STATEMENT OF POLICIES AND PROCEDURES
Effective September 1, 2015
SECTION 1 – INTRODUCTION
1.1 Code Of Ethics
1.2 Policies Incorporated Into IA Agreement
1.3 Changes To The IA Agreement, Policies And Procedures, Or Compensation Plan
1.5 Policies And Provisions Severable
SECTION 2 –BECOMING AN IA
2.1 Requirements To Become An IA
2.2 New IA Registration By Internet or Facsimile
2.3 IA Benefits
2.4 Term And Renewal Of a DS Domination Business
SECTION 3 – INCOME DISCLOSURE POLICY
SECTION 4 – ADVERTISING
4.1 Adherence To The DS Domination Compensation Plan
4.2 Use Of Sales Aid
4.3 Intellectual Property
4.4 Web Policy
4.5 Advertised Price
4.6 Generic Business Advertisements
4.7 Media And Media Inquiries
4.8 Unsolicited Email And Fax Communication
SECTION 5 –OPERATING A DS Domination BUSINESS.
5.1 - Business Entities
5.1.1 Changes to a Business Entity
5.1.2 Change of Sponsor
5.1.3 Change of Placement
5.2 Unauthorized Claims And Action
5.2.2 Endorsement of DS Domination Services
5.3.2 Sale of Competing Goods Or Services
5.3.3 Targeting Other Direct Sellers
5.3.4 Privacy and Confidentiality
5.3.5 The Data Management Rule
5.4 Cross Sponsoring
5.5 Governmental Approval Or Endorsement
5.7 Income Taxes
5.8 Independent Contractor Status
5.9 Bonus Buying
5.11 One DS Domination Business Per IA
5.13 Sale, Transfer, Or Assignment Of A DS Domination Business
5.14 Separation Of A DS Domination Business
6 RESPONSIBILITIES OF IAs
6.1 Change Of Address, Telephone No., Email-Address
6.2 Sponsoring IA Responsibilities
6.2.1 Initial Training
6.2.2 Ongoing Training Responsibilities
6.4 Reporting Policy Violations
7 AUTOMATIC BILLING
8 BONUSES AND REFUND POLICY
8.1 Bonus And Commission Qualifications
8.2 Errors Or Questions
8.3 Bonus Buying Prohibited
8.5 Refund Policy
9 DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
11.1 Disciplinary Sanctions
11.4 Governing Law, Jurisdiction, And Venue
10 EFFECT OF CANCELLATION
10.1 Effect Of Cancellation And Termination
STATEMENT OF POLICIES AND PROCEDURES
Effective September 1, 2015
SECTION 1 – INTRODUCTION
1.1 - Code of Ethics
DS Domination (hereafter “DS Domination” or “the Company”) is a values-based company that prides itself on the quality and character of its Independent Affiliates (hereinafter “IA”). The following guidelines help ensure a uniform standard of excellence throughout our organization. Every DS Domination IA is expected to practice the following ethical behavior when acting in the name of the company:
A. I will be respectful of every person I meet while doing DS Domination related business.
B. At all times I will conduct myself and my business in an ethical, moral, legal, and financially sound manner.
C. I will not engage in activities that would bring disrepute to DS Domination, any DS Domination corporate officer or employee, myself, or other IAs.
D. I will not make discouraging or disparaging claims toward other DS Domination IAs. I will ensure that in all DS Domination business dealings I will refrain from engaging in negative language. I will refrain from making any type of slanderous statements.
E. I will abide by all of DS Domination’s Policies & Procedures now and as they may be amended in the future.
1.2 - Policies Incorporated Into IA Agreement
These Policies and Procedures (“Policies”), in their present form and as amended at the sole discretion of DS Domination, are incorporated into, and form an integral part of, the DS Domination IA Agreement (hereafter “IA Agreement”). Throughout these Policies, when the term “Agreement” is used, it collectively refers to the DS Domination IA Agreement, these Policies, and the DS Domination Compensation Plan. These documents are incorporated by reference into the IA Agreement (all in their current form and as amended by DS Domination). It is the responsibility of each IA to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies. When sponsoring a new IA, it is the responsibility of the sponsoring IA to provide the most current version of these Policies and Procedures prior to his or her execution of the IA Agreement.
1.3 - Changes to the IA Agreement, Policies and Procedures, or Compensation Plan
Because federal, state, and local laws, as well as the business environment, periodically change, DS Domination reserves the right to amend the Agreement in its sole and absolute discretion. This applies to all provisions in the Agreement with the exception of the dispute resolution provisions found in Section 9. Those terms must be modified via mutual consent. Notification of amendments shall appear in Official DS Domination Materials. Amendments shall be effective upon publication in Official DS Domination Materials, including but not limited to, posting on DS Domination’s website, e-mail distribution, publication in DS Domination’s newsletter, product inserts, or any other commercially reasonable method. The continuation of an IA’s DS Domination business or an IA’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.
