Policies and Procedures

Young Living PHILIPPINES Policies and Procedures
This document was published on October 1, 2021 and is effective on November 1, 2021
Table of Contents
1. Introduction
2. Becoming a Member
3. Operating Your Sales Organization
4. Sponsor's Responsibilities
5. Advertising
6. Sales Requirements
7. Commissions and Bonuses
8. Ordering
9. Shipping
10. Payment
11. Product Returns
12. Member Account Management
13. Dispute, Resolution and Disciplinary Action
14. Inactivity, Reactivation and Cancellation
15. Miscellaneous
1. INTRODUCTION
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 Philippines LLC 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 Team that you build is referred to as your sales organization.

The term “Sponsor” refers to a member’s immediate Support Team. 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 order a minimum 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:
To set standards of acceptable business behaviour expected of you
To define your relationship with Young Living, your customers and other members
To assist you in building and protecting your Young Living business
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, the Young Living Privacy Policy, 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 www.youngliving.com/en_PH.
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 sanctions for breach of Agreement.
Code of Ethics
You will follow the highest standards of honesty, professionalism, and integrity in the development and operation of your sales organization
You will give prompt and efficient service to anyone to whom you have introduced Young Living products, as well as to your Team members.
You will not make negative or disparaging remarks about Young Living, Young Living founders, and Young Living competitor, or their people, products, or organizations
You will not engage in activities that may cause losses to Young Living or another Young Living member
You will perform all duties of a sponsor and a leader as you build your Young Living business, including providing the necessary training and support
You will respect the privacy of both your Support Team, Team members and customers.
You will not recruit Young Living members to other business opportunities
You will abide by all rules, regulations, laws, and ordinances that are applicable to the operation of your sales organization as an independent member.
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.

1.6 Inclusion And Anti-Discrimination
You are required to abide by the Young Living Inclusion and Anti-Discrimination Policy (IAP) members, which policy is available at https://www.youngliving.com/en_ph/company/inclusion-and-anti-discrimination-policy. Violations of that policy are material breaches of the Agreement.

2. BECOMING A MEMBER
2.1 Requirements to Become a Member
To become a Young Living Philippine member, you must meet the following requirements:
If you are an individual, be at least 18 years old.
Individuals should provide tax ID number and f you are enrolling as a business entity, provide a valid Taxpayer Identification Number (TIN).
Read and agree to these Policies and Procedures, the Young Living Privacy Policy, and the Compensation Plan.
Complete and agree to a Member Agreement at the time of your enrollment
Purchase a Young Living Starter Kit.
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 (www.youngliving.com/en_PH). This application must be received within 30 days of your enrollment for you to receive member benefits. If the Member Agreement is not received within 30 days, 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 headquarters within 30 days of your telephone registration.
2.4 Web Enrollments
If you enroll on the Young Living website or on any Young Living-sponsored replicated website, you will not need to submit a paper application. 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, the Young Living Privacy Policy, and the Compensation Plan.
3. OPERATING YOUR SALES ORGANIZATION
Individuals may join Young Living as members.
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 taxes and social insurance contributions 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. 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.
3.2 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 an 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 to change lines of sponsorship, manipulate the Compensation Plan, or circumvent the Agreement in any way.

You may have a beneficial interest in more than one member account if you receive an interest in another account as an inheritance (through a direct inheritance or as a beneficiary by any other means) from another member, provided you notify Young Living of the inheritance in writing (as specified in Sections 3.6 and 3.6.1), and Young Living approves of the transfer in writing. Young Living reserves the right, in its 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 Team, participation in meetings, increasing enrollments, and/or increasing PGV and OGV within the payment levels of your Team 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 (if applicable) in building a single sales organization. However, due to separation, mutual agreement, etc., there may be an exception to this general rule. 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 accounts 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.
3.3 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 action against you pursuant to these Policies and Procedures. Similarly, if any individual associated in any way with a corporation, partnership or other entity (collectively “entity”) violates the Agreement, such action(s) will be deemed a violation by the entity; and Young Living may take 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.
3.4 Actions of Support Team
If any Support Team member encourages, aids, or supports a team member in any activity which, if performed by the Support Team member, would violate any provision of the Agreement (e.g., creating duplicate accounts or Cross Team recruiting), such activity will be deemed to be a violation by the Support Team member; and Young Living may take action against that Support Team member pursuant to these Policies and Procedures. If such violations continue, Young Living reserves the right to terminate the Support Team member’s member account.
3.5 Corporations and Partnerships
A partnership or corporation may become a Young Living member by submitting to Young Living a partnership agreement, certificate of incorporation, articles / certificate of incorporation or partnership along with a copy of a certificate of good standing for the entity issued by the Securities and Exchange Commission of the Philippines. The incorporation / registration documents and certificate of good standing must indicate the names of all shareholders, officers, members, managers and partners 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 or corporations for tax, estate planning, and other legitimate 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).

