This document consists of the defined terms, conditions, regulations, policies and procedures and is a binding agreement between all Independent Members and Direct Shopping Inc. (“DSI”)
While we have made the following as extensive as possible, while being easily accessible, we strongly recommend that you read this and all other materials, literature and documentation issued by DSI carefully, abide by them, and incorporate them in all your business dealings.
DSI shall, from time to time, release additional materials, and reserves the right to amend these regulations, which shall be duly published for your reference. DSI has an open door policy and our management and staff shall be available to discuss any concerns or need for clarification on our policies and procedures.
- Application process - Application to become a Member shall be processed by completing the following steps:
- Completion of the Application form and submission of the following documents:
- Tax Identification Number;
- Philippine address
- Purchase of the Starter Kit, as described in the DSI Website
- Completion of the Application form and submission of the following documents:
- One Individual per Membership/Married or Cohabiting Couples – Married, cohabiting or same sex couples and their dependent children must share a single Member entity. In the case of couples, both applicants must sign the Member Application Form. The tax identification number (TIN) of the first listed applicant is used for tax reporting purposes. Single Members who marry or cohabit may elect to maintain separate Member status unless one is the direct sponsor of the other, in which case their Member entities must be consolidated.
- Legal Capacity - All individual Members must be of legal age (18 years old), and in possession of full civil rights to enter into contracts and perform the obligations herein.
- Corporations and Partnerships – Only individuals may sign up as Members, and no juridical entities shall be allowed to participate as Members.
- Assumed Name - A person may not sign up as a Member under an assumed name/alias.
- Independent Contractors - All DSI Members are independent contractors. It is understood that no other legal relationship exists between DSI and its Members, such as, but not limited to, franchisees, joint venturers, partners, employees, or agency. As such, Members cannot make any representation, agreement or bind DSI in any manner. Members are responsible for their own managerial decisions and expenditures and DSI shall not be responsible or liable for any damage or injury to Member or to any third person with respect to the management or operation by the Member of the Member’s business. are responsible for all costs of your business including, but not limited to, travel, entertainment, office, clerical, legal, equipment, accounting, and general expenses without advances, reimbursement, or guarantee from the Company; and will not be treated as an employee for tax purposes. Bonuses payments are subject to withholding tax which is creditable against your income tax. You will receive Bureau of Internal Revenue (BIR) Form No. 2307 reflecting Bonuses that the Company has paid you and the applicable tax withheld in such time intervals as the local law and regulations require.
- Code of Conduct – All DSI Members shall:
- Conduct all business affairs in an honest, fair and legal manner;
- Not engage in deceptive or illegal practices;
- Keep confidential the proprietary Company Information (see below) of DSI;
- Abide by all laws, rules and ordinances of the Republic of the Philippines, and shall diligently pay taxes on all profits and earnings as a Member;
- Be solely responsible for all contracts and obligations undertaken with respect to customers and other third persons;
- Not misrepresent DSI, its products, rules, regulations, policies and/or its core values to third persons, including potential distributors and customers;
- You may not pressure any Members or prospective Members to operate in a financially irresponsible way, including, but not limited to, pressuring them to buy more Products or Business Support Materials and Services than they can reasonably use or sell, or to maintain specific inventory requirements.
- You must not encourage or recommend that Members or prospective Members incur debt in order to participate in the business.
- Personal Information – DSI is committed to protect your privacy and all personal information collected from you shall remain confidential. You shall have the right to review and verify your personal information with DSI at its head office. Notwithstanding the above, Members hereby authorize DSI to:
- Transfer and disclose personal and/or confidential information collected by DSI as a result of its dealings with you to government agencies if required by law;
- Use the information for use your personal information for Member recognition and the Company’s Business Support Materials and Services unless you request in writing that the Company not to do so; and
- In other instances where the Member has agreed to allow DSI to divulge his personal information.
- Other Business Activities – DSI does not control the time, location or amount of work which a DSI Member performs and Members are not restricted from being employed by others, conducting other businesses or providing services to others.
- Ordering Products – information for ordering products is fully explained in DSI’s website and all orders must be registered there. In order to qualify for commissions on repeat purchases, a Member must make a minimum product purchase prescribed by the DSI in its website.
- Inventory – there are no specific inventory requirements, and all Members are obliged to use their best discretion how to determine their inventory needs for distribution and personal use. Purchase of products in excess of the amounts reasonably necessary and appropriate for such purposes is prohibited and Members are strictly prohibited from suggesting, encouraging or inducing any Member to make excessive purchases for their own inventories.
- Methods of Ordering –all orders are done through the website and paid through the different methods prescribed by the website. No payments will be allowed other through the methods prescribed in the website, which, at the Company’s discretion, may change from time to time.
