REGULATIONS & CODE OF CONDUCT OF DIRECT SELLER
(PT BIO ORGANIK NUSANTARA)
This Direct Seller Code of Ethics regulates legal relationships and agreements between PT. Bio Organik Nusantara (hereinafter referred to as Company) with members (hereinafter referred to as Direct Seller). This Direct Seller Code of Ethics was created as a reference for those involved in the Company's business activities, specifically The Direct Seller. This Direct Seller Code of Ethics aim to clarify the rights and obligations in the following matters and made with the intent to:
- Uniforming perceptions about codes of Ethics, responsibilities and Ethics / modesty among Direct Sellers when run the business.
- Regulate and protect the legal interests of the Company and Direct Sellers from the actions of Direct Sellers who can harm other Direct Sellers and / or the Company.
- State the rights, duties, responsibilities and obligations of Direct Sellers when carrying out their business activities.
- Provide equal opportunities in a unique business system for all Direct Sellers.
- Maintain, preserve, and protect the interests of all Direct Sellers who are members of the company's business activities.
- Confirming the relationship between fellow Direct Sellers in order to increase togetherness & maintain harmony.
- Affirming the relationship between the Company and Direct Sellers and vice versa.
This Direct Seller Code of Ethics must be implemented with full responsibility between the Company and all Direct Sellers in order to create a business climate that is mutually beneficial to one another.
TERMS AND DEFINITIONS
In this Direct Seller Code of Ethics and Regulations what is meant by:
- "Company" is a business entity of PT Bio Organik Nusantara with the trademark "Biogreen Science" that running business activities in trading goods and / or services with a direct sales system.
- "Direct Seller" is an independent member of a marketing network that can take the form of a business entity or individual which promote the Company's goods and / or services, and is not part of the organizational structure companies with a reward in the form of commissions and / or bonuses for sales.
- "Consumers" are people who use & consume the company's products.
- "Upline" is a Member of the Company / Direct Seller who has joined previously and recruiting other people under its network to become part of the Company's Direct Seller.
- "Downline" is an individual or company recruited by "Upline" to become a Direct Seller of the Company.
- "Maintenance" is a re-purchase made by a Direct Seller as a condition of getting commission / bonus.
- "Flush BV" is delaying or not doing maintenance into the Company system.
- "Agreement" means a direct seller cooperation agreement made by a Direct Seller and a Company which regulates cooperation between Direct Seller and the Company.
- "Marketing Plan” is a Company program that promotes goods and / or services will be implemented and developed by the Direct Seller through a marketing network in the form of Single-Level or Multi-Level Marketing.
- "Product" means any object, both tangible and intangible, both movable and immovable, able spent or not can be spent, which can be traded, used, used or utilized by consumers.
- "Services" are all forms of service in the form of consumer work.
- "Commission on Sales" is a reward given by the Company to the Direct Seller that calculated based on the results of actual work in accordance with the volume or value of the sale of goods and / or services either by personal or network.
- "Bonus" on Sales is an additional reward given by the Company to the Direct Seller for successfully exceeded the sales target of the goods and / or services set by the Company.
- "Management" are people who are officially leaders of the Company.
- "Support System" is a system or comity that formed by the Company with Direct Sellers, which serves as a means and facility to support the development of the Company's business activities.
- "Top Leader Meeting" is a meeting forum between the Company and several Direct Sellers who invited by the Company.
- "Consumer Prices" Unit is the price set by the Company for a product.
- "Registration Fee" is a fee of Rp 108.000 (one hundred and eight thousand rupiah) that paid by a Direct Seller for one time only to get Starter Kit, Lifetime Membership, Personal Web Page, Web Online Replica and Training.
- "Direct Seller Application Form" is a form that must be filled out by a prospective Direct Seller prior to be accepted as a Direct Seller.
- "Product Return Form" is a form that must be filled in by the Direct Seller and / or consumer if Direct Seller and / or consumer want to return or exchange product that already bought.
- "Direct Seller Data Changes Form" is a form that must be filled out by a Direct Seller if it there is changes to Direct Seller data.
- “Employees" or "Staff" of the company are company employees and are not direct sellers and are not permitted to carry out direct selling business activities.
