Direct Seller Contract

Definition

In this Contract

• "Direct Seller(s)" means a person authorized by a direct selling entity through a legally enforceable written contract to undertake direct selling business on principal-to-principal basis.
• “Direct Selling Entity” means the principal entity which sells or offer to sell goods or services through direct sellers, but does not include an entity which is engaged in a pyramid scheme or money circulation scheme.
• “Network of Sellers” means a network of direct sellers formed by a direct selling entity to sell goods or services for the purpose of receiving consideration solely from such sale.

NOW THEREFORE THIS DEED COVENATS AS UNDER :

• The Direct selling entity hereby covenants that it is fully compliant to the Consumer Protection Act, 2019, Consumer Protection (Direct Selling) Rules, 2021, Legal Metrology Act, 2009, E-commerce Rules, 2020 and all other Rules and laws applicable to an Indian Direct Selling Entity.
• The Direct selling entity assures and the Direct Seller agrees:
  • That this E-contract agreement has no provision that a Direct Seller will receive remuneration or incentive for the recruitment / enrolment of new participants.
  • That it does not require a participant to purchase goods or services for an amount that exceeds the amount for which such goods or services can be expected to be sold or resold to consumers.
  • That it does not require a participant to pay any entry / registration fee / subscription fee, cost of sales demonstration equipment and materials or other fees relating to participation in the direct selling entity’s business.
  • That it has ascertained from the WealthGenics Compensation Plan provided by the Direct selling entity (The same may be read as part and parcel of this E-contract agreement as the same is not being reproduced here for the sake of brevity), the stipulated amount of any or all types of Incentives, rewards, etc. including financial and non-financial benefits payable to the Direct Seller are calculated only and only on the basis of effective sale, marketing and distribution of services and in no way on the basis of recruiting / sponsoring / introducing another Direct Seller.
• Cooling Off Policy : That the Direct selling entity allows or provides to the Direct Seller herein a reasonable cooling off period in accordance with clause 3 (b) of the Rules, of the said Rules undertake to provide a newly registered Direct Seller a cooling off period of 5 days including Saturday & Sunday effective from the date of signing and execution of the contract agreement by him / her while registering as Direct Seller with us wherein the said Direct Seller can cancel the contract agreement without resulting in any breach of contract or levy of penalty.
• Buyback Policy : The Direct Selling Entity agrees to allow buyback / refund of services within 5 days of purchase of service.
• That the Direct Seller herein agrees that the direct selling entity has established a “Grievance Redressal Mechanism” for consumers and Direct Sellers to redress their grievances and complaints, annexed herewith which may be read as part and parcel of these covenants as the same is not being reproduced here for the sake of brevity.
• The Direct selling entity herein does not require, invite, or solicit a prospect or a would-be Direct Seller to invest money in any form whatsoever to participate in its Direct Selling Business. The Direct Seller shall however be required to bear the cost of services purchased by him / her and does not include any provision that the Direct Seller herein will receive Business for the recruitment of other participants to participate. That he / she will receive Business derived only and only from the sale, marketing, and distribution of services, in accordance with the WealthGenics Compensation Plan provided and prescribed by the company, to which the Direct Seller hereby agrees to whole of this covenant in letter and spirit.
• That by accepting the offer of the Direct Seller herein the direct selling entity requires him / her to do and complete the following steps. An Individual / Firm / entity eligible to enter into a contract as per the provisions of the India Contract Act, 1872 and wish to become a Direct Seller of the Direct selling business of the entity herein, can apply to become a Direct Seller for marketing and selling of Direct selling entity’s services on pan India basis, in prescribed form through online method.
  • Fill the application form online and upload scanned KYC documents.
  • Accept the terms and condition of this E-contract agreement by clicking on “I AGREE” button below.
  • On the completion of the above process, the Direct Seller can take a printout of this agreement.
  • Upon the execution of this agreement and after the verification of all the KYC documents uploaded through the above process, the applicant shall be accepted as a Direct Seller of the Direct selling entity’s business and a Unique Identification number and password shall be allotted to the applicant, to allow him / her to log on to access his / her own personal account maintained by the company on its website.
  • That the Direct Seller shall submit the following self-attested documents in hard copy to the Direct selling entity within 30 days from the date of execution of this Agreement (Including the acceptance of terms of this agreement) already accepted and agreed upon by clicking on “I AGREE” button at the bottom of these presents (agreement).
  • That the Direct selling entity upon scrutiny and verification of the Application and KYC particulars may re-consider its decision and reject application of the Direct Seller herein, to which the Direct Seller hereby agrees. The Direct selling entity shall have sole discretion and shall be at liberty to reject his / her direct selling unique ID number, if the KYC and other documents in hard copy are found unsatisfactory, mollified. Forged or not conforming to Government guidelines prescribed for this purpose.
  • That the KYC shall include but not limited to verified proof of address, proof of identity, and PAN as per the provisions of the Income Tax Act, 1961, as follows, duly issued by the Government of India or a State / UT government.
    • Aadhar Card
    • Voter ID Card
    • Passport
    • Ration card
    • Any other identity document issued by the State / UT or central government which can be verified online.
    • Additional Documents required for Applicant in case of a company or firm :
      • CIN or Registration Certificate, MOA & AOA, or Partnership Deed, as the case may be;
      • PAN, GSTIN
      • List of Directors / Partners of the applicant entity
      • Board Resolution / Authorization in favor of the Director / Partner signing and executing this E - Contract agreement and Application.
• The Direct Seller herein declares that he / she / they has / have not been declared a bankrupt by a competent court of law as provided under clause (3) of section 79 of the Insolvency and Bankruptcy Code, 2016 and that he / she is neither of unsound mind nor convicted by any court of law in preceding five years” of the date of joining the Direct selling entity’s business herein.
• The Direct Seller herein agrees that he / she shall take appropriate steps to ensure the protection of all sensitive personal information provided by the consumer with the applicable laws for the time being in force and ensure adequate safeguards to prevent access to, or misuse of, data by unauthorized persons.
• The Direct Seller herein agrees that he / she shall not visit a consumer’s premises without identity card and prior appointment or approval.