1.4 - Delays
DS Domination shall not be responsible for delays and 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, flood, death, curtailment of a party’s source of supply, or government decrees or orders.
1.5 –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.
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 DS Domination to exercise any right or power under the Agreement or to insist upon strict compliance by an IA 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 DS Domination’s right to demand exact compliance with the Agreement. Waiver by DS Domination can be effectuated only in writing by an authorized officer of the Company.
SECTION 2 – BECOMING AN IA
2.1 - Requirements to Become an IA
To become a DS Domination IA, each applicant must:
A. Be of the age of majority in his or her state of residence;
B. Reside in the United States or other countries, which have been officially opened by DS Domination;
C. Have a valid Social Security Number or Federal Tax Identification Number;
D. Submit a properly completed and signed IA Agreement to DS Domination via electronically or fax.
2.2 - New IA Registration by the Internet
A prospective IA may enroll on the sponsor’s website. In such event, instead of a physically signed IA agreement, DS Domination will accept the agreement by accepting the “electronic signature” stating the new IA has accepted the terms and conditions of the IA Agreement. Please note that such electronic signature constitutes a legally binding agreement between the IA and DS Domination.
2.3 - IA Benefits
Once an IA Agreement has been accepted by DS Domination, the benefits of the Compensation Plan and the IA Agreement are available to the new IA. These benefits include the right to:
A. Sell DS Domination products;
B. Participate in the DS Domination Compensation Plan (receive bonuses and commissions, if eligible);
C. Sponsor other individuals as customers or IAs into the DS Domination business and thereby build an organization and progress through the DS Domination Compensation Plan;
D. Receive periodic DS Domination literature and other DS Domination communications;
E. Participate in DS Domination-sponsored support service training, motivational and recognition functions; and
F. Participate in promotional and incentive contests and programs sponsored by DS Domination for its IAs.
2.4 –Terms and Renewal of a DS Domination Business
An IA must renew their IA status annually by way of their continued participation in the program.
Any IA terminated by DS Domination may not re-apply to do business for 12 months from their termination date.
The downline of the expired IA will roll up to the immediate, active upline sponsor.
SECTION 3 – INCOME DISCLOSURE POLICY
In an effort to conduct best business practices, DS Domination has developed the Income Disclosure Statement (“IDS”). The DS Domination IDS is designed to convey truthful, timely, and comprehensive information regarding the income that DS Domination IAs earn. In order to accomplish this objective, a copy of the IDS must be presented to all prospective IAs.
A copy of the IDS must be presented to a prospective IA (someone who is not a party to a current DS Domination IA Agreement) anytime the Compensation Plan is presented or discussed, or any type of income claim or earnings representation is made.
The terms “income claim” and/or “earnings representation” (collectively “income claim”) include: (1) statements of average earnings, (2) statements of non-average earnings, (3) statements of earnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of “statements of non-average earnings” include, “Our number one IA earned over a million dollars last year” or “Our average ranking IA makes five thousand per month.” An example of a “statement of earnings ranges” is “The monthly income for our higher ranking IAs is ten thousand dollars on the low end to thirty thousand dollars a month on the high end.”
In any meeting that is open to the public in which the Compensation Plan is discussed or any type of income claim is made, you must provide every prospective IA with a copy of the IDS. Copies of the IDS may be printed or downloaded without charge from the company website at www.dsdomination.com/IDS.
SECTION 4 – ADVERTISING
4.1 - Adherence to the DS Domination Compensation Plan
IAs must adhere to the terms of the DS Domination Compensation Plan as set forth in Official DS Domination Materials. IAs shall not offer the DS Domination opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically stated in Official DS Domination Materials. IAs shall not require or encourage other current or prospective customers or IAs to participate in DS Domination in any manner that varies from the program as set forth in Official DS Domination Materials. IAs shall not require or encourage other current or prospective customers or IAs to execute any agreement or contract other than official DS Domination agreements and contracts in order to become a DS Domination IA. Similarly, IAs shall not require or encourage other current or prospective customers or IAs to make any purchase from, or payment to, any individual or other entity to participate in the DS Domination Compensation Plan other than those purchases or payments identified as recommended or required in Official DS Domination Materials.