- "Unit Consumer Price" is the price of the product given to consumers.
- "BOP (Business Opportunity Preview)" is a presentation event held by the Company in a designated place.
- "Freeze Membership" is a punishment in a form of temporarily membership frozen for Direct Seller who violates code of Ethics or terms and conditions set by the Company.
- "Terminated Membership" is a membership that is permanently frozen for doing something that violate code of Ethics or terms and conditions that have been mutually agreed upon.
- "Crossline" is a Direct Seller that is registered at the Company where the Direct Seller is not either your Upline or Downline.
- "Crosslining" is an act that prohibited by the Company. It is a switching networks without the approval of an active upline.
- "Undercutting" is an act of selling below the price that already determined by the company.
- "Personal Web Page" is a personal website owned by each individual Direct Seller of Biogreen Science as a sign of official membership of the Company that containing all Direct Seller data like commissions and networks, and all of them can be accessed online and transparently.
- "Silver Rank" is a Direct Seller who buys one product from the Company equivalent to 90 BV and become an Active Direct Seller for Activation purposes.
- "Gold Rank" is an individual who personally sells 450 BV or his/her Point Group Development of weak legs reached 9,000 BV in 45 days after achieving Silver Rank.
- "Platinum Rating" is an individual who personally sells 900 BV or his/her Point Group Development of a weak legs reached 18,000 BV in 45 days after reaching the Gold Rating.
- 34. "Input Bonus" is a bonus of 5% of BV sales paid by the company to the Direct Seller which helps other members enter orders in the system. Only Platinum Direct Sellers can enter orders for other members. "BV (Business Value)" is the point that will be used in calculating the smaller network turnover bonus multiplied by certain percentage to a certain limit.
- "Direct Sponsorship Bonus" is an instant Bonus obtained from the proceeds of personal sales. If Direct Seller shopping through the "Maintenance” menu, the bonus will be received by the seller directly. If Direct Seller shopping through the "Personal Sales" menu, the bonus will be accepted by Sponsor’s Upline. The bonus issued by the company is 33.333% of the total BV sales.
- "Unilevel Bonus" is a bonus that will be obtained every month from product sales under the Direct Seller, either for self-consumption or for the sale of products from maintenance (via the redemption menu) from your team once every 2 months.
- "Mobile Stockist" is an individual who is already a Direct Seller and buys 200 boxes of products from the Company at a certain discount.
- "Redemption" is the exchange of points for products that done by a Direct Seller.
- "Team Development Bonus" is a daily Bonus that is obtained by a successful Direct Seller when his/her team get sales in the team / group left foot and right foot. Bonus issued by the company depending on the rank of the Direct Seller, which is 5% - 25% of the smallest BV sales among BV teams on the left and right.
- "Index" is a bonus limitation that is given when the number exceeds the safety net determined by the government, implemented by the Company to meet government regulations. The Company has absolute right to execute "Index" at any time without the need to notify first, but after the event the company will announce the number of indexes that are imposed.
- "Consignment Stockist" is an individual who is already a Direct Seller and entrusts a sum of money to.
- The Company and becomes an extension of the Company in distributing goods with a certain commission.
- "Activation" is a Direct Seller who has purchased at least 90 BV for a product from the Company and have sold a minimum of 90 BV on side A and 90 BV on side B.
DIRECT SELLER RESPONSIBILITY
- Direct Seller must be an Indonesian citizen (WNI) and have an Identity Card (KTP) and each KTP is only valid for one membership.
- If someone want to join and become Direct Seller, He/She has to fill in the online form and pay the Registration Fee, which is a one-time-only fee that paid by the Direct Seller in the amount of Rp 60.000 (sixty thousand Rupiah) to entitled to get an e-Starter Kit or IDR 120,000 (One Hundred Twenty Thousand Rupiah) to get Hardcopy Starter Kit, Lifetime Membership, Personal Web Page, Web Replica, Training from Companies and Personal Webpage.
- Direct Sellers must take part in skills training in the form of: seminars, workshops and others that are held by the Head Office or a Company Representative Office at least once a year.
- Direct Sellers can organize seminars, training events and others event that related product development and marketing plans of the company for another Direct Sellers.
