliate products are 50%. Commission reports will be provided to Affiliates on-line, via web access. Commissions will be paid in the first 7 days of the month for all previous month’s earnings.
7.2.2 – Promotions
Promotions are determined based on business organization and sales activity for each applicable period.
7.3 – Adjustment to Bonuses and Commissions
7.3.1 – Adjustments for Returned Products
Affiliates receive bonuses and commissions based on the actual enrollment for services to merchants. When a service is cancelled and refund is authorized by the Company, the bonuses and commissions attributable to the refunded service(s) will be deducted in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered from the Affiliates who received bonuses and commissions on the sales of the refunded service(s).
7.4 – Unclaimed Commissions and Credits
7.4.1 – Affiliates must deposit or cash commission and bonus checks within six months from their date of issuance. A check that remains uncashed after six months will be void. There shall be a $25.00 charge for reissuing a check. These charges shall be deducted from the balance owed to the Affiliate.
7.5 – Reports
All information provided by Freefilliate in online or telephonic Downline Activity Reports, including but not limited to personal and group sales volume (or any part thereof), and Downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors, including the inherent possibility of human and mechanical error; the accuracy, completeness and timeliness of orders; denial of credit card and electronic check payments; returned products; and credit card and electronic check charge-backs, the information is not guaranteed by Freefilliate or any persons creating or transmitting the information. All personal and group sales volume information is provided “as is” without warranties, expressed or implied, or representations of any kind whatsoever. In particular, but without limitation, there shall be no warranties of merchantability, fitness for a particular use or non-infringement.
To the fullest extent permissible under applicable law, Freefilliate and/or other persons creating or transmitting the information will in no event be liable to any Affiliate or anyone else for any direct, indirect, consequential, incidental, special or punitive damages that arise out of the use of or access to personal and group sales volume information (including but not limited to lost profits, bonuses, or commissions, loss of opportunity and damages that may result from inaccuracy, incompleteness, inconvenience, delay or loss of the use of the information), even if Freefilliate or other persons creating or transmitting the information shall have been advised of the possibility of such damages. To the fullest extent permitted by law, Freefilliate or other persons creating or transmitting the information shall have no responsibility or liability to you or anyone else under any tort, contract, negligence, strict liability, products liability or other theory with respect to any subject matter of this agreement or terms and conditions related thereto.
Access to and use of Freefilliate’s online reporting services and your reliance upon such information is at your own risk. All such information is provided to you “as is.” If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to Freefilliate’s online reporting services and your reliance upon the information.
SECTION 8 – RETURNS AND SALES AIDS REPURCHASE
8.1 – Retail Sales and Customer Returns
Retail sales to the customer are the foundation of the Freefilliate business. The entire commission structure is based upon retail sales referred by the individual Affiliate as well as their entire organization.
Freefilliate offers all customers a 30-day 100% money back guarantee review period on product purchases. Refunds will be initiated within 3 business days. Depending upon your card issuing institution you should see a credit within 7-10 business days thereafter.
To change or cancel your membership, please click on the top right icon to pull up the dropdown menu and select billing. Then click manage on the monthly subscription you’d like to change. There you will be able to change cards, upgrade, downgrade, or cancel.
NOTE: If an Affiliate returns more than $500.00 in products in any twelve (12) consecutive month period, it shall constitute the Affiliate’s request to cancel his or her Affiliate Agreement.
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 – Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures or any illegal, fraudulent, deceptive or unethical business conduct by an Affiliate may result, at Freefilliate’s discretion, in one or more of the following corrective measures:
• Issuance of a written warning or admonition;
• Requiring the Affiliate to take immediate corrective measures;
• Imposition of a fine, which may be withheld from bonus and commission checks;
• Loss of rights to one or more bonus and commission checks;
• The withholding from an Affiliate of all or part of the Affiliate’s bonuses and commissions during the period that Freefilliate is investigating any conduct allegedly in violation of the Agreement. If an Affiliate’s business is canceled for disciplinary reasons, the Affiliate will not be entitled to recover any commissions withheld during the investigation period;
• Suspension of the individual’s Affiliate Agreement for one or more pay periods;
• Involuntary termination of the offender’s Affiliate Agreement;
• Any other measure expressly allowed within any provision of the Agreement or that Freefilliate deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Affiliate’s policy violation or contractual breach; or
9.2 – Grievances and Complaints
When an Affiliate has a grievance or complaint with another Affiliate regarding any practice or conduct in relationship to their respective Freefilliate businesses, the complaining Affiliate should first report the problem to his or her sponsor, who should review the matter and try to resolve it with the other party’s Upline sponsor. If the matter cannot be resolved, it must be reported in writing to the Company. The Company will review the facts and determine if a policy violation has occurred and take appropriate action.
