Chapter 16: Sales and Distribution of Products, Rules and Prohibitions

 

Explains how to store and sell products to consumers in accordance with applicable regulations in Indonesia.

SECTION 1     RECORDS

UnFranchise® Owners are responsible for maintaining accurate sales records, including proof of purchase and the UnFranchise Owner Sales Report (Form 1000). Market Indonesia’s marketing plan is based on retail sales to end consumers; therefore, hoarding or purchasing excessive quantities is prohibited. Products are offered to UnFranchise Owners only for sale to consumers and, at the UnFranchise Owner’s option, for personal consumption.

SECTION 2     70 PERCENT RULE

A minimum of 70% of the products ordered by an UnFranchise Owner must be sold to consumers.

  1. Implementation: Executive Coordinators are responsible for enforcing this policy in their organization and may be required to buy inventory not sold by their downline within 90 days of purchase, as it violates the 70 Percent Rule. Market Indonesia enforces this provision to fulfill various legal requirements that apply to company operations. This policy is not an alternative to the regular product returns policy (see Returns Policies).

  2. Documentation: The company requires each UnFranchise Owner to keep proof of sales to consumers for each transaction.

SECTION 3     RETAIL STORE POLICIES

UnFranchise Owners are prohibited from selling Market Indonesia products in retail stores and marketplace platforms.

Merchandising: Products and services may be bought and sold at the counter or on display shelves in any area of a service establishment. No products may be sold or stored in any kind of retail store.

  1. Representative: Product information (as described solely by Market Indonesia literature) must be available to end consumers at all times.

  2. Selling to retail companies: Market Indonesia UnFranchise Owners cannot sell Market Indonesia products to any retail company for resale. Market Indonesia UnFranchise Owners cannot sell to wholesalers, independent representatives or third parties to sell to any retail company. Only company-approved literature may be placed in retail establishments.

  3. Selling on the marketplace platform: The law prohibits UnFranchise Owners from selling Market Indonesia products on marketplace platforms such as Shopee, Lazada, Tokopedia and Bukalapak.

SECTION 4     SUGGESTED RETAIL PRICE

UnFranchise Owners are free to sell products at any price they choose. Suggested retail (SR) prices are simply a guide the company provides for comparable products on the retail market.

SECTION 5     NO EXCLUSIVE AREAS

There shall be no exclusive territories for marketing, sales or distribution purposes, nor shall UnFranchise Owners imply or state that they have exclusive territories. Market Indonesia encourages UnFranchise Owners to build and manage their sales and distribution networks locally and respond to responsible growth in each geographic location.

SECTION 6     PRODUCT RESPONSIBILITY

  1. Storage: Products marketed through Market Indonesia must be stored in accordance with the instructions (as applicable) provided on the product information label.

  2. Packaging: Market Indonesia products are prohibited from being repackaged in any way. State and federal agency labeling laws expressly forbid this. Market Indonesia carefully complies with these laws.

  3. Product liability insurance: Market Indonesia has product liability insurance as protection against claims regarding possible product defects.