The huencompany Inc. started in January 1999 and has a philosophy of realizing values of corporate social responsibility. The huencompany Inc., with its excellent and competitive products, is making every effort to provide fair business opportunities and happy working environments for its members.
The huencompany's Membership Management Policy
This Membership Management Policy stipulates the basic matters that the Member of the huencompany Inc. (hereinafter referred to as the "Company") must adhere to in conducting their businesses.
This Membership Management Policy shall be deemed to be a part of the terms and conditions of the membership agreement, together with other regulations.
In the event of violation of the provisions of this Membership Management Policy, the Company reserves the right to limit or destroy the rights granted to the member from the Company through warning, suspension and termination of membership.
The Member shall be aware of and adhere to the provisions of this Membership Management Policy.
The Company reserves the right to change the business policies and procedures, and if any change occurs, the Member shall always pay attention to the contents delivered through the Company’s official publications, official website and official documents.
Chapter 1. General Provisions
Article 1. Purpose
This Policy has the purpose of establishing a healthy and fair distribution culture in the sales of Goods (hereinafter referred to as the “Goods”) that are sold to the Member (hereinafter referred to as the “Member”) by the huencompany Inc. (hereinafter referred to as the “Company”) through observing mutual regulations and promoting common prosperity between the Company and the Member.
Article 2. Scope of application
This Policy will be the central reference of membership management of the huencompany Inc. except for the provisions otherwise provided by the Company.
Article 3. Application of relevant laws
This Policy is based on the Act on Door-to-Door Sales, etc. (flexible application to the global members)
Article 4. Application target
This Policy applies to all registered members of the Company.
Chapter 2. Membership Registration
Article 5. Membership qualifications
Anyone can register as a member regardless age, education, career, profession, gender, religion, or other physical disability.
However, as for a Korean member, registration is limited to those who fall under each item of Article 14 of the Act on Door-to-Door Sales, etc. (flexible application to the global members)
Article 6. Regulations on registration
Anyone falling under any of the following subparagraphs shall be restricted from registration.
1. State or local government officials, educational officials or private school staff, college students
2. Corporation or stock company
3. Shareholders or employees of the huencompany Inc.
4. In accordance with provision 15.2.4 of the Act on Door-to-Door Sales, etc. and Article 21 of the Reciprocal Enforcement Ordinance, "a person who falls under the ground of disqualification by the Presidential Decree."
5. Those who are under 19 years of age at the time of registration
6. Person devoid of mental or physical capacity recognized by the law
7. Those who are serving their sentences or in a state-run prison at the time of registration
※ The Company may immediately terminate the membership of the member that are registered despite above stated registration restrictions, and the Company holds no obligation to remedy the disadvantage of the Member due to the restrictions of the related institutions before registration.
Article 7. Registration of new members
1. All members must be registered with their real names and the company will only approve the members who registered themselves. Claims on others after registering borrowed names will not be accepted.
2. A new member can register through sponsorship of a registered member, identity verification (mobile phone authentication, account information authentication) and application for membership registration. Foreigners residing in Korea must submit the following documents. (Foreigners residing outside Korea must submit their e-mails)
① In accordance with Article 6 (8), a foreign resident's residence certificate, alien registration card, etc. (limited to those who are recognized with ID cards by relevant laws)
3. If a member does not meet the requirements at the time of membership registration, he / she can directly submit the information or send it by post.
Article 8. Approval of membership
Membership is valid from the moment when the applicant is granted a unique membership number (ID) from the Company, and approval or rejection of membership is the sole authority of the Company.
Article 9. Meaning of membership
A member registered to the Company is an independent member who conducts his or her own sales activities with his or her own intention on the sales policy, marketing plan, purchase of Goods, etc. publicly presented by the company, and assumes legal responsibility for all his or her activities based on his or her own judgement.
Article 10. Information management of members
The Member shall clearly state his or her personal information, recommendation and sponsorship in accordance with the document procedure established by the Company at the time of registration, and the responsibility for any error in the submitted document is liable to the submitter. In addition, the Member shall immediately notify the Company of personal information (address, telephone number, etc.) and other necessary information when a change occurs, and responsibility for not notifying (returning mails, etc.) is liable to the Member.
Chapter 3 Membership Obligations
Article 11. Obligation to know and convey accurate information
The Company shall provide its regulations and product information at the time of membership registration, and the Member must be well aware of all regulations and information at the same time as registering, and only the information officially presented by the Company shall be delivered, and the contents shall not be distorted or exaggerated.
