Стандарты регулирования IBO

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  • IBO윤리강령
  • IBO준칙사항
  • IBO등록및관리규정

I as IBO of GEMMA Korea hereby take oath to obey the followings:

1. Awareness and Observation of Enforcement Regulation

In administration of the company’s marketing business, I will fully understand the contents of this Enforcement Regulation, IBO Code of Ethics, and other related rules, and operates business based on them.

2. Maintenance of Honor and Dignity

With sense of duty to lead new culture in distribution, IBO of the company will proudly realized its position that aims to serve and contribute for society; it will face others with sincerity and truth, and acts as exemplary example.

3. Full-knowledge and duty of accurate notice in Marketing Plan of the Company

I understand that marketing business of the company requires training and effort corresponding to the reward; I will first fully learn about marketing plan and product information, in order to not spread any wrongful concept during sales. In addition, I will not cease continuous learning and training as it grows.

4. Sales Activity on Free will

By completely following my free will, I will establish sales plan for marketing business of the company, and strive to achieve sales goal under principles of rationality and accuracy.

5. Prohibition of Criticism on Rival Product

I will not sell products by criticizing other companies’ rival products or revealing various conditions of other companies, but only with truth and sincerity based on excellence and competitiveness of GEMMA Korea.

6. Customer Satisfaction Guarantee

I will strive to completely understand customer satisfaction on sold products and strive to reflect accordingly, in order to make sure that excellence of products is not distorted. In addition, dissatisfaction will be dealt accurately and in timely manner according to conditions of quality guarantee for each product, in order to prevent any harm against consumers.

7. Perfect After-Service

It is understood that securing new consumers by consistently managing and paying attention to existing consumers is the primary principle of the company’s marketing business and shortcut for business growth; thus, I will provide perfect service for existing consumers.

8. Faithful Support

With sincerity and responsibility for IBO I have supported, I will train and educate to increase sales volume; I will be responsibility for all business activity of formed sales network.

9. Participation in Various Training and Events

I will diligently participate in and initiatively assist various meetings and seminars hosted by the head office and group IBOs, in order to enhance my talent as marking IBO of the company.

10. Observation of Related State Laws

In performing business, I will sincerely observe all related state law.

11. Faithful Tax Payment

In performing business, I will faithfully pay all tax regulated by tax law of Korea.

12. Penalty for Violated IBO

If I violate all Code of Ethics provided in this Enforcement Regulation and the company, I will endure any disciplinary action imposed by the company.

GEMMA Korea IBO shall observe business activity rules with pride and dignity for settling business and protect consumers. If violated the followings, one will be sent to Ethics Committee; the self and higher rank will take a disciplinary measures based on the decision. The period may vary from 10 days to 6 months, and the qualification is canceled depending on seriousness of the case.

  1. GEMMA Korea IBO shall not register anyone as one’s lower rank IBO without consent.
  2. GEMMA Korea IBO shall not register anyone who is not eligible as IBO, including public officer, teacher, professor, minor, or students.
  3. GEMMA Korea IBO shall not force anyone to conclude contract for product sales, or change address or phone number, or exercise authority otherwise, for purpose to disturb cancellation or termination of contract.
  4. GEMMA Korea IBO shall not: inform false or exaggerated information; induce transaction with other using deceptive method; inform false price or quality of products; or behave as if products are significantly outstanding or advantageous than the actual. GEMMA Korea IBO shall not express personal interpretation or opinion, other than official announcement of the company.
  5. GEMMA Korea IBO shall not impose any duty such as fee more than the amount determined by law, no matter the name or form, which includes membership fee, sales supplementary items, individually assigned amount to sell, and training fee, on new subscriber (registrant) or lower rank GEMMA Korea IBO.
  6. GEMMA Korea IBO shall not arouse any criticism with other IBOs such as illegal use of credit card, regardless the reason. GEMMA Korea IBO shall not also purchase products by force, or induce lower rank IBO to do so, in purpose of promotion of self or higher ranker, or receipt of incentive.
  7. GEMMA Korea IBO shall not unilaterally supply products and request payment to one without subscription; GEMMA Korea IBO shall not sell products to lower rank GEMMA Korea IBO.
  8. GEMMA Korea IBO shall not demand purchase of products through phone call, fax, or computer communication, even when the consumer showed no intention to purchase them.
  9. GEMMA Korea IBO shall not demand others to register as one’s lower rank IBO using one’s social position, or induce registration or purchase by falsely informing as if any celebrity or entertainer has registered.
  10. GEMMA Korea IBO shall not demand any training or camp training against will of IBO or anyone who is will to become IBO.
  11. GEMMA Korea IBO shall not use the company’s organization for monetary transaction without product transaction, or in disguise as product transaction.
  12. GEMMA Korea IBO shall not appropriate cash or public money from consumer or other IBO for purpose of substitute purchase.
  13. GEMMA Korea IBO shall not criticize other IBO, suggest seceding from organization (transfer to other company), or disturb business activity with abnormal behavior.
  14. GEMMA Korea IBO shall not induce change of lines within already formed composition of organization in any form, including inducing or registering change of lines using false name or borrowed name.
  15. GEMMA Korea IBO shall not: damage credibility or honor of the company by criticizing or condemning business policy of the company with other IBO or spreading false or exaggerated information; and advertise on mass media without consent from the company.
  16. GEMMA Korea IBO shall not make scene or interrupt the conduct of business in workplace for purpose of disturbing business of the company.
  17. When registering as IBO, one shall use own bank account; discovery of false entry will lead to penalty from the company.

