The network marketing and multi-level marketing industries have been vigorously regulated by laws of the United Kingdom. In general, legislators and regulators have viewed network marketing in a sceptical light because of spurious past experiences. Although there are many resounding success stories, regulators continue to keep a watchful eye on the industry.
Numerous aspects of various network-marketing programmes attract the concern of certain government agencies. The two areas, which are most prominent, are the methods by which a company attracts new UnFranchise Owners, and the basis on which incentives are rewarded. For example, demanding payment from an individual in exchange for the right to sell products and basing bonuses or commissions on the successful recruitment of others into the network (unrelated to the sale of the company’s product), are illegal.
Multi Level Marketing is mainly governed by the Fair Trading Act 1973 as amended by the Trading Schemes Regulations 1997. In addition, Directives 85/577/EEC on doorstep selling and the Directive 97/7/EC on distance selling also apply. There has been an evolution of network marketing and multi-level marketing programmes. Today almost every conceivable product is merchandised using network marketing. The industry has become intensely competitive with companies competing for independent UnFranchise Owners to join their ranks. This competition has resulted in the development of a variety of compensation structures. It has also stimulated further scrutiny of marketing plans and their compliance with the laws enforced by various regulatory agencies. Although there are contradicting interpretations of certain legal limits by the various agencies, Market United Kingdom has meticulously observed even the most stringent of these regulatory interpretations and has continuously maintained a conservative posture of cooperation and compliance with regulatory agency interpretations and directives.
The Market United Kingdom marketing plan has been designed to meet these regulatory requirements. Each Independent UnFranchise Owner is sponsored into the organisation by another UnFranchise Owner. The Management Performance Compensation Plan (MPCP) offers UnFranchise Owners the potential for significant financial rewards based on product sales. The plan has no inherent limitation, so each Independent UnFranchise Owner has an equal opportunity for success if the requisite hard work is put into the marketing plan.
The marketing plan was developed to avoid negative incentives and pitfalls, and to minimise limitations frequently inherent in other network marketing programmes. The Market United Kingdom marketing plan contains retail sales requirements to ensure regulatory compliance. One interesting observation is that the very design of our marketing plan eliminates the potential for abuse or misrepresentation. The design of our plan is such that economic incentive is based entirely on products reaching end users. Under the Market United Kingdom Marketing Plan, when an UnFranchise Owner places product orders, Market United Kingdom asks for customer receipts or other proof that at least 70% of product orders were sold to end users or retail purchasers. Furthermore, UnFranchise Owners in the UK must produce 200 Personal Business Volume and a minimum of two customer sales totalling £340.00, before becoming qualified UnFranchise Owners eligible to receive compensation credit for the Group Business Volume generated by UnFranchise Owners in their sales and distribution organisation.
Only submission of a nominal subscription fee is required to participate as an UnFranchise Owner in the compensation programme. As an UnFranchise Owner, compensation is paid only on sales volume accumulated by qualified and active UnFranchise Owners who have satisfied their minimum activity requirements. An UnFranchise Owner occupies a Business Development Centre (BDC) in the binomial network structure and qualifies to build a marketing organisation and earn commissions by first meeting specific sales and personal Business Volume requirements.
The marketing plan includes a policy for buying back all currently marketable products or literature purchased within one year of return date from UnFranchise Owners who are terminating their UnFranchise Businesses or purchased within 30 days of return date for UnFranchise Owners not terminating their UnFranchise Businesses. The policy requires that product first be offered to upline UnFranchise Owners to avoid a chargeback of MPCP compensation previously earned. The total process for a return usually takes less than 30 days if the UnFranchise Owner follows the procedures set forth in the Market United Kingdom UnFranchise Manual. Compensation must be charged back, in the absence of a buy-back by a sponsoring or upline UnFranchise Owner, because the product was never sold to an end user. Sale of products to the ultimate consumer is a fundamental requirement for the earning of compensation in the marketing plan. The policy also allows for customer returns and full customer refunds on the product from the selling UnFranchise Owner within a 72-hour period from the date of purchase.
Market United Kingdom has also engineered a means by which UnFranchise Owners can avoid the temptation of making extravagant product or income claims, so that prospective UnFranchise Owners are not misled by claims that high earnings are easily achieved. Video, audio and printed presentations relate exciting, objective information about the Company plan and products. One of the biggest potential problems in the network marketing industry is misrepresentation by an UnFranchise Owner in business presentations. UnFranchise Owners are contractually obligated to understand the marketing plan and present it properly. Executive Coordinators are contractually obligated to train, supervise and monitor their organisations and guard against misrepresentation. Market United Kingdom requires that UnFranchise Owners to use only company-developed marketing tools in-group settings and prohibits unauthorised income claims or use of unauthorised literature or marketing tools. All other materials must be sent to the Company for prior approval. This practise minimises the risk of misrepresentation.
Market United Kingdom has established a Legal Department to oversee UnFranchise Owner ethics and policy enforcement to ensure that the Company’s operational standards remain intact and that each UnFranchise Owner honours all applicable laws and regulations. The Company is represented by credible and experienced legal counsel in the areas of regulatory compliance, multi-level marketing law, securities law and business opportunity law. The strength and future of Market United Kingdom depends on innovative products and marketing, but the Company’s success equally depends on UnFranchise Owners adhering to Market United Kingdom policies and procedures.
All Market United Kingdom Independent UnFranchise Owners are required to comply with all policies, procedures, rules and regulations set forth in this Market United Kingdom UnFranchise Manual, and these may be amended from time to time. Part 2 of the UnFranchise Manual is included as part of the Independent UnFranchise Owner Application and Agreement and is legally binding, as are the other terms of the Application and Agreement.
Market United Kingdom honours all applicable laws and regulations governing good business practices and requires all Independent UnFranchise Owners to do the same. The Company is a direct-sales company marketing products through Independent UnFranchise Owners. The policies, procedures, rules and regulations herein are applicable to all Independent UnFranchise Owners and Market United Kingdom.