Chapter 18: Quality Guarantee, Compensation and Return of Goods

 

Explains quality guarantees, product returns due to cancellation of purchase or complaints about product quality, and compensation for losses incurred in accordance with applicable regulations in Indonesia.


SEC. 1     GENERAL REFUND AND REPURCHASE POLICY

  1. As stated in the company’s official policies, procedures, rules and regulations, which are part of the Independent UnFranchise® Owner Application and Agreement (IUA&A), only products that are currently marketable and in resaleable condition will be repurchased. This means the product must be listed in the current price list, not on an out-of-stock status list, be in undamaged condition and have a valid expiration date. If the returned product does not meet these standards, the return will be refused, and no refund will be processed. Market Indonesia will repurchase from an active UnFranchise Owner any product that is currently marketable, in resalable condition and eligible for return if the purchasing UnFranchise Owner contacts Market Indonesia within thirty (30) days of the product being delivered (repurchase period) and follows the Merchandise Return Procedure set out in this chapter. A processing fee of ten percent (10%) will be debited from the returned purchase price. There are no refunds on initial shipping and handling charges. Any commission paid on the returned product will be deducted from future commissions, with the Business Volume (BV) of the UnFranchise Owner’s account adjusted equal to the BV provided for the returned product.

    Note: The thirty (30) day repurchase period provides sufficient time for the UnFranchise Owner to determine whether the product needs to be returned for repurchase. No buybacks/refunds are available outside of the repurchase period unless specifically provided in this manual.

  2. Please note that Market Indonesia cannot provide refunds for damaged products. The product will be considered defective if any of the following applies:

    • The product is opened or used.

    • The product leaks.

    • UnFranchise Owner labels, foreign labels or markings are on the product.

    • The product’s expiration date is in less than five months .*

    • There is external or internal damage to the product, bottle, label, etc.

    • The product has been discontinued after the original purchase date.

    • The outer packaging of sealed-pack literature is no longer intact.

    *For clarification purposes, a product is considered to have a valid expiration date if the product has at least five months remaining before the expiration date. Products that expire within five months from the return date will not be considered marketable and saleable. Therefore, the return of the item will be refused, and no refund will be processed. The above does not apply to liquid food supplement products, such as Select™ AloChoice Botanical Beverage Aloe Vera. Dietary supplement products in liquid form can be returned up to three months from the expiration date.

  3. Return of e-Business Package Plus or e-Business Package Premium

    • If you return the e-Business Package Plus or e-Business Package Premium, it must be returned with all its original contents to allow for a refund. There are no exceptions.

    • If the content of the returned package is incomplete, it will not be accepted for a refund and will be returned to the UnFranchise Owner with shipping costs charged to the UnFranchise Owner. There are no exceptions.

  4. If Market Indonesia receives the request to return a product for a refund in time to remove the BV from the computer system before it is paid on in a weekly commission cycle, then Market Indonesia will delete the BV from the system computer immediately after receiving the return request. However, if Market Indonesia receives the request to return a product for a refund after it has been paid on in at least one weekly commission cycle, then Market Indonesia will implement the Commission Reversal Process.

  5. Upon receipt of the returned merchandise, the company will notify the UnFranchise Owner of the return status. If a return is refused, the UnFranchise Owner must request in writing that the product be sent back to their address, or the returned product will be discarded.

  6. UnFranchise Owners must allow thirty (30) days to process the refund after Market Indonesia receives the product. If an UnFranchise Owner returns product or merchandise that does not meet the requirements outlined herein, additional time may be required to complete the return procedure.

  7. UnFranchise Owners are prohibited from returning merchandise purchased by other UnFranchise Owners. Only the purchasing UnFranchise Owner may return the merchandise for a refund. If another UnFranchise Owner, other than the paying UnFranchise Owner, wishes to return a product, a refund will be issued to the paying UnFranchise Owner. The only time Market Indonesia will refund money to a nonpaying UnFranchise Owner is if a signed letter from the paying UnFranchise Owner accompanies the refund request, authorizing Market Indonesia to refund the money to the nonpaying UnFranchise Owner.

  8. Shipping costs are nonrefundable.

  9. If the UnFranchise Owner does not receive their approved refund within the specified time, they can contact the UnFranchise Owner Services Refunds Department to request an update on the refund payment. UnFranchise Owners must wait two (2) weeks from the date the refund is processed before calling the Refunds Department.

  10. Market Indonesia will issue a refund to the UnFranchise Owner’s Market Indonesia credit account if the UnFranchise Owner’s bank has not received the refund within six months of the refund being processed.


SEC. 2     SAME-DAY RETURNS (WALK-INS)

If an UnFranchise Owner returns a product they received before leaving the office, a Merchandise Return Form will be completed, and a refund will be processed the same day. Refunds will be issued using the same payment method used when placing the order.


