Policies and Procedures

This document was published on 2nd July 2018, and is effective as of 1st August 2018.

1.1 Welcome

Welcome to Young Living! We are pleased that you have chosen to join the world leader in essential oils. We are dedicated to providing you with the very best products and a world-class home-based business.
Leading financial experts and business gurus agree that the home-based business sector is the wave of the future. The time you invest in becoming familiar with the Young Living business opportunity, including these Policies and Procedures, will make a significant difference in your business experience.
In these Policies and Procedures, Young Living Essential Oils, LC is referred to as Young Living; and you, the individual entering the Agreement (as defined below), is referred to as “you.” If you are a member, your personal member account along with the downline that you build is referred to as your sales organization.
The term “Sponsor” refers to a member’s immediate upline member. A member account is referred to as being “active” if the member enrolled as a new member and purchased 50 PV in product within the previous 12 months and is “inactive” if he/she has not.
The term “Enroller” is the Young Living member who enrolls a new member into Young Living. An individual can be enrolled only once in 12 months. If any member does not place a minimum order of 50 PV for 12 consecutive months, that member is considered inactive see section 12.1.1 for further details.

1.2 Purpose
The purpose of these Policies and Procedures is:

1.3 Policies and Compensation Plan Incorporated into the Member Agreement

Throughout these Policies and Procedures, whenever the term “Agreement” is used, it refers collectively to your Young Living Member Agreement (or simply “Member Agreement”), these Policies and Procedures, and the Young Living Compensation Plan, which includes the Terms and Definitions for the Compensation Plan (or simply, “Compensation Plan”). These documents are incorporated by reference into the Member Agreement in their current form and as amended by Young Living from time to time. It is your responsibility to read, understand, adhere to, and ensure that you are operating under the most current version of these Policies and Procedures, as found online at YoungLiving.com.

1.4 Ethics

You are required to abide by the following Code of Ethics in the operation of your sales organization and your opportunity to participate in the Young Living business. Violations of the Code of Ethics may result in disciplinary action.

Code of Ethics

1.5 Amendments/Acceptance

Young Living may amend the terms and conditions of the Agreement from time to time. The changes will become effective 30 days after first published by Young Living through official Young Living publications distributed to all active members (e.g., e-News) or posted on an official Young Living website. Amendments shall not apply retroactively to conduct that occurred prior to the effective date of the amendment.
By executing the Member Agreement, you agree to abide by all amendments or modifications that Young Living elects to make. If a member is not willing to accept these changes, Young Living must be notified in writing within the 30 days prior to the change being effective. Any continued business, ordering, acceptance of a commission or bonus payout, or any other benefit by a member pursuant to this Agreement constitutes acceptance of this Agreement in whole together with any and all amendments.

2.1 Requirements to Become a Member

To become a Young Living Malaysia member, you must meet the following requirements:

Young Living reserves the right, in its sole discretion, to reject your Member Agreement for any reason.

2.2 Member Agreement

You can submit your Member Agreement through mail, fax, or the Young Living website (YoungLiving.com). This application must be received within 30 days of your enrollment for you to receive member benefits. If the Member Agreement and other required documents are not received within 30 days (e.g., NRIC, Company Registration or Passport Copy), your member account will be placed on hold until the agreement is received.

2.3 Telephone Enrollment

You may enroll as a member over the phone. However, you must submit a completed Member Agreement that is received at the Young Living Malaysia office within 30 days of your telephone registration, as outlined in Section 2.2. If you are a retail customer, you may enroll over the telephone or via contract as required by local regulation. In the event that registration is made via telephone, you are required to submit the completed Member Agreement along with the required aforementioned documents to Young Living within 30 days of your telephone registration.

2.4 Web Applications

If you enroll on the Young Living website or on any Young Living-sponsored replicated website, you will need to submit a paper application along with other required documents by email / fax / web attachments within 30 days of the enrollment. While your sponsor may assist you in completing the online enrollment as a member, you must personally review and agree to the online Member Agreement, these Policies and Procedures, and the Compensation Plan.

3.1 Independent Contractor Status

As a Young Living member, you are an independent sales contractor and are not a purchaser of a franchise or business opportunity. The agreement between you and Young Living does not create an employer/employee relationship, agency, partnership, or joint venture. You will not be treated as an employee for your services or for tax purposes. You are responsible for paying local, state, and/or federal taxes due from all compensation earned as a member. You have no authority (expressed or implied) to bind Young Living to any obligation. You are encouraged to establish your own goals, hours, and methods of sale, as long as you comply with applicable laws and the terms and conditions of the Agreement.