Article 12. The duty of sincere sales activities
The Member, when he/she has accurate information and assurance of the Goods after using the goods themselves, should conduct the sales activities in accordance with the Company's regulations and strictly comply with the relevant laws and the company regulations. Also, the Member must leave his or her contact information to his or her downline members that they recommended, and the consumer to whom he/she sold the product.
Article 13 Duties of educational support and completion
The Member receive bonus for faithful education support for their subordinate members. Therefore, the Member should continuously perform his or her education and management obligations for the subordinate members, and provide education in accordance with the rise of the rank. The applicable person shall complete the education, and the Company may impose sanctions on those who do not.
Article 14 Tax liability
The Member must fulfill all tax obligations in accordance with the tax laws of the Republic of Korea if he/she has earned through the sales of the Company's products.
(As for a global member, one must pay his or her taxes personally in accordance with the tax laws of their country of residence. Customs duties on product purchases are not included in the product price and all clearance fees, including customs duties should be paid by customers. Therefore one should check the clearance information and precautions before placing an order. If the recipient refuses to ship due to high tariffs, hueworld cannot provide refund / exchange and is not responsible for the loss of funds. Contact your local customs office for detailed clearance information and tariff regulations.)
Article 15 Duty to obey all relevant laws and regulations
The Member shall be deemed to have agreed to the Company's rules and regulations at the time of registration; in particular, The Member shall be deemed to have agreed and pledged to the Membership Management Code. Therefore, in his or her sales activities, the Member shall follow the relevant laws and regulations, and the Company’s regulations, education, and management.
Chapter 4. Membership Qualifications and Activities
Article 16. Membership expiration
The Member will lose his/her membership if there is no purchase record for 6 months.
Article 17. Withdrawal of bonus after withdrawal of application
When an application for product purchase is withdrawn due to the applicant’s contract cancellation (hereinafter referred to as "return"), the contract will be extinguished retrospectively and bonus payment which took place for the purchase becomes illegitimate income, therefore is subject to redemption and deduction.
Article 18 Exchange and return
1. The term "exchange" means a system in which, if a member finds a defect or an error in the product within three month after purchase and request to get an exchange for the same product, the product can be exchanged for the same product in accordance with Quality Assurance System.
2. The term "return exchange" means a system in which, if a member finds a defect or an error in the product within three month after purchase and request to get a return exchange for the defected product, the product can be exchanged for another product in accordance with Quality Assurance System.
Article 19 Transfer of membership
Transfer of Membership to another name is not possible in principle, but exception shall be made in the following cases.
1. Inheritance due to death
2. In case of inheritance, one should follow the inheritance procedures according to related laws and regulations.
Chapter 5 Prohibition and Termination of Membership
Article 20. Member registration without consent
The Member shall not engage in the act of registering a person as a member without his or her consent (recommendation / sponsorship) or registering a member with his or her personal document such as an ID card and a copy of bankbook that the person submitted for other purposes such as insurance application.
Article 20 – 1. Prohibition of registration of borrowed name and inducement
1. Without a membership, one shall act as a multi-level salesperson.
2. The Member shall not propose, directly or indirectly suggest, or induce in any other way to change the line.
3. If members with pin titles register a borrowed name and the applicable membership is maintained more than one year, they will bear punishment such as suspension of bonus of more than 3 months to 1 year (vanishing of bonus), and they may lose their pin titles according to the judgement of the commission for the case.
4. The Member shall not engage in activities for another company within the Company's premises.
5. The Member shall not engage in activities of attracting other members to another company.
6. The Member shall not register a borrowed name to change the sponsor and shall not induce any other person to register a borrowed name.
Article 21. Registration of a restricted person
A member shall not register a teacher (including administration workers), a public official, a minor, a student, etc. who is not qualified as a member, and must withdraw the membership immediately or without delay in writing if he or she falls under Article 6 of this Policy (flexible application to the global members).
Article 22. Enforcement of membership registration or sales contract
The Member shall not impose any force on the other party for the purpose of forcing a sales contract of the Goods or disrupting withdrawal of application or termination of contract.
Article 23. Dissemination of false or exaggerated information
1. The Member shall not engage in any activity that may misrepresent false or exaggerated information, or induce a transaction using deceptive methods, or misrepresent false information about price and quality of the Goods, or make others misconceive the Goods as being significantly superior or advantageous than actual, and should not express his or her own arbitrary interpretation or opinion other than the official expression of the Company.
