Read Microsoft Word - Ghana Advisory final.doc text version

IMPORTANT NOTICE 12/05/2011:

Ghana ­ Restrictions

Dear Valued Distributor, Herbalife is very excited about our upcoming event in Ghana on 5th December 2011. We want to welcome as many people as possible to experience how Herbalife can change their lives, and believe Ghana has the potential to be one of Herbalife's leading countries in the EMEA region. It is important that those wishing to do business in Ghana are aware that the local government places a great deal of significance upon the way our industry and our Distributors conduct themselves in Ghana. So much so, that Herbalife's license to conduct business in the market was conditionally granted for one year only. During this period of time, our Distributors activities will be monitored by government regulators against compliance with Herbalife's rules and the laws of Ghana. Our continued operations in Ghana will be strongly dependent on our Distributors acting in full accordance with these. In addition to the ramifications that non-compliance of the rules could have on our future operations in Ghana, unauthorized business practices may also result in legal actions or actions against individual Distributors. Therefore, Herbalife's Rules of Conduct and Distributor Polices were carefully developed in consideration of local laws, and provide Distributors with the necessary guardrails so they can operate their business with confidence. These most important rules will be covered in a formal Ethics training provided by the Company during the opening event and through ongoing ethics training sessions that will be conducted for all new Distributors at our offices in Accra.

Formal Ethics Training Program: As mentioned above, all new Distributors in Ghana must complete Herbalife's formal Ethics Training before they will be permitted to purchase anything other than an International Business Pack (IBP). Distributors in Ghana will not be permitted to make field sales to their downlines until they have verified that their downlines have completed the formal Ethics Training Program. Distributors who change their address to Ghana after the official opening will also have to complete the formal training. We are publishing this Advisory to make you aware of the important points cited above, and to highlight a few of the most significant prohibitions and business requirements described below.

Claims and Advertising: Under the law, no medical, health or therapeutic claims of any kind may be made by Herbalife Independent Distributors. This type of activity is considered very serious, therefore there will be a complete ban on any form of advertising in Ghana. (See the end of this Advisory for a detailed description of the activities considered as advertising).

Export Rules: Distributors planning to do business in Ghana must respect Herbalife's longstanding Export Rules which are included at the end of this document. Premarket activity complicates Herbalife's efforts to open Ghana, and jeopardizes our future operations there, and therefore the sanctions in place for export policy violations are severe. (See the end of this Advisory for the complete Export policy).

Distributor Meetings: Distributors planning to conduct meetings in Ghana must notify Herbalife Ghana at least 48 hours before the meeting takes place. Each meeting must have a responsible Distributor identified who will be accountable for the activities and training delivered at the event. For the protection of our ongoing business in Ghana, it is essential that the Distributor responsible does not permit any breaches of our rules or local laws during such meetings. For details regarding the notification process please contact the Distributor Services Department in Ghana at 0302819240 or [email protected]

Rev.: 11/14/11

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IMPORTANT NOTICE 12/05/2011:

Ghana ­ Restrictions

Foreign/International Distributors: All international Distributors planning to visit Ghana must complete an advanced registration with the company, and will be required to sign a declaration confirming they have read all local business rules, before traveling to the country. Valid work permits are required in order to make purchases, sales, or conduct any business of any kind in Ghana. Please take these Rules to heart and join with us in protecting the future of your Herbalife businesses in Ghana and worldwide.

Advertising Restrictions

The restriction on advertisements in Ghana includes both branded and unbranded materials. It covers every platform of advertising media including, but not limited to, television, radio, newspapers, magazines, business cards, flyers, signs, leaflets, phone books, unsolicited phone calls or emails. The restriction also applies to online activity including personal or corporate web sites; social media channels such as, but not limited to, YouTube, Twitter and Facebook; banner, or other advertising anywhere on the internet; and online retail web sites such as, but not limited to, Yahoo, Amazon and eBay. However, Distributors may use Herbalife created marketing materials. Distributors may share their experiences from using the products, but Herbalife products are not intended to diagnose, treat, prevent or cure any disease or medical condition, and under no circumstances should there be any statement including therapeutic claims for treatment, prevention, mitigation, cure for diseases, or any such implications. The restriction also applies to claims made indirectly. This means that Distributors may not use any other third party to advertise including but not limited to the products or make any claims whether orally and/or in writing. Additionally, Distributors may not advertise events, meetings, products or services which are seemingly or actually unrelated to Herbalife if the intent or the effect is to use these as a means to make any nutritional or health claims. Penalties for violations of Herbalife's Rules are described in Herbalife's Career Book (Enforcement Procedures Section) and will be determined by Herbalife, at its sole and absolute discretion.

Herbalife Export Policy

A. Activities in countries or territories which Herbalife has not announced as officially open for business 1. Whether or not the name "Herbalife" is used, Distributors may not engage in any business activity (including "preparatory" activity) relating to Herbalife in these countries or territories, including but not limited to efforts or attempts to a. Register or license Herbalife names or products or its Marketing Plan, b. Sell or distribute Herbalife products, c. Promote Herbalife products or the business opportunity (including, but not limited to wearing the button, or advertising using any media) or

d. Hold meetings (large or small) or sponsor or recruit persons who reside in these countries. 2. This prohibited activity includes activity which occurs physically outside of an unopen country, but which has the purpose or effect of causing any of the results prohibited by subparagraph 1, above.

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IMPORTANT NOTICE 12/05/2011:

Ghana ­ Restrictions

B. Herbalife-related activities in open countries (other than China) 1. Herbalife products are intended for sale and distribution only within the specific countries for which those products are approved and produced. The sale of these products in any other country is prohibited. 2. Distributors may not ship or arrange the shipment (directly or indirectly) of products from one country to another, whether or not it is for personal consumption. 3. A Distributor may personally, physically pick up product from Herbalife in one country and take it to another country, BUT only a "reasonable amount of product" for the purpose of his or her own personal consumption or gift, not for resale. A "reasonable amount of product" means an up to two months supply for an individual (or a one month supply for two individuals) of a reasonable assortment of products, not to exceed in any one thirty-day period 1000 volume points in total for all such products. 4. The Distributor shall be solely responsible for the consequences of bringing from one country to another any products and shall indemnify the Company for any adverse consequences. 5. No Distributor is authorized or permitted to approach government authorities in any country regarding the importation and/or distribution of Herbalife products or registration of the Herbalife trademarks. Only Herbalife International, Inc. is responsible for assuring that our products and Marketing Plan fully comply with local laws and regulations. 6. The Company reserves the right in its sole and absolute discretion to act against practices which it believes violate the letter or spirit of the foregoing or which appear to do so.

OUR CONTACTS:

Herbalife of Ghana Ltd, 127b Service Plot DTD Baatsonaa, Accra- Sakumono Tel: 0302819240 E-mail: [email protected]

Note: The full body of Herbalife's Rules of Conduct and Distributor Policies are located in Ghana's Career Book, available on gh.MyHerbalife.com or through Distributor Services in Ghana, upon request.

Rev.: 11/14/11

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Microsoft Word - Ghana Advisory final.doc