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Disciplinary Sanctions

Per Policies & Procedures Section 6.1, violations of the Partner Agreement may result in disciplinary action.

Available Sanctions​

  • Written warning — Formal notice of violation requiring acknowledgment
  • Corrective action required — Must fix the issue immediately and confirm compliance
  • Commission withhold — One or more commission checks held pending resolution
  • Suspension — Agreement suspended for one or more pay periods
  • Organization transfer — Partial or full Marketing Organization moved to another sponsor
  • Termination — Involuntary cancellation of Partner Agreement
  • Monetary fine — Financial penalty assessed
  • Legal proceedings — For serious violations involving fraud or illegal activity

Sanction Levels​

Minor Violations​

  • First-time disclosure omission → Written warning
  • Unapproved material (correctable) → Corrective action required
  • Minor policy misunderstanding → Written warning with education

Moderate Violations​

  • Repeat disclosure violations → Commission withhold
  • Unauthorized website → Corrective action + monitoring
  • Income claim without disclaimer → Commission withhold + retraining

Serious Violations​

  • Prohibited marketing methods → Suspension
  • Cross-recruiting → Organization transfer + suspension
  • Multiple repeat violations → Suspension or termination

Severe Violations​

  • Fraud or misrepresentation → Termination
  • Illegal activity → Termination + legal action
  • Material harm to company/members → Termination + monetary penalty

Investigation Process​

  1. Report received and documented
  2. Evidence gathered and reviewed
  3. Partner notified and given opportunity to respond
  4. Investigation completed
  5. Determination made
  6. Sanction applied if warranted
  7. Partner notified of outcome

Partner Rights​

  • Notice — Written notification of alleged violation
  • Response — Opportunity to respond before sanctions
  • Evidence — Access to evidence used in determination
  • Appeal — Right to appeal sanctions through proper channels

Appeal Process​

  1. Submit written appeal within 14 days
  2. Include supporting documentation
  3. Appeal reviewed by senior management
  4. Decision communicated in writing
  5. Decision is final

Commission Recovery​

When commissions are recovered due to violations:

  • Future commissions → Offset against future earnings
  • No future earnings → Invoice issued for repayment
  • Refusal to pay → Legal action may be pursued

Reinstatement​

After serving a suspension:

  • Compliance confirmation — Written acknowledgment of policies
  • Corrective action — All required corrections completed
  • Monitoring period — Enhanced monitoring for 6 months
  • Repeat offense — More severe sanctions apply