TARA at Home™
POLICIES & PROCEDURES
1. Policies and Compensation Plan Incorporated into Consultant Agreement; Amendments.
These Policies and Procedures, in their present form and as amended at the sole discretion of TARA at Home (hereafter “TARA at Home” or the “Company”), are incorporated into the TARA at Home Independent Consultant Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the TARA at Home Independent Consultant Agreement, the Policies and Procedures, the TARA at Home Compensation Plan, and the TARA at Home Business Entity Addendum (the Business Entity Addendum is only applicable to Consultants who enroll as a business entity). Independent Consultants shall be referred to herein as “Consultants.” The Company reserves the right to amend the Agreement at its discretion. Amendments shall be effective 30 days after notice and publication of the amended provisions in the Consultant Back-Office, but amended policies shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. A Consultant may cancel his/her TARA at Home business at any time and for any reason.
2. Policies and Provisions Severable.
If any provision of the Agreement, in its current form or as amended, is held void or unenforceable, only the void or unenforceable portion(s) of the provision shall be severed from the Agreement and the remaining provisions shall remain in effect. The severed provision shall be reformed so that it is in compliance with the law and reflects the purpose of the original provision as closely as possible. The existence of any claim or cause of action of a Consultant against TARA at Home shall not constitute a defense to TARA at Home’s enforcement of any term or provision of the Agreement.
3. Term and Renewal of a TARA at Home Business.
The term of the Independent Consultant Agreement is one year from the date of enrollment. Independent Consultants (“Consultant”) must renew their Independent Consultant Agreement each year. Consultants will be reminded of their upcoming renewal. At that time, Consultants may elect to cancel their business. If a Consultant does not cancel, his or her business will be automatically renewed and the renewal fee will be charged to their authorized payment method on file with the Company.
Annual/monthly renewal fees are optional in North Dakota.
4. Independent Contractor Relationship.
Consultants are independent contractors and not employees of TARA at Home. In all written, graphic, or digital material used for TARA at Home business purposes, Consultants must represent themselves as an “Independent TARA at Home™ Consultant.” In verbal conversations with prospective Consultants and customers, Consultants must introduce themselves as an “independent TARA at Home Consultant.” Consultants shall not lead anyone to believe that they are employees of TARA at Home.
5. Business Entity, Informal Partnership, and Married Applicants.
Business entities such as corporations, limited liability companies (LLCs), formal partnerships, and trusts may enroll as TARA at Home Consultants. In addition, informal partnerships consisting of two individuals and married or cohabitating couples may enroll together as a single TARA at Home Consultant. Whenever a business entity, an informal partnership, or a married or cohabitating couple (including domestic partnerships) enrolls as a Consultant, one individual must be designated as the “Primary” applicant and contact person. Whenever the Company communicates with the business entity, partnership or married couple Consultant, it will do so with the Primary applicant only. The Company will not communicate or correspond with any other member of the business entity, information partnership, marriage, domestic partnership, or cohabitating couple. see also Policy 21 below.
6. General Conduct.
Consultants shall safeguard and promote the good reputation of TARA at Home and its products, and must avoid all illegal, deceptive, misleading, unethical or immoral conduct or practices, and must exhibit high moral character in their personal and professional conduct. Consultants shall not engage in any conduct that may damage the Company’s goodwill or reputation. While it is impossible to specify all misconduct that would be contrary to this policy, and the following list is not a limitation on the standards of conduct to which Consultants must adhere pursuant to this policy, the following standards specifically apply to Consultants’ activities:
- Deceptive conduct is always prohibited. Consultants must ensure that their statements are truthful, fair, accurate, and are not misleading;
- If a Consultant’s TARA at Home business is cancelled for any reason, the Consultant must discontinue using the TARA at Home name, and all other TARA at Home intellectual property, and all derivatives of such intellectual property, in postings on all Social Media, websites, or other promotional material.
- Consultants may not represent or imply that any state or federal government official, agency, or body has approved or endorses TARA at Home, its program, or products.
- Consultants must not engage in any illegal, fraudulent, deceptive, or manipulative conduct in the course of their business or their personal lives that, in the Company’s sole discretion, could damage the Company’s reputation or the culture that exists within the field sales force.
7. Social Media.
In addition to meeting all other requirements specified in these Policies, should a Consultant utilize any form of social media in connection with their TARA at Home business, including but not limited to blogs, Facebook, Twitter, LinkedIn, YouTube, or Pinterest, the Consultant agrees to each of the following:
- Consultants are responsible for the content of all material that they produce and all of their postings on any social media site, as well as all postings on any social media site that they own, operate, or control.
- Consultants shall not make any social media postings, or link to or from any postings or other material that is sexually explicit, obscene, pornographic, offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or otherwise), is graphically violent, is solicitous of any unlawful behavior, that engages in personal attacks on any individual, group, or entity, or is in violation of any intellectual property rights of the Company or any third party.
