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Newsletter No 20, October 2018
NO.20
Westar Nutrition Corp. – Leader of Nutritional Medicine

Westar Nutrition Corp. – Leader of Nutritional Medicine

Westar Nutrition Corp. (dba VIVA Life Science, Inc.) meets international quality control standards such as PIC/S GMP, food safety control system such as HACCP, and holds food, and drug production licenses in the U.S. Its research and development team draws on published scientific research, and produces highly safe and effective nutritional medicinal foods with an attitude typical of a pharmaceutical manufacturer. Currently,over 80 clinical trials have been conducted and 20 journal papers published.

VIVA Life Science, Inc., Taiwan Branch has been operated stably for 26 years with unparalleled advantages as a leading healthy food manufacturer. It has garnered five certified health foods and several national quality awards for biotechnology and medicine, which have secured its leading position in nutritional medicine.VIVA Life Science, Inc., Taiwan Branch has
also offered excellent business incentive programs to bring a healthy and prosperous life to people with a rationale of "glorify God and benefit humanity."

Address: 3F, No.30, Sec.3, Bade Rd., Taipei City 105, Taiwan

Global Perspective of Isagenix

Global Perspective of Isagenix

When establishing Isagenix in the US in 2002, its founders John Anderson, and Jim and Kathy Coover had a great vision and sublime goal. According to Kathy, "when Jim and I, along with John Anderson, were setting up Isagenix,we aimed to improve the health of the entire world and rid people of physical and economic sufferings, while setting up the largest health and nutrition company in the world. When disseminating this vision through the direct selling tool, we knew that we had to help people one at a time. Now, 16 years later, we have operated in 18 markets in the world. Even though our global customer base exceeds 550,000, we still feel that we have just got started."

Isagenix offers solutions for weight management, stamina and LOHAS lifestyles, and fundamentally believes that a healthy lifestyle can bring a better life to people. So far, millions of mentally and physically happy customers also subscribe to this philosophy.

Address: A1, 1F., No.16, Sec.4, Nanjing E. Rd., Songshan Dist., Taipei City 105, Taiwan

Facilitation and Evaluation of Business Ethics Dispute Resolution Systems

Facilitation and Evaluation of Business Ethics Dispute Resolution Systems

The Multi-Level Marketing Protection Foundation (MMPF) is expected to evaluate the business ethics dispute resolution systems of all direct-selling companies. Although this is not a mandatory requirement, the Code of Ethics Committee of the Direct Selling Association (DSA) is willing to prepare all member companies for this evaluation system. Therefore, the Facilitation and Evaluation of Business Ethics Dispute Resolution Systems will be first conducted to help all member companies review their own business ethics dispute resolution system, and to provide recommendations and facilitation to address inadequacies so that all member companies can perfect and optimize their business ethics dispute resolution systems to save future efforts in facing the MMPF's evaluation.

This facilitation and evaluation doesn’t require any information from participating companies. Instead, the Code of Ethics Committee will obtain reporting documents from the website of the Fair Trade Commission first before seeking mutual understanding and communication with the contacts of the participating companies via telephone or face-to-fact meetings. The main objective is still to identify and help address inadequacies in dispute resolution procedures. It is believed that this will greatly contribute to the reduction of disputes and the optimization of disputes resolution procedures of member companies.

Member companies interested in participating in such an evaluation are invited to contact the DSA's Secretariat,which will help arrange subsequent evaluation matters. Member companies passing such an evaluation will also receive a business ethics mark from the DSA to indicate the DSA's recognition of their business ethics dispute resolution systems. Therefore, the DSA sincerely hopes that all member companies can participate and join hands in creating a better, more transparent and fairer industry environment.

"The Wage Slaves" Ignites Positive Energy of the  Direct Selling Industry

"The Wage Slaves" Ignites Positive Energy of the Direct Selling Industry

Many nine-to-fivers lead a life at a mercy of their bosses and if their performance is slightly below the expectation of their bosses,their dignity may be trampled. The true dilemma and helplessness of salaried workers in their lives are faithfully depicted by The Wage Slaves, an online drama which has become popular as a compact office comedy which echoes the feelings of nine-to-fivers and has received 166,000 subscribers. In addition, the popularity of the drama is boosted for various memorable quotes such as "if you can't hang in, get out of your work places," which an online subscriber said would include in his genealogies.