- Pricing – DSI provides a list of retail prices and Members must abide by these prices and cannot unilaterally lower the prices of their inventory below that provided by DSI. A member, however, may sell at a higher price to cover incidental costs. DSI reserves the right to change retail prices without prior notice. Any violation of this rule will amount to the immediate suspension of your account.
- Submitting Orders in the Name of a Customer – DSI members shall be allowed to order products for delivery to their customers. Payments however, will be made by the customer directly to the member concerned.
- Automatic Reorders – While there are no requirements for automatic reorders in order to maintain membership status, in order for in order to be able to benefit from weekly payouts for commissions, the member is required to make their orders as outlined in the advanced maintenance system, and all orders based on this system are made on the last business day of the prior month. Front end loading, or other methods, device or scheme designed to inflate the sales of Members without any actual sales, is strictly prohibited.
- Wholesaling – Members are not allowed to wholesale DSI products.
- Retail Stores – Members may sell their products in small retail enterprises (eg. sari sari stores), or anywhere where day to day business is done, so long as they sell according to the retail prices set by DSI. Members may not sell DSI products in retail outlets with more than two (2) branches nationwide.
- Taxation - Each Member is responsible for complying with all tax and social security laws and regulations, including but not limited to the filing of their own income, VAT and other tax returns and registering any employee with the Social Security System. Members are not, and will not be treated, as employees, franchisees, joint ventures, partners, or agents with respect to any tax, social security or unemployment law, or any other statute, ordinance, rule or regulation.
- Exclusive Territories – DSI does not provide for exclusive territories for its Members and all Members may sell in any territory of their choosing, subject only to the prevailing laws and ordinances of said territory. However, all deliveries for DSI products must be within the territorial jurisdiction of the Philippines.
- Training – While DSI does not prescribe any mandatory training, Members are highly recommended to take the online training seminars provided by DSI on its website at their own pace, provided that, DSI reserves its right to require training of its members should the need arise.
- Transferring Membership – Memberships cannot be assigned, sold, transferred, or otherwise disposed, except upon the death of the Member. Should the death of a Member occur, his Membership shall be transferred to the surviving heirs in the manner of succession provided by law.
- Product Claims - You may only make the specific Product related claims and representations published in the DSI Business Support Materials, and Company literature, and that have been approved by DSI for use in Business Support Materials.You may not make medical claims, or state or imply that any Product is formulated, designed or approved by the DSI or any regulatory authority to treat any disease or medical condition. These representations imply that the Products are drugs rather than cosmetics or nutritionals. You also may not compare Products to drugs, or make drug or medical claims. Any such representations, claims or comparisons by you may result in your personal liability.
- Income Claims – It is of paramount importance that all Members choose to be such by means of an informed decision based on realistic expectations concerning their business decision. Hence, in recruitment, Members cannot make any misleading claims regarding the income opportunity, particularly those related to income guarantees of any sort.
- Application – Upon signing up as a Member on the DSI website, all Members shall have a personal Dashboard within which to view orders, status of deliveries, commissions and other pertinent information on their account. Commissions shall be paid earned and paid out through the following means:
- Sales of retail products
- Sponsoring business builders
- Group product sales
- Leadership bonuses
- Reward Points and Products.
- Methods of payment – Once earned, all commissions are recorded in the Member’s online account for viewing in their personal Dashboards. In order to withdraw commissions, all placements must be made on the DSI website on the Friday of each week, to be paid out on the following Monday through any of the following means:
- ATM Account debiting
- Checks to be picked up at DSI offices
- Additional product purchases
- Payment for Sponsorships
- Purchases of other services/goods in online store
- Conversion into rewards points
- Reports of Alleged Violations - All reports of violations must be in writing and sent to the attention of DSI by an individual who has personal knowledge of the alleged violation. The Company may also investigate an alleged violation of which it becomes aware of through its own independent resources or internal investigations.
- Balance of Rights of Privacy – DSI’s investigative procedures and Dispute resolution process is intended to balance Members’ rights of privacy and the rights of other Members and the rights of DSI. Therefore, until the Dispute has been submitted to arbitration, all information and evidence received by DSI will be released only to Members involved in the Dispute as the Company deems necessary. Before releasing any information, DSI will consider (i) the complexity of the Dispute; (ii) the duty to balance privacy rights and disclosure obligations.
- Procedure – For any violations of these Rules or any other violation of the terms and conditions of Membership, the following procedure will govern:
- Written Notice. Members will receive written notice from the Company that you are or may be in violation of the Contract.
- Responses and Company Prohibitions. Members involved will have 10 business days from the date of the written notice during which they may present in writing all the information relevant to the alleged Dispute. Should the member involved fail to respond to the written notice or fail to provide all relevant facts and information, DSI may take action that it deems appropriate. The Company has the right to prohibit the activities of Membership (placing Product orders, sponsoring, receiving Bonuses, etc.) from the time the written notice is sent until a final decision issued.