• Scope of the Work:

  • That the Direct Seller shall market, distribute, and sell the services of the Direct Selling entity using word of mouth publicity, display and demonstration of the services, distribution of pamphlets, and door to door selling to consumers and prospective Direct Sellers.
  • That the Direct selling entity shall be exclusive owner of the name and logo of the Direct selling entity. The Direct Seller shall not use the trademark, logotype, and design anywhere without prior written permission from the direct selling entity. This permission, if given, can be withdrawn at any time by the direct selling entity. Violations if any, shall be termed as violation of this agreement and may result in termination of this agreement and Direct Sellership of the Direct Seller, penal actions under the prevailing IPR laws and Rules at the sole discretion of the entity herein to which the Direct Seller herein agrees.
  • That the Direct Seller shall not manipulate, alter, amend, add, or delete any provisions of the entity herein WealthGenics Compensation Plan, pricing of services, PV points etc., in any way what so ever and shall not send, transmit, or otherwise communicate any messages to anybody on behalf of the Direct selling entity, contrary to entity’s policies, principal, instructions and prescriptions without prior written authorization and permission for the same by the Direct selling entity.
  • That the Direct Seller will get specified percentage / point-based Incentives pertaining to the sales for selling the direct selling entity’s services under this E-contract Agreement.
  • That the Direct selling entity shall issue photo identity cards to Direct Seller. This photo identity card shall be returned by the Direct Seller to the direct selling entity at the expiry / termination / revocation of this agreement and / or shall be destroyed but shall not be misused in any way or form whatsoever. The identity card shall contain the Name & Unique ID number of the Direct Seller.
  • a The Direct Seller will not be authorized to collect any type of cash / cheque / demand draft in his own name, on behalf of the direct selling entity. All cheques / demand drafts etc. Should be drawn in the name of the Direct selling entity only and the same should be deposited with the Direct selling entity’s office or other offices as may be specified by the Direct selling entity, within 24 hours of the time of receipt. Direct Seller shall hold the said collection of cheque / DD in trust for and on behalf of the Direct Selling entity. Upon failure to deposit the said cheque / DD, Direct Seller shall be liable to pay damages / Business and Mesne-profit, if any. The receipt / invoice issued by the direct selling entity only would be valid documentary evidence in the hand of the consumer. It means Direct Seller would not be authorized to issue any receipt / invoice on behalf of the direct selling entity.
  • That the Direct selling entity may open following facilities for sale of its services:
    • Online Portal / E-commerce
    • Stores (Retail Outlets)
    • Authorized Sales Point / Pickup Center
    • That a Direct Seller is not authorized to sell any services of the Direct selling entity herein on e-commerce platform / marketplace, without prior written consent, permission, or authorization of the entity, here in the Direct Seller is also prohibited from listing, marketing, advertising, promoting, discussing, or selling any services, or the business opportunity on any website or online forum that offers auction as a mode of selling.