Above rules are the main IBO Regulation Standards based on Article 23 (Prohibited Act) related to call sales; they are applied preferentially before any other rules. Please observe sincerely, and contact the head office for any violator.

  1. This Regulation Standard specifies basic matter for IBOs approved by GEMMA Korea (hereafter stated as the company) to observe during business operation.
  2. This Regulation Standard is considered as a part of contract terms for IBO eligibility, along with other rules.
  3. In case that IBOs of the company violates any contracted items under this Regulation Standard, the company has right to warn, disqualify, and cancel qualification, and right to limit or remove all rights granted to IBO, for social public order and protection of rights and interests.
  4. IBO must understand and observe all matters specified in the Regulation Standard.
  5. The company has right to change business policy and procedure. IBO shall mind that any change will be delivered through website.

Chapter 1 General Rules

[Article 1] Purpose

This regulation for GEMMA Korea (hereafter stated as the company) and IBO (hereafter stated as IBO) aims settlement of sound and right distribution culture and joint prosperity of the company and IBO by observation of mutual regulation in sales.

[Article 2] Application Scope

IBO of the company follows this regulation for IBO management otherwise separately regulated.

[Article 3] Application of Related Law

The company originates in Republic of Korea; all transaction, member log-in, and website also originate in Republic of Korea. Thus, each individual shall self-check if business of GEMMA Korea is legal in residing country. Related laws in the relevant country are applied when overseas expansion.

[Article 4] Subject of Application

This regulation applies to all IBO registered as IBO of the company.

Chapter 2 IBO Registration

[Article 5] Qualification of IBO

Qualification of IBO is not limited by age, level of education, occupation, gender, religion, or other physical defect; however, anyone who falls under each item in Article 6 is excluded.

[Article 6] Limitation of Registration

Anyone who falls under each of following items is limited in registration

  1. Anyone who lacks legal capacity or mental capacity approved by law (‘lack of mental capacity’ means lack of ability to verbally deliver precise information in natural manner)
  2. Anyone in the service or imprisoned in National prison
  3. Anyone under 18 at the time of registration
  4. Corporate body

[Article 7] Registration of New IBO

  1. Every IBO must register with own real name, and the company only approves qualification of registered business owner. (Impossible to claim right of other after registering with borrowed name)
  2. New IBO refers to anyone who has registered with recommendation from registered BIO.
  3. One must enter one’s own name when registering as IBO; one is responsible for any problem due to substitutive entry
  4. In case of registering as business owner by submitting copies of identification and bank account with registration suggestion from already registered IBO, and even if it is against one’s aggressive will to register, presenting copies of identification and bank account to other and entrusting registration are seriously important legal activity; thus, the qualification cannot be changed.

[Article 8] Approval of Qualification as IBO

Qualification as IBO becomes valid when IBO receives distinct IBO ID number; the approval of IBO qualification is under right of the company.