- Review – DSI will review any information submitted within the 10-day period or by collateral sources and any information that DSI has independently discovered. DSI will make a final decision regarding the Dispute and the action that it will take, if any, and will the Members concerned a copy of the decision. DSI may, at its sole option, send a copy of the decision to other interested parties.
VI. USER AGREEMENT OF DSI WEBSITE
- Site Usage - While using DSI’s website, its services and tools, Members may not:
- post content or items in an inappropriate category or areas on DSI sites and services;
- violate any laws, third party rights, or the policies described by DSI herein or elsewhere;
- use DSI sites or services if you are not able to form legally binding contracts, are under the age of 18, or has been temporarily or indefinitely suspended by DSI;
- manipulate the price of any item in accordance with DSI’s retail price requirement;
- circumvent or manipulate DSI’s fee structure, the billing process, or fees owed to DSI;
- post false, inaccurate, misleading, defamatory, or libelous content (including personal information);
- transfer your DSI account and User ID to another party without DSI’s written consent;
- distribute or post spam, chain letters, or other illegal correspondence;
- distribute viruses or any other technologies that may harm DSI, or the interests or property of Members;
- copy, modify, or distribute content from the sites and DSI’s copyrights and trademarks; or
- harvest or otherwise collect information about users, including email addresses, without their consent; or
- use existing DSI accounts or create new DSI accounts in order to circumvent or avoid any limits, restrictions, holds or other policy consequences provided by DSI.
- Abusing DSI’s Website - Without limiting other remedies, DSI may limit, suspend, or terminate our service and user accounts, prohibit access to its sites and content, delay or remove hosted content, and take technical and legal steps to keep users off the sites if the management of DSI think that they are creating problems or possible legal liabilities, infringing the intellectual property rights of third parties, or acting inconsistently with the letter or spirit of our policies Additionally, DSI may, in appropriate circumstances and at our discretion, suspend or terminate accounts of users who may be repeat infringers of intellectual property rights of third parties. DSI also reserves the right to cancel unconfirmed accounts or accounts that have been inactive for a long time.
- Content – All content uploaded by Members includes a grant of a non-exclusive, worldwide, perpetual, irrevocable, royalty-free, sublicensable (through multiple tiers) right of DSI to exercise any and all copyright, publicity, and database rights (but no other rights) Members may have in the content, in any media known now or in the future.
- Limitation of Liability – Members will not hold DSI responsible for other users' content, actions or inactions. Further, DSI cannot guarantee continuous or secure access to its services, and operation of the sites may be interfered with by numerous factors outside of DSI’s control. Accordingly, to the extent legally permitted, DSI excludes all implied warranties, terms and conditions. DSI is not liable for any loss of money, goodwill, or reputation, or any special, indirect, or consequential damages arising out of Members’ use of its sites and services.
VII. GENERAL PROVISIONS
- Amendments – DSI reserves the right to amend these Policies and Procedures, its wholesale or suggested retail prices, product availability and formulations, and terms of the Compensation Plan as it deems appropriate. Amendments will be communicated directly to all Members through the DSI website or other means. Amendments are effective and binding on all Members once published on the website.
- Non-Waiver – DSI has the right to exercise any right or power under these Policies and Procedures or to insist upon strict compliance with any obligation or provision herein by the Member. No custom or practice of the parties at variance with these Policies and Procedures will constitute a waiver of DSI’s right to demand exact compliance with these Policies and Procedures. The DSI’s waiver of any particular default by a Member will not affect or impair its rights with respect to any subsequent default, nor will it affect in any way the rights or obligations of any other Member. Nor will any delay or omission by DSI to exercise any right arising from default affect or impair its rights as to that or any subsequent default.
- Severability - Any provision of these Policies and Procedures that is prohibited, judicially invalidated, or otherwise rendered unenforceable in any jurisdiction is ineffective only to the extent of the prohibition, invalidation, or unenforceability in that jurisdiction, and only within that jurisdiction. Any prohibited, judicially invalidated or unenforceable provision of the Policies and Procedures will not invalidate or render unenforceable any other provision of the Policies and Procedures, nor will that provision of the Policies and Procedures be invalidated or rendered unenforceable in any other jurisdiction.
- Governing Law – All agreements, contracts and or policies and procedures now and hereinafter be released by DSI shall be governed by and interpreted in accordance with the laws of the Philippines. Any dispute arising relative to the interpretation and enforcement of any agreements, contracts and/or policies and procedures shall be vested in the exclusive jurisdiction of the Regional Trial Court of Quezon City.