2. The Member shall not defame, compare, or disparage other company’s business (marketing plan, business method, product, etc.)
3. The Member shall not engage in disseminating unconfirmed information of the Company or deteriorate the morale of other members.
Article 24. Acts that impose pressure and obligations
The Member shall not engage in activities that impose acts or obligations that can impose pressure more than "the level prescribed by the Presidential Decree", regardless of the names, such as membership fees, sales support items, and education expenses, to registered members and those who want to register.
Article 25. Acts using other than company-provided trademarks, trade names, patents and portrait rights
The Member shall not use anything other than company-provided products, trademarks, trade names, patents, portrait rights, etc.
Article. 26 Acts related to withdrawal of an application
Members shall not engage in any of the following acts:
1. Damaging a part of the Goods, or changing the address, telephone number, etc. (staying out of touch) for the purpose of obstructing withdrawal of application or termination of a contract as well as delaying the use of the Goods for the purpose of restricting return of the Goods.
2. Returning or exchanging products without his or her consent.
3. Deliberately returning the Goods, or returning the Goods and withdrawal at the same time to register on the other line with his or her name / a borrowed name or inducing others to join in this way.
4. Deliberately inducing other members to return the Goods and deliberately returning the Goods in a group for other purposes such as moving to another company.
Article 27 Unreasonable purchase or high pressure sales
1. The member shall not force the other party to buy the Goods, for example by supplying the Goods without the other party's application and claiming the payment. Especially, the Member shall not sell the Goods to the members in their downline.
2. A member shall not unreasonably purchase the Goods for the purpose of his/her or his/her upline members’ pin title advancement, or bonus occurring in such context. A member shall not induce his or her downline members to do such an activity or forcefully press them to do so.
3. The Member shall not engage in the act of forcing the consumers to purchase the Goods through telephone, fax, or computer communication, etc. even though the consumer has indicated that he or she is not willing to purchase the Goods.
Article 28 Act of sales by using social status
1. The Member shall not use their social status to register a member as their subordinate or to sell the Goods. The member shall not disseminate false information indicating a celebrity or an entertainer is his or her downline, for the purpose of registering new members and sell the Goods.
2. The Members shall not use the Company's network for activities unrelated to the Company (politics, religion, etc.).
Article 29 Other unusual business activities such as camping and running away from home
The Member shall not stand by or abet the act of forcing a person who wants to be a member or a member to perform a long-term stay away from home or stay in a training camp in a group for the purpose of business, which goes against the person’s will.
Article 30. False personation as a company employee or false information of exclusive rights
1. The Member is not in any employment or partnership with the Company and shall not represent the company or impersonate as a company employee.
2. The Member shall not give false information to cause a misbelief that the Company's products are another company’s products or cause a misbelief of exclusive sales right or sole right.
3. The Member shall not engage in activities that cause a person who is not registered as a member to act as a member.
Article 31. Deceptive advertising and negligence of information delivery obligation
1. The Member shall not transmit wrong or exaggerated information about the Company's goods and bonus payment standards, shall not stay out of touch after sales of the Goods, nor omit post-management after product delivery.
2. The Member shall advertise any products of the Company within the scope of the law, shall not perform deceptive advertisement of cosmetics and health functional foods, etc., and the Company especially prohibits deceptive advertising which may cause confusion that the health functional foods are medicines.
Article 32 Stirring a speculative drive and induction of sales
The Member shall not stir a speculative drive promoting the standards of bonus payment of the Company, promising that one can earn money fast if one registers many new members. And the Member shall not encourage the investment of the customer or induce the people who are not qualified to do the business (students, minors, elderly people, a person devoid of mental and physical capacity, etc.) to make sales.
Article 33. Use of personal information of members
1. The Member shall not use the information of consumers and related members, except for the cases where the Company’s regulations allow, such as delivery of goods, settlement of accounts, etc.
2. The Member shall maintain the confidentiality of customer lists, sales manuals, pricing materials, ideas and designs, and other information of sales, management, technical information and information of the Company's membership organization (including contact list) and never shall divulge it to third parties and other companies.
Article 34. Advertising in the mass media and sales through it
1. Prohibition of an advertisement or print production for mass media
① The Member shall not advertise company related matters or products on the mass media without the consent of the Company.