- No product sales or enrollments may occur on or through any social media site. To process sales or enrollments, a social media site must link only to the TARA at Home owned and operated channels (for example, replicated website, TARA at Home’s corporate website or an official TARA at Home corporate social media page).
- Any social media site that is directly or indirectly operated or controlled by a Consultant that is used to discuss or promote TARA at Home’s products, or the TARA at Home opportunity may not link to any website, social media site, or site of any other nature that promotes the products, services, or business program of any direct selling company other than TARA at Home, or businesses for any comparable or competing product categories or services.
- During the term of this Agreement and for a period of 12 calendar months thereafter, a Consultant may not use any social media site on which they discuss or promote, or have discussed or promoted, the TARA at Home business or TARA at Home’s products to directly or indirectly solicit TARA at Home Consultants for another direct selling or network marketing program (collectively, “direct selling”). In furtherance of this provision, a Consultant shall not take any action on a social media site that may reasonably be foreseen to draw an inquiry from other Consultants relating to the Consultant’s other direct selling business activities. Violation of this provision shall constitute a violation of the nonsolicitation provision in Policy 17.
- In the event a Consultant who is a participant in another direct selling or network marketing program (as an independent distributor or consultant or similar) is tagged or otherwise mentioned or recognized in a social media posting that references or mentions such Consultant’s participation in another direct selling or network marketing, program, the Consultant agrees that she shall remove such post from any social media site that she or he uses to promote her TARA at Home business.
- A Consultant may post or “pin” photographs of TARA at Home products on a social media site.
- If a Consultant creates a business page on any social media site to promote or relates to TARA at Home, its products, or opportunity, the page may not promote or advertise the products or opportunity of any other network marketing business other than TARA at Home and its products, or any competing or comparable products or services. If the Consultant’s TARA at Home business is cancelled for any reason or if the Consultant becomes inactive, the Consultant must deactivate the page.
8. Marketing Methods, Advertising, and Promotional Material (Sales Tools).
Except as otherwise provided in these Policies and Procedures, Consultants may use only TARA at Home produced sales aids, advertising, promotional materials, and marketing methods/channels (collectively “Sales Tools”) when promoting the TARA at Home business or TARA at Home’s products or services. These materials are available in the Document Library of the Consultant Back-Office.
9. Gift Cards and Gift Certificates.
Due to warranty issues and the legal requirements regarding gift cards, Consultants are prohibited from creating and selling or distributing their own gift cards or gift certificates. Therefore, with the exception of official gift cards or gift certificates that may be issued by TARA at Home from time-to-time, Consultants may not sell or issue gift cards or gift certificates that can later be used to purchase TARA at Home products to customers or other Consultants.
10. Trademarks and Copyrights.
The name “TARA at Home” and other names as may be adopted by the Company are proprietary trade names, trademarks and service marks of TARA at Home. The Company grants Consultants a limited license to use its trademarks and trade names in promotional media for so long as the Consultant’s Agreement is in effect. TARA at Home intellectual property may not altered. Upon cancellation of a Consultant’s Agreement for any reason, the license shall expire and the Consultant shall immediately discontinue all use of the Company’s trademarks and trade names.
Under no circumstances may a Consultant use any of TARA at Home’s trademarks or trade names in any email address, website domain name, social media handle, social media name or address, or in any unapproved Sales Tools. If a Consultant violates this policy, the Consultant shall assign and transfer the domain name, email address, social media handle or name, or online alias to the Company immediately upon the Company’s demand, and the Consultant shall be responsible for paying all fees and costs, including but not limited to attorney’s fees and costs and transfer costs, associated with the assignment and transfer. This remedy is in addition to, and not in place of, other remedies and/or disciplinary measures that the Company may take pursuant to these Policies.
TARA at Home commonly puts on live and recorded events as well as webinars and telephone conference calls. During these events Company executives, Consultants, and guests appear and speak. The content of such events is copyrighted material that is owned exclusively by the Company. Consultants may not record company functions for any reason, whether such event is live, a webinar, via conference call, or delivered through any other medium.
In addition, Company produced Sales Tools, videos, audios, podcasts, and printed material are also copyrighted. Consultants shall not copy any such materials for their personal or business use without the Company’s prior written approval.
11. Consultant Web Sites.
Consultants may not create their own websites to promote their TARA at Home business or TARA at Home’s products and services. Official TARA at Home supplied channels (for example, replicated websites) are the only online forum through which TARA at Home products may be sold and new TARA at Home Consultant enrollments may be transacted (prohibited online forums include, but are not limited to, Consultants’ external websites, online auctions and classified listings).
In the event TARA at Home determines that a Consultant is operating an independent website in violation of this policy, the Company reserves the right to require the Consultant to delete and disable such website. In that event, the Consultant waives any and all claims against TARA at Home, its officers, directors, owners, employees, and agents for damages, expenses, costs, or remuneration of any other nature arising from or relating to the deletion or disabling of such a website.