[Article 9] Meaning of IBO

IBO registered at the company is a kind of independent IBO who agree by own will on business policy, which proposed publically, reward system, and product, and perform business activity; IBO is legally responsible for all activity after own decision.

[Article 10] Management of IBO Information

IBO must clearly enter personal information and recommendation when registering under certain procedure, with responsibility for any flaw. In addition, IBO must immediately notify the company if there is any change in personal information (address, phone number, etc.) and other required information; responsibility due to failing to do so belongs to self.

Chapter 3 Obligation of IBO

[Article 11] Obligation of Understanding and Delivering Accurate Information

The company shall provide overall regulation and product information at time of IBO registration; IBO shall understand all regulations and information as soon as registration, and only deliver information proposed officially by the company without distorting or exaggerating.

[Article 12] Obligation of Faithful Sales Activity

Every IBO must take responsibility of faithful business activity only if one has accurate information and confidence in products after personal use. In addition, every IBO must leave contact information to consumer whom IBO or lower rank IBO with one’s recommendation has sold products.

[Article 13] Obligation of Training Support and Completion

Every IBO shall consistently perform training and management for lower rank IBOs, because every IBO receives reward through faithful training support for lower rank IBO. The company considers any IBO above certain level as full-time individual IBO; while it provide training as IBO obtains higher rank, and IBO must complete it. it may suspend payment of rank reward for those who did not complete training.

[Article 14] Obligation of Tax Payment

Every IBO must faithfully perform obligation to pay all taxes based on tax law of Korea, if any income is generated through sales of the company’s products.

[Article 15] Obligation of Observing Relevant Law and Overall Regulation

Every IBO is considered to agree to overall regulation of the company and especially take oath to ‘IBO Regulation Standard,’ at the same time of registration. Thus, IBO must follow relevant laws, all regulation of the company, training and management, as in performing business activity.

Chapter 4 Qualification and Activity of IBO

[Article 16] Classification of IBO

IBOs are classified as active and inactive members, depending on resale result and reinforcement activity.
Those without resale result for recent 6 months or no reinforcement activity at all are classified as inactive members.

[Article 17] Renewal of Qualification

Renewal of qualification takes annually from the date IBO has registered, and all qualifications are maintained if renewed. Meanwhile, inactive member and supporting organization will lose accumulated relative result and incentive; incentive will occur from the date one restart resale or reinforcement activity for one member.

[Article 18] Transfer and Succession of IBO Right

This regulation depends on laws of country that IBO belongs to, in relation to transfer and succession (law of succession).

Chapter 5 Prohibited Matters

[Article 19] Compulsion of IBO Registration or Sales Contract

Activity of exercising power in purpose of IBO registration, sales, cancellation of contract, or business interruption

[Article 20] Burdening Others

Activity of burdening IBO or those willing to register as IBO, regardless of the names, including registration fee, sales supplementary item, individually assigned amount to sell, or training fee. Or activities of burdening to recruit or support certain number of lower rank IBOs.

[Article 21] IBO Registration without Consent

Activity of registering (recommending) a person as one’s lower rank IBO, or of registering as IBO with other’s copies of identification and bank account for purpose of insurance application.

[Article 22] Exaggerated Advertising and Neglect of Obligation to Information Deliver

False or exaggerated information about the company’s product and support reward payment, or case of being out of contact after sales or no post management after products delivery

[Article 23] Speculation Encouragement and Sales Inducement

Encouraging speculation as promoting the company’s reward payment standards and informing that one can easily earn money by registration of others, or inducing large amount of investment, or inducing those cannot operate business (student, minor, elders, disabled, those who lack mental and legal capability)

[Article 24] Advertisement on Mass Media

  1. Advertising on mass media under the company’s name or producing and distributing printout related to the company, without consent from the company
  2. Publically selling products or recruiting IBOs for unspecified individuals

[Article 25] Change of Lines

Inducing change of lines in any form, including using false or burrowed name for already formed IBO organization, even though change of lines is not possible in any case

[Article 26] Abuse of Rank and Neglect of Obligation to Support Training

Activity of IBO: demanding lower rank IBO using ones’ rank; publically expressing violent language or important comment that can determine qualification of lower rank IBO; or looking on wrongful business practice and only receive rewards without training and faithful support for lower rank IBO