② The Member shall not produce, distribute or sell the Company’s (brand name, logo) printed materials without the consent of the company.
③ The Member shall not attach the Company’s name, logo, etc. to his or her business buildings or vehicles (including banners, posters) without the Company’s permission, and shall not register phone numbers, etc. using product names or logos.
④ The Member shall not take any photographs (video, photo), video record, or voice record any lectures and educational contents in the system of the huencompany or display, publicize, or utilize them in private. (Acts that have not been approved by the Company, such as online bulletin board, blog, SNS, flyer, and transmitting through video recording media.)
⑤ The Member shall not process or modulate the information provided through official website Hue TV.
2. No product changes and repackaging
① The Member shall not add, change or delete the contents of the Goods provided by the Company and shall not sell the Goods after opening the package or damaging.
② The Member shall not add, change or delete any statements or labels on the product packaging, and shall not sell the Goods after opening the package or damaging.
4. Prohibition regarding online site activities
① The Company’s brand name and logo should not be used without a consent which can cause a confusion as the official website of the Company, and the Member shall not copy the Company’s shopping mall.
② The Member shall not exaggerate the Company’s business with unidentified information or insufficient information.
③ The Member shall not send advertising e-mails with the Company’s brand name or trademark without the consent of the recipients.
④ The Member shall not engage in recruiting activities for the unspecified number of people by utilizing the internet and mobile.
⑤ The Member shall not disclose personal information of members, sponsor, or partner. (ID, password, contact information, and all other kinds of personal information)
⑥ It is prohibited to sell products using Internet or mobile without prior consent or approval of the Company (Resellers)
Article 35. Abuse of higher pin-titles and negligence of obligations to support the education
The Member shall not use the pin-title to make forceful requests or publicly disclose important comments and a word of abuse that can determine the eligibility of subordinate members. The Member shall not stand by inappropriate business practices or receive the bonuses without carrying out their duty to educate the subordinate members.
Article 36. Slander against the company and the members
A Member shall not act in any way that would intentionally slander the Company and other members in public or private places, and the Member shall not act in any way that would defame the Company and other members even if he/she delivered the facts as they happened.
Article 37. Transfer and acquire of membership rights
In no case shall a Member voluntarily transfer or acquire the qualifications of a member, or transfer or acquire the rights and status of a sales organization or a member to another person.
Article 38. Financial dealings without delivering the Goods
1. The Member shall not engage in money transactions without delivering the Goods using the Company’s organization or facilitate such activities.
2. The Member must deliver the Goods properly and must confirm that the Goods are properly delivered, and they shall notify the descriptions and information of the Goods (how to use, etc.)
Article 39. Conflicts between the Company and the Member or between the members
The Member shall not engage in any of these following acts:
1. Interfering with the business, claiming only the demands of the individual despite the company's business regulations
2. Disturbance (irrational words and actions), verbal abuse, violence (including words and actions through telephone, text message, document, e-mail, social network, etc.) in all business spaces (company premises, center, event halls).
3. Verbal violence refers to acts that offend or intimidate the other party by insults or offensive or hateful words or tones.
4. Acts involving disputes between members for any reason related to fraudulent use of money and credit cards, etc.
Article 40. Group formation in the organization
The Member shall not engage in activities of forming a group within the sales organization for a different purpose other than sales (separate business, social gathering, etc.), and using titles not related to the Company in the business of the Company, or putting priority on the separate group’s purposes, or gathering people having something in common such as region of origin, and exercising the pin-level’s personal influence in such groups.
Article 41. Indiscreet slander to other members
The Member shall not request the Company to give punishment to other members without any specific evidence, and shall not submit a collective signature nor propose dismissal of a disciplinary action on grounds of resolution of misunderstanding or conflict, after filing a complaint.
Article 42 Unethical business activities
The Member shall not engage in any of the following acts:
1. Adultery, run away from home due to family disagreement, other unethical behaviors among male and female members
The above matters are personal matters. However, if these matters negatively influence the culture and order of the Company, or damage the image of the Company, or the impact is significant as a pin-level member committed such a behavior, the Company can dismissal the member or take other kinds of appropriate actions.
2. Submitting false documents regarding membership registration and sales
Article 43. Measures against misuse of cash
The Member shall miss use cash by replacing other members' cash sales with their own or others' cards, etc. In case of such, the Company can take actions accordingly, and the membership can be suspended or terminated.