12. Sales Venues.
The TARA at Home sales and distribution program is based on the party plan sales model whereby the products are displayed and demonstrated at home parties and other intimate gatherings and orders for products are solicited at such events. To support this distribution channel and to protect the independent contractor relationship, Consultants agree that they will not display or sell TARA at Home products or literature, or in any other way promote the TARA at Home opportunity or products in any retail, wholesale, warehouse, kiosks or discount establishment without prior written approval from TARA at Home.
Consultants may display TARA at Home products and promotional literature at service-related establishments and may solicit orders for products at such establishments. However, they may not stock an inventory of products at such locations for resale. For purposes of this policy, a service-related establishment is a business whose primary revenue is earned by providing personal service rather than by selling products.
Consultants may demonstrate and display and take orders for TARA at Home products at professionally organized and promoted registered events or trade shows. However, TARA at Home products may not be displayed, demonstrated, sold, or orders solicited at the following types of venues: swap meets, garage sales, farmer’s markets, or sidewalk sales.
If you have any questions regarding whether a sales venue is permitted, contact the Company at email@example.com. The Company reserves the right, at its sole discretion, to determine whether a particular sales venue is permitted under this policy
13. Change of Sponsor.
The only means by which a Consultant may legitimately change his/her sponsor are by:
- Voluntarily canceling his/her TARA at Home business in writing and reapplying under a new sponsor after six (6) full calendar months. During such six (6) month period, the Consultant must not be active in the business. Such Consultant may not purchase TARA at Home products for resale, sponsor other Consultants, solicit sales for TARA at Home products, host TARA at Home home parties, or carry on any other activities related to the operation of a TARA at Home independent business. A Consultant who cancels her TARA at Home business pursuant to this policy will lose all rights to his/her former downline organization upon the submission of his/her cancellation notice; or
- Submitting a written request to the Company at firstname.lastname@example.org for a change of sponsor. The Consultant requesting the transfer must also submit written and signed transfer authorization forms from all Consultants whose income will be negatively affected by the transfer.
In cases wherein a Consultant improperly changes his/her sponsor, TARA at Home reserves the sole and exclusive right to determine the final disposition of the downline organization that was developed by the Consultant in his/her second line of sponsorship. CONSULTANTS WAIVE ANY AND ALL CLAIMS AGAINST TARA AT HOME, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM TARA AT HOME’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW A CONSULTANT WHO HAS IMPROPERLY CHANGED HIS/HER SPONSOR.
14. Income Claims.
When presenting or discussing the TARA at Home opportunity or Compensation Plan to a prospective Consultant, Consultants may not make income projections, income claims, income testimonials, or disclose their TARA at Home income (including, but not limited to, the showing of checks, copies of checks, bank statements, or tax records), or the income of any other TARA at Home Consultant. Nor may Consultants make “lifestyle” income claims. A “lifestyle” income claim is a statement or depiction that infers or states that the Consultant is able to enjoy a luxurious or successful lifestyle due to the income they earn from their TARA at Home business. Examples of prohibited lifestyle claims include, but are not limited to, representations (either through audio or visual medium) that a Consultant was able to quit his/her job, acquire expensive or luxury material possessions, or travel to exotic or expensive destinations.
15. Compensation Plan and Program Claims.
When presenting or discussing the TARA at Home compensation plan, you must make it clear to prospects that financial success in TARA at Home requires commitment, effort, and sales skill. Conversely, you must never represent that one can be successful without diligently applying themselves. Examples of misrepresentations in this area include, but are not limited to:
- It’s a turnkey system.
- The system will do the work for you.
- Just get in and your downline will build through spillover.
- Just join and I’ll build your downline for you.
- The Company does all the work for you.
- You don’t have to sell anything.
- All you have to do is buy your products every month.
The above are just examples of improper representations about the compensation plan and the Company’s program. It is important that you do not make these, or any other representations, that could lead a prospect to believe that they can be successful as a Consultant without commitment, effort, and sales skill.
16. Media Inquiries.
Consultants must contact TARA at Home regarding all inquiries from the media, including radio, television, print, online, or any other medium. Consultants may interact with the media regarding the TARA at Home business or products only after prior consent and consultation of TARA at Home.
TARA at Home Consultants are free to participate in other party plan or network marketing programs. However, during the term of this Agreement and for one year thereafter, with the exception of a Consultant’s personally sponsored downline Consultants, a Consultant may not directly or indirectly Recruit other TARA at Home Consultants for any other party plan or network marketing business. The term “Recruit” means the direct or indirect, actual or attempted, sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, another TARA at Home Consultant to enroll or participate in another party plan or network marketing opportunity. This conduct constitutes Recruiting even if the Consultant’s actions are in response to an inquiry made by another Consultant or customer.