[Article 27] Criticism against the Company and IBO

Purposefully criticizing the company and/or IBO in open or closed place, or damaging honor of the subject even if such criticism delivered the fact

[Article 28] Registration and Activity as IBO of other Company

  1. Promoting and selling products of other company, or registering as IBO of other company to induce IBOs of the company to leave or transfer. If it is confirmed that especially IBO with rank has participated in business of other company, the IBO is immediately disqualified.
  2. Training IBOs for subject unrelated to business (including current issues and politic), or selling other products such as teaching aids without consent of the company

[Article 29] Unreasonable Purchase or Forced Sales

Unreasonably purchasing products for promotion of self or lower rank or receipt of reward. Or inducing, or burdening such activity, or forcing purchase

[Article 30] Refund

  1. Damaging products or being out of contact for purpose or delaying or interrupt refund of IBO, or inducing delay of using product for purpose of refund
  2. Refunding or exchanging products without consent of IBO
  3. Purposefully inducing refund of IBO for purpose of transfer to other company or other reasons and systematically refunding products. Systematically refunding products is especially is the most abnormal sales activity (result of betting-sales activity for promotion and reward receipt, or systematical transfer to other company); anyone applicable to this is immediately disqualified and permanently not allowed to re-register.

[Article 31] Transfer and Receipt of IBO Rank

Transferring or receiving IBO qualification in covert manner

[Article 32] Monetary Transaction, Failure of Product Delivery

Transacting money without products transaction, or assisting monetary transaction between IBOs, or not delivering products after sales

[Article 33] Impersonation as Executive of the Company or Exclusive Right

Any activity of impersonating or purposefully letting others to mistake as executive of the company. Falsely informing the company’s products as other companies’, or that one has exclusive right to sell in territory

[Article 34] Issues with the Company or IBO

Activity of unreasonably claiming personal demand while interrupting business,, making scene, or using violence in workplace, regardless the business regulation of the company. Or activity of using armed power in training center, including violence, violent language, and confinement

[Article 35] Formation of Organization within Organization

Forming group for special purpose (extra business, promotion of friendship, etc.), and publically using special name within sales organization or putting goal of the group before goal of the business. Or gathering specific IBO or regions and exercising personal influence.

[Article 36] Abnormal Business Activities (camp training, runaway, etc.)

Activity of holding business with long-term runaway or camp training in group of more than 2~3 persons, or activity of abetting such activity

[Article 37] Indiscrete Slander against IBO

Activity of submitting false group statement as demanding disciplinary action on other IBO without concrete evidence, or activity of proposing clearing disciplinary action for misunderstanding or conflict after filing complaint

[Article 38] Unethical Business Activity

  1. Unethical activity with other IBOs, including runaway due to affair and domestic trouble
    Although above matter is personal problem, the company may disqualify IBO for great influence caused by unethical activity, including disintegrating upright business culture and order, losing the company’s image, or setting example.
  2. False document related to IBO registration and sales

[Article 39] Appropriation of Cash (applied from credit time available for card sales)

Activity of supplanting cash sales with IBO’s own or other’s card and appropriating case; following detailed regulations are applied.