Article 44. Separate contracts and business activities with companies affiliated with the Company
The Member shall not engage in any business activities or profits making activities through a separate contract with a company affiliated with the business.
Article 45. Establishment of a corporation or a stock company and profit-making activities through which
The Member shall not engage in any of the following acts:
1. Establishing a separate corporation or establish a stock company after joining the Company as a member (See Chapter 2, Article 6.2 of the Membership Management Policy).
2. Pursuing any profit other than the profits allowed by the Company using the Goods provided by the Company.
Chapter 6. Operation of Membership Ethics Committee and suspension of qualification
Article 46. Operation of the Ethics Self-purification Committee
In order to settle a healthy business culture and prevent damage to goodwill of other members in advance, the Company can conduct various disciplinary proceedings in case of violation of Act on Door-to-Door Sales, etc., after deliberation of the truth commission. And one must obey its decision.
1. The Company shall constitute a truth commission consisting of the chairman of the commission appointed by the Director of the company, two employees, and two members above Imperial level.
2. The procedure for disciplinary proceedings is as follows.
① In case of violation, one should register the case with relevant documents
② Request of answers and clarification documents to the applicable member
③ Checking and surveying facts
④ Notify the sanctions to the member who committed the violation by email or cell phone text message.
⑤ If a corrective action against the member's violation of regulation is urgent or if a serious crisis is expected, the member’s membership qualification can be restricted during the review period before making a final decision on the member.
⑥When the disciplinary action is decided, the Company shall notify the person subject to the disciplinary action, or notify the center thereof (notification by e-mail or mobile phone text message) and execute the sanction proposal. If no action is made within seven days after the notification, it is deemed that there is no will to make an objection.
3. The Member is obliged to cooperate faithfully in the deliberation of the truth commission, and any act that refuses the investigation and interferes with the deliberation is prohibited.
4. The Member shall be responsible for any action in violation of the Code of Ethics and shall comply with the decision made by the committee.
Article 47. Types of sanctions
1. Membership cancelation: Loss of membership
2. Membership suspension: Membership is temporarily suspended.
3. Suspension of payment: No payment is made for a certain period of time (a lump-sum payment at the time of lifting of the suspension)
4. Warning: If the Member violates the membership prohibition, Ethics Codes, or the Membership Management Policy, but the degree of violation is mild and unintentional.
6. Attention: If there is a lack of understanding of the regulations and there is a need for member education (if the sanction includes an education, one has to complete the education supervised by the Company).
Article 48. Warnings and cautions
If one violates the membership regulations more than once, the penalty can be aggravated accordingly.
Chapter 7 Withdrawal and Termination
Article 49. Suspension of membership
1. Membership is suspended in the cases as follows.
① In case of violation of the Act on Door-to-Door Sales, etc. and the company regulations
2. When the Company recognizes a member's violation of the regulations, the member shall be guided to abide by the regulations. If there is no correction, the Company may suspend the membership after giving an advance notice (e-mail or text message) to the member.
3. The scope of suspension of membership is from the member to the highest-level member in the line, and the suspension period shall be from one month to six months maximum.
4. A member whose membership is suspended shall be limited to the following activities as a member during the suspension period.
① Loss of entitlement to purchase and sale of the Goods
② Loss of entitlement to recommend and sponsor new members
5. In suspending a membership, the Company shall comprehensively judge in accordance with the severity of the case, whether the member and the member’s upline members had prior awareness of the violation, whether the obligation to provide sincere support for education were carried out, and whether the obligation to manage as a upline member were carried out, and can punish not only the member but also the member’s upline members (not limited to the immediate upline member).
6. Severe penalties
If a member does not fulfill the sanction or violates the regulations again, the punishment towards him / her will be aggravated. (even with a disciplinary action taken, the member can be punished by aggravated sanctions or stronger sanctions.)
Article 50. Withdrawal
Any member may withdraw from membership by submitting a written submission to the company at his or her own discretion.
Article 51. Termination of qualifications (expulsion)
1. Membership is terminated in the cases as follows:
① In case of submitting false documents related to membership registration
② In case of causing the Company serious a business loss
A serious business loss means financial damages that the Company should bear because of damage of company image, intentional bulk return, selling the Goods at a cheaper price than the purchase price by selling the products delivered to one or to the third party, use of suspended credit card, law suit caused by disobeying the company regulations, etc.