- Direct Sellers are required to provide training, motivation, and consultation to downlines. If Direct Seller do not do that, article 12 point 8 Chapter III is excluded.
- Direct Sellers with a rank that has reached Platinum Rating can help prospective members and his/her downline to purchase and register.
- Direct Seller can open a Mobile Stockist or Stockist by comply with regulations that have been applied by the company.
- Direct Seller must carry out the process of "Data Posting” (inputting) data on each of Direct Seller and Mobile Stockist’s expenditure in real time (directly inputted) and should not delay doing updating / inputting Pending Point data passing from the day, week, month in progress or resulting in losses due the act of delaying.
- Direct Sellers must meet licensing requirements in accordance with statutory provisions and / or regulations applicable in the area where Direct Seller lives or running business activities. Everything related to the Direct Seller's individual / company sales permit is the Direct Seller’s responsibility and not the company's.
- Direct Seller is required to ask written permission from the Company if the Direct Seller makes digital or analog tools. The company will review the contents of the tool and give permission in writing. Then, verified tools can be used for 2 (two) years without changing the content that already permitted. If Direct Seller uses tools that are not from the company, the direct seller is obliged to make a statement that states that those tools are not official tools from the company.
- Direct Sellers are obliged to bear all costs and taxes of activities or other obligations determined by the local government agency as a result of Direct Seller activities by themselves.
- During the term of the Agreement, the Direct Seller agrees to be bound by the agreement as:
- To not act on behalf of and do not declare yourself as the Company Employee or Management.
- Direct Seller doesn’t have the power or authority to enter into an agreement on behalf of the Company and / or take other actions that represent or act on behalf of the Company.
- Direct Seller is not allowed to change or add content, labels, serial code, batch code, and packaging to the Company’s product.
- Direct Seller is not permitted to transfer the rights and obligations of the Direct Seller to another party without written approval from the Company.
- To not sell items that have been purchased from the Company at prices below the set and recommended price by the Company.
- To not make tools outside the tools provided by the company such as brochures, catalogs, and website replica, and business cards without written approval from the Company.
- Direct Seller prohibited from doing claim outside the company's or those approved by government agencies to prevent any any liability for the Company or its affiliates as a result of the claim.
- To not doing Crosslining or any activities such as affecting, inciting, or inviting other Biogreen Science member to switches networks.
- During running the Biogreen Science business, members are not permitted to conduct other business activities that similar or not similar but resemble activities held by the company.
- Member is prohibited from doing the things that forcing consumers to buy and manipulate, falsify, hide information from potential customers and consumers.
- To not involve in promotional activities, holding press conferences or all activities in the form of publications of matters related to the Company without the permission and approval of the Company.
- Direct Seller understands and declares submission and obedience to the Company's rules and code of Ethics.
- Direct Sellers are prohibited to manipulate / arrange the network tree, either perfectly or in combination, with the aim of benefiting from bonus calculations. The company checking Direct Seller’s data and identity from time to time. If the Company find the account which is known to be a fake, then that account will be aborted by the company.
- The company has the right to abort / annul the right to obtain / participate in the company's promo activities for members who violate the Company's terms and conditions.
- The Direct Seller knows and agrees that all of the Company's decisions are absolute and cannot be inviolable.
DIRECT SELLER RIGHTS
- Direct Sellers are entitled to get a membership registration certificate such as a Username and Password that will sent via SMS directly when Direct Seller data has been inputted online either by platinum Upline or company employees or staff.
- Direct Sellers are entitled to get product shipping facilities purchased from the Company, provided the shipping costs already paid online at the time of registration.
- Direct Sellers are entitled to receive periodic training from the Company at designated place, in the form of product knowledge and marketing plans to increase the abilities and knowledge of the Direct Seller to act correctly, honestly and responsibly.
- All Direct Sellers get the same opportunity to excel in marketing goods and / or service.
- Direct Sellers are entitled to get equal services from Customer Service from the Company.
- Direct Sellers are entitled to get bonus payments from the sale of their personal and group networks.
- Direct Seller has the right to redeem Redemption Points for redemption products provided by the Company.
- Direct Sellers have the right to inherit their business rights to their heirs who are filled in the profile referring to the legislation of heir in Indonesia.
