Chapter 18: Return of Merchandise for Refund

SEC. 1 REPURCHASE POLICIES FOR MERCHANDISE RETURNS FROM ACTIVE UNFRANCHISE OWNERS

Market Hong Kong will repurchase from active UnFranchise Owners, any products that are currently marketable and in resalable condition and otherwise qualifying for return, if the purchasing UnFranchise Owner contacts Market Hong Kong within thirty (30) days of the products being shipped (Repurchase Period) and follows the Merchandise Return Procedure set forth in this Chapter. Such repurchase will be charged a ten percent (10%) processing fee, debited from the purchase price refunded. There is no refund of the original shipping and handling fees. Any commissions paid on returned merchandise will be deducted from future commissions, by process of adjusting the Business Volume (BV) and Internet Business Volume (IBV) on the UnFranchise Owner’s account equal to the BV/IBV which was awarded for the returned products.

NOTE: The 30-day Repurchase Period gives UnFranchise Owners ample time to determine whether there is need to return the product for repurchase. No repurchase/refund is available beyond the Repurchase Period unless specifically provided in this manual.

SEC. 2 GENERAL REFUND POLICIES

As stated in Section 1, above, only products, that are currently in a marketable and saleable condition can be returned for a refund. Qualifying returns for active UnFranchise Owners can be returned for refund if:

(A) Product is on the current price list;

(B) Unopened, and any seal is fully intact;

(D) Does not contain extraneous label or other markings;

(E) There is no damage to the interior or exterior bottle or labeling;

(F) Sealed-pack literature has fully intact packaging;

(G) Is not food, custom product, or gift card;

(H) Otherwise, in marketable and resalable condition; and

(I) Not expired.

Products have a valid expiration date if the product has at least five (5) months’ shelf life remaining before the expiration date. Products expiring within five (5) months from the return date are not considered marketable and saleable. Dietary supplements in liquid form and Probiotic products have a valid expiration date if the product has at least three (3) months’ shelf life remaining before the expiration date. Dietary supplements in liquid form and Probiotic products expiring within three (3) months of the return date are not considered as marketable or saleable.

Products being returned which do not meet all of the referenced standards or other requirements in this Chapter, will be rejected and a refund will not be processed.

NOTE: Custom Formula products may not be returned for refund, because they are made specifically for one person and cannot be resold to anyone else. Gift cards cannot be returned for a refund for any reason.

SEC. 3 WALK-IN RETURNS

All returned products must be accompanied by the original receipt or invoice. No Return will be accepted without the required Documentation. All product returned to Market Hong Kong, including same-day sales which have left the Market Hong Kong office, will be issued a Return Authorization Number.

Once the Return is processed, a Refund will be issued to the paying UnFranchise ID on the order, using the same payment method used to place the order.

The refund will not be processed at the time of the return. The product will be accepted according to the return policies and the document will be sent to the Refunds Department for processing.
All returns are subject to a 10 percent processing fee.

SEC. 4 SAME-DAY RETURNS

If the UnFranchise Owner returns product they received prior to leaving the office, the Return Merchandise Form will be filled out and the refund will be processed the same day. The refund will be issued using the same payment method used to place the order.

All returns are subject to a 10 percent processing fee.

SEC. 5 30-DAY RETURN POLICY

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

SEC. 6 RETURN POLICY FOR CANCELLING UNFRANCHISE OWNERS

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

SEC. 7 MERCHANDISE RETURN PROCEDURE

Market Hong Kong assumes no liability for products which would otherwise qualify for return, but which are damaged while being returned. It is the sole responsibility of the UnFranchise Owner to ensure the condition of the product being returned to Market Hong Kong, and to file any claims with the shipper for damages caused en route. To return merchandise for refund UnFranchise Owners must adhere to the following procedure:

(A) Written List of Products: When instructed by Market Hong Kong, UnFranchise Owners must submit to hkunfranchiseservices@markethongkong.com.hk written list of items and quantities they wish to return, along with the dates the products were purchased directly from Market Hong Kong, identify their upline Executive Coordinator, and provide the applicable orders numbers for the products to be returned.

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

(C) Return Authorization Number (RA No.): Upon receipt of the written list of products and the initial upline decline to buy back letter, the company will issue a Return Authorization number. No merchandise may be returned without an RA Number. Note: RA Numbers are only valid for 30 days from the date of issuance.

(D) Product Return: The product must be returned to the company identifying the RA# on the outside of the box. All shipping costs must be paid by the UnFranchise Owner. No COD or collect shipments will be accepted. If the RA Number is not written on the outside of the package, delivery will be refused. The package should be sent via a shipper that offers package tracking. Market Hong Kong also recommends that UnFranchise Owners insure all packages they return to the company.