3.2 Retail Customers, and Members

Individuals may join Young Living as retail customers, and members.
Retail customers can purchase product directly from Young Livingfor personal consumption but do not participate in the Young Living member organization or Compensation Plan. Retail customers are not required to sign a Member Agreement. Retail customers purchase products at the published retail price. Retail customers’ purchases apply toward their sponsor’s Organization Group Volume (OGV). Thus, orders placed by any retail customers will be included in the total sales volume for their sponsor’s sales organization. A retail customer may become a member at any time by completing the requirements outlined in Section 2.1.
Members purchase product from Young Living at the published wholesale price and have the potential of earning commissions and bonuses based on qualification and achievement rank, as outlined in the Compensation Plan.

3.3 Beneficial Interest in More than One Account and Duplicate Accounts

A member may operate or have an interest, legal or equitable, in only one member account, unless expressly permitted in this section. If Young Living finds that a member has unpermitted interest in multiple accounts, it will terminate the duplicate account(s), leaving only the member account created first. You are specifically prohibited from creating duplicate accounts in an attempt to change lines of sponsorship, manipulate the Compensation Plan, or circumvent the Agreement in any way.
You have a beneficial interest in more than one member account of you receive an interest in another account as an inheritance (either through a direct inheritance or as beneficiaries of a trust) from another member, you notify Young Living of the inheritance in writing (as specified in Sections 3.7 and 3.7.1), and Young Living approves of the transfer in writing. Young Living reserves the right, in it sole and absolute discretion and for any reason and at any time, to (1) deny you the option of owning an interest in your original account and an inherited account or (2) to deny you the right to earn the Generation and Diamond Leadership Bonuses on the inherited account (e.g., if Young Living determines you have not demonstrated the ability to operate two sales organization by failing to engage in leadership activities such as contacting and training your downlines, participation in meetings, increasing enrollments, and/or increasing PGV and OGV within the payment levels of your downline in the recent past). If Young Living denies you the right to have a beneficial interest in a second account that you received through inheritance, it may allow you a four -month grace period to sell your interest in one of your accounts. After that grace period the inherited account will be placed on hold or terminated.
Young Living strongly encourages and prefers that Members work together with their spouse/partner (one spouse if applicable) in building a single sales organization. However, due to divorce, separation, mutual agreement, etc., there may be an exception to this general rule. Beginning July 2, 2018, you and your spouse/partner may have separate accounts as long as the second account is sponsored as the first or second level to the other spouse’s account. Young Living will periodically audit these two account and may terminate the latter-created account if it is found. In Young Living’s sole discretion, that the latter-created account is used to manipulate the Compensation Plan, or the spouses are not complying with the 70% rule as outlined in Section 6.1. A joint sales organization will be treated as a joint tenancy with rights of survivorship.

3.4 Actions of Household Members or Affiliated Parties

If any individual in your immediate household engages in any activity which, if performed by you, would violate any provision of the Agreement, such activity will be deemed a violation by you; and Young Living may take disciplinary action against you pursuant to these Policies and Procedures. Similarly, if any individual associated in any way with a corporation, partnership, LLP,trust, or other entity (collectively “entity”) violates the Agreement, such action(s) will be deemed a violation by the entity; and Young Living may take disciplinary action against the entity. Likewise, if a member enrolls in Young Living as an entity, each affiliated party of the entity will be personally and individually bound to, and must comply with, the terms and conditions of the Agreement.

3.5 Actions of Upline Members

If any upline member encourages, aids, or supports a downline member in any activity which, if performed by the upline member, would violate any provision of the Agreement (e.g., creating duplicate accounts or cross-line recruiting), such activity will be deemed to be a violation by the upline member; and Young Living may take disciplinary action against that upline member pursuant to these Policies and Procedures. If such violations continue, Young Living reserves the right to terminate the upline member’s member account.

3.6 Corporations, Partnerships, Limited Liability Companies, and Trusts

A partnership, corporation, limited liability company, or trust may become a Young Living member by submitting to Young Living a partnership agreement, certificate of incorporation, articles/certificate of organization, or trust agreement for the entity. The registration form must indicate the names of all of the shareholders, officers, members, managers, partners, trustees, or directors of the entity (“affiliated parties”), or have such included with the submission to Young Living. The entity must demonstrate that no part or participant within the entity has participation in another sales organization because no individual may participate in more than one sales organization in any form. A member may change status under the same sponsor from individual to partnership or corporation by submitting the appropriate documentation mentioned above.
Young Living reserves the right to approve or disapprove any member’s change of business names, formation of partnerships, corporations, and trusts for tax, estate planning, and limited liability purposes. In addition, by submitting a copy of the certificate of partnership or incorporation or other substantiating documentation for the entity, it is certifying that no person with an interest in the new business entity has had an interest in another sales organization within six (6) months of the submission of the certificate (unless it is the continuation of an existing sales organization that is changing its form of doing business).