TYPES OF BONUS
- Daily Bonus (Plan A)
- Input Bonus is a bonus of 5% of BV sales paid by the company to the Direct Seller which helps other members enter orders in the system. Only Platinum Direct Sellers can enter orders for other members.
- Direct sponsorship bonus is an instant Bonus obtained from the proceeds of personal sales. If Direct Seller shopping through the "Maintenance” menu, the bonus will be received by the seller directly. If Direct Seller shopping through the "Personal Sales" menu, the bonus will be accepted by Sponsor’s Upline. The bonus issued by the company is 33.333% of the total BV sales.
- Team Development Bonus is a daily Bonus that is obtained by a successful Direct Seller when his/her team get sales in the team / group left foot and right foot. Bonus issued by the company depending on the rank of the Direct Seller, which is 5% - 25% of the smallest BV sales among BV teams on the left and right.
- Monthly Bonuses (Plan B)
Unilevel is a bonus that will be obtained every month from product sales under the Direct Seller, either for self-consumption or for the sale of products from maintenance (via the redemption menu) from your team once every 2 months.
A total of 40% of sales from each team's closing points (up to a depth of 10 levels), with a level limit as follows :
Level 1 : 6%
Level 2 : 5%
Level 7 : 3%
Level 8 : 3%
Bonus Bulanan (Plan B)
Level 3 : 5%
Level 4 : 4%
Level 5 : 4%
Level 6 : 4%
Level 9 : 3%
Level 10 : 3%';
ABOUT COOLING OFF PERIOD, CUSTOMER SATISFACTION, BUYBACK GUARANTEE
- If the Direct Seller resigns or dismissed by the Company, the Company will accept the return of goods in the form of products provided that the product expiration date is still more than 6 months and the seal is undamaged as well as promotional materials (brochures, catalogs, leaflets) and sales tools (Starter Kits) that are in a good condition to resale from the initial purchase price of the Direct Seller to the Company minus administrative costs at most 10% (ten percent) and deducted bonuses and commissions has been received by the Direct Seller regarding the purchase of said item (Buyback Guaranty) in a maximum of 10 (ten) working days. (Cooling of Period).
- If the Direct Seller does not feel the benefits of the product according to the claim, then the Direct Seller has the right to exchange the product with other products with the condition that the expired date of the product being exchanged is at least 6 (six) more months.
- Direct Seller is allowed to do product returns because of something and the Company has right to refuse return of goods / products by stating the reasons of rejection (example: broken, modified and others). Products can be returned by following the following conditions:
- Submitting a request for product returns.
- Include receipt of the purchase of goods to be exchanged.
- The product that returned must have an expiration date at least in the next 6 months or in accordance with company policies in time.
- Provide various training or business development to Direct Sellers / Consumers in the designated time and place.
- Carry out the calculation / tabulation of sales and provide bonuses or commission results from the calculation / tabulate on time.
- Ensuring product quality and product quantity / availability at all times.
- Provide equal opportunities for all direct sellers to carry out business activities.
- In accordance with applicable tax laws in Indonesia, the Company will collect Added Value Tax and Income Tax to then be deposited to the State.
- Provide mediation space in the event of disputes between Direct Sellers and other parties.
- Provide a guarantee of 10 (ten) days grace period (Cooling of Period) for returning Sales Tools (Starter Kit) and products that have been obtained or purchased when the Direct Seller resigns because of something as long as the starter kit / product is still in good condition.
- The company will provide compensation in the form of retribution and / or substitution for losses due to the use and utilization of goods and / or services used by consumers / direct sellers due to problems regarding claims, manufacturing errors and product designs from the company that can be authenticated and proven authentic (Customer Satisfaction Guarantee).
TRAINING OR BUSINESS DEVELOPMENT
Provide various training or business development to Direct Sellers / Consumers in the designated time and place such as: Business Opportunity Preview
Jakarta: Every Wednesday at 19:00 WIB at the Biogreen Science Learning Center Jakarta
Surabaya: Every Thursday at 19.00 WIB at the Biogreen Science Learning Center Surabaya
Bali: Every Thursday at 19.00 WITA at the Biogreen Science Learning Center Denpasar
Jakarta: Every Thursday at 19:00 WIB at the Biogreen Science Learning Center Jakarta
Surabaya: Every Friday at 19.00 WIB at the Biogreen Science Learning Center Surabaya
Bali: Every Friday at 19.00 WITA at the Biogreen Science Learning Center Denpasar
DIRECT SELLER OPERATIONAL REGULATION
- TERMS OF DIRECT SELLER AGREEMENT
- Business activities with a direct sales system are held based on a written agreement physically or digitally between the Company and the Direct Seller.