(E) Business Volume Adjustments: If Market Hong Kong receives a request to return product for a refund, in time to adjust the BV/IBV from the computer system, before it has been paid on in a weekly commission cycle, Market Hong Kong will remove the BV/IBV from the computer system immediately. However, if Market Hong Kong receives a request to return product for a refund after it has been paid on in at least one weekly commission cycle, then Market Hong Kong will deduct the BV/IBV awarded, from future commissions.

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

(G) Return Processing Time: UnFranchise Owners should allow thirty (30) days for the processing of a refund, once Market Hong Kong receives the product. If the UnFranchise Owner returning the products or merchandise does not fulfill the requirements outlined herein, it may take additional time to process the return.

(H) Non-Paying UnFranchise Owner Refunds: UnFranchise Owners may not return merchandise for other UnFranchise Owners. Only the purchasing UnFranchise Owner may return merchandise for a refund. If the product an UnFranchise Owner wishes to return was paid for by another UnFranchise Owner, the refund will be given to the paying UnFranchise Owner. The only time Market Hong Kong will refund a non-paying UnFranchise Owner is if a signed letter from the paying UnFranchise Owner accompanies the refund request, authorizing Market Hong Kong to refund the non-paying UnFranchise Owner. This exception will be made on first-time orders only.

(I) Shipping and Handling Charges: Original shipping and handling charges and return shipping charges are non-refundable.

SEC. 8 PRODUCT QUALITY AND SHIPPING ISSUES

(A) Concerns regarding the quality of any product which has been opened by the UnFranchise Owner, such as discoloration, taste, or regarding the product’s dissolving properties must be sent to hkunfranchiseservices@markethongkong.com.hk for determination as to whether refund is permissible. Any approved refund in these instances will involve only any exchange voucher in a sum equivalent to the purchase price of the product in question or the product may be replaced with a new bottle or package of the same product, at Market Hong Kong’s sole discretion. Refund is not available where the bottle or package is empty or the contents are substantially used. Sufficient photographic information and/or return of the product may be necessary before a determination can be made.

Quality issues raised more than 30 days after the original shipping date will require more detailed scrutiny to ensure exchange voucher or replacement is warranted. Quality concerns raised more than 30 days after the shipping date cannot be refunded if the expiration date on the product has passed.

(B) Issues related to shipping damage to the product packaging such as being crushed or appearing to have been resealed, damage to the product label, or product leaking upon delivery must be addressed to hkunfranchiseservices@markethongkong.com.hk within 30 days of the product being shipped, and in accordance with the policies and procedures outlined in the Freight and Shipping section of this manual. If product hardening is noted upon opening, such must also be addressed to hkunfranchiseservices@markethongkong.com.hk for determination as to whether replacement is warranted, so long as no more than 30 days has passed since the original ship date.

NOTE: If an UnFranchise Owner re-ships product to another destination, such as to a customer inside or outside the country where originally delivered by Market Hong Kong or its manufacturer, Market Hong Kong assumes no liability for products damaged or where the merchandise quality is compromised because these shipping methods are outside Market Hong Kong’s control.

SEC. 9 SPECIAL RETURN POLICIES

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

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

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

(3) After 90 days, the UnFranchise Owner is no longer eligible for a refund.

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

(B) Fast Start Kits: If returning a Fast Start Kit, the kit must be returned with all of its original contents to allow for a refund. No Exceptions. If a partial kit is returned to Market Hong Kong, it will not be refunded and will be returned to the UnFranchise Owner at UnFranchise Owner’s Cost. No Exceptions.

(C) Returns Exceeding HK$7500: On returns exceeding HK$7500 Uniform Commercial Code (UCC) statement must be sent to the company indicating that there are no liens or encumbrances on the product being returned and that the product was not used as collateral against any loan.

(D) Final Sale/Clearance Merchandise: Market Hong Kong will sometimes offer reduced pricing where the condition of merchandise is within product quality guidelines but may not appear in advertised condition or may be approaching expiration dates as labeled. The Final Sale/Clearance Products will be clearly stated. There is no repurchase, refund, voucher or exchange available for these products. Final Sale/Clearance Products are offered for personal use only, not for resale. Business volume is not awarded upon purchase of Final Sale/Clearance Products.

(F) Cancelling UnFranchise Owners: UnFranchise Owners must notify Market Hong Kong in writing that they are electing to cancel their UnFranchise Business. Products may be repurchased from the cancelling UnFranchise Owner within one (1) year of the original purchase date, less a ten percent (10%) processing fee, if the following applies:

(1) The original purchase was made by the UnFranchise Owner directly from Market Hong Kong;

(2) The purchase occurred while the UnFranchise Owner Application & Agreement was in effect;

(3) The product is unencumbered and in the UnFranchise Owner’s possession; and

(4) The product otherwise qualifies for return and is in marketable and resalable condition;

Shipping and handling charges for the original and return shipment are nonrefundable. Any commissions paid on repurchased or refunded merchandise will be deducted from the upline’s future commissions, by process of entering a negative BV amount, equal to the BV awarded for the returned products.