• Sales Incentives / Commission Structure or other Benefit : The Direct Seller shall be eligible for the following financial incentives and / or privileges:

  • Incentives on the sales, marketing, and distribution of services and / or services by the Direct Seller and his / her team or network of Direct Sellers, as per the WealthGenics Compensation Plan of the entity herein, annexed herewith but not being reproduced here for the sake of brevity.
  • Direct Seller can Market, sell, or distribute Direct selling entity’s services on Pan India basis. There is no territorial restriction or limit to sell the services.
  • He / she can always check and inspect his / her account on the Direct selling entity’s website by using his / her Unique ID and Password allotted to him / her by the direct selling entity.
  • That the Direct selling entity reserves the right to restrict the list of services for a particular area / region.
  • That price revisions, Government directives, market forces etc. may tend and force the entity herein to change the compensation plan and the Direct Selling entity’s decision in this regard will be final and binding. In all such cases, the amendments will be notified on the Direct Selling entity’s website and such notifications shall be binding on the Direct Seller. However, if any Direct Seller does not agree to be bound by such amendment, he / she may terminate this agreement within 5 days of such publication by giving a written notice communicating his / her objections, if any, to the direct selling entity. Without submission of the objection for modification etc., if a Direct Seller continues the Direct Selling business and activities of the entity herein then it will be deemed and presumed that he / she has accepted all modifications and amendments in the terms & conditions for future.
  • That all payments and transactions shall be valued in India Rupees (INR).
  • That the Direct selling entity does not guarantee / assure / promise or offer any facilitation fees or any amount or quantum of income whatsoever to the Direct Seller on account of becoming a Direct Seller of the Direct selling entity.
  • That Sales Incentives / Commissions to the Direct Seller shall be subject to all statutory deductions as applicable like TDS etc.
  • That Sales Incentive accrued and paid to the Direct Seller is inclusive of all taxes.
• That the Direct selling entity shall provide accurate and complete information to prospective and existing Direct Sellers concerning the reasonable amount of earning opportunity and related rights and obligations.
• That the Direct selling entity shall pay all dues to the Direct Seller and make with holdings, if any, in a commercially reasonable manner.
• That Direct selling entity does not require a Direct Seller to maintain an office or establishment in furtherance of his / her entrepreneurship and if an Direct Seller does so then he / she himself / herself will be responsible to bear such expenses and the Direct selling entity will in no way be responsible to refund or reimburse the same.
• That Direct Seller covenants with the direct selling entity that it will exclusively engage in the sale of the direct selling entity’s services and shall not indulge in the sale of similar / identical services of any other entity / brand whatsoever.
• That Unique Identification Number will have to be quoted by the Direct Seller in all his / her transactions and correspondence with the Direct selling entity. The Unique Identification Number once allotted cannot be altered at any point of time. That no communication will be pertained without Unique Identification Number and password. Direct Seller shall preserve the Unique Identification Number and Password properly as it is must for logging on to the website of the entity herein.
• That the Direct Seller shall be faithful to the Direct selling entity and shall up hold the integrity and decorum to the Direct selling entity and shall maintain good relations with other Direct Seller and customers also.
• That the Direct Seller shall abide with policies, procedures, rules, and regulations prescribed by the Direct selling entity as well as all laws, rules, regulations, directives, and rules issued by Government of India, a State Government, a Local body, a Court of Law, and local administration, from time to time. A Direct Seller will also not indulge in any deceptive or unlawful trade practices such as Mis-selling or Unfair Trade Practices as mentioned in clauses 3(f, g, and i) as defined in the Rules and Clause 2(1), (18), (20) (41) to 4(43) and (47) of the Consumer Protection Act, 2019 and if does so then he / she shall be only and solely responsible for the consequences and perils thereof.
• That the Direct Seller shall be liable to produce / show / explain the WealthGenics Compensation Plan to the prospects as has been received by him / her. If the Direct selling entity notices that the Direct Seller is working in a way not permitted / authorized, then the Direct Selling entity shall have exclusive powers to terminate or bar him / her from the direct selling entity’s business with or without giving a show cause notice.
• That the Direct Seller cannot conduct or announce personal level business promotion activities by offering cash rewards, trips, valuables, etc.
• That the Direct Seller is personally liable for delivery of goods to its customers. He is also liable to collect services from where it reaches last by the transporter / courier.
• That the Direct Seller is prohibited from mentioning / posting / telecasting any inappropriate or defaming content about the Direct selling entity, its services, etc. in any social media platforms. If he / she does any act in contravention to this clause, then this contract agreement will be deemed terminated and the Direct selling entity reserves rights to initiate appropriate legal action against him / her.
• That only one Direct Sellership code shall be issued on one PAN Card.