4.2 - Use of Sales Aids
To promote both the services and the opportunity DS Domination offers, IAs must use the sales aids and support materials produced by DS Domination. If DS Domination IAs develop their own sales aids and promotional materials (which includes Internet advertising), notwithstanding IAs’ good intentions, they may unintentionally violate any number of statutes or regulations affecting a DS Domination business. These violations, although they may be relatively few in numbers, could jeopardize the DS Domination opportunity for all IAs. Accordingly, IAs must submit all written sales aids, promotional materials, advertisements, websites and other literature to the Company for Company’s approval prior to use. Unless the IA receives specific written approval to use the material, the request shall be deemed denied. All IAs shall safeguard and promote the good reputation of DS Domination and its services. The marketing and promotion of DS Domination, the DS Domination opportunity, the Compensation Plan, and DS Domination services shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.
4.3 -Intellectual Property
DS Domination will not allow the use of its trade names, trademarks, designs, or symbols outside of corporate produced and approved sales aids by any person, including DS Domination IAs, without prior written authorization from DS Domination. Furthermore, no IA may use, publish, reproduce, advertise, sell, or display in any manner the name, picture or likeness, or voice of another IA without prior written consent from the named IA. This consent must be on file with DS Domination’s Compliance department prior to any use.
4.4 –Web Policy
If an IA desires to utilize an Internet web page to promote his or her business, he or she may do so through Company authorized services only.
It is your obligation to ensure your online marketing activities are truthful, are not deceptive and do not mislead customers or potential IAs in any way. Websites and web promotion activities and tactics that mislead or are deceptive, regardless of intent, will not be allowed. This may include representation in any manner that you are an authorized representative for DS Domination, spam linking (or blog spam), unethical search engine optimization (SEO) tactics, misleading click-through ads (i.e., having the display URL of a PPC campaign appear to resolve to an official DS Domination Corporate Site when it goes elsewhere), unapproved banner ads, and unauthorized press releases. DS Domination will be the sole determinant of truthfulness as to whether specific activities are misleading or deceptive.
B. Domain Names, email Addresses and Online Aliases
You cannot use or register domain names, email addresses, and/or online aliases that could cause confusion, or be misleading or deceptive, in that they cause individuals to believe or assume the communication is from, or is the property of DS Domination by showing up as the sender of an email.
Examples of the improper use include but are not limited to:
firstname.lastname@example.org; www.DSDominationdirect.com; www.facebook.com/DSDomination or derivatives as described herein.
Examples of permitted URLs, email addresses, and online aliases might appear as follows: facebook.com/iloveDSDomination; johnsmith@DSDominationaffiliate.net.
Determinations as to what could cause confusion, mislead or be considered deceptive is at the sole discretion of DS Domination. If you have a question whether your chosen name is acceptable, you may submit it to compliance@DSDomination.com for review before use.
C. Approved IA Websites
The term IA Website refers to the IA website offered by DS Domination or an approved vendor to affiliates. The term Social Media website refers to any site that is not specifically prohibited within the terms and conditions of this Agreement, such as Facebook.com, MySpace.com, Twitter.com, YouTube.com, personal blogs or other personal websites.
D. Online Marketing
Approved IA websites are intended to provide the IAs with the tools and means for generating leads, prospecting business, communicating with others, selling products and services, and otherwise advancing your DS Domination business. You may not sell DS Domination services on any other online retail store or e-commerce site, nor may you enlist or knowingly allow a third party (customer) to sell DS Domination products on any online retail store or ecommerce site.
Social Media sites such as Facebook may also be used to promote your DS Domination business. You must provide approved DS Domination links to your IA replicated website for sales and order processing. All online sales of DS Domination products must take place and be produced through the IA Replicated website (or corporate site).
E. Banner Advertising
You may place banner advertisements on a website provided you use DS Domination-approved templates and images. All banner advertisements must link to your IA Website. You may not use blind ads or web pages that make non-compliant product or income claims that are ultimately associated with DS Domination products or the DS Domination business opportunity.
F. Social Networking Sites
You may use social networking websites (Facebook, Twitter, LinkedIn, blogs, forums and other social shared interest sites) to share information about the DS Domination product, mission and business opportunity and for prospecting and sponsoring. However, these sites may not be used to sell or offer to sell specific DS Domination services.
Profiles you generate in any social community where you mention or discuss DS Domination must clearly identify you as a DS Domination IA and must appear as described herein. When you participate in those communities you must avoid inappropriate conversations, comments, images, video, audio, applications or any other adult, profane, discriminatory or vulgar content. The determination of what is inappropriate is at DS Domination’s sole discretion, and offending IAs will be subject to disciplinary action and/or termination.
You agree that you will immediately take down a non-compliant site at the request of DS Domination. Appeals regarding compliance may be submitted after the site has been taken down. Appeals should be directed to the email address set forth in the policy addressing dispute resolutions.