③ In case of promoting other multi-level marketing companies’ products or businesses (including door-to-door marketing and sponsor visiting marketing companies that are similar to multi-level marketing) to the members of the Company, sales of such company’s products and equivalent to such activities.
2. The Company may terminate the membership of a member who has caused a serious problem without any prior suspension, and if the membership is terminated, the legal relationship between the Member and the Company is also terminated and the Member cannot exercise any rights as a member.
3. If a member fails to comply with the provisions of the Membership Management Policy, membership may be canceled depending on the degree of the incompliance.
4. In termination of membership, the Company shall comprehensively judge in accordance with the severity of the case, whether the member and the member’s upline members had prior awareness of the violation, whether the obligation to provide sincere support for education were carried out, and whether the obligation to manage as an upline member were carried out, and can punish and make a claim for damage to not only the member but also the member’s upline members (not only the immediate upper person).
Article 52. Membership re-registration
1. Re-registration can be made one year after the termination of membership.
2. If 3 months has passed without any purchase after registration, one can re-register after withdrawing.
Chapter 8. Notices and matters outside this Policy
Article 53. Notice
In order to establish a healthy business culture, the Company may announce the names of members who have been cautioned, suspended, or terminated in violation of this Policy, either in writing or through the official website of the Company.
Article 54. Matters outside this Policy
The matters other than this Policy specifies shall be in accordance with the related laws and regulations and other commercial practices as the ones of other companies.
Article 1. Implementation and Application
This Policy shall be implemented by the Company from the date of announcement.
Article 2. Application of regulations
The matters arising prior to the enforcement of this Policy shall be subject to the pre-revision provisions, except for the amendments to this Policy due to the revision of the Act on Door-to-Door Sales, etc.
Revision date: April 3, 2018
Print Date: April 3, 2018
The huencompany Business Procedure
Order / Shipping
1. The Member must purchase goods directly from the Company.
2. The Member shall not hold excess inventory when making new purchases, nor shall they purchase products beyond the limits of what they can sell to other consumers or can consume themselves. In such cases, the withdrawal of application (return) will be restricted according to the Act on Door-to-Door Sales, etc.
3. The Member must accurately determine his/her ability to sell or spend before purchasing the Goods, and then purchase accordingly.
Exchange of goods, withdrawal of application
1. Exchange of the Goods
If a consumer or the Member requests an exchange due to defects in the contents or containers of the Goods purchased, the Goods may be exchanged for the same goods if the request is found to be legitimate in relation to the conditions of the Goods.
2. Dissatisfied with the Goods
If a consumer or the Member indicates a willingness to return the item purchased and requests a refund, a refund may be made if the claim is found to be legitimate in relation to the terms of the product warranty. However, in this case, the consumer or the Member shall return the goods in accordance with the Act on door to door sales, etc., and shall give the company a written indication of the withdrawal of the application, and the Company shall return the commodity price after deducting the sponsor bonus paid beforehand.
3. Procedures for Returns
1. A member other than a Consumer member may withdraw a contract application in writing within three months from the date of the contract, unless the member has given false information of the holding stock or has damaged the goods to such an extent that resale is difficult. Members can fill out a return form, attach the purchase order or transaction statement, and submit it to the company. After the return is approved, the Goods can be returned only to the Company (The shipping cost is born by the sender).
2. In case of returning the purchased Goods, the Company will return the price paid on the order date minus the applicable bonus and reasonable fees and expenses. Fees and expenses deductibles are as follows. If returned within one month from the date of delivery of the product, there is no deduction, and if returned within 2 months after 1 month, 5% of product price will be deducted, if returned within 3 months after 2 months, 7% of product price will be deducted. In addition, the Goods cannot be returned if it exceeds 3 months.
4. Procedure for redemption
1. Repayment of the price after subtracting the bonus paid to the applicable member.
2. Redemption of the sponsor bonus paid to the caretaker sponsor for the purchase.
The huencompany Marketing Plan
Prohibited Acts of Members
Members shall not engage in any of the following acts:
1. To force a consumer to purchase or to interfere with a cancellation of purchase
2. To use false or exaggerated or deceptive methods to induce product purchase, or to interfere with withdrawal of application, or to give false information on price or quality of the Goods, or to make others misconceive the Goods as being significantly superior or advantageous than actual
3. To impose obligations to registered members and those who want to register more than the level prescribed by the relevant laws and act, such as collecting money and valuables in the name of registration fees, sales support items, individual sales, education expenses, etc.