  1. Subject of Action
  2. ① IBO who induced appropriation
    ② Higher rank recommender for IBO who appropriated
    ③ Application of appropriated cash using burrowed credit card (lender receives action)
    ④ If one reports after prior consultation with consumer who purchased with cash for having relationship based on regionalism (IBO who appropriated cash)
    Action Level Regulation Action Result
    1. If one is reported more than twice a month for cash appropriation and it is confirmed to be true
    2. If cash appropriator flees and is out of contact
    3. If cash appropriator changes residence and/or transfer to other company
    4. If IBO refuses refund as delaying product shipping after recognizing case appropriation of refund IBO at the center
    5. If civil complaint is filed at government office and is reported to the company
    1. If high rank IBO requests appropriation in order to supplant cash for IBO application (before registering as new IBO) with credit card
    2. If IBO was claimed for cash appropriation and it was settled in 15 days from final notification
    3. If it was unsettled after notification to high rank IBO in relation with Section 2 of Rank B, higher rank of IBO who appropriated receives action up to level 2.
    4. If it was claimed for cash appropriation with other wrongful methods or personal reason (especially for centers, appropriation without prior consultation due to closing time of bank)
    Suspension of Qualification for 30 days
    1. If cash appropriation was reported but it is settled within 7 days after notifying IBO who appropriated
    2. If it is settled through prior consultation with IBO who was reported for cash appropriation within 7 days after report
    3. If one lent credit card for cash appropriation, the appropriator and credit card owner receive action
      (only, IBO who lent credit card and owner are not IBOs of the company, they receive action accordingly)
    Suspension of Qualification for 10 days
    1. If IBO admits appropriation, visits the company, and request for favorable arrangement before it was reported to the company by others (submission of written acknowledgement)
    2. If it was settled within 10 days after being reported cash appropriation
    3. If IBO who purchased with case request for favorable arrangement for IBO who appropriated case, before refund
  3. Above regulations are applied as follows.
  4. ① This regulation is effective from the moment that cash appropriation is confirmed after it was reported to the company.
    ② If it is not settled within the period specified in above provisions, standard of one higher level is applied.
    ③ IBO who has received more than twice of action due to cash appropriation based on above regulation receives action of level A (expulsion).
    ④ If IBO who has already been warned for cash appropriation is reported for appropriation, the IBO receives suspension of qualification for certain period of time after depending on decision of committee based on IBO Regulation Standard Article 41 (Qualification Suspension of IBO); IBO may be immediately expelled depending on the importance of issue.
    ⑤ If statements of cash appropriation reporter, cash appropriator, and related IBOs are different, the one who made false statement receives action.
    ⑥ When reporting cash appropriation, settlement of problems on lines or between relevant IBOs is the principle.
    ⑦ The company is not responsible for case that the sales on credit card of refund IBO and the amount is refunded back to bunk account of IBO by credit card company after cash appropriation after refund application is received.

Chapter 6 Warning and Qualification Suspension of IBO

[Article 40] Warning

In case that IBO has done anything relevant to IBO Prohibited Matters or against IBO Regulation Standard, and if such action is minor, IBO receives warning from the company.

[Article 41] Qualification Suspension of IBO

  1. Qualification of IBO is suspended in following cases.
  2. ① If IBO has caused severe problem by violating IBO Prohibited Matters
    ② If IBO who received warning once from the company has violated this Regulation
      (this applies to different issues)
    ③ If IBO registered with other’s name and has done business activity in 6 months after suspension, cancellation, or resignation of IBO qualification
  3. The company may immediately suspend qualification without warning procedure if IBO’s violation is severe, provided that the company notifies the IBO about suspension of qualification.
  4. Subjects for qualification suspension of IBO range from relevant IBO and highest rank IBO, and the period of suspension ranges from minimum 1 month to maximum 2 years.
  5. IBO who has been suspended one’s qualification cannot exercise rights as follows.
  6. ① Loss of right to purchase products and become IBO
    ② Loss of right to recommend new IBO
    ③ Loss of ownership for reward along with extinction of reward
  7. In suspending qualification of IBO, the company may apply penalty on the higher rank IBOs (not only directly above but all above) depending on the importance of issue, by synthetically judging preliminary perception of violation, faithful training support, and management responsibility as higher rank IBO.

Chapter 7 Resignation, Cancellation, and Loss of Qualification

[Article 42] Resignation

Any IBO may resign with own will.

[Article 43] Cancellation and Loss of Qualification

  1. Qualification of IBO who has resigned from the company is automatically cancelled, and all relations are lost.
  2. IBO qualification is lost in any of following cases.
  3. ① If one does not submit report and written apology for violating this regulation within 10 days after first warning. Return of documents due to error in address or failure to notify changes is also considered as not submitted.
    ② If one violates regulation again after first warning.
  4. The company may cancel qualification of IBO who has caused severe problem, without warning or suspension procedure. When IBO qualification is cancelled, every legal relation between IBO and the company ends, and IBO is not able to exercise any right as IBO.
  5. In suspending qualification of IBO, the company may apply penalty on the higher rank IBOs (not only directly above but all above) depending on the importance of issue, by synthetically judging preliminary perception of violation, faithful training support, and management responsibility as higher rank IBO.

[Article 44] Re-registration of IBO

  1. One who lost qualification by resignation or penalty can register as new (the lowest rank) IBO after 180 days from the relevant date.
  2. The company may permanently refuse registration of IBO who lost qualification by penalty.