3.7 Sale, Transfer, or Assignment

You may sell, transfer, or assign (collectively “Transfer”) your entire downline organization by submitting a request to Young Living along with a $50 (MYR200) processing fee. For your request to be granted, the following criteria must be met:

Young Living reserves the right to approve or disapprove your request to Transfer your sales organization for any reason. You may not Transfer your sales organization to any person or entity without Young Living’s written approval.
Young Living does not waive any violations of the Agreement, even though a violation may have occurred under a prior owner of your sales organization. As a new owner of a preexisting sales organization, you may be responsible for violations of the Agreement made by the prior owner in connection with your sales organization. Any action that may be taken on a sales organization with the previous owner under Section 13.3 may carry over to you.

3.7.1 Succession
Upon your death or your incapacitation, the rights to commissions, bonuses, and your sales organization, together with all member responsibilities, may pass to your legal heir(s) or legal representative(s) (collectively “beneficiary”) if the terms of succession are met. Your beneficiary must present Young Living with proof of your death or incapacitation, along with appropriate legal documentation and a properly completed Member Agreement. If the transfer is approved, the beneficiary will be eligible to collect all future commissions and bonuses of your sales organization provided that he/she meets all of the qualifications necessary under the Compensation Plan. Member accounts acquired under succession will not receive the same recognition benefits of original member account owners who built the original organization; however, the beneficiary may earn recognition benefits as they fulfill the member responsibilities and continue to grow the member organization. If the beneficiary already has an existing sales organization, he/she will be subject to the terms in Section 3.4. Young Living reserves the right to approve or reject a succession transfer.

3.8 Separation of a Young Living Member Business
You may, with others, operate a single sales organization as a husband-wife partnership, regular partnership, corporation, or trust (the latter three entities are collectively referred to herein as “entities”). If your marriage ends in divorce or your entity dissolves, arrangements must immediately 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 business upline or downline of sponsorship. If divorcing spouses or a dissolving business entity fail to provide for the best interests of other members and Young Living, such actions will constitute a breach of the Agreement; and Young Living may terminate the Agreement pursuant to these Policies and Procedures.
During the proceedings of a divorce or entity dissolution, the divorcing spouses or a dissolving business entity must adopt one of the following methods of operation:

Young Living will not divide your sales organization with a divorcing spouse or with affiliate parties of a dissolving business. Similarly, Young Living will not split your commission or bonus checks between you and a divorcing spouse or affiliate parties of a dissolving entity. Young Living will recognize only one sales organization and will issue only one commission check per sales organization per commission cycle. Commission checks will always be issued to the same individual or entity, unless all parties to a sales organization agree that commissions will be due and paid to another party or by order of a court having jurisdiction over Young Living. If you have completely relinquished all of your rights as a former spouse or a former affiliate party to a sales organization, you are free to enroll as a new member under any sponsor of your choosing. However, in such case you will have no rights to any members or customers from your former sales organization. In that instance, you must develop the new business in the same manner as would any other new member.

3.9 Roll Up of Marketing Organization

When a vacancy occurs in the Young Living member organization due to the cancellation or termination of a member account, each member in the first level immediately below the terminated member on the date of the cancellation will “roll up,” which means to move to the first level (“front line”) of the terminated member’s sponsor. For example, A sponsors B, and B sponsors C1, C2, and C3. If B terminates her business, then C1, C2, and C3 will “roll up” to A and become part of A’s first level. Young Living also reserves the right, in its sole discretion, to sell the sales organization that has been canceled or terminated for inappropriate behavior.

3.10 Taxes

3.10.1 Income Taxes

You are responsible for complying with the tax laws in the jurisdiction where you reside. If you are a distributor and are resident in Malaysia you will be taxed as a self-employed individual on your Malaysia sourced income. As a self-employed distributor, it is your responsibility to file the appropriate tax returns and to make all payments of tax due in connection with your Young Living business. You must register with Inland Revenue as self-employed as soon as you register as a Young Living Distributor.
Young Living recommends that you seek the advice and assistance of a suitably qualified accountant or tax advisor for information regarding your personal tax obligations.
Any fines or penalties incurred by Young Living because of incorrect information provided to Young Living will be your responsibility; and you agree to reimburse Young Living for these costs.
Retail customers are not required to provide any tax information.

When a sales organization is owned by two or more individuals, taxes will be reported on the primary member’s tax number.

3.11 Deceptive Practices


3.11.1 Unauthorized Recruiting

3.11.1.1 Recruiting

During your membership with Young Living and after your membership has terminated, you may engage in other noncompeting business ventures; however, you may not take advantage of your knowledge of, or association with, other Young Living members, including your knowledge resulting from or relating to your upline and downline in order to promote and expand such other business ventures. Such conduct constitutes an unwarranted and unreasonable interference with the business of other members and Young Living.