G. Sponsored Links / Pay-Per-Click (PPC) Ads
Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to your IA Website. The display URL must also be to your IA Website and must not portray any URL that could lead the user to assume they are being led to an DSD Corporate site, or be inappropriate or misleading in any way.
H. External Websites
You are allowed external websites to promote your DS Domination business and the DS Domination opportunity. If you wish to use an external website you must do the following:
a) Identify yourself as an IA for DS Domination.
b) Use only the approved images and wording authorized by DS Domination.
c) Adhere to the branding, trademark, and image usage policies described in this document.
d) Agree to modify your website to comply with current or future DS Domination policies.
You are solely responsible and liable for your own website content, messaging, claims, and information and must ensure your website appropriately represents and enhances the DS Domination brand and adheres to all DS Domination guidelines and policies. Additionally, your website must not contain disingenuous popup ads or promotions or malicious code. Decisions and corrective actions in this area are at DS Domination’s sole discretion. You are encouraged to use the approved DS Domination images that are available through the business suite.
K. DS Domination IA Image Mandate
When using a Social Media or external website it must contain:
a) A DS Domination IA Logo from the approved templates.
b) Your Name and Title (example: Joan Arc, Independent Affiliate, DS Domination).
c) A link to your IA Replicated website.
Although DS Domination brand themes and images are desirable for consistency, anyone landing on your page needs to clearly understand that they are at an IA site, and not a DS Domination Corporate page.
You may not advertise any of DS Domination’s services at a price LESS than the highest company published price of the equivalent service. No special enticement advertising is allowed. This includes but is not limited to offers of free membership or other such offers that grant advantages beyond those available through the Company.
4.6 - Generic Business Advertisements
If you advertise via newspaper or other advertising venues, the following rules apply:
A. No advertisement may imply that a job, position, salary, or any type of employment is allowed.
B. No advertisement may promote, represent, or imply salaried positions, management positions, hourly wages, full or part-time employment, or guaranteed incomes. The DS Domination opportunity is not a job, and may not be presented as such. Terms such as “manager trainee,” “management positions available,” “travel provided,” “call for interview,” “positions available,” “now hiring,” and other misleading statements are not allowed.
C. No specific income can be promised or implied, and any references to compensation must use the word “commissions” to indicate the independent contractor status of IAs.
D. Advertisements may not contain references to DS Domination or its services and may not use any of DS Domination’s trademarks or trade-names.
Any requests for variances from the above rules must be submitted to DS Domination and approved in writing prior to publication. Please direct any inquiries to email@example.com.
4.7 -Media and Media Inquiries
IAs must not initiate any interaction with the media or attempt to respond to media inquiries regarding DS Domination, its services, or their independent DS Domination business. All inquiries by any type of media must be immediately referred to DS Domination’s Compliance department. This policy is designed to ensure that accurate and consistent information is provided to the public, as well as a proper public image.
4.8- Unsolicited Email and Fax Communication
DS Domination does not permit IAs to send unsolicited emails unless such emails strictly comply with applicable laws and regulations, including, without limitation, the federal CAN SPAM Act. Any email sent by an IA that promotes DS Domination, the DS Domination opportunity, or DS Domination services, must comply with the following:
A. There must be a functioning return email address to the sender.
B. There must be a notice in the email that advises the recipient that they may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning “opt-out” notice).
C. The email must include the IA’s physical mailing address.
D. The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
E. The use of deceptive subject lines and/or false header information is prohibited.
F. All opt-out requests, whether received by email or regular mail, must be honored. If an IA receives an opt-out request from a recipient of an email, the IA must forward the opt-out request to the Company. DS Domination may periodically send commercial emails on behalf of IAs. By entering into the IA Agreement, the IA agrees that the Company may send such emails and that the IA’s physical and email addresses will be included in such emails as outlined above. IAs shall honor opt-out requests generated as a result of such emails sent by the Company. Except as provided in this section, IAs may not use or transmit unsolicited faxes or use an automatic telephone dialling system relative to the operation of their DS Domination businesses.
SECTION 5 – OPERATING A DS DominationBUSINESS.
5.1 - Business Entities
A corporation, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be an DSD IA by submitting an DSD IA Application and Agreement along with its Certificate of Incorporation, Articles of Organization, Partnership Agreement or trust documents (these documents are collectively referred to as the “Entity Documents”) to DS Domination. A DS Domination business may change its status under the same Sponsor from an individual to a partnership, corporation or trust or from one type of entity to another. To do so, the IA(s) must provide the Entity Documents to DS Domination. The IA Application must be signed by all of the shareholders, partners or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to DS Domination.