- The written agreement as intended in clause (1) must at least contain:
- Name, address and domicile of the parties
- Rights and obligations of the parties
- Coaching programs, training assistance and facilities provided by the Company and / or marketing network to Direct Seller
- Duration of the agreement
- Termination and extension of the agreement
- Conditions for Returning Goods / Products
- Compensation for goods / services whose quality and type are not as promised
- Provisions regarding the commissions, bonuses and other awards, and
- Dispute resolution.
- OPERATIONAL PROVISIONS OF DIRECT SELLERS
- Direct Seller is given a Username and Password for Login from the Company which is useful for accessing Direct Seller Personal Web Page.
- Direct Seller Username and Password for Login cannot be known by other parties, all risks arising from leaking usernames and passwords are entirely the responsibility of the Direct Seller.
- Direct sellers must order products and register online through a program owned by the Direct Seller
- Direct sellers can order products through online or sales counters at the Company headquarter by using:
- Debit Card (BCA).
- Credit Card (Visa, Mastercard, BCA Card).
- Credit Card Fees adjust to the Company regulations
- Cash (Cash).
- The company will process every Direct Seller order that comes in after the order getting verified by the company. This process is called payment verification.
- If for one reason or another the Company cannot verify payment, the Direct Seller can show proof of payment via fax, email, SMS and any other channel to the Company's service number.
- If the payment for the product ordered by the Direct Seller is done before 12.00 PM (twelve o'clock noon western Indonesia time), the product will be delivered to the Direct Seller on the same day.
- If the payment for the product ordered by the Direct Seller is done after 12.00 PM (twelve o'clock noon western Indonesia time), the product will be delivered the next day (working day, Monday to Friday)
- All forms of transactions that have been recorded by the company are the responsibility of the Direct Seller, negligence and error resulting in losses are the responsibility of the Direct Seller.
- For Direct Sellers that registered outside Jabodetabek, products will be sent to the Direct Seller address according to the first address that listed on the submission form, delivery to the different address is not possible to prevent the occurrence of "fraud"
- Direct sellers registered in the Jabodetabek area can pick up goods directly at the Outlet in the Company Head Office on the working hours, either by the Direct Seller or a or a third party provided the third party has a power of attorney from the Direct Seller.
- The Company is allowed to withdraw data and evaluate the overall development of Direct Seller’s activities through the program system owned by the Company.
- If the Direct Seller of the Silver Rank and above does not do a Repeat Order / Close Points of at least 90 BV within 60 (sixty) days, his/her Rank will automatically go down to Basic.
- The Company has the right to terminate Direct Seller’s membership by sending a letter of termination to the Direct Seller if the Direct Seller violates the code of Ethics for 3 (three) times.
- Direct Seller who get the official letter for termination no longer have the rights and obligations as Biogreen Science’s Direct Seller.
- Companies can at any time make price adjustments on a product in accordance with market conditions and influences such as currency exchange rates and changes in the value of raw materials.
- The company has set a bonus index or restriction in accordance with regulations imposed by the Government in an effort to secure and adjust bonuses according to the regulations applied by the Government of Indonesia.
- The company can make adjustments to the marketing plan at any time if necessary to adjust to the regulations implemented by the Indonesian government.
- Product returns regulations for Mobile Stockists:
- The company has the right to refuse product returns if the returned product is damaged / modified.
- Product returns will be charged according to what the company has implemented, that is, minus the admin and commission fees that have been received by the Direct Seller from the purchase of returned items.
- The company only serves product returns a maximum of 7 (seven) working days from the date the product to be returned is received by the Direct Seller.
- If a Direct Seller / Member wishes to changes or give additions to his/her information, for example he/she changing address, cellphone number, or taxpayer employee number, Direct Seller must provide a written statement signed on stamp duty to the Head Office or Service Office.