SEC. 3     180-DAY RETURN POLICY

The company will repurchase every product currently marketable and in a condition that can be resold at a minimum price of 90% of the purchase price if the purchasing UnFranchise Owner contacts Market Indonesia within 180 days from the date of product purchase. Any commission paid for returned products will be deducted from future upline commissions.


SEC. 4     RETURN POLICY FOR CANCELLATION OF UNFRANCHISE OWNERSHIP

UnFranchise Owners must notify Market Indonesia in writing that they choose to cancel their UnFranchise Owner Business. If an Independent UnFranchise Owner cancels their UnFranchise Business and has products for inventory purposes or sales aids that were purchased directly from Market Indonesia while the IUA&A was in effect and within one year after cancellation, all existing products in marketable and resellable condition can be repurchased for at least 90% of the product purchase price. Shipping costs are nonrefundable. Any commission paid for returned merchandise will be deducted from future upline commissions.


SEC. 5     MERCHANDISE RETURN PROCEDURE

Market Indonesia is not responsible for products that are damaged when returned. The UnFranchise Owner is responsible for ensuring the condition of products returned to Market Indonesia and submitting any claims to the sender for damage incurred in transit. To return merchandise for a refund, the UnFranchise Owner must comply with the following procedures:

  1. Written product list: UnFranchise Owners must submit a written list of items and quantities they wish to return, along with the dates the products were purchased directly from Market Indonesia, their upline Executive Coordinator at the time of the purchases and copies of the applicable orders for the products to be returned.

  2. Initial upline rejects buyback letter: UnFranchise Owners returning products for a refund must always give the upline sponsor (if active) and/or the first active upline Executive Coordinator the initial opportunity to repurchase the product directly from them. It is strongly recommended that UnFranchise Owners returning products contact their upline sponsor and Executive Coordinator and offer to sell the product back to them for at least 90% of the product purchase price. UnFranchise Owners must submit a letter signed by their sponsor (if active) and their first upline Certified Executive Coordinator stating that they do not wish to repurchase the merchandise and understand that any unearned commissions will be deducted from their future commissions.

  3. Return Authorization Number (RA No.): Upon receipt of the written list of products and initial upline letter of refusal to repurchase, the company will issue a Return Authorization number. Merchandise cannot be returned without an RA No. Note: An RA No. is only valid for thirty (30) days from the date of issuance.

  4. Product returns: Products must be returned to the company identifying the UnFranchise Owner making the return and including a completed order form identifying each returned item. Mark on the order form at the top “RETURN” along with the RA No. The UnFranchise Owner must pay all shipping costs. No cash on delivery (COD) or collective delivery system shipments are permitted. If the RA No. is not written on the outside of the package, the shipment will be refused. Packages must be sent via a courier service that can track packages. Market Indonesia also recommends that UnFranchise Owners insure all packages they return to the company.


SEC. 6     EXECUTIVE COORDINATOR’S BUYBACK RESPONSIBILITY

The upline Certified Executive Coordinator (CEC) or higher level UnFranchise Owner will be solely responsible for repurchasing resalable, usable products. Failure to carry out this responsibility may result in corrective action and possible cancellation of the responsible person’s UnFranchise Ownership.

  1. UnFranchise Owners returning products for a refund must always give their upline sponsor (if active) and/or the first active upline CEC (or higher UnFranchise Level) the initial opportunity to repurchase the product directly from them (see Merchandise Return Procedures ).

  2. Market Indonesia will initiate Upline Return Merchandise Acknowledgment letters to five consecutive upline CECs (or higher UnFranchise Levels) only if:

    1. Market Indonesia receives from the UnFranchise Owner who wants to return the product the initial upline’s letter of refusal to repurchase, signed by the sponsor (if active) and the first active upline CEC (or higher UnFranchise Level);

    2. The UnFranchise Owner returns the product to Market Indonesia; and

    3. The BV for the returned product could not be removed from the computer system before it was paid on in at least one commission cycle.

  3. The Upline Return Merchandise Acknowledgment letter shall identify the downline UnFranchise Owner, the returned product and the names of the other four CECs (or higher UnFranchise Levels) to whom the same letter was sent.

  4. If Market Indonesia does not receive a response from the five consecutive upline CECs (or higher UnFranchise Levels) within fifteen (15) business days from the date the letter is mailed, Market Indonesia will initiate the Commission Reversal Process.