5.1.1 - Changes to a Business Entity
Each IA must immediately notify DS Domination of any changes to the type of business entity they utilize in operating their DS Domination business, and the addition or removal of business associates. A DS Domination business may change its status under the same sponsor from an individual to a partnership, corporation or trust, or from one type of entity to another. The IA Agreement form must be signed by all of the shareholders, partners, or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to DS Domination.
5.1.2 - Change Of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all IAs, DS Domination rarely allows changes in sponsorship, with the rare exception of direct line changes (meaning placement is not affected). A direct line change request must be made by submitting a completed Sponsor Change Request Form within a seven (7) day period from the date of enrollment, and must come from the current listed sponsor.
5.1.3 - Change Of Placement
A request for change of placement must be submitted within seven (7) days of the date of enrollment and must be requested by the current listed sponsor. An IA can only be moved inside of the same sponsor’s organization. If approved, an IA is placed in the first available open bottom position on the date that the change is made. IAs who have earned commissions or achieved rank are not eligible for placement changes. Please note that decisions made for any change request (sponsor or placement) are at the sole discretion of DS Domination.
5.2 - Unauthorized Claims and Action
5.2.1 - Indemnification
An IA is fully responsible for all of his or her verbal and/or written statements made regarding DS Domination services and the Compensation Plan, which are not expressly contained in Official DS Domination Materials. IAs agree to indemnify DS Domination and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by DS Domination as a result of the IA’s unauthorized representations or actions. This provision shall survive the cancellation of the IA Agreement.
5.2.2 –Endorsements of DS Domination Services
No claims as to any services offered by DS Domination may be made except those contained in Official DS Domination Materials.
5.3 - Conflicts
5.3.1 – Nonsolicitations
DS Domination IAs are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “Network Marketing”).However, during the term of this Agreement, IAs may not directly or indirectly recruit other DS Domination IAs or Customers other than those they have personally sponsored for any other Network Marketing business. Following the cancellation of an IA Agreement, and for a period of one (1) calendar year thereafter, with the exception of an IA who is personally sponsored by the former IA, a former IA may not recruit any DS Domination IA or Customer for another Network Marketing business.
5.3.2 - Sale of Competing Goods or Services
During this agreement and for six months thereafter, IAs must not sell, or attempt to sell, any competing non-DS Domination programs or services to DS Domination Customers or IAs. Any program, product, service, or direct selling opportunity in the same generic categories as the DS Domination services are deemed to be competing, regardless of differences in cost, quality or other distinguishing factors.
5.3.3 - Targeting Other Direct Sellers
Should IAs engage in solicitation and/or enticement of members of another direct sales company to sell or distribute DS Domination services, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against an IA alleging that they engaged in inappropriate recruiting activity of its sales force or Customers, DS Domination will not pay any of IA’s defence costs or legal fees, nor will DS Domination indemnify the IA for any judgment, award, or settlement.
5.3.4 - Privacy and Confidentiality
5.3.5- The Data Management Rule
The Data Management Rule is intended to protect the Line of Sponsorship (LOS) for the benefit of all IAs, as well as DS Domination. LOS information is information compiled by DS Domination that discloses or relates to all or part of the specific arrangement of sponsorship within the DS Domination business, including, without limitation, IA lists, sponsorship trees, and all IA information generated in its present and future forms. The DS Domination LOS, constitutes a commercially advantageous, unique, and proprietary trade secret (Proprietary Information), which it keeps proprietary and confidential and treats as a trade secret. DS Domination is the exclusive owner of all Proprietary Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by DS Domination and its IAs. Through this Rule, IAs are granted a personal, non-exclusive, non-transferable and revocable right by DS Domination to use Proprietary Information only as necessary to facilitate their business as contemplated under these Policies and Procedures. The Company reserves the right to deny or revoke this right, upon reasonable notice to the IA stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of DS Domination, such is necessary to protect the confidentiality or value of Proprietary Information. All IAs shall maintain Proprietary Information in strictest confidence, and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain the confidentiality thereof.
5.4 -Cross Sponsoring
Actual or attempted cross-group sponsoring is strictly prohibited. “Cross-group sponsoring” is defined as the enrollment, indirect or otherwise, of an individual or entity that already has a current customer number or IA Agreement on file with DS Domination, or who 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 Tax Identification Numbers or fictitious identification numbers to circumvent this policy is prohibited. This policy shall not prohibit the transfer of a DS Domination business in accordance with the “Sale, Transfer or Assignment of DS Domination Business” section of these Policies and Procedures.