Other Regulations

1. Ranked Payment System of IBO Reward

Reward ranked-payment system based on sales record of GEMMA Korea IBO does not force IBO to achieve certain sales goal. Each IBO can set one’s own sales goal according to one’s business plan and capability.

2. Regulation on Return of Product

  1. Document to prove identification (identification card, driver license)
  2. Product transaction details of the year
  3. Authentication certificate of seal (for return)
  4. Withdrawal Application
  5. Resalable product that is not damaged or used

3. Matter for IBO Resignation

IBO may express intention of resignation and resign any time, and the company does not impose any condition on resignation of IBO. (Law Article 22 Section 4)

4. Do’s and Don’ts for IBO

  1. Anyone who is willing to work as IBO must register to the company.
  2. In sales of products to retail consumer, one shall faithfully perform duty to notify before conclusion of contract, which is addressed on ‘Retail Order & Receipt.’
  3. If product contact is concluded with retail consumer, ‘Retail Order & Receipt’ that includes form for exercising right to withdraw must be prepared; one copy shall be issued to retail consumer and one copy is kept by IBO for 6 months at least.

5. Subscription Withdrawal of IBO

If form for subscription withdrawal is already sent out, the company acquires right to claim return of IBO reward that is already paid; thus, IBO must return already received reward during the year.

6. Prohibition of Transfer of Taking-over of Sales Organization

Activity of transferring or taking over sales organization or position of IBO, excluding inheritance of position or transfer, taking-over, or merger of business

7. Prohibited Behavior of IBO

IBO shall not perform any of followings while working as IBO.

  1. Activity of forcing conclusion of sales contract for goods, or forcing other in order to interrupt withdrawal of subscription or cancellation of contract
  2. Activity of: informing false or exaggerated information; inducing transaction with other using deceptive method; interrupting withdrawal of subscription or cancellation of contract; informing false price or quality of products; or behaving as if products are significantly outstanding or advantageous than the actual.
  3. Activity of collecting money and valuable, which are more than the level defined by a Presidential decree (less than 100,000 KRW) from IBO or those willing to register as IBO regardless of the names, including registration fee, sales supplementary item, individually assigned amount to sell, or training fee.
  4. Activity of paying financial profit for recruiting lower rank IBO, or paying financial profit other than support reward without just reason
  5. Activity of changing address or phone number in purpose of interrupting withdrawal of subscription or cancellation of contract
  6. Activity of causing damages for others by neglecting dispute or complaint for considerable period of time due to lack of necessary labor or facility
  7. Activity of unilaterally supplying goods and requesting payment even without subscription of other part, or activity of forcefully selling goods to other or lower rank IBO
  8. Activity of demanding purchase of products or service through phone call, fax, or computer communication, even when the consumer showed no intention to purchase them
  9. Activity of IBO demanding others to register as one’s lower rank IBO using one’s social position, or demanding the lower rank IBO to purchase goods
  10. Activity of demanding any training or camp training against will of IBO or anyone who is will to become IBO
  11. Activity of letting anyone who is not registered as IBO to work as IBO
  12. Activity of using consumer’s information outside of permitted limit or without any consent from the consumer
  13. Activity of transferring or taking over sales organization or position of IBO, excluding inheritance of position or transfer, taking-over, or merger of business
  14. When registering as IBO, one shall use own bank account; discovery of false entry will lead to penalty from the company.
  15. Other activities of violating matters notified and determined by Fair Trade Commission in order to prevent law violations and consumer damage

Notification on Collection, Use, and Provision of Personal Information

1. Collected personal information

- Name, id, password, e-mail address, phone number, address, bank account

2. Purpose of Collection and Use

- Name, id, password: for identification for joining membership

- e-mail address, phone number: for delivery of notification and bill/ securing accurate address for shipping products

- Bank account: for payment of charged information and products/ refund for subscription withdrawal

3. Holding period of collected personal information

- Record of contract or subscription withdrawal: 5 years

- Record of payment and supply of goods: 5 years

- Record of complaint and dispute from consumer: 3 years

4. Entrustment of personal information

- Shipping of ordered product: order and shipping information to Logistics Company