• That the Direct Seller hereby undertakes not to compel or induce or mislead any person with any false statement / promise to purchase services from the Direct selling entity or to become Direct Seller of the Direct selling entity.
• All statutory changes will be in force with immediate effect or as per the law prescribed.
• Any notice or correspondences addressed and sent to the Direct Seller’s registered address, E-mail ID and Mobile Number mentioned in the Application Form for registration as Direct Seller by registered post or a Courier Service or E-mail or WhatsApp message shall be construed as legally delivered to the addressee. However, it is advisable that every Direct Seller shall immediately inform the Direct selling entity about the change in his / her address, E-mail ID and Mobile Number failing which the Direct Seller’s non-deliverance claim shall not be tenable at any cost whatsoever.
• The term of this E-contract agreement is at will, subject to earlier termination in accordance with this E-contract agreement or in accordance with law. If this E - Contract Agreement is terminated for any reason whatsoever, the Direct Seller understands that his / her right to sell the services and receiving incentives with respect of his / her activities as a Direct Seller will cease immediately. Direct selling entity reserves the right to terminate this E-contract agreement if any condition(s) of this E – Contract Agreement are violated by a Direct Seller.
• Limitation of Action : If a Direct Seller wishes to bring any grievance to the notice of the direct selling entity he can do so as per the “Grievance Redressal Mechanism” annexed to this agreement may be read as part and parcel of this agreement as the same is not being reproduced here for the sake of brevity.
• Indemnification : That the Direct Seller agrees to protect, defend, indemnify, and hold harmless Direct selling entity and its employees, officers, directors, agents, or representatives from and against any and all liabilities, damages, fines, penalties, and costs (including legal costs and disbursements) arising from or relating to:
  • Any breach of any statute, regulation, direction, orders, or standards notified by any governmental body, agency, or regulator applicable to the Direct Seller including payment and deposit of taxes; on account of Income tax, GST, Trade tax, Professional Tax, whenever applicable and shall obtain necessary registrations / licenses whenever applicable and required under law.
  • Any breach of the terms and conditions of this E-contract agreement by the Direct Seller,
  • Any claim of any infringement of any intellectual property right or any other right of any third party or of law by the Direct Seller; or
  • Against all matters of embezzlement, misappropriation or misapplications of collection / money which may from time to time during the continuance of the Agreement come into his / her / its possession / control.
• Relationship : That the Direct Seller understands that it is an independently owned business entity and this Agreement does not make it, direct selling entity’s employee, associate or agent or legal representative for any purpose whatsoever. The Direct Seller does not possess any express or implied right or authority to assume or to undertake any obligation in respect of or on behalf of or in the name of the Direct selling entity or to bind the Direct Selling entity in any manner what so ever. In case, a Direct Seller violates this provision in any manner whatsoever then he / she shall be responsible for all types of consequences be it financial, statutory, civil, or criminal.
• Suspension, Revocation or Termination of this E - contract agreement :
  • That the Direct selling entity reserves the right to suspend the operation of this E-contract agreement, at any time, due to change in its own license conditions or upon directions from the competent government authorities. In such a situation, direct selling entity shall not be responsible for any damage or loss caused or arisen out of afore said action.
  • That in case of violation of any of the provisions of this agreement stated here-in-before and agreed upon by the Direct Seller, the Direct selling entity may, without prejudice to any other remedy available, issue a one month’s written notice and call upon the Direct Seller to explain his conduct in writing failing which or if the explanation is found unsatisfactory and unacceptable in the ordinary course of business, suspend / block / terminate the Direct Seller from further conducting the business of the Direct selling entity.
  • That the Direct Seller may terminate this agreement at any time by giving a written notice of one month to the Direct selling entity at the Registered address of the Direct selling entity.
• Actions pursuant to Suspension / Blocking / Termination of this E – contract agreement : That the Direct Seller understands that it That notwithstanding any other rights and remedies provided elsewhere in the agreement, upon termination of this agreement:
  • The Direct Seller shall not represent the direct selling entity in any of its dealings.
  • The Direct Seller shall not intentionally or otherwise commit any act(s) as would keep a third party to believe that the Direct selling entity is still having Direct selling agreement with the Direct Seller.
  • The Direct Seller shall stop using the direct selling entity’s name, trademark, logo, etc., in any audio or visual form.
  • All obligations and liabilities of such Direct Seller to the direct selling entity existing on the date having accrued during the validity of this Agreement will have to be fulfilled, met, and satisfied by the Direct Seller in every manner whatsoever.
• Governing Laws and Regulations
  • That this Agreements shall be governed by the provisions of the Indian Contract Act, 1872, the Consumer Protection Act, 2019, Consumer Protection (Direct Selling) Rules, 2021 or other laws of the land.