5.5 -Governmental Approval or Endorsement
Neither federal nor state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, IAs shall not represent or imply that DS Domination or its Compensation Plan have been “approved,” “endorsed,” or otherwise sanctioned by any government agency.
All IAs are required to provide their Social Security Number, Federal Employer Identification Number, or their Government Issued ID Number to DS Domination either on the IA Agreement or at the company’s request. Upon enrollment, the Company will provide a unique IA Identification Number to the IA by which they will be identified. This number will be used to place orders and track commissions and bonuses.
5.7 - Income Taxes
Every year,DS Domination will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident as required by the Internal Revenue Service. Each IA is responsible for paying local, state and federal taxes on any income generated as an IA. If a DS Domination business is tax exempt, the Federal Tax Identification Number must be provided to DS Domination. Any IA that does not provide a valid social security number is subject to the federal backup withholding laws and 28% of their commissions and bonus will be withheld and submitted to the IRS.
5.8 - Independent Contractor Status
You are an independent contractor. You are not an agent, employee, partner, or joint venture with the Company. You may not represent yourself as anything other than an IA. You have no authority to bind DS Domination to any obligation. You are responsible for paying your own self-employment taxes, federal income taxes and other taxes required by law. You must obey any federal, state, and local laws, as well as Company rules and regulations pertaining to your independent DS Domination Business or the acquisition, receipt, holding, selling, distributing or advertising of DS Domination’s services or opportunity.
IAs may not answer the telephone by saying “DS Domination,” “DS Domination Incorporated,” or by any other manner that would lead the caller to believe that they have reached DS Domination’s corporate offices. An IA may only represent that he/she is a DS Domination IA. Therefore, all correspondence and business cards relating to or in connection with an IA’s DS Domination business shall contain the IA’s name followed by the term “IA.”
Paying the membership fees solely for the purpose of collecting bonuses or achieving rank is prohibited. There are no requirements for IAs to purchase any of the DS Domination services to qualify for commissions.
5.10 – Stacking
Stacking is the unauthorized manipulation of the DS Domination compensation system and/or the marketing plan in order to trigger commissions or cause a promotion off a downline IA in an unearned manner. One example of stacking occurs when a sponsor places participants under an inactive downline participant (who may not know or have any relationship with the clients) in order to trigger unearned qualification for commissioning. Another example of stacking is the manipulative placement of IAs within a downline organization in order to trigger a promotion. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the IA’s positions of all individuals found to be directly involved.
5.11 - One DS Domination Business per IA
An IA may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one DS Domination business. No individual may have, operate or receive compensation from more than one DS Domination business. Individuals of the same family unit may each enter into or have an interest in their own separate DS Domination businesses, only if each subsequent family position is placed frontline to the first family member enrolled. A “family unit” is defined as spouses and dependent children living at or doing business at the same address.
5.12 - Succession
Upon the death or incapacitation of an IA, their business may be passed to a designated heir(s). Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Whenever a DS Domination business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased IA’s marketing organization provided the following qualifications are met. The successor(s) must:
• Execute an IA Agreement;
• Comply with terms and provisions of the Agreement;
• Meet all of the qualifications for the deceased IA’s rank/status;
• Provide DS Domination with an “address of record” to which all bonus and commission checks will be sent. Bonus and commission checks of an DSD business transferred pursuant to this section will be paid in a single check jointly to the successor(s).
• Form a business entity and acquire a federal Taxpayer Identification Number, if the business is bequeathed to joint successors. DS Domination will issue all bonus and commission checks and one 1099 to the business entity.
5.13 - Sale, Transfer, or Assignment of a DS Domination Business
Although an DSD business is a privately owned, independently operated business, the sale, transfer or assignment of an DSD business is subject to certain limitations. If an IA wishes to sell their DS Domination business, the following criteria must be met:
A. Protection of the existing line of sponsorship must always be maintained so that the DS Domination business continues to be operated in that line of sponsorship;
B. The buyer or transferee must become a qualified DS Domination IA. If the buyer is an active DS Domination IA, they must first terminate their DS Domination business and wait six calendar months before acquiring any interest in the new DS Domination business;
C. Before the sale, transfer, or assignment can be finalized and approved by DS Domination, any debt obligations the selling IA has with DS Domination must be satisfied; and
D. The selling IA must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer, or assign a DS Domination business.
Prior to selling a DS Domination business, the selling IA must notify DS Domination’s Compliance department of their intent to sell the DS Domination business. No changes in line of sponsorship can result from the sale or transfer of a DS Domination business. An IA may not sell, transfer, or assign portions of their business—the position must be sold in its entirety.