3.11.1.2 Non-Solicitation
To qualify for compensation under Young Living’s Compensation Plan, you have the ongoing responsibility to help, educate, train, motivate, and assist the members in your sales organization. You also have the responsibility to promote Young Living products and the Young Living income opportunity. Young Living and its members have made a great investment in the establishment of organizations consisting of Retail Customers, Professional Account Customers, and Members, of which you will benefit. This constitutes one of Young Living’s most valuable assets. Young Living reserves the right to cease paying compensation to any member, including you, who recruits any Young Living retail customers professional account customers, or member to participate in a Competing Business Venture (defined below). To protect the efforts of all members in building and maintaining their sales organizations and Customer bases, and in order to protect Young Living’s interest and investment in the overall customer base, members and all members of their immediate household are required to abide by the following policies:

(a) Non-Solicitation of Young Living Retail Customers, Professional Account Customers and Members:

(i) During the period that this Agreement is in force, you and all members of your immediate household are prohibited from directly, indirectly, or through a third party, recruiting any Young Living retail customers, professional account customers, or member to participate in a Competing Business Venture, regardless of who initiates the contact.

(ii) For a period of twelve months after cancellation or termination for any reason of this Agreement, you and all members of your immediate household are prohibited from directly, indirectly, or through a third party, recruiting, regardless of who initiates the contact, any Young Living retail customers, professional account customers, or members to participate in a Competing Business Venture:

(1) who were in your sales organization or upline at any time during the term of his or her association with Young Living;
(2) with whom you had contact during the term of your association with Young Living;
(3) whose contact information (name, address, phone number or email address, etc.) you or members of your immediate household obtained at any time during the term of your association with Young Living; or
(4) whose contact information (name, address, phone number or email address, etc.) you or members of your immediate household obtained at any time from another person who obtained the information because of any other person’s association with Young Living.

As used herein, the term “Competing Business Venture” means any business venture offering a similar business opportunity or similar or alternative products or services to those offered by Young Living. The prohibitions under clauses (a)(i) and (a)(ii) above include but are not limited to presenting or assisting in the presentation of Competing Business Ventures to any Young Living retail customers, professional account customers, or member, and implicitly or explicitly encouraging any Young Living Retail Customers, Professional Account Customers or Member to join any Competing Business
Ventures that would detract from their relationship with Young Living (as determined by Young Living in its sole discretion). It is a violation of this policy to recruit any Young Living retail customers, professional account customers, or member to participate in a Competing

Business Venture even if you do not know that the prospect is also a Young Living retail customer, professional account customer, or member. It is you r responsibility to first determine whether the prospect is a Young Living retail customer, professional account customer, or member before recruiting the prospect to participate in a Competing Business Venture. As used herein the term “recruit” or “recruiting” means: 1) to enroll, enlist, or solicit an individual or entity to join a business, program or organization, or attempt to do so; 2) to promote, influence or encourage an individual or entity to join a business, program or organization, or attempt to do so; or 3) to present, or participate or assist in the presentation of, a business, program, organization or its products to an individual or entity. Such recruitment constitutes a violation of this provision whether or not the individual or entity ultimately leaves their relationship with Young Living. To constitute recruiting, such efforts or attempts may be performed either directly through personal contact (including, but not limited to electronic and social media means) or indirectly through a third party.

The term “immediate household,” as used herein, refers to married couples and other persons residing in the same home. With respect to members, retail customers, and professional account customers which are entities (e.g., corporations, tax exempt entities, trusts, etc.) rather than individuals, “immediate household” means the shareholders, owners, directors, officers, members, trustees, responsible parties, etc. of such entities and persons married to or residing in the same home with the persons who are the shareholders, owners, directors, officers, members, trustees, responsible parties, etc. of such entities.

(b) During the period that this Agreement is in force, and for a period of twelve months after the cancellation or termination thereof for any reason, you and all members of your immediate household are further prohibited from the following:

(i) Producing any literature, tapes or promotional material of any nature (including but not limited to websites and emails) which is used by you or any third person to recruit Young Living retail customers, professional account customers, or members to participate in a Competing Business Venture;
(ii) Offering any non-Young Living products, services or Competing Business Ventures in conjunction with the offering of Young Living products, services or income opportunity or at any Young Living meeting, seminar, launch, convention, or other Young Living function.