9.3 – Arbitration
Any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association or other recognized arbitration service, under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Affiliates waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in the County of Orange, California, unless the laws of the state in which an Affiliate resides expressly require the application of its laws, in which case the arbitration shall be held in the capital of that state. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions, with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel that the American Arbitration Panel provides. The prevailing party shall be entitled to receive from the losing party, OR each party to the arbitration shall be responsible for its own, costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement.
Nothing in these Policies and Procedures shall prevent Freefilliate from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction or other relief available to safeguard and protect Freefilliate’s interest prior to, during or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
9.4 – Governing Law, Jurisdiction and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside in Cook County, State of Illinois. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Illinois shall govern all other matters relating to or arising from the Agreement.
9.4.1 – Louisiana Residents: Notwithstanding the foregoing, Louisiana residents may bring an action against the Company with jurisdiction and venue as provided by Louisiana law.
SECTION 10 – INACTIVITY AND CANCELLATION
10.1 – Effect of Cancellation
So long as an Affiliate remains active and complies with the terms of the Affiliate Agreement and these Policies and Procedures, Freefilliate shall pay commissions to such Affiliate in accordance with the Compensation Plan. An Affiliate’s bonuses and commissions constitute the entire consideration for the Affiliate’s efforts in generating sales and all activities related to generating sales (including building a Downline Organization). Following an Affiliate’s termination for inactivity, or voluntary or involuntary termination of his or her Affiliate Agreement (all of these methods are collectively referred to as “termination”), the former Affiliate shall have no right, title, claim or interest to the marketing organization that he or she operated, or any commission or bonus from the sales generated by the organization. An Affiliate whose business is terminated will lose all rights as an Affiliate. This includes the right to sell Freefilliate products and services and the right to receive future commissions, bonuses or other income resulting from the sales and other activities of the Affiliate’s former Downline sales organization. In the event of termination, Affiliates agree to waive all rights they may have, including but not limited to property rights, to their former Downline organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former Downline organization.
Following a Affiliate’s termination of his or her Affiliate Agreement, the former Affiliate shall not hold himself or herself out as a Freefilliate Affiliate. A Affiliate whose Affiliate Agreement is terminated shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary termination).
10.2 – Involuntary Termination
An Affiliate’s violation of any of the terms of the Agreement, including any amendments that may be made by Freefilliate in its sole discretion, may result in any of the sanctions listed above, including the involuntary termination of his or her Affiliate Agreement. Cancellation shall be effective on the date on which notice is mailed, faxed or delivered to an express courier to the Affiliate’s last known address (or fax number), email address on file, or to his or her attorney, or when the Affiliate receives actual notice of termination, whichever occurs first.
10.3 – Voluntary Termination
An Affiliate has a right to cancel, at any time, regardless of reason. Affiliates can terminate by canceling in the backoffice or emailing email@example.com. Affiliates who have resigned may re-apply to become an Affiliate with Freefilliate after 6 months. An Affiliate’s position is subject to termination due to inactivity (i.e., merchant enrollments, no commissions, no sponsoring; and no attendance at any Freefilliate functions, participation in any other form of Affiliate activity, or operation of any other Freefilliate business) after being inactive for 6 full calendar months.
10.4 – Non-Renewal
An Affiliate may also voluntarily cancel his or her Affiliate Agreement by failing to maintain the Agreement annually. The Company may also elect not to renew an Affiliate’s Agreement.
10.5- Complete Agreement
These Policies and Procedures, any and all modifications made by the Company, along with the Terms and Conditions and the Compensation Plan make up the entire agreement between Affiliate and Company.