5.14 - Separation of a DS Domination Business
DS Domination IAs sometimes operate their DS Domination businesses as husband-wife partnerships, regular partnerships, corporations, or trusts. At such time as a marriage may end in divorce or a corporation, partnership, or trust (the latter three entities are collectively referred to herein as “entities”) may dissolve, arrangements must be made to assure that any separation or division of the business 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 IAs and the Company in a timely fashion, DS Domination will involuntarily terminate the IA Agreement.
During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
A. One of the parties may, with consent of the other(s), operate the DS Domination business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners, or trustees authorize DS Domination to deal directly and solely with the other spouse or non-relinquishing shareholder, partner, or trustee.
B. The parties may continue to operate the DS Domination business jointly on a “business-as-usual” basis, whereupon all compensation paid by DS Domination will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above. The Company will never remove a party to a position from an IA account without that party’s written permission and signature. Under no circumstances will the downline organization of divorcing spouses or a dissolving business entity be divided. Under no circumstances will DS Domination split commission and bonus checks between divorcing spouses or members of dissolving entities. DS Domination will recognize only one downline organization and will issue only one commission check per DS Domination business per commission cycle. Commission checks shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the IA Agreement shall be involuntarily cancelled.
All Active IAs in good standing have the right to sponsor and enroll others into DS Domination. Each prospective customer or IA has the ultimate right to choose his or her own Sponsor. If two IAs claim to be the Sponsor of the same new IA or customer, the Company shall regard the first application received by the Company as controlling.
SECTION 6 – RESPONSIBILITIES OF IAs
6.1 - Change of Address, Telephone, Email-Address
To ensure timely communications, delivery of support materials and commission checks, it is critically important that the DS Domination’s files are current. IAs planning to move or change their email address must submit an amended IA Agreement complete with the new information.
6.2 – Sponsoring IA Responsibilities
6.2.1 – Initial Training
Any IA who sponsors another IA into DS Domination must perform a bona fide assistance and training function to ensure that their downline is properly operating their DS Domination business. IAs must provide the most current version of the Policies and Procedures, the Income Disclosure Statement, and Compensation Plan to individuals whom they are sponsoring to become IAs before the applicant signs an IA Agreement.
6.2.2 – Ongoing Training Responsibilities
IAs must monitor the IAs in their downline organizations to ensure that downline IAs do not make improper product or business claims, or engage in any illegal or inappropriate conduct. Upon request, every IA should be able to provide documented evidence to DS Domination of their ongoing fulfilment of the responsibilities of a Sponsor.
6.3 – Nondisparagement
IAs must not disparage, demean, or make negative remarks about DS Domination, other DS Domination IAs, DS Domination’s services, the Compensation plan, or DS Domination’s owners, board members, directors, officers, or employees.
6.4 - Reporting Policy Violations
IAs observing a Policy violation by another IA should submit a written report of the violation directly to the attention of the DS Domination Compliance department, complete with all supporting evidence and pertinent information. It is important to understand that information that is submitted will be kept confidential.
SECTION 7 – AUTOMATIC BILLING
7.1 - Billing
The membership program is automatically renewed each month with a credit or debit card maintained on file with DS Domination. The IA may make adjustments to their monthly subscription in the back office of the DS Domination website.
SECTION 8 – BONUSES AND COMMISSIONS
8.1 - Bonus and Commission Qualifications
In order to qualify to receive commissions and bonuses, an IA must be in good standing and comply with the terms of the Agreement and these Policies and Procedures. An IA will qualify to receive commissions and bonuses so long as he/she produces one personal membership sale each month or maintains a personal membership in good standing for himself / herself. An IA is not required to maintain a personal membership but may do so if desired for purposes of this section.
8.2 - Errors or Questions
If an IA has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the IA must notify DS Domination in writing within 30 days of the date of the purported error or incident in question. DS Domination will not be responsible for any errors, omissions, or problems not reported to the Company within 30 days.
8.3 - Bonus Buying Prohibited
Bonus buying is strictly and absolutely prohibited. Bonus buying includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an IA Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as an IA or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as IAs or Customers (“phantoms”); (d) purchasing DS Domination services on behalf of another IA or Customer, or under another IA’s or Customer’s ID number, to qualify for commissions or bonuses; and/or (f) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.
8.4 - Reports
All information provided by DS Domination, including but not limited to personal sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments, an IA whose IA Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
A DS Domination participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address, or via email to DS Domination.
8.5 – Refund Policy
DS Domination offers a fifteen-day refund policy on all initial subscription orders. Due to the digital nature of the service and the immediacy of the benefits, DS Domination is not able to offer a period beyond this timeframe.