(c) Violation of any provision of this Section 3.12.2 constitutes your voluntary resignation and cancellation of this Agreement, effective as of the date of the violation, and:

(i) The forfeiture by you of all commissions or bonuses payable for and after the calendar month in which the violation occurred.
(ii) If Young Living pays any bonuses or commissions to you after the date of the violation, all bonuses and commissions for and after the calendar month in which the violation occurred shall be refunded to Young Living.
(iii) Young Living may seek and obtain both injunctive relief and damages for violations of this Section 3.12.2. Young Living, may, at its option, elect to enforce this Policy by lawsuit in a court of competent jurisdiction in Utah rather than by arbitration.
(iv) In addition to being entitled to a refund of bonuses and commissions and to damages as described above, in the event a person or entity violates this Section 3.12.2, Young Living and any Member that experiences an adverse financial impact as a result of such person’s or entity’s violation of this Section 3.12.2 shall be entitled to an accounting and repayment of all profits, compensation, commissions, remunerations or other benefits which the person or entity directly or indirectly receives and/or may receive as a result of, growing out of, or in connection with any violation of this Section. Such remedy shall be in addition to and not in limitation of any damages, or injunctive relief or other rights or remedies to which Young Living is or may be entitled at law or in equity.
(iv) You recognize that the restrictions herein are reasonable and necessary to protect the legitimate business interests of Young Living and other members, and that such restrictions will not prevent you from working or otherwise earning a living.

(d) Violations of this Section 3.12.2 are especially detrimental to the growth and sales of other Members’ Independent Young Living businesses and to Young Living’s business. Consequently, Members who have knowledge that any Member has violated this Policy must immediately report that information to Young Living’s Conduct Success Team at conduct@youngliving.com. The failure of a Member to report such information to Young Living will also constitute a violation of this policy. The names of those reporting violations of this Section 3.12.2 will be held in confidence.

3.11.2 Non-Competition

If, during the term of the Agreement, you engage in a non-Young Living direct selling program, you will ensure that you operate your sales organization separately and apart from your non-Young Living program. To that end:

Notwithstanding the foregoing, during the term of the Agreement and for a period of six (6) months after the cancellation, expiration, or termination of the Agreement by either party for any reason, you agree not to directly or indirectly serve in any capacity as a member, representative, consultant, employee, agent, officer, director, shareholder, partner, member, seller, distributor, or owner of or with doTERRA International LLC or any parent or affiliate company of this company. This restriction applies to any geographic market which you (or your sales organization) serviced or within which you (or your sales organization) physically worked during the term of this Agreement. .

Reaching the rank of Diamond and above is very prestigious and requires a significant time commitment to Young Living. Additionally, members who have achieved the rank of Diamond and above are privy to additional Young Living confidential and trade secret information. To achieve this rank and participate in the Diamond Leadership Bonuses, it is important to be an example in all facets of the Young Living business and be dedicated to Young Living. Accordingly, notwithstanding the foregoing, during the term of the Agreement and for a period of six (6) months after the cancellation, expiration, or termination by either party for any reason of the Agreement, once you have achieved the rank of Diamond or above, you will not directly or indirectly serve in any capacity as a member, representative, consultant, employee, agent, officer, director, shareholder, partner, seller, distributor, or owner of or with any other multi-level marketing, party planning, or other direct sales company, regardless of the type of products or services offered by that new entity. This restriction applies to any geographic market which you (or your sales organization) serviced or within which you (or your sales organization) physically worked during the term of this Agreement. Any member who has achieved the rank of Diamond and is violating this policy as of 2nd July 2018 will be given a grace period until 1st December 2018 to comply with this policy. Diamond ranking members may, however, purchase products from other multi-level marketing, party planning, or other direct sales company companies solely for their personal use.

You agree that Young Living has a protectable interest in its goodwill, confidential information, and trade secret information. You further acknowledge that any breach of your obligations under Sections 3.11.1.2, 3.11.2, and 3.14 of the Agreement would cause immediate and irreparable harm to Young Living for which monetary damages and other legal remedies could not adequately compensate. You further acknowledge that the restrictions set forth in Sections 3.11.1.2, 3.11.2, and 3.14 of the Agreement are reasonable and restrict your conduct only to the extent necessary to protect, maintain, and preserve Young Living’s business interests and to the extent permitted by the applicable laws and regulations in Malaysia. You further warrant that you understand the legal and other consequences of entering into the covenants and agreements contained in Sections 3.11.1.2, 3.11.2, and 3.14 of the Agreement and that the enforcement of these provisions will cause no undue hardship to you. If any restriction contained in Sections 3.11.1.2, 3.11.2, and 3.14 of the Agreement are deemed to be unenforceable by a court of competent jurisdiction, you agree that such court may modify and enforce such restrictions to the extent it believes to be reasonable under the circumstances existing at that time.

3.11.3 Targeting Other Direct Sellers

Young Living does not condone members specifically or consciously targeting the sales force of another direct sales company to sell Young Living products or to become members for Young Living. Nor does Young Living condone the solicitation or enticement of members of the sales force of another direct sales company to violate the terms of their contract with such other company. Should you engage in such activity, you bear the risk of action being taken by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against you alleging that you have engaged in inappropriate recruiting activity of its sales force or customers, Young Living will not pay any of your defense costs or legal fees, nor will Young Living indemnify you for any judgment, award, or settlement. You shall indemnify Young Living against all claims, costs, damages, fines or penalties which may be brought, suffered or levied against Young Living as a result of you not complying with this Agreement.