• Dispute Settlement : The Direct Seller herein agrees and accepts that the remedial action available to him / her in the event of any interpretation of any question of law, dispute or difference arising under this agreement or in connection there-with (except as to the matters, the decision to which is specifically provided under this agreement), the same shall be as under:

  • As per the Grievance Redressal Mechanism offered by the entity herein and forming part of this contract agreement;
  • Thereafter, the dispute if any shall be referred to National Consumer Helpline or State consumer Helpline for effective Mediation;
  • Disputes if any shall be resolved in accordance with the provisions of the India Arbitration and Reconciliation Act and mediation provisions of Consumer Protection Act, 2019
  • Referred to a legal forum dealing with consumer disputes having jurisdiction in the District of Thane, Maharashtra.

• Force- Majeure : That if at any time, during the continuance of this agreement, the performance in whole or in part, by the Direct selling entity, of any obligation under this a is prevented or delayed, by reason of war, or hostility, acts of the public enemy, civic commotion, sabotage, Act of State or direction from Statutory Authority, explosion, epidemic, quarantine restriction, strikes and lock outs, fire, floods, natural calamities / disaster or any act of God (hereinafter referred to as event), neither party shall, by reason of such event, be entitled to terminate this agreement, nor shall either party have any such claims for damages against the other, in respect of such non-performance or delay in performance. Provided that the Services under this agreement shall be resumed as soon as practicable, after such event comes to an end or ceases to exist.

• The Direct Seller hereby covenants as under :
  • That he / she has clearly understood the application form, WealthGenics Compensation Plan of the Direct Selling Entity, its limitations and conditions and he / she is not relying upon any representation or promises that are not set out in this E-contract agreement.
  • That relation between the Direct selling entity and the Direct Seller and all his / her activities here under shall be governed in addition to this agreement, by the rules / procedures contained in the WealthGenics Compensation Plan available on the website. The Direct Seller confirms that he / she has read out and / or has been read out in the vernacular language known to him / her by the person named herein above, all the terms & conditions thereof and agrees to be bound by them.
  • That Direct Seller hereby declares that all the information furnished by him / her to the direct selling entity is true and correct. Direct selling entity shall be at sole discretion and liberty to take any action against the Direct Seller in the event, it is discovered that the Direct Seller furnished any wrong / false information to the Direct Selling entity.
  • The Direct Seller herein very well understands that violation of this contract agreement in any way whatsoever may result in termination of this agreement as per procedure laid down therein.

IN TOKEN OF HIS / HER AGREEING TO AND ACCEPTING ALL PROVISIONS OF THIS CONTRACT AGREEMENT SET HEREIN ABOVE, HE / SHE IS CLICKING ON THE “I AGREE” BUTTON GIVEN HEREIN.