Chapter 18: Return of Merchandise for Refund

 

 

SEC. 1                General Refund Policies

(A)     As stated in the official company policies, procedures, rules, and regulations, which form part of the Independent Distributor Application and Agreement, only products, that are currently marketable and in a resalable condition will be repurchased. This means that it must be listed in the current price list, must not be on the "no longer available" status list, must be undamaged, and must have a valid expiration date.  For clarification purposes, a product is considered to have a Valid Expiration date if the product has at least 5 months remaining before the expiration date. Products expiring within 5 months from the return date will not be considered marketable and sellable. The aforementioned does not apply to food supplements in liquid form, such as Ultimate Aloe. Food supplements in liquid form can be returned up to 3 months from their expiration date. If the product being returned does not meet the standards referenced here and in this Chapter, the return will be rejected and a refund will not be processed. Note: Due to FDA regulations most other food items are considered non-resalable and cannot be accepted for return. Custom Formula products may not be returned for refund, because they are made specifically for one person and cannot be resold to anyone else. Gift cards cannot be returned for a refund for any reason.

(B)     Please note that Market America cannot give a refund on damaged products. Products will be considered damaged if any of the following apply:

  • Opened or used product.
  • Leaking product.
  • Distributor labels or other foreign labels or markings on product.
  • Any outer or inner damage to product, bottles, labels, etc.
  • Any items which have been discontinued after the original purchase date.
  • Literature that is sold in sealed packs with the outer packaging not intact.

(C)     A WebCenter is activated at the time of purchase and is non-transferrable after activation. As a result, the WebCenter service is considered “opened” or “used” in much the same way that a piece of software, once installed and a license is applied, is considered “used” and therefore subject to a tiered refund based on the following parameters:

(1)   Less than 60 days, the distributor receives a 90 percent refund.

(2)   Between 60 and 90 days the distributor receives a 75 percent refund.

(3)   After 90 days the Distributor is no longer eligible for a refund.

(4)   If at any time a website has been sold through the WebCenter, it is no longer eligible for any refund regardless of the date of purchase.

(D)     Fast Start Kit Returns:

  • If you are returning a Fast Start Kit, the kit must be returned with all of its original contents to allow for a refund. No Exceptions.
  • If a partial kit is returned to Market America, it will not be refunded and will be returned to the Distributor at Distributor’s Cost. No Exceptions.

(E)     If the request to return product for a refund is received by Market America in time to remove the Business Volume (BV) from the computer system before it has been paid on in a weekly commission cycle, then Market America will remove the BV from the computer system immediately upon receiving the return request. However, if the request to return product for a refund is received by Market America after it has been paid on in at least one weekly commission cycle, then Market America will implement the Commission Reversal Process.

(F)     Upon receipt of the returned merchandise, the company will notify the Distributor of the status of the return. If the return is rejected, the Distributor must request in writing that the product be reshipped to his/her address, or the returned product will be discarded.

(G)    Distributors should allow 30 days for the processing of a refund once product is received by Market America. If the Distributor returning the products or merchandise does not fulfill the requirements outlined herein, it may take additional time to complete the return procedure.

(H)     On returns exceeding $1,000, a Uniform Commercial Code (UCC) statement must be sent to the company indicating that there are no liens or encumbrances on the product being returned and that the product was not used as collateral against any loan.

(I)      Distributors may not return merchandise for other Distributors. Only the purchasing Distributor may return merchandise for a refund. If the product a Distributor wishes to return was paid for by another Distributor, the refund will be given to the paying Distributor.
The only time Market America will refund a non-paying Distributor is if a signed letter from the paying Distributor accompanies the refund request, authorizing Market America to refund the non-paying Distributor, and this exception will be made on first-time orders only.

(J)     Shipping charges are non-refundable.

(K)     If Distributors do not receive a refund check in the mail that has been approved, they can call Distributor Services to request a Stop Payment be placed on the refund check.

(1)     The Distributor must wait two full weeks from the date the check was mailed to request a Stop Payment. If the check has not been cashed, a replacement check will be issued. There is no charge to Distributors for Stop Payments on refund checks as long as the check was never received by the Distributor and he/she waits the full two weeks before contacting Market America.

(2)     If a Distributor wants to request a Stop Payment on a refund check before the two-week waiting period is over – (e.g. the check was tossed into the trash by mistake, etc.) — there will be a service charge incurred by the Distributor. If the check has not been cashed, a replacement check will be issued.

(3)     Once a Distributor has requested a Stop Payment, he/she should not attempt to cash the original check if it arrives. Distributors must wait on the replacement check at that point.