3.11.4 Cross-Line Recruiting
Actual or attempted cross-line recruiting or sponsoring is strictly prohibited. “Cross-line recruiting” is defined as the enrollment, indirect or otherwise, of an individual or entity that already has a current membership with Young Living, or who has had 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 (Doing Business As), assumed names, corporations, trusts, or fictitious identification numbers to circumvent this policy is strictly prohibited.
You may not demean, discredit, or defame another Young Living member, especially in an attempt to entice another member to become part of your marketing organization. Young Living reserves the right to terminate your sales organization for failure to comply with this policy.

3.11.5 Bonus Buying, Front-End Loading, and Stacking

Bonus buying and stacking are material breaches of these Policies and Procedures and are strictly and absolutely prohibited, and may result in the termination of your membership.

“Bonus buying” includes (a) the enrollment of members without their knowledge of or execution of the Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a member or customer; (c) the enrollment or attempted enrollment of nonexistent individuals or entities as members or customers (phantoms); or (d) the use of a credit card by or on behalf of a member or customer when the member or customer is not the account holder of such credit card without written authorization. (e) purchases done on behalf of a member or customer by the enroller of upline without the member or customer's expressed authorization and agreement to reimburse the enroller or upline for such products.

The term “stacking” means: (a) the failure to transmit to Young Living, or the holding of a Member Agreement, in excess of two (2) business days after its execution; (b) the manipulation of Member Agreements for the purpose of maximizing compensation pursuant to the Compensation Plan; (c) providing financial assistance to members, buying products, or drop shipping through another’s account for the purpose of increasing the payout of your sales organization.

3.12 International

Compliance with foreign laws regarding intellectual property, customs, taxation, literature content, and other direct selling guidelines is critical to successful international expansion of Young Living into new markets. Consequently, you are authorized to market and sell Young Living products and services and to recruit and sponsor other members only in countries in which Young Living is authorized to conduct business, as listed in official Young Living literature. Unauthorized premarket opening activity may jeopardize Young Living’s ability to enter a new market and may result in loss of opportunity for many other members. Because of the severe possible consequences, those who engage in unauthorized premarket opening activity will be subject to disciplinary measures, possibly leading to termination. You are not authorized to register product, trade names, trademarks, patents, web domains, or IP addresses in any country for or on behalf of Young Living.
You agree to indemnify Young Living for any such activity of yours that damages Young Living, including, but not limited to, against any loss of profit, loss of goodwill, any damages, and reasonable attorneys’ fees.
If you want to sponsor members in a country officially recognized as open, you must do all of the following:

Members may sponsor and/or enroll other members globally; however, members may only market and sell products in countries that are legally registered with the government for business activity. Only products that have been registered for sale in that same country may be promoted and sold. Members may not import products into any country that is not legally importable or saleable. You agree to follow all laws in any country into which you sponsor members, including, but not limited to, all direct selling laws, all solicitation laws, all advertising laws, all claims laws, all tax laws, and any other laws that apply to operating a sales organization in a foreign country.

3.12.1 NFR

In some countries, members may purchase Young Living products on a not-for-resale (NFR) basis as retail customers. You are restricted to promote, advertise, repackage, relabel, distribute, offer as gifts or rewards as well as resell any not-for-resale (NFR) products. Such activities constitute a breach of these Policies and Procedures and is strictly prohibited.
If you are not a resident of the United States, then you agree that all services you perform in connection with your Young Living business are performed outside the United States. If you perform services within the United States in connection with your Young Living business, you agree to and will contact Young Living at USbusinesstrips@youngliving.com within 30 days of performing such services to report the time you spent in the United States on business activities in connection with your Young Living business.

3.12.2 Anti-Bribery

You and your agents, employees, consultants, or directors must not pay or give, or offer or promise to pay or give, any money or anything of value to any government official or employee, political party, or candidate for political office (collectively referred to as "Government Recipient")—or to any person, while knowing or having reason to know that all or a portion of such money or thing of value will be paid or given to, or offered or promised to, directly or indirectly, any Government Recipient—for purposes of obtaining an unfair advantage or influencing any act or decision of a Government Recipient or inducing a Government Recipient to use his, her, or its influence with the government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality; and you will cause your employees, officers, agents, and sub-consultants to do likewise.
You shall ensure that neither you nor any of your agent, employee, consultant or director takes any action which could cause or render Young Living to be in violation of the Anti-Corruption Commission Act 2009 of Malaysia, the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 of Malaysia or any other applicable anti-corruption law in Malaysia.