Operating its own media and continuously shaping a trustworthy brand image, the DSA has aimed for visible improvements in the industry, a friendly attitude in society towards the industry and young participation. Therefore,the DSA has made innovative efforts and constantly collaborated with emerging media to innovate business ethics education and promotion and reverse the negative image of the direct selling industry. The episode in collaboration with the online drama The Wage Slaves was launched in September and depicted various facets of work places to further rationalize the positive career development in the direct selling industry. Through the difficulties facing the actors and actresses in work places who were inspired by the positive energy of direct sellers, the drama further portrayed a whole new angle and expectation of life and dreams and enhanced identification with the direct selling industry. Meanwhile, important concepts about direct selling business ethics were also highlighted to convey the great differences between the excellent direct sellers who are members of the DSA (excellent/legal) and other questionable direct sellers. This episode has attracted enthusiastic responses since it was launched online and has attracted 150,000 views on Facebook and 20,000 views on YouTube, totaling 170,000 views, with steadily rising
viewership.

In addition, this collaboration was harnessed to promote the Planning Contest for Direct Selling Business Ethics.Member companies or their employees or distributors are welcomed to participate by submitting their proposals.Relevant event information will be announced in the DSA's official website and Facebook page. Please pay continued attention to the most recent information.

Avon Donates NT$10 for Each Lipstick Sold

Avon Donates NT$10 for Each Lipstick Sold

According to a survey, around 31 women are diagnosed with breast cancer every day in Taiwan. Breast cancer is the leading cancer in the top 10 cancers suffered by women. Avon has promoted public interest activities relating to breast cancer prevention for a long time and for the 24th year this year. So far, Avon has donated over NT$5.3 million to the Taiwan Breast Reconstruction Society,helping over 300 women with breast reconstruction.According to Michelle Chen, Director of Marketing and E-commerce of Avon Taiwan, Avon has launched the 2018 Pink Light Project to invite kind-hearted and beautiful Taiwanese women to care for breast reconstruction by bringing "pink" warmth to breast cancer patients. For the purchase of every lipstick in any color of Avon's designated series of lipsticks, Avon will contribute NT$10 to the Breast Reconstruction Subsidy Fund.

Legislator Tai-hua Lin Proposed to Raise the Entry Barrier to the Multilevel Marketing Industry

Legislator Tai-hua Lin Proposed to Raise the Entry Barrier to the Multilevel Marketing Industry

The Economic Subcommittee of the Legislative Yuan invited the Fair Trade Commission (FTC) to give a business report and answer questions. Legislator Tai-hua Lin paid special attention to the issue that there are too many multilevel marketers in Taiwan. Therefore, she proposed that the FTC should raise the entry barrier for multilevel marketing enterprises and impose a minimum capital requirement of NT$5 million, hoping that by raising the entry barrier for the multilevel marketing industry, good operators will outnumber and eliminate bad operators.Otherwise, an excessively low entry barrier is likely to cause problems. FTC's Chairperson Mei-ying Huang remarked that the FTC has been exploring the capital requirement adjustment issue. She also said that although it is indeed true that unlimited capital requirement is not suitable to certain sectors, still some sectors involve issues such as licensing with great differences between sectors and further discussions will be conducted.

Tai-hua Lin further proposed that the FTC should conduct overall review in four major directions. In addition to raising the capital requirement, measures such as treating multilevel marketing as a sector requiring special approval,setting up a deposit system and digitizing written contracts also contribute to a sounder multilevel marketing environment and system. Mei-ying Huang responded that the FTC will issue its preliminary opinion of the four recommendations in one month for submission to the Economic Subcommittee.

Should Distributors Approach Their Upline or the Direct Selling Company for Product Defects?

Should Distributors Approach Their Upline or the Direct Selling Company for Product Defects?

When products purchased from their upline are defective for personal factors attributable to the upline, if the distributors resell the products to their downline, causing damage to their downline, should the distributors pursue the liabilities of their upline or the direct selling company?

Usually when distributors need products, they purchase from the direct selling company in their own name.However, distributors purchase from their upline instead due to shortage of products or other reasons. If the products provided by the upline are defective for personal factors attributable to the upline, resulting in damage to the distributors, should the distributors claim damages from the upline or the direct selling company?The answer to this question varies by whether the distributors use the defective products as consumers or operators.

If the products purchased from the upline are used by the distributors themselves, since the distributors are the "consumers" of the products, the product defect disputes with their upline should be handled in accordance with the Consumer Protection Act, and the upline and the direct selling companies are jointly and severally liable to the downline distributors.

However, if the distributors purchase products from their upline before selling the products to other distributors or consumers, since the distributors are not "end consumers" of the products, they cannot assert that the product defects should be handled in accordance with the Consumer Protection Act. At this juncture, the distributors should revert to provisions about sales contract under the Civil Code. They should claim warranty for the products from the seller (i.e., upline) and damages from the seller for the damage incurred by the consumers. The upline cannot claim warranty from the direct selling company on such a basis, since the product defects are attributable to the upline.

[Excerpted from the Practical Direct Selling Legal Issues]

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