(L)     Market America will issue a Stop Payment on any Distributor's refund check that has not cleared the bank within six months of the date the check was issued. The amount of any such check, less the current Stop Payment fee, will be placed on the Distributor's Market America credit account.

SEC. 2                30-Day Return Policy

The company will repurchase any products that are currently marketable and in resalable condition, minus a 10 percent handling fee, if the purchasing Distributor contacts Market America within 30 days of the products being shipped. Any commissions paid on returned merchandise will be deducted from the upline’s future commissions.

SEC. 3                Return Policy for Canceling Distributors

Distributors must notify Market America in writing that they are electing to cancel their distributorship. If Independent Distributors are canceling their distributorship and have purchased products for inventory purposes or sales aids while the Independent Distributor Application and Agreement was in effect, all unencumbered products in a currently marketable and resalable condition then in possession of the Independent Distributor, which have been purchased directly from Market America within one year of cancellation, shall be repurchased, minus a 10 percent handling fee. Shipping charges are nonrefundable. Any commissions paid on returned merchandise will be deducted from the upline’s future commissions.

SEC. 4                Order Cancellation

All canceled orders are subject to a 10 percent processing fee. The 10 percent processing fee applies to all canceled orders, including without limitation Transfer Buying Orders, orders placed through the Distributor’s UnFranchise® Business Account, telephone orders and paper orders. For cancellations submitted after shipment, please refer to Market America’s Return Policy.

SEC. 5                Merchandise Return Procedure

Market America assumes no liability for products damaged while being returned. It is the sole responsibility of the Distributor to ensure the condition of the product being returned to Market America, and to file any claims with the shipper for damages caused en route. To return merchandise for refund Distributors must adhere to the following procedure:

(A)     Written List of Products: Distributors must submit a written list of items and quantities they wish to return, along with the dates the products were purchased directly from Market America, their upline Executive Coordinator at the time of purchase, and copies of the applicable orders for the products to be returned.

(B)     Initial Upline “Decline to Buy Back” Letter: Distributors returning product for refund must always give the upline sponsor (if active) and/or the first active upline Executive Coordinator the initial opportunity to buy the product back directly from them. It is most expedient for Distributors returning products to contact their upline sponsor and Executive Coordinator and offer to sell the product back to them at the current wholesale price minus a 10 percent handling fee. Distributors must submit a letter signed by their sponsor (if active) and their first active upline Certified Executive Coordinator stating that they do not want to repurchase the merchandise and that they understand that any unearned commissions will be deducted from their future commissions.

(C)     Return Authorization Number (RA#): On receipt of the written list of products and the initial upline “Decline to Buy Back” letter, the company will issue a Return Authorization number. No merchandise may be returned without an RA#. Note: RA#’s are only valid for 30 days from the date of issuance.

(D)     Product Return: The product must be returned to the company identifying the Distributor who is making the return and including an order form completely filled out identifying each item being returned. Mark on the order form at the top “RETURN” along with the Return Authorization number. All shipping costs must be paid by the Distributor. No COD or collect shipments will be accepted. If the RA# is not written on the outside of the package, delivery will be refused. The package should be sent via a shipper that offers package tracking. Market America also recommends that Distributors insure all packages they return to the company.

SEC. 6                Executive Coordinator's Buyback Responsibility

The upline Certified Executive Coordinators (CECs) or higher Pin Levels shall incur sole responsibility for buying back resellable product and useable materials. Failure to execute this responsibility may result in corrective action and possibly the cancellation of the responsible party’s distributorship.

(A)     Distributors returning product for refund must always give the upline sponsor (if active) and/or the first active upline CEC (or higher Pin Level) the initial opportunity to buy the product back directly from them (see Merchandise Return Procedure).

(B)     Market America will initiate an “Upline Return Merchandise Acknowledgment” letter to the five consecutive upline CECs (or higher Pin Levels) only if:

(1)     Market America receives the initial upline “Decline to Buy Back” letter from the Distributor who is wishing to return the product. And the letter is signed by the sponsor (if active) and the first active upline CEC (or higher Pin Level);

(2)     the Distributor returns the product to Market America; AND

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

(C)     The “Upline Return Merchandise Acknowledgment” letter shall identify the downline Distributor, the product that was returned, and the names of the other four CECs (or higher Pin Levels) who were sent the same letter.

(D)     If Market America receives no response from the five consecutive upline CECs (or higher Pin Levels) within 15 business days from the date of the letter being sent, Market America will initiate the Commission Reversal Process.

SEC. 7                Commission Reversal Process

The Commission Reversal Process shall apply when all of the following occur: (1) products in resalable condition are returned to Market America for a refund, (2) the Business Volume (BV) for the products could not be removed before it had been paid on in at least one weekly commission cycle, (3) a refund of some type (refund check, credit to the Market America account, etc.) will be or already has been issued, and (4) Market America receives no response from the five consecutive upline Certified Executive Coordinators (CECs) (or higher Pin Levels) within 15 business days from the date of the “Upline Return Merchandise Acknowledgment” letter being sent. Market America will initiate the Commission Reversal Process as follows:

(A)     The computer will multiply the total amount of Business Volume (BV) returned by a commission payout factor (i.e. average percentage payout on BV from the previous 12 months). The result will be the total amount to be subtracted from commission checks in the reversal process. Example: 200 BV returned x 58 percent (6/5/95 to 6/5/96 average) = $116.

(B)     The computer will locate the most immediate of the five consecutive upline CECs (or higher Pin Levels) qualifying to earn a commission check for the next available weekly commission pay cycle and subtract the respective amount from the earned commission check. If none of the first five upline CECs (or higher Pin Levels) earns a commission check during the next available weekly commission pay cycle, then the Commission Reversal Process will continue to search each week until one of the five upline CECs (or higher Pin Levels) earns a commission check.

(C)     If the identified CEC (or higher Pin Level) qualifying to earn a commission check during the next available weekly commission pay cycle is the first (immediate) upline CEC (or higher Pin Level) from the Distributor returning the product, the process is complete. Remember, in accordance with policies and procedures contained in the Career Manual, it is the immediate upline CEC’s (or higher Pin Level’s) contractual obligation to purchase (buy back) returned product.

(D)     If the identified CEC (or higher Pin Level) qualifying to earn a commission check during the next available weekly commission pay cycle is not the first (immediate) upline CEC (or higher Pin Level) from the Distributor returning the product, then for the next available weekly commission pay cycle in which the immediate upline CEC (or higher Pin Level) qualifies for a commission check, the Commission Reversal Process shall subtract the original commission reversal amount from the immediate upline CEC’s (or higher Pin Level’s) check. During the weekly commission pay cycle in which the original commission reversal amount is subtracted from the immediate upline CEC (or higher Pin Level), that same amount will be reimbursed to the upline CEC (or higher Pin Level) who originally had the commission reversal amount originally subtracted.

SEC. 8                Discontinued Products

Market America’s Mall without Walls® concept allows Market America to respond to market trends. If a store within the mall closes for renovation or discontinues a product or product line, Market America will not be able to offer an exchange or refund for any products that have been discontinued since the date of purchase from Market America. 

SEC. 9                Reshipping Returned Products

When product is returned to Market America for any reason, if Market America has not paid on at least one weekly commission cycle that includes the returned products, then all BV for the returned products is immediately removed from the computer database. Distributors have 30 days from the date that Market America receives product back (for whatever reason) to request that any returned package be reshipped. 

(A)     Within 30 Days: If within 30 days from the date of the package being received by Market America either the paying Distributor or the ordering Distributor requests it to be reshipped, and the BV had already been removed from the computer system, then the BV will be put back for the date of the original order. Accrual date corrections or adjustments caused by the removal of BV due to returned products will be considered on a case by case basis.

(B)     Over 30 Days: If neither the paying Distributor nor the ordering Distributor requests within 30 days from the date of the package being received by Market America to have the product reshipped, then it can no longer be reshipped at that point. The paying Distributor will receive a credit for the amount of the order based on current returns policies, minus the 10 percent handling fee.  After the 30-day period, if the product has not been reshipped, any accrual date corrections or adjustments caused by the returned products will no longer be considered. After the 30-day period, if the product has not been reshipped and Market America was unable to remove the BV from the computer system before it paid on at least one weekly commission cycle that included the returned products, then Market America will implement the Buy Back Policy and, if necessary, the Commissions Reversal Process.

SEC. 10              Retail Customer Return Policy

A customer making a purchase from a Distributor has until midnight of the third business day after the sale to cancel an order and receive a full product refund from the selling Distributor. In Canada, purchasers are entitled to cancel and receive a full refund within a 10-day period of the sale. When a Distributor takes an order and the customer cancels or requests a refund within 72 hours of the sale (or within 10 days of the sale in Canada), the Distributor must promptly refund the customer’s money. Distributors may receive a refund for the products (minus a 10 percent handling fee) or an exchange of the same products from the company provided written notification along with a dated retail receipt is received by Market America within 30 days of the products being shipped to the Distributor.

 

Last Modified :07/24/2015 2:20:38 PM EDT