(G) Qualifying Returns for Cancelling UnFranchise Owners are products which are:

(1) Product is on the current price list;

(2) Unopened, and any seal is fully intact;

(3) Not leaking;

(4) Does not contain extraneous label or other markings;

(5) There is no damage to the interior or exterior bottle or labeling;

(6) Sealed-pack literature has fully intact packaging;

(7) Is not food, custom product, or gift card;

(8) Otherwise, in marketable and resalable condition; and

(9) Not expired.

Early Cancellation Return Policy:

SEC. 10 ORDER CANCELLATION

All cancelled orders must occur before shipment and are subject to a ten 10% processing fee. The 10% processing fee applies to all cancelled orders, including without limitation, UnFranchise AutoShip Orders, orders placed through the UnFranchise Business Account, telephone orders and paper orders. For cancellations submitted after shipment, please refer to Market Hong Kong’s Return Policy. Order cancellation occurring with frequency, indicating MPCP manipulation is subject to corrective action.

SEC. 11 EXECUTIVE COORDINATOR’S BUYBACK RESPONSIBILITY

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

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

(B) Market Hong Kong will initiate an Upline Return Merchandise Acknowledgment letter to the five consecutive upline CECs (or higher UnFranchise Levels) only if:

(1) An UnFranchise Owner cancels their account:

(2) Market Hong Kong receives the initial upline “Decline to Buy Back” letter from the UnFranchise Owner who is wishing to return the product signed by the sponsor (if active) and the first active upline CEC (or higher UnFranchise Level);

(3) The UnFranchise Owner returns the product to Market Hong Kong and

(4) The BV/IBV for the returned product could not be removed from the computer system before it was paid on in at least one commission cycle.

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

(D) If Market Hong Kong receives no response from the five consecutive upline CECs (or higher UnFranchise Levels) within 15 business days from the date of the letter being sent, Market Hong Kong will initiate the BV/IBV Reversal.

SEC. 12 COMMISSION REVERSAL PROCESS

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

(A) The computer will multiply the total amount of BV/IBV returned by a commission payout factor (i.e. average percentage pay out on BV/IBV from the previous 12 months). The result will be the total amount to be subtracted from commissions in the reversal process. Example: 200 BV returned x 58% (5 June 1995 to 5 June 1996 average) = HK$900.

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

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

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

SEC. 13 SPECIALS, BLOWOUTS OR EVENT DISCOUNTS

All items purchased at a special, discounted price are nonrefundable and should be considered a “final sale.”

SEC. 14 DISCONTINUED PRODUCTS

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

SEC. 15 RESHIPPING RETURNED PRODUCTS

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

(A) Within Thirty (30) Days: If either the paying UnFranchise Owner or the ordering UnFranchise Owner requests Market Hong Kong to reship product, within thirty (30) days from the date Market Hong Kong receives a returned product, and the BV/IBV had already been removed from the computer system, the BV/IBV will be put back for the date of the original order. Accrual date corrections or adjustments caused by the removal of BV/IBV due to returned products will be considered on a case-by-case basis.

(B) Over 30 Days: If neither the paying UnFranchise Owner nor the ordering UnFranchise Owner requests Market Hong Kong to reship product within Thirty (30) days from the date Market Hong Kong receives a returned product. Market Hong Kong will not reship the product. The paying UnFranchise Owner will receive a credit for the amount of the order based on current returns policies, less the ten percent (10 %)processing fee. After the thirty (30)-day period, if the product has not been reshipped, any accrual date corrections or adjustments caused by the returned products will no longer be considered. After the thirty (30)-day period, if the product has not been reshipped and Market Hong Kong was unable to remove the BV/IBV from the computer system before it paid on at least one weekly commission cycle that included the returned products, then Market Hong Kong will implement the Buyback Policy and, if necessary, the Commissions Reversal Process.

SEC. 16 PREFERRED CUSTOMER RETURN/REFUND POLICY

A customer making a purchase directly from an UnFranchise Owner of product other than food, custom product or gift card has thirty (30) days after the sale, to cancel an order and receive a full product refund from the selling UnFranchise Owner, so long as the returned product meets the Sec. 2 return qualifications.

UnFranchise Owners may receive a refund for the products it has accepted as return from their customer (minus a 10 percent processing fee) or an exchange of the same products from the company, provided written notification along with a dated retail receipt is received by Market Hong Kong within thirty (30) days of the products original ship date to the UnFranchise Owner, and otherwise following the qualifying policies and procedures contained in this Chapter and in the Freight and Shipping Chapter of this manual.