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 - Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive, or unethical business conduct, or any act or omission by an IA that, in the sole discretion of the Company, may damage its reputation or goodwill (such damaging act or omission need not be related to the IA’s DS Domination business), may result, at DS Domination’s discretion, in one or more of the following corrective measures:
• Issuance of a written warning or admonition;
• Requiring the IA 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;
• Withholding from an IA all or part of the IA’s bonuses and commissions during the period that DS Domination is investigating any conduct allegedly contrary to the Agreement. If an IA’s business is cancelled for disciplinary reasons, the IA will not be entitled to recover any commissions withheld during the investigation period;
• Suspension of the individual’s IA Agreement for one or more pay periods;
• Involuntary termination of the offender’s IA Agreement;
• Any other measure expressly allowed within any provision of the Agreement or which DS Domination deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the IA’s policy violation or contractual breach;
• Instituting legal proceedings for monetary and/or equitable relief. Each violation is reviewed on a case-by-case basis, and all disciplinary actions are at the sole discretion of DS Domination.
9.2 - Mediation
Prior to instituting arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least ten (10) days in advance of the mediation. Each party shall pay its own attorneys fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Cypress, Texas, and shall last no more than two (2) business days.
9.3 - Arbitration
If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by confidential arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. IAs waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Cypress, Texas. 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 which the American Arbitration Panel provides. 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.
NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.
Nothing in these Policies and Procedures shall prevent DS Domination 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 DS Domination’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 exclusively in Cypress, Texas. The Federal Arbitration Act shall govern all matters relating to arbitration. The laws of Texas shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision in this Agreement, residents of the State of Louisiana shall be entitled to bring an action against DS Domination in their home forum and pursuant to Louisiana law.
SECTION 10 – EFFECT OF CANCELLATION
10.1- Effect of Cancellation and Termination
So long as an IA remains active and complies with the terms of the IA Agreement and these Policies, DS Domination shall pay commissions to such IA in accordance with the Compensation Plan. An IA’s bonuses and commissions constitute the entire consideration for the IA’s efforts in generating sales and all activities related to generating sales (including, but not limited to, building a downline organization). Following an IA’s non-continuation of his or her IA Agreement, cancellation for inactivity, or voluntary or involuntary cancellation (termination) of his or her IA Agreement (all of these methods are collectively referred to as “Cancellation”), the former IA shall have no right, title, claim or interest to the downline organization which he or she operated, or any commission or bonus from the sales generated by the organization. IAs waive any and all rights, including, but not limited to, property rights, in the downline which they may have had. Following an IA’s cancellation of his or her IA Agreement, the former IA shall not hold him or herself out as a DS Domination IA and shall not have the right to sell DS Domination products or services. An IA whose IA Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
A DS Domination participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address, or via email to DS Domination. The written notice must include the IA’s signature, printed name, address, and IA ID Number.
An IA may also voluntarily cancel their IA Agreement by failing to pay the renewal fee. IAs have a 60 day grace period to get back into compliance for failure to pay the administrative fee.
SECTION 11 – DEFINITIONS
AGREEMENT: The contract between the Company and each IA; includes the IA Agreement, the DS Domination Policies and Procedures, and the DS Domination Compensation Plan, all in their current form and as amended by DS Domination in its sole discretion. These documents are collectively referred to as the “Agreement.”
CANCEL: The termination of an IA’s business. Cancellation may be either voluntary, involuntary, or through non-renewal.
COMPENSATION PLAN: The guidelines and referenced literature for describing how IAs can generate commissions and bonuses.
CUSTOMER: A Customer who purchases DS Domination services and does not engage in building a business or selling the service.
INDEPENDENT AFFILIATE: An individual, who purchases product, generates sales and business building commissions.
LINE OF SPONSORSHIP (LOS): A report generated by DS Domination that provides critical data relating to the identities of IAs, sales information, and enrollment activity of each IA’s organization. This report contains confidential and trade secret information which is proprietary to DS Domination.
ORGANIZATION: The Customers and IAs placed below a particular IA.
OFFICIAL DS Domination MATERIAL: Literature, audio or video tapes, and other materials developed, printed, published, and distributed by DS Domination to IAs.
PLACEMENT: Your position inside your Sponsor’s organization.
RECRUIT: For purposes of DS Domination’s Conflict of Interest Policy, the term “Recruit” means the actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another DS Domination IA or Customer to enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.
SPONSOR: An IA who enrolls a Customer or another IA into the Company, and is listed as the Sponsor on the IA Agreement. The act of enrolling others and training them to become IAs is called “sponsoring.”
UPLINE: This term refers to the IA or IAs above a particular IA in a sponsorship line up to the Company. It is the line of sponsors that links any particular IA to the Company.