If a Consultant is engaged in other non-TARA at Home business or party plan or network marketing program, it is the responsibility of the Consultant to ensure that his or her TARA at Home business is operated entirely separate and apart from all other businesses and/or party plan or network marketing programs. To this end, the Consultant must not:
- Display TARA at Home promotional material, sales aids, or products with or in the same location as, any non-TARA at Home promotional material or sales aids, products or services
- Offer the TARA at Home opportunity, products or services to prospective or existing customers or Consultants in conjunction with any non-TARA at Home program, opportunity or products.
- Offer, discuss, or display any non-TARA at Home opportunity, products, services or opportunity at any TARA at Home-related trunk-show, meeting, seminar, convention, webinar, teleconference, or other function.
TARA at Home and Consultant agree that any violation of this policy shall cause TARA at Home irreparable harm for which there is no adequate remedy at law, and the injury to TARA at Home shall outweigh the potential injury to Consultant, and therefore TARA at Home shall be entitled to emergency and permanent injunctive relief to prevent further violations of this policy.
In addition to the foregoing, if a Consultant is engaged in any other non-TARA at Home business or party plan or network marketing program, before the Consultant may advance to the Senior Manager rank or above, the Consultant must agree to the following conditions:
- The Consultant may not participate in the other program in a leadership position and may not allow him or herself to be held out or recognized as a leader in such program.
- The Consultant agrees that although he or she may continue as a distributor, consultant, or similar for such other program, such Consultant agrees that he or she will not continue to publicly promote or build such other program.
- The Consultant shall enter into an addendum to the Consultant Agreement that contains the above provisions and others regarding the Consultant’s participation in the TARA at Home opportunity and the other direct selling or party plan program. If a Consultant elects not to adhere to the above restrictions or enter into such addendum, such Consultant agrees that he or she (a) shall not advance beyond the Senior Manager rank in the TARA at Home Compensation Plan; (b) will not be eligible to participate in or receive incentive trips, retreats, or bonuses; and (c) will not be eligible to participate in any leadership functions or be recognized as a leader at any TARA at Home event or function.
18. Handling Personal Information.
If you receive Personal Information from or about prospective existing Consultants, Hostesses, or customers, it is your responsibility to maintain its security. You should shred or irreversibly delete the Personal Information of others once you no longer need it. Personal Information is information that identifies, or permits you to contact an individual. It includes an individual’s name, address, email address, phone number, credit card information, social security or tax identification number and other information associated with these details.
19. Confidential Information.
“Confidential Information” includes, but is not limited to, the identities, contact information, other Personal Information, and/or sales information relating to TARA at Home and TARA at Home’s Consultants, Hostesses, and/or customers: (a) that is contained in or derived from any Consultants’ Back-Office or obtained from business practices; (b) that is derived from any report or information issued by TARA at Home to Consultants to assist them in operating and managing their TARA at Home business; and/or (c) to which a Consultant would not have access or would not have acquired but for his/her affiliation with TARA at Home. Confidential Information constitutes proprietary business trade secrets belonging exclusively to TARA at Home and is provided to Consultants in strict confidence. Confidential Information shall not be directly or indirectly disclosed to any third party nor used for any purpose other than Consultant’s use in building and managing his/her Independent TARA at Home business.
Any violation of this policy shall cause TARA at Home irreparable harm for which there is no adequate remedy at law. The parties further agree that the harm to TARA at Home shall outweigh any harm to Consultant if injunctive relief is awarded to the Company. TARA at Home shall therefore be entitled to immediate and permanent equitable relief to prevent further violations of this policy.
20. Product Inventory & Bonus Buying.
The TARA at Home program is designed to be a party plan program whereby Consultants display TARA at Home products at home parties and other gatherings and solicit orders for its products at such events. For a variety of reasons (including product warranty issues, prevention of bonus buying, prevention of damage and injury, etc.) the program is not intended to be a cash and carry business. As such, except for a minimal inventory of best selling items for immediate delivery, the Company does not permit Consultants to stock an inventory of TARA at Home products for resale. All products are direct shipped from the Company to the customer.
In addition, bonus buying is strictly prohibited. Bonus buying is the purchase of merchandise for purposes other than re-sale or personal use. It includes the purchase of TARA at Home products in order to qualify for rank advancement or maintenance, or for receipt of incentives, prizes, commissions or bonuses.
21. Limitations on Consultant Businesses.
An individual may own, operate, control or have an interest, legal or equitable, in only one TARA at Home business. If a married couple (including civil unions and domestic partnerships) wishes to operate a TARA at Home business, they must operate a single TARA at Home business with one of the spouses being the primary applicant and contact person and the other spouse being the secondary co-applicant. All communications from TARA at Home will be directed to the primary applicant and all payments will be issued in the name of the primary applicant.