SEC. 7     COMMISSION REVERSAL PROCESSFAIRS/TRADESHOWS

The commission reversal process applies when all of the following are met: (1) the product in resalable condition is returned to Market Indonesia for a refund, (2) the Business Volume (BV) for the product could not be removed before it was paid on in at least one weekly commission cycle, (3 ) a refund of some type (refund payment, credit to the Market Indonesia account, etc.) will be or has been issued and (4) Market Indonesia has not received a response from the five consecutive upline Certified Executive Coordinators (CECs) (or higher UnFranchise Levels) within fifteen (15) working days from the date of sending the Upline Merchandise Return Acknowledgment letter. Market Indonesia will initiate the Commission Reversal Process as follows:

  1. The computer will multiply the total BV amount returned by a commission payout factor (i.e., the average percentage of BV payouts from the previous 12 months). The result will be the total amount that will be deducted from the commission in the reversal process. Example: 200 BV returned x 58% (average 5 June 1995 to 5 June 1996) = Rp1,740,000.

  2. The computer will find the most immediate of the five consecutive upline CECs (or higher UnFranchise Levels) who are eligible to earn commissions for the next available weekly commission payout cycle and subtract the respective amounts from earned commissions. If none of the first five upline CECs (or higher level UnFranchise Owners) earn commissions during the next available weekly commission payout cycle, then the Commission Reversal Process will continue to search each week until one of the five upline CECs (or higher UnFranchise Level) earns commission.

  3. If the identified CEC (or higher UnFranchise Level) qualifying to earn a commission during the next available weekly commission payout cycle is the first (immediate) upline CEC (or higher UnFranchise Level) of the UnFranchise Owner returning the product, the process is complete. In accordance with the policies and procedures outlined in the UnFranchise Manual, it is the contractual obligation of the direct upline CEC (or higher UnFranchise Level) to purchase (buy back) the returned product.

  4. If the identified CEC (or higher UnFranchise Level) eligible for commission during the next available weekly commission payout cycle is not the first (immediate) upline CEC (or higher UnFranchise Level) of the UnFranchise Owner returning the product, then for the next available weekly commission payout cycle in which the immediate upline CEC (or higher UnFranchise Level) qualifies for a commission, the Commission Reversal Process will subtract the original commission reversal amount from the immediate upline CEC (or higher UnFranchise Level). During the weekly commission payout cycle, where the original commission reversal amount is deducted from the immediate upline CEC (higher UnFranchise Level), that same amount will be reimbursed to the upline CEC (or higher UnFranchise Level) who originally had the commission reversal amount subtracted.


SEC. 8     SPECIAL OFFERS, BLOWOUTS OR DISCOUNT EVENTS

All items purchased at special discount prices are nonrefundable and must be considered “final sale.”


SEC. 9     DISCONTINUED PRODUCTS

Market Indonesia’s Mall Without Walls® allows Market Indonesia to respond to market trends. If a store within a mall closes for renovations or discontinues a product or product line, Market Indonesia will not be able to offer exchanges or refunds for any products that have been discontinued since the purchase date from Market Indonesia.


SEC. 10     RETURN SHIPPING OF RETURNED PRODUCTS

When a product is returned to Market Indonesia for any reason, and Market Indonesia has not paid at least one weekly commission cycle covering the returned product, then all BV for the returned product is immediately deleted from the computer database. UnFranchise Owners have 30 days from the date Market Indonesia receives the returned product (for any reason) to request that the returned package be sent back.

  1. Within 30 days: If within thirty (30) days from the date Market Indonesia receives the package, either the UnFranchise Owner who paid or the UnFranchise Owner who ordered asks for it to be sent back, and the BV has been deleted from the computer system, then the BV will be returned for the date of the initial order. Corrections or adjustments to accrual dates resulting from BV removal due to returned products will be considered on a case-by-case basis.

  2. More than 30 days: If the UnFranchise Owner who pays or the UnFranchise Owner who orders does not request within thirty (30) days from the date Market Indonesia receives the package to send the product back, then the product can no longer be sent back at that time. The paying UnFranchise Owner will receive a credit for the order amount based on the current returns policy, less a 10% processing fee. After the 30-day period, if the product has not been reshipped, any accrual date corrections or adjustments caused by the returned product will no longer be considered. After the 30-day period, if the product has not been reshipped and Market Indonesia is unable to remove the BV from the computer system before it is paid on in at least one weekly commission cycle covering the returned product, then Market Indonesia will implement the Buyback Policy.


SEC. 11     PREFERRED CUSTOMER RETURN/REFUND POLICY

  1. 180-day return policy: If, for any reason, a Preferred Customer does not like the product purchased, within 180 days of the product being purchased, simply return the item with a receipt for exchange (if available) or a refund of 90% of the product purchase price, if applicable. Only products that are currently marketable and in resalable condition may be returned.

  2. AutoShip orders: Preferred Customers who do not pick up their AutoShip order within seven (7) calendar days will have their order canceled and 100% of the purchase price refunded.