4. To give members of the Company economic benefits to the downline recruitment itself or to pay economic benefits other than the sponsor bonus stipulated in the sponsor bonus standards, without justifiable reasons
5. To change address, telephone number, etc. for the purpose of hindering withdrawal of an application
6. To cause damage to consumers by neglecting disputes or complaints for a long time.
7. To force the other party to buy the Goods, or forcefully sell the Goods to downline members, for example by supplying the Goods without the other party's application and claiming the payment.
8. To force the other party to buy or receive services through telephone, fax or computer communication, even though the other party has indicated that they are not willing to purchase the goods or to be provided with the service.
9. To forcefully request the other to register as a downline member using social status and forcefully request downline members to purchase the Goods.
10. To force a person who wants to become a member or a member to receive education or training that goes against his or her will
11. To cause a misconception that a member is the Company’s employee or to have a person who is not registered to act as a member
12. To sell the Goods to consumers at a price that is higher than determined by the enforcement ordinance
13. To use the consumer information without the person’s consent, or to use it beyond the permitted range.
14. To transfer or acquire the membership organization or the status of membership. However, this shall not apply in case of inheritance of membership status.
15. To violate any other prohibited acts notified by the Fair Trade Commission for consumer protection.
16. To obligate members to recruit or sponsor a certain number of downline members.
17. To provide false information about certain benefits that members will receive
18. To deal with monetary transactions without trading in commodities or services, or to feign dealing in commodities or services only for monetary transactions
19. To falsely provide the information described in the Member Handbook
20. To teach or assist the above-mentioned prohibited acts
The huencompany Code of Ethics
I, as a member of the huencompany Inc., agree with my obligation to comply with the regulations for the members stipulated in the Member Handbook and the following matters.
1. Maintenance of honor and dignity
As a member of the huencompany Inc., I will act with pride, exemplary attitude, responsibility and sense of community.
2. Compliance with the Code of Ethics and the Code of Conduct
In conducting the business of the huencompany Inc,. I will fully understand the contents of the Code of Ethics, the Code of Practice and other regulations, rules and guidelines, and do my business activities accordingly.
3. Familiarity with the marketing plan and accurate notices
I will engage in sales with thorough knowledge of the marketing plan and products of the huencompany, will not disseminate wrong concepts and information, and do my best for continuous education and training. In case of violation, I will submit to any disciplinary action from the company.
4. Penalty for violation
In case of violation of various regulations established by the Company, such as the Code of Ethics and the Code of Conduct, I will submit to any sanctions decided by the Ethics Self-purification Committee, such as damage claims made by the Company, limitation of product purchase, suspension of membership activities, suspension of sponsor bonus, termination of membership, etc.
The explanatory material of multi-level Marketing
What is multi-level marketing?
Below is the explanatory material of multi-level sales set by the Fair-Trade Commission in accordance with Article 18 Clause 1 of the Code of Conduct of the Act on door-to-door sales, etc.
1. Multi-level marketing refers to the sales process in which a salesperson recruits another person as a downline salesperson and this kind of recruitment repeats more than three levels forming a multi-level marketing chain, and a product is sold through such a sales organization, rather than a general distribution channel such as a manufacturer → a wholesaler → a retailer → a consumer.
2. Multi-level marketing’s recruitment is extended stage by stage, and in some cases it may damage consumers because the marketing channel depends on personal sales / acquaintance sales
3. Pyramid sales, which has created a social problem, has history of setting the price of the goods at a high price compared to the quality, demanding money and valuables from a person who wants to become the salesperson, and forcing the salesperson to purchase the commodity, and thus profit was made mainly by recruiting downline salesperson which stirred the speculative spirit.
4. The government is enforcing Act on Door-to-Door Sales, etc. to prevent multi-level marketing from stirring the speculative spirit and causing consumer damage, and therefore one can be punished accordingly in case of violation of such regulations.
When you are asked to become a multi-level marketing member
When you are invited to become a multi-level salesperson and when you are asked to enter a multi-level sales organization as a multi-level salesperson, please check the following points first.
1. Before signing up as a salesperson, make sure that the company you intend to sign up with is registered with the Fair Trade Commission or the city / provincial authorities under the Act of door-to-door sales, etc. If there is any doubt, do not proceed with the procedure, and ask the Fair Trade Commission, or city / province (applicable section) authorities, business associations, and consumer organizations.