3.6 Sale, Transfer, or Assignment
You may sell, transfer, or assign (collectively “Transfer”) your entire Team organization by submitting a request to Young Living along with a USD$50 processing fee, or equivalent local currency. For your request to be granted, the following criteria must be met:
You and the receiving party must notify Young Living in writing of your intent to sell or transfer the sales organization. This request must be signed and notarized.
Young Living must approve of the receiving party prior to the Transfer.
After the transaction, the transferring party must not retain any copies, digital or otherwise, of personal information belonging to his/her Team organization members.
The receiving party must be (or must become) a Young Living member in good standing.
If the receiving party has an existing Team, he/she must first transfer that sales organization or have a transfer in place and approved by Young Living before accepting the new sales organization.
No changes in your line of sponsorship or your Team can result from the Transfer.
Before a Transfer will be approved, all debt obligations that you and the receiving party may have with Young Living must be satisfied.
Before any Transfer will be approved, you and the receiving party must each be in compliance with all the terms of the Agreement. The individual, to whom the sales organization is sold and/or transferred, will be expected to meet leadership qualification in order to be eligible for leadership commission payouts.
Any sale of any organization with OGV 50,000 or higher must be approved by Young Living in writing.
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.
3.6.1 Inheritance & 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 3.2.

Young Living reserves the right, in its sole and absolute discretion and for any reason and at any time, to deny you the option of owning an interest in your original account and an inherited account if Young Living determines you have not demonstrated the ability to operate two sales organizations. If Young Living denies you the right to have a beneficial interested 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.
3.7 Separation of a Young Living Member Business
You may, with others, operate a single sales organization as a regular partnership or corporation (collectively referred to herein as “entities”). If 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 Support Team or Team of the organization. If the dissolving business entity fails to provide for the best interests of other members and of 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 entity dissolution, the dissolving business entity must adopt one of the following methods of operation:
One of the parties may, with consent of the other(s), operate the business pursuant to a notarized assignment in writing whereby the relinquishing party(ies) authorize(s) Young Living to deal directly and solely with the other party(ies). A notarized request from the person being removed is required. A new Member Agreement is required from the person remaining on the account.
The parties may continue to operate the sales organization jointly on a “business-as-usual” basis, whereupon all compensation paid by Young Living will be paid in the joint names of the members or in the name of the entity to be divided, as the parties may independently agree among themselves.
The parties may operate the business pursuant to a court order involving parties.
If one of these requirements is not met, Young Living will maintain the status quo as to how commissions are paid.
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.
3.8 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.
3.9 Taxes
3.9.1 Income Taxes
You are responsible for complying with the tax laws in the Philippines. You are responsible for paying taxes, local and national, due on your income generated as an independent contractor. Young Living may, if applicable, withhold the appropriate amount of withholding tax in accordance with prevailing tax rules and regulations, and shall deduct the same from your bonuses and commissions. Young Living shall remit such withholding tax to the relevant tax authorities in a timely manner. If requested by Young Living, you shall execute and timely submit to Young Living the documentary requirements required by Philippine tax laws and regulations, including, but not limited to, sworn declarations, sworn statements, and certifications. If you fail to submit the required documentary requirements required by Philippine tax laws and regulations within 30 days after your enrollment, Young Living will withhold the highest amount required by law.
3.9.2 Value-added Taxes
Young Living will remit value-added taxes based on the gross selling price of the products, according to applicable tax laws and regulations. Any member purchasing products at wholesale pricing and selling them at a higher price will be responsible for reporting and remitting any applicable value-added tax / percentage tax due.