22. Actions of Affiliated Parties and Household Members.
The term “Business Entity” shall mean any corporation, partnership, limited liability company, trust or other entity that owns or operates a TARA at Home independent business. The term “Affiliated Party” shall mean any individual, partnership, trust, limited liability company, or other entity that has an ownership interest in, or management responsibility for, a Business Entity.
A Business Entity and each Affiliated Party must comply with the Agreement. If a Business Entity and/or any Affiliated Party violates the Agreement, TARA at Home may take disciplinary action against the Business Entity and/or against any or all of the Affiliated Parties. In addition, if a household family member of a Consultant engages in conduct that would be a violation of the Agreement, the conduct of the household family member may be imputed to the Consultant.
23. Tampering With Product Packaging.
TARA at Home products must be sold in their original packaging; Consultants shall not alter the original packaging or labeling.
24. Negative Comments.
Complaints and concerns about TARA at Home should be directed through TARA at Home provided forums, including but not limited to the back office and the customer Service Department. Consultants must not disparage, demean, or make negative remarks to third parties or other Consultants about TARA at Home, its owners, officers, directors, management, other TARA at Home Consultants, the Marketing and Compensation plan, or TARA at Home’s directors, officers, or employees. Disputes or disagreements between any Consultant and TARA at Home shall be resolved through the dispute resolution process, and the Company and Consultants agree specifically not to demean, discredit, or criticize one another on the Internet or any other public forum.
25. Sales Receipts.
Consultants must provide their retail customers with two copies of an official TARA at Home sales receipt at the time of the sale and advise them of the three day right to rescind the transaction, which is set forth on the receipt. Consultants must maintain all retail sales receipts for a period of two years and furnish them to TARA at Home at the Company’s request. Sales receipts can be downloaded in PDF format from www.TARAatHome.com/forms. Retail customers who purchase from a digital channel need not be provided with a sales receipt as the receipt will automatically be sent by the Company via email at the time the order is placed.
26. Order Cancellation, Satisfaction Guarantee and Product Warranty.
- Order Cancellation. Federal and state law requires that Consultants notify their retail customers that they have three business days (five business days for Alaska residents, 15 days for residents of North Dakota over the age of 65) within which to cancel their purchase and receive a full refund upon return of the products in substantially as good condition as when they were delivered. Consultants shall verbally inform their customers of this right, shall provide them with TWO copies of a retail receipt at the time of the sale, and shall point out this cancellation right stated on the receipt.
Satisfaction Guarantee – “Cook on us for 90 days”. In addition, TARA at Home offers a money back guarantee on products returned within 90 days from the date of sale. If the products are returned within 30 days of the date of receipt, TARA at Home will refund the full amount, including S&H. For products returned between 31 and 90 days from the date of receipt, TARA at Home will refund the cost of products purchased, excluding costs for S&H. Products shipped directly to the customer by the Company must be returned to the Company and a refund will be issued to the customer by the Company. This product satisfaction guarantee does not apply to products damaged by abuse or misuse. Consultants shall disclose the terms of this satisfaction guarantee to his/her customers at the time of sale and shall also point out this guarantee information on the sales receipt and product literature.
This satisfaction guarantee is applicable to Consultants as well, with the following limitation: TARA at home reserves the right to monitor and evaluate quantity of returns associated with a Consultant’s personal sales volume and take proper action regarding future returns and/or their Consultant agreement status. In the event the Company determines that a Consultant has taken advantage of the Company’s return policies in order to manipulate the Compensation Plan, the Company reserves the right to take action against the Consultant as provided herein for breaches of the Agreement.
- Product Warranty. All TARA at Home products carry a limited 3-year warranty, commencing with the date that the order for the products is placed. TARA at Home warrants that its products will be free of defects in materials or workmanship, under normal use. This warranty does not cover defects caused by accident, misuse, negligence, including tampering, abuse, damage in transit, or uses for commercial purposes. Note that this warranty applies only to products purchased for personal household use and is not available to commercial purchasers or owners or products purchased for commercial use. Consultants shall disclose the terms of this satisfaction guarantee to his/her customers at the time of sale and shall also point out this guarantee information on the sales receipt and product literature. Replacements for defective products will incur a flat $9.95 Handing fee. Product Warranty is extended to a total of 5 years for Consultants whose accounts are active and in good standing.
27. Return Procedures.
The following procedures apply to all returns for refund or exchange:
- All merchandise must be returned by the Consultant, Host(ess) or customer who purchased it directly from TARA at Home.
- All products to be returned must have a Return Merchandise Authorization (RMA) Number. All products to be returned must be approved in advance using a RMA Number obtained by contacting Customer Care. The RMA Number must be written on each carton returned.
- Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned, and the best and most economical means of shipping is suggested. All returns must be shipped to TARA at Home shipping pre-paid. TARA at Home does not accept shipping-collect packages. The risk of loss in shipping for returned product shall be on the individual returning the product. If returned product is not received by the Company’s Distribution Center, it is the responsibility of such individual to trace the shipment.