- In the event of a transfer of ownership between the Direct Seller and another party, the Direct Seller or his/her proxy can notify the Company by making a written statement and fulfilling the following conditions:
- The domicile of the new Direct Seller is still within the scope of the Company.
- Include a letter of grant / sale of Direct Seller ownership if the transfer of ownership is not done through the company.
- The new Direct Seller must complete the personal / company data by attaching the complete legality in the form of ID card, Business Licence, and others on the day of handover.
- Paying admin fee for membership transfer of IDR 600,000 (six hundred thousand rupiah).
- Consignment Stockists must be willing to maintain the availability of stock products for the sake of smooth service to Downlines and the Company has the right to conduct an audit of the product stocks owned by Direct Sellers who work as Consignment Stockists.
PROHIBITION FOR DIRECT SELLER
- Direct Seller is prohibited from display, promote and sell other Multi-Level Marketing (MLM) Products.
- Direct Seller with Platinum Rank and above is prohibited from running other Multi-Level Marketing (MLM) business activities.
- Direct Seller is prohibited from offers promotions in the form of cashbacks, price discounts or other schemes that resembling doing unfair business competition.
- Direct Seller is prohibited from invites, influences and / or uses unEthicsal means, and sponsor other Direct Seller with the aim to network switching.
- Direct Seller is prohibited to sell products by replacing / changing product contents and product packaging labels.
- Direct seller is prohibited from tarnishing the good name of the company.
- Direct Seller is prohibited from selling products outside the direct sales system such as displaying in retail stores, selling in online / e-commerce stores, and other actions that are not included in Direct Sales Permit regulations.
- Direct Seller is prohibited from doing bad deeds to his/her Upline and Downline.
Direct Seller is prohibited from violating the Direct Seller Agreement, the Direct Seller Code of Ethics, and the Direct Seller Regulations. If those matters are violated, the Company has the right to impose sanctions as follows:
Based on the order of sanctions above (Reprimand, Warning, Freeze Membership, up to the revocation of the Distributorship status), The Company provides an opportunity for Direct Sellers to exercise his/her Right of Reply no later than 14 (fourteen) working days after the Termination of Membership is conducted.
- Warning Letter
- Temporary Frozen (carried out until the Direct Seller signs a letter of agreement to not repeat the mistake that causes the Direct Seller to receive this punishment).
- Permanent Suspension / Termination of Membership.
- If there is a dispute between fellow Direct Sellers, the Company can mediate settlement of the dispute and the Company will seek a peaceful settlement by way of deliberation to reach consensus. If one of the Direct Sellers is absent in mediation, the Company will send a second mediation invitation and if one of the Direct Seller in dispute still doesn’t attend the Company will send a third mediation invitation, and if he/she still don’t attend, then the Company has the right to make decisions in accordance with company policy using the signature of approval from the active Upline of the disputing Direct Seller.
- If a dispute occurs between the Direct Seller and the Other Party, then the company will act as a party mediating the disputing parties to carry out negotiations that will be held deliberately so that the dispute can be resolved peacefully.
- If the Direct Seller violates the agreement between Direct Seller and the Company, both parties can settle disputes by deliberation to reach consensus.
- If dispute cannot be resolve by deliberation to reach consensus, then the parties in dispute can resolve the dispute in the District Court where the Head Office of the Company is domiciled.
- This Direct Seller Code of Ethics can be reviewed and and the Company will provide a report to the government as a supervisor if there is a change. After obtaining approval from the government, the Company will announce all changes and improvements to the Direct Seller Code of Conduct to Direct Sellers through the company's official website.
- Although the Direct Seller Code of Ethics and the Marketing Plan are made / printed separately, the Direct Seller Code and the Marketing Plan are a unity.
- The Direct Seller Code of Ethics and Marketing Plan are an inseparable part of the Company and the Company and all Direct Sellers declare to be obedient and obey the Law of the Republic of Indonesia.
- The socialization regarding changes to the Direct Seller Code of Ethics or Marketing Plan is carried out after obtaining approval from the Ministry of Trade of the Republic of Indonesia and is done at least 30 (thirty) days before the changes that occur are applied.