2. When you want to become a multi-level salesperson, please check carefully the product you are dealing with and check whether it is suitable to act as a salesperson of the products. Since multi-level marketing do not have physical stores and do not advertise, the quality and price of the products should be competitive enough.
3. When joining as a multi-level salesperson, please consider the payment standard of the sponsor bonuses and the average and distribution of the sponsor bonuses paid to the multi-level salespersons and consider the income opportunity before becoming a member.
4. A multi-level salesperson may withdraw from a multi-level marketing organization at any time after indicating his intention to withdraw, in which case the multi-level marketing company cannot impose any conditions on withdrawal.
When buying or selling goods from a multi-level marketing company
1. Multi-level marketing companies are obliged to be insured against consumer damage compensation. When purchasing goods or services (hereinafter referred to as "goods, etc.") from a multi-level marketing company, be sure to confirm that the consumer damage compensation insurance has been concluded and do receive the certificate. If the multi-level marketing company does not refund the payment even after withdrawal of application or cancellation of contract (hereinafter referred to as a "withdrawal of application, etc.") and returning of the goods, or if the goods are not supplied, some or all of the goods can be reimbursed according to the insurance terms
2. A multi-level salesperson can withdraw an application and receive a refund for goods etc. when 3 months have not passed since the date of purchase. The refund amount is as follows
- In case of withdrawal of an application within one month from the date of supply, no deduction
- In case of withdrawal of application within 2 months after one month from the date of supply, 5% of deduction from the amount or more
- In case of withdrawal of application within 3 months after 2 months from the date of supply, 7% of deduction from the amount
3. A multi-level salesperson can get a refund of a commodity purchased from a multi-level marketing company within 3 business days after cancelling your application and returning the product. If a multi-level marketing company does not refund within three business days, you can receive the refund plus the delay interest.
4. On the other hand, when a multi-level salesperson sells goods to a customer, and the customer withdraws the application within 14 days from the day of signing the contract (in the case of each of the following cases, the date specified by each of the relevant subparagraphs), the refund should be made.
A. If the delivery of the goods or the delivery of the services is later than when the contract is concluded, the date of receiving the goods or receiving the services
B. If you cannot withdraw your contract within 14 days from the date you received the contract because you did not receive the contract, because you received a contract that does not include the address of the multi-level marketing company, or because of the change of the multi-level marketing company’s address, the date when you learn the address of the multi-level marketing company.
C. If the contract does not mention the withdrawal of application, etc., the date when you learn about the application withdrawal
D. If a multi-level marketing company interferes with the withdrawal of the application, the date when the interference ends.
An illegal multi-level marketing company
The following companies are illegal multi-level marketing companies. If any multi-level marketing company you know falls under below description, please notify the city / province authorities, the Fair Trade Commission, the police office, business association, and consumer groups immediately.
1. A company of which multi-level marketing merchant registration certificate and registration number are missing or unclear.
2. A company that does not disclose data on the criteria for calculating / paying the sponsor bonuses.
3. A company that does not issue a multi-level marketing member certificate, multi-level marketing member notebook, etc. or issue faithless ones
4. A company that sells high-priced products of which price exceeds 1.6 million KRW (including VAT).
5. A company of which product return and refund policy is not clear or is not practically guaranteed.
6. A company of which rate of sponsor bonus is too high (exceeds 35% of the supply price of goods etc. for salesperson)
7. A company that induces membership registration by violence, coercion or other semi-coercive, threatening manners
8. A company that asks for more than 10,000 won as an application fee or require to purchase more than 50,000 won as an application condition.
9. A company that obligates a salesperson to purchase more than 30,000 won of the sales assistance item.
10. A company that says the salesperson qualification can be maintained and the sponsor bonus can be paid only if one meets a certain sales quota, different from the sponsor bonus payment standards announced at the time of the membership registration.
11. The act of new member registration results in income.
12. A company that changes the address, telephone number, etc. of the workplace intentionally and frequently.
13. A company of which prices for goods are significantly higher than comparable commodities, or in reality only deals with monetary transactions
14. A company that forces a salesperson or a person who wants to be a salesperson to receive training / to camp against his or her will.
15. A company that induces people to be members through false excuses such as employment/sideline appointments, briefing sessions, trainings, without explicitly stating the purpose of recruiting