3.13 Repackaging and Relabeling

You shall not relabel, alter the labels of, repackage, or refill any Young Living product. Young Living’s products must be sold in their original containers only. Young Living strongly recommends that you do not use Young Living products as ingredients in or components of any product for resale. If a member uses Young Living products as an ingredient of any product for resale, the member is strictly prohibited from using Young Living trademarks or logos in conjunction with selling such product. Such relabeling or repackaging could result in severe criminal penalties. Violation of this section may subject a member to disciplinary actions as outlined in Section 13.3. Additionally, you agree to indemnify Young Living against any harm resulting from use of Young Living products as an ingredient and the repackaging or relabeling of any of its products.

3.14 Confidentiality Agreement

As a member of Young Living, you may be supplied with confidential information such as genealogical and organization reports, customer lists, customer information developed by Young Living or developed for and on behalf of Young Living by members (including, but not limited to, customer and member profiles and product purchase information), member lists, manufacturer and supplier information, business reports, commission or sales reports, marketing strategies and plans, product formulae, product information, and other financial and business information (“Confidential Information”).
All Confidential Information (whether in written, oral, or electronic form) is transmitted to you in strictest confidence on a need-to-know basis for use solely in your sales organization for Young Living business purposes only. You shall keep such information confidential and must not disclose any such information to a third party directly or indirectly. You must not use the information to compete with Young Living or for any purpose other than for promoting Young Living’s program and its products and services. Upon cancellation, expiration, or termination by either party for any reason of the Agreement, you must discontinue the use of such Confidential Information and destroy or promptly return to Young Living any Confidential Information in your possession. Without limiting your obligations as set forth in this Section 3.14, Young Living may further require a signed nondisclosure agreement before releasing any business information to you.
In the event of the cancellation, expiration, or termination by either party for any reason of the Agreement, the obligations contained in this Section 3.14 survive and are subject to legal enforcement by injunction. You further agree that in the event Young Living prevails in any legal action to enforce its rights under this Section 3.14, Young Living shall be entitled to all costs and reasonable attorneys’ fees incurred in enforcing its rights under this Section 3.14.

3.15 Reporting Policy Violations

You should report any violations of these Policies and Procedures by any member to the Young Living Member Conduct and Education Department by emailing conduct@YoungLiving.com or calling Member Services at 1800 189 889.

3.16 Data Protection

Insofar as the distributor processes any data in respect of commercial transactionsin which such informationrelate directly or indirectly to a data subject who is identifiable from the information in the possession of the data user, for e.g. name, address, telephone number, email address, banking details and identification card numbers, (“Personal Data”) on behalf of Young Living under or in relation to the Agreement, the distributor shall:

(A) process the Personal Data only on behalf of Young Living (or, if so directed by Young Living), only for the purposes of performing the Agreement and only in accordance with instructions and/or obligations contained in the Agreement or received from Young Living from time to time;

(B) not otherwise modify, amend or alter the contents of the Personal Data or disclose or permit the disclosure of any of the Personal Data to any third party unless specifically writing by Young Living or compelled by law to make such disclosure;

(C) obtain prior written consent from Young Living before publishing, disclosing, or transferring the Personal Data to any third party;

i. notify Young Living (within seven (7) days) if it receives:
1. a request from a data subject to have access to that person's Personal Data; or
2. a complaint or request relating to Young Living's obligations under the Personal Data Protection Act 2010; or
3. a withdrawal of any consent for the processing of Personal Data by the data subject, data user or data processor or communicated to the data processor by the data user,


ii. promptly notify Young Living by telephone and follow up in writing if it becomes aware of any actual, suspected or alleged unauthorized use of, disclosure of, or access to Personal Data by itself or others.

3.17 Authorization to Take and Use your Photo or Video
By becoming a member of Young Living, you consent to having your image captured in photographs or videos at various Young Living-sponsored events by Young Living staff and to have those images used by Young Living as they see fit in advertising and marketing materials. You will not be compensated for this usage. If you have a religious or moral objection to having your picture taken or appearing in a video, please notify a member of Young Living’s staff at the event where photographs and videos are being taken. The provisions of this section will permanently survive the term of the Agreement. When applicable, an express consent will be required.

3.18 Rank Recognition
The Young Living Compensation Plan pays compensation based on different ranks and the criteria set forth in that plan. Each month you may qualify for payment according to the rank in which you qualify. Members are recognized by Young Living in various ways and at various times as they achieve certain ranks. In order to be recognized at and enjoy the perks of a new, higher rank that is Silver or above, you must qualify for that rank (or above) for three consecutive months. You will be recognized as being at that new, higher rank beginning in the fourth month. In order to maintain recognition at a rank of Silver or above, after initially qualifying for that rank, you must re-qualify for that rank (or above) again within six months of the last month in which you qualified for that rank. If you fail to re-qualify for a rank for six consecutive months, then you will be recognized at the highest rank you qualified for during that six months period on the seventh month and be required to re-qualify for three consecutive months before you can be recognized at the higher rank again. In August 1, 2018, all Members will be recognized at the highest rank they have achieved as of July 2018 and will be deemed to have initially qualified for that rank, meaning they will not be required to achieve that rank for three consecutive months to be recognized at that rank. To continue to be recognized at that rank, however, they must maintain that rank, as outlined in this section.