Consultants agree to indemnify TARA at Home for any and all costs, expenses, consumer reimbursements, fines, sanctions, damages, settlements or payments of any other nature that TARA at Home incurs resulting from or relating to any act or omission by Consultant that is illegal, fraudulent, deceptive, negligent, unethical, or in violation of the Agreement. TARA at Home may elect to exercise its indemnification rights through withholding any compensation due the Consultant. This right of setoff shall not constitute TARA at Home’s exclusive means of recovering or collecting funds due TARA at Home pursuant to its right to indemnification.
29. Suspension, Termination & Disciplinary Sanctions.
Violation of the Agreement, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by a Consultant that the Company reasonably believes may damage its reputation or goodwill, may result in the suspension or termination of the Consultant’s TARA at Home business, and/or any other disciplinary measure that TARA at Home deems appropriate to address the misconduct. In situations deemed appropriate by TARA at Home, the Company may institute legal proceedings for monetary and/or equitable relief.
30. Voluntary Cancellation.
A participant in this direct selling plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address or by cancelling through the Back-Office. If written notice is submitted, it must include the Consultant’s signature, printed name, address, and Consultant I.D. Number. If a Consultant is also enrolled in the autoship program, the Consultant’s autoship agreement shall continue in force unless the Consultant also specifically requests that it also be canceled. In that event, the former Consultant shall be reclassified as a retail customer. If the Consultant had an active subscription to any TARA at Home ancillary program for Consultants, such subscription(s) will likewise be cancelled.
A Consultant may also voluntarily cancel his/her TARA at Home business by failing to renew the Agreement on its annual anniversary date, by withdrawing consent to contract electronically.
31. Cancellation for Inactivity.
If a Consultant fails to pay the annual renewal fee, his/her Consultant Agreement and TARA at Home business will be cancelled. If such a Consultant is also enrolled in the Company’s autoship program, such subscription will continue in force until cancelled by the former Consultant. In that event, the former Consultant shall be reclassified as a retail customer. If the Consultant had an active subscription to any TARA at Home ancillary program for Consultants, such subscription(s) will likewise be cancelled.
32. Effect of Termination or Cancellation.
A Consultant whose business is terminated or cancelled for any reason will lose all Consultant rights, benefits and privileges. This includes the right to represent yourself as an Independent TARA at Home Consultant, to sell TARA at Home products and services and the right to receive commissions, bonuses, or other income resulting from his/her own sales and the sales and other activities of the Consultant and the Consultant’s former downline sales organization. There is no whole or partial refund for Consultant Kit fees or renewal fees if a Consultant’s business is cancelled.
33. Return of Merchandise and Sales Aids by Consultants Upon Cancellation or Termination.
Upon cancellation or termination of a Consultant’s Agreement, the Consultant may return products and Sales Tools that he or she personally purchased from TARA at Home within 12 months prior to the date of cancellation (the one-year limitation shall not apply to residents of Maryland, Massachusetts, Wyoming and Puerto Rico) so long as the goods are in currently marketable condition. Upon the Company’s receipt of returned goods and confirmation that they are in currently marketable condition, the Consultant will be reimbursed 90% of the net cost of the original purchase price(s). Shipping and handling charges will not be refunded. If the purchases were made through a credit card, the refund will be credited back to the same account. Goods are in “currently marketable condition" if they are unopened and unused and packaging and labeling has not been altered or damaged. Merchandise that is clearly identified at the time of sale as nonreturnable, closeout, discontinued, or as a seasonal item, or which has passed it commercially reasonable usable or shelf-life, is not in currently marketable condition. The merchandise must be returned within 30 days from the date of cancellation/termination. Back Office and Replicated website fees are not refundable except as may be required under applicable state law.
34. Montana Residents.
A Montana resident may cancel his or her Consultant Agreement within 15 days from the date of enrollment, and may return his or her Consultant Kit and any Sales Tools and products he or she purchased from the Company for a full refund within such time period.
35. Business Transfers.
Except as provided in this section, because the agreement between TARA at Home and each Consultant is a contract for the Consultant’s personal services, Consultants may not sell, transfer or assign their independent TARA at Home businesses. Notwithstanding the foregoing, a Consultant in good standing who has been a TARA at Home Consultant for at least 10 consecutive years and who is at the paid-as rank of Senior Director or higher at the time of making the request, may submit a request to TARA at Home for authorization to sell, transfer or assign her/his TARA at Home business. Such a Consultant who receives written approval from the Company may transfer her/his business. Requests to transfer a business must be submitted in writing to the Compliance Department at www.taraathome.com/compliance. It is within TARA at Home’s discretion whether to allow a business sale or transfer, but such authorization shall not be unreasonably withheld. However, no business that is on disciplinary probation, suspension, or under disciplinary investigation may be transferred unless and until the disciplinary matter is resolved. Prior to transferring a business to a third party, the Consultant must offer TARA at Home the right of first refusal to purchase the business on the same terms as negotiated with a third party. The Company shall have 60 days to evaluate the proposed transfer and to exercise or not exercise its right of first refusal.
36. Transfer Upon a Consultant’s Death.
A Consultant may will his/her business to his/her heirs. Because TARA at Home cannot divide commissions among multiple beneficiaries or transferees, if the business is left to one or more beneficiaries or transferees, the beneficiaries or transferees must form a business entity (corporation, LLC, partnership, etc.), and TARA at Home will transfer the business and issue commissions to the business entity. In the case of a business transfer via will or other testamentary instrument, the beneficiary of the business must provide TARA at Home with certified letters testamentary and written instructions of the executor of the estate, or an order of the court, that provides direction on the proper disposition of the business. The beneficiary must also execute and submit to the Company a TARA at Home Consultant Agreement within 30 days from the date on which the business is transferred by the estate to the beneficiary or the business will be cancelled.
37. Business Distribution Upon Divorce.
TARA at Home is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, in divorce cases, any settlement or divorce decree must award the business in its entirety to one party. TARA at Home will recognize as the owner of the business the former spouse to who is awarded the business pursuant to a legally binding settlement agreement or decree of the court. The former spouse who receives the TARA at Home business must also execute and submit a TARA at Home Consultant Agreement within 30 days from the date on which the divorce becomes final or the business will be cancelled. Until such time as there is a final disposition of the business pursuant to a settlement agreement or divorce decree, the business will continue to be operated by the spouse who was listed as the Primary applicant on the Consultant Agreement.
38. Dissolution of a Business Entity.
TARA at Home is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, in the event that a business entity that operates a TARA at Home business dissolves, the owners of the business entity must instruct the Company on the identity of the proper party who is to receive the business. The TARA at Home business must be awarded to a single individual or entity that was previously recognized by the Company as an owner of the business entity; the Company cannot divide the business among multiple parties or issue separate commission payments.
Until such time as TARA at Home receives documentation regarding the identity of the individual or entity that will receive the business, the Company will continue to issue commissions in the name of the business entity and communicating solely with the Primary applicant of the business entity. The recipient of the TARA at Home business must also execute and submit a TARA at Home Consultant Agreement to the Company within 30 days from the date of the dissolution of the business entity or the TARA at Home business will be cancelled.
A business entity that satisfies the requirements set forth in Policy 35 may sell or transfer its TARA at Home business.
39. Inducing Consultants to Violate the Agreement.
Consultants shall not induce, encourage, or assist another Consultant to violate the Agreement.
40. Reporting Errors.
If a Consultant believes that TARA at Home has made an error in his/her compensation, the structure or organization of his/her genealogy, or any other error that impacts the Consultant’s income, he/she must report it to the Company in writing within 30 days from the date on which the mistake occurred. While TARA at Home shall use its best efforts to correct errors reported more than 30 days after the date of the error, TARA at Home shall not be responsible to make changes or remunerate Consultants for losses for mistakes that are reported more than 30 days after the mistake occurs.
41. Adjustment to Bonuses and Commissions.
Compensation stemming from product sales is fully earned when the applicable return, repurchase, and chargeback periods applicable to product sales have all expired. If a product is returned to TARA at Home for a refund or is repurchased by the Company, or a chargeback occurs, the compensation attributable to the returned or repurchased product(s) will be recovered by the Company. Unearned compensation will be deducted, in the month in which the refund is issued or the chargeback occurs, and continuing every pay period thereafter until the commission is recovered, from the upline Consultants who received bonuses and commissions on the sales of the refunded products.
TARA at Home reserves the right to withhold or reduce any Consultant’s compensation as it deems necessary to comply with any garnishment or court order directing TARA at Home to retain, hold, or redirect such compensation to a third party.
42. International Activities.
Consultants may not sell TARA at Home products in any international market, or conduct business activities of any nature, in any foreign country that the Company has not announced is officially open for business.
43. Dispute Resolution.
a. Confidential Arbitration. Except as otherwise provided in the Agreement, any controversy or claim that arises out of or relates to the Agreement, the breach thereof, or the TARA at Home business shall be settled through binding confidential arbitration. The Parties waive rights to trial by jury or to any court. The arbitration shall be filed with, and administered by, the American Arbitration Association in accordance with the AAA’s Commercial Arbitration Rules and Mediation Procedures, which are available on the AAA’s website at www.adr.org. Copies of the AAA’s Commercial Arbitration Rules and Mediation Procedures will also be emailed to Consultants upon request to TARA at Home’s customer Service Department. Notwithstanding the rules of the AAA, unless otherwise stipulated by the Parties, the following shall apply to all Arbitration actions:
All arbitration proceedings that are not resolved through Document Submission shall be held in Chester County, Pennsylvania. The parties may select a mutually agreeable arbitrator. If the parties do not agree on an arbitrator within 60 days from the date on which the arbitration is filed, the petitioner shall request that the AAA appoint an arbitrator. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. Claims seeking less than $25,000.00 shall be resolved pursuant to the AAA’s Procedures for the Resolution of Disputes through Document Submission. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court to which the Parties have consented to jurisdiction as set forth in the Agreement. This agreement to arbitrate shall survive the cancellation or termination of the Agreement.
The parties, their respective agents and attorneys, and the arbitrator shall maintain the confidentiality of the arbitration proceedings and shall not disclose to any third party:
If a Party violates its confidentiality obligations under this arbitration policy, the non-breaching party shall incur significant damages to its reputation and goodwill that shall not be readily calculable. Therefore, if a Party, its attorneys or agents breach the confidentiality provisions of this policy, the non-breaching Party shall be entitled to liquidated damages in the amount of $25,000.00 per violation. Every disclosure of each allegation, pleading, claim or other prohibited disclosure shall constitute a separate violation. The Parties agree that this liquidated damage amount is reasonable and waive all claims and defenses that it constitutes a penalty.
b. Disputes Not Subject Arbitration
- Equitable Relief. Notwithstanding the foregoing arbitration agreement, nothing in the Agreement shall prevent either party from applying to and obtaining from any court to which the Parties have consented to jurisdiction as set forth in the Agreement a temporary restraining order, preliminary or permanent injunction, or other equitable relief to safeguard and protect the party’s intellectual property, trade secrets, and/or confidential information, including but not limited to enforcement of its rights under the Non-solicitation provisions of the Agreement.
- Small Claims. You may seek remedies in small claims court for disputes or claims within the scope of the jurisdiction of the small claims court in the jurisdiction in which you reside.
c. Class Action Waiver. All disputes arising from or relating to the Agreement, or arising from or relating to the TARA at Home business, shall be brought and proceed on an individual basis. The parties waive their rights to pursue any arbitration or lawsuit against the other party and/or their respective owners, officers, directors and agents, on a class or consolidated basis. You may opt out of this class action waiver if you wish by submitting written notice to the Company of your desire to opt out within 30 days from the date on which you enroll as a Consultant. Submit your written opt-out notice to the Company at email@example.com.
d. Liquidated Damages. In any case which arises from or relates to the wrongful termination of a Consultant’s Agreement and/or independent business, the parties agree that damages will be extremely difficult to ascertain. Therefore, the parties stipulate that if the involuntary termination of a Consultant’s Agreement and/or loss of their independent business is proven and held to be wrongful under any theory of law, Consultant’s sole remedy shall be liquidated damages calculated as follows:
- For Consultants at the “Paid As” rank Sr. Director, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to TARA at Home’s Compensation Plan in the twelve (12) months immediately preceding the termination.
- For Consultants at the “Paid As” rank Vice President, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to TARA at Home’s Compensation Plan in the eighteen (18) months immediately preceding the termination.
- For Consultants at the “Paid As” rank Sr. Vice President and above, liquidated damages shall be in the amount of his/her gross compensation that he/she earned pursuant to TARA at Home’s Compensation Plan in the twenty-four (24) months immediately preceding the termination.
Gross compensation shall include commissions and bonuses earned by the Consultant pursuant to TARA at Home’s Compensation Plan as well as retail profits earned by Consultant for the sale of TARA at Home merchandise. However, retail profits must be substantiated by providing the Company with true and accurate copies of fully and properly completed retail receipts provided by Consultant to customers at the time of the sale.
The Parties agree that the foregoing liquidated damage schedule is fair and reasonable.
A Consultant’s “Paid As” rank is the rank or title at which they actually qualified to earn compensation under the TARA at Home Compensation Plan during a pay-period. For purposes of this policy, the relevant pay-period to determine a Consultant’s “Paid As” rank is the pay-period during which the Consultant’s business is placed on suspension or terminated, whichever occurs first. The “Paid As” rank differs from the “Title Rank,” which is the highest title or rank that a Consultant has ever achieved under the TARA at Home Compensation Plan.
e. Damage Waiver. In any action arising from or relating to the Agreement, the parties waive all claims for incidental and/or consequential damages, even if the other party has been apprised of the likelihood of such damage. The parties further waive all claims to exemplary and punitive damages.
f. Governing Law, Jurisdiction and Venue. Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Chester County, State of Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Pennsylvania, without regard to principals of conflicts of laws, shall govern all other matters relating to or arising from the Agreement.
g. Louisiana Residents. Notwithstanding the foregoing, and the arbitration provision set forth above, residents of the State of Louisiana shall be entitled to bring an action against TARA at Home in their home forum and pursuant to Louisiana law.