3.19 Non-Exclusivity
As a Member you will not be granted an exclusive territory nor required to pay franchise fees. Young Living reserves that right to offer its products and services through any sales channel, including through its professional account, program and through other companies (e.g., a direct sales company in China)

4.1 Sponsoring
Members have the right to sponsor other Young Living members. Each prospective member has the ultimate right to choose his/her own sponsor. If two members claim to be the sponsor of the same new member or customer, the new member has the right to choose between the two within the first twenty (20) days. After that time, Young Living will regard the first application received by Young Living as binding.

When sponsoring a new member, you must provide the most current version of these Policies and Procedures and the Compensation Plan before he/she signs a Member Agreement or ensure that such individual has online access to these materials.

4.2 Sponsoring Online
When sponsoring a new member through the online enrollment process, you may assist the new applicant in filling out the enrollment materials. However, the applicant must personally review and agree to the online Member Agreement, these Policies and Procedures, and the Compensation Plan. You may not fill out the online application and Agreement.

4.3 Ongoing Supervision, Training and Sales
As a sponsor, you are expected to train, supervise, and communicate with your downline through letters, newsletters, meetings, telephone contacts, voice mail, email, trainings, and by accompanying enrollees to Young Living’s training meetings. If you feel you are not getting the necessary level of support from your sponsor, you are encouraged to consult with your next upline leader or call Member Services at 1800 189 889. As a sponsor, you also agree to make your contact information (telephone number/email address) available to his/her downline for training and support purposes.
You should monitor the members in your downline to ensure that they do not make improper product or business claims or engage in any illegal or inappropriate conduct that violates the Agreement.
As you progress through the various levels of leadership, you will become more experienced in sales techniques, product knowledge, and understanding of the Young Living program. In that event, you may be called upon to share this knowledge with lesser experienced members within your downline.

4.4 Non-Disparagement
In setting the proper example for your downline, you must not disparage, slander, or defame other Young Living members, Young Living products, the Compensation Plan, Young Living employees, or Young Living founders. Such disparagement constitutes a material breach of these Policies and Procedures and may result in termination of your sales organization.

4.5 Privacy
You must take appropriate steps to safeguard and protect all private information provided to you by members in the operation of your sales organization in accordance with the Young Living Privacy Statement available at /en_MY/company/privacy

5.1 Use of Young Living Materials
To prevent inadvertent errors or illegal claims, you shall use the current Young Living literature for advertising and describing Young Living’s products or programs. The materials must be used in context so as not to be misleading.

5.2 Member-Developed Advertising Materials and Products
If you choose to produce or use advertising materials that were not developed by Young Living, you must clearly identify that the material is from an “Independent Member” or “Independent Distributor” and not Young Living.
Any use of advertising materials not produced by Young Living must be compliant with all applicable laws and these Policies and Procedures—particularly Section 5.3. Such material must be produced in a professional and tasteful manner. Material must not be used that reflects poorly upon Young Living. Violations may subject a member to disciplinary actions as outlined in Section 13.3.

5.3 Advertising Claims and Representation

5.3.1 Product Claims
You are prohibited from making inaccurate and impermissible claims about any Young Living products. In particular, you must not make any claim that Young Living products are intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease. You must also avoid making any statements and claims that are false or misleading concerning Young Living’s products. You must comply with all state and federal laws regarding any statements made.
You also must not diagnose any disease or disease condition or prescribe any Young Living product unless you are a licensed medical professional authorized to do so. Anyone improperly diagnosing or prescribing Young Living products may jeopardize the future of Young Living and all of its members and may therefore have his/her sales organization terminated.

5.3.2 Income Claims

You are prohibited from making any income projections to prospective members that may create false or misleading expectations. In their enthusiasm, some members are occasionally tempted to represent hypothetical income figures based upon the inherent power of network marketing as actual income projections. This is counterproductive since new members may be disappointed if their results do not meet their expectations. The income potential of a Young Living member is great enough to be highly attractive in reality without resorting to artificial and unrealistic projections. Any earnings or sales representation made shall be based upon documented facts.
Young Living has prepared an Income Disclosure Statement (IDS) designed to convey truthful, timely, and comprehensive information about the income that its members have earned. A copy of the IDS is available online at YoungLiving.com/IDS. Any time that you present or discuss the Compensation Plan or make any type of income or earning representation about the Compensation Plan, you must provide any prospective members with a copy of the IDS. Income and earning representations include: