TABLE OF CONTENT. Preamble 3. Code Of Conduct 4-5. Product, Service & Promotional Materials Code Violation 12. Things To Remember 13-14

Transcription

1 CODE OF ETHICS

2 TABLE OF CONTENT CONTENT PAGE NO Preamble 3 Code Of Conduct 4-5 Product, Service & Promotional Materials 6-11 Code Violation 12 Things To Remember Complaints/General Enquiries 15

3 PREAMBLE Every Ruutos Independent Associate (hereinafter referred to as Associate ) is a self-employed, independent business person engaged in the sale of Ruutos products for consumption and, if the Associate desires, in the promotion of the Ruutos income opportunity. The relationship between Ruutos and its Associates begins with, and is defined by: Completion and signing of the Ruutos Independent Associate Application Form and the accompanying agreement. Purchase of Ruutos Business Starter Kit Acceptance as a Ruutos Independent Associate (once step 1 & 2 is complete). This Code of Ethics and Conduct has been established to achieve the satisfaction and protection of consumers, the promotion of fair competition between Ruutos Independent Associates, the provision of gainful income earning opportunities, the protection of Ruutos Independent Associates, as well as for the protection of the Ruutos brand. These objectives are to be achieved within the framework of free enterprise, and the enhancement of the public image of Ruutos, the company. It governs the standards by which all Associates and employees of Ruutos must operate. Ruutos has the sole and absolute mandate to amend this Code of Ethics and Conduct. It is the responsibility of ever Associate to read and understand this Code of Ethics and Conduct and to be fully acquainted with the rights and obligations of an Associate. The principles set out in this Code of Ethics and Conduct does not interpret, qualify or supplant the law of the land. These principles do not replace the rights or remedies a consumer may derive by virtue of any agreement, the common law or any legislation. It is nevertheless conceivable that conduct which is the subject of a contract and which may not be in conflict with statutory or common law, may still amount to an unacceptable business practice in terms of the Consumer protection Act 68 of Ruutos believes that our products are the best in the industry. The company also believes in our Associates and in supporting them by working together to uphold the highest possible ethical standards. We are committed to maintaining the integrity of Ruutos, its Sales & Marketing Plan and its distribution network of Associates both locally and internationally. In its sole and absolute discretion, Ruutos may impose any remedy or sanction it determines best addresses any breach of the Code of Ethics and Conduct. Ruutos also reserves the right in its sole and absolute discretion to waive wholly or partially, or to pardon or forgive wholly or partially, any breach of the Code of Ethics and Conduct contained in this section. This code contains guidance on the interactions between Ruutos and its existing and prospective associates as well as between Ruutos and the consumers of its products.

4 CODE OF CONDUCT Selling Practices Associates shall not engage in high-pressure selling to consumers, but shall always conduct themselves in a courteous and considerate manner. Associates shall not use misleading, deceptive or unfair sales practices. Identification and Privacy Associates shall, without request, immediately and truthfully identify themselves to their prospective customers. They shall also identify Ruutos as the company that they represent as well as the nature of their products and purpose of their approach. Associates shall make personal or telephone contact with customers only in a reasonable manner and during reasonable hours to avoid intrusiveness. Associates shall discontinue a demonstration or sale presentation immediately upon the request of the customer. Associates are advised to take appropriate steps to ensure the protection of all private information provided by a Customer, a potential Customer or an Associate. Explanation and Demonstration Associates shall offer Consumers accurate and complete Product explanations and demonstrations regarding price, terms of payment, cooling-off period or return rights, terms of guarantee, after-sales service and delivery dates. Associates shall give accurate and understandable answers to all questions from Consumers. To the extent claims are made with respect to product efficacy, Associates shall make only those verbal or written product or earnings claims that are authorised by Ruutos. Consumers shall have the right to all information in plain and understandable language. All presentations of Ruutos products must be complete and truthful, including but not limited to, instructions on the usage and precautions, as specified on the product labels and any related literature. Product Sales to Non-Associates for Resale No Associate shall give any third party or individual to resell Ruutos products on its behalf. Ruutos products are sold only by Associates registered with the company. Individuals whose sole wish is to sell Ruutos products must be a registered Associate with the company. Modification to Labels and Materials An Associate may not modify any label, literature, material or package of any Ruutos products including the Business Starter Kit. In addition, products samples packed for sampling to Customers may not be resold individually.

5 Direction for Use Associates shall explain the directions for consumption and highlight precautions specified on product labels when selling Ruutos products or providing samples of products. Product Storage Associates are responsible for properly storing and following storage instructions on Ruutos product labels. Proper storage of products may include, but not limited to, keeping products properly sealed, maintaining products in a cool dry place, and keeping products out of direct sunlight. PROHIBITED PRACTICES Deceptive or Unlawful Consumer or Recruiting Practices Associates shall not engage in any deceptive, false, unethical or unlawful consumer or recruiting practice. Associates shall ensure that no statements, promises or testimonials that are made, are not likely to mislead Consumers or prospective independent salespeople. Associates shall not make any representation to prospective associates that cannot be verified or make any promise that cannot be fulfilled. Associates shall not induce a person to purchase products or services based upon the representation that a consumer can recover all or part of the purchase price by referring prospective consumers. Such inducement contravenes the Consumer Protection Act. Associates shall not abuse the trust of consumers, or exploit a consumer in any manner. Associates are not allowed to solicit, promote, sponsor or recruit Ruutos Associates or Ruutos Customers that they became aware of in the course of them being a Ruutos Associate, to join, promote, sell or purchase products of, or participate in as a salesperson or otherwise, with any other company, nor will they encourage anyone to do what is prohibited under this Code. Violation of the Code is likely to result in termination of the Associate. Associates shall not misrepresent their actual or potential sales or earnings or of other Associates. Earnings or sales representations made shall be based upon documented facts. REFERRAL SELLING Associates shall not induce a customer to purchase products based upon the representation that a customer can reduce or recover the purchase price by referring prospective customers to the Associate for similar purchases, if such reduction or recovery is contingent upon some unsure future event. Associates shall not promise or grant customers advantages for the recommendation of another customer.

6 PRODUCTS, SERVICES AND PROMOTIONAL MATERIALS Ruutos business is an equal opportunity, regardless of gender, race, religious beliefs or political affiliations. It is our philosophy that everyone has a personal right to their individual beliefs and the freedom to choose. When training your downline Associates or selling products or offering the business opportunity, Associates are not permitted to: Promote, discuss or offer products from another company Make misleading comparisons of another company's direct selling opportunity, products or services. May not include promotional literature, products or materials from another company. Use promotional literature and advertisements that contain product descriptions, claims, photos or illustrations that are false, deceptive or misleading. (Promotional literature shall contain the name and address or telephone number of the Associate). Sell company approved promotional or training literature, whether in hard copy or electronic form Associates are required to: Offer consumers accurate information regarding: prices, payment terms, cooling-off period, return policies, terms of guarantee, after-sales services, and delivery dates of their products. Give clear, concise and accurate answers to questions from consumers. Make only those product claims authorised by the company when such claims are made with respect to products. Utilise only materials that are authorised by Ruutos. PURCHASING AND SALES OF PRODUCTS Associates may purchase Ruutos products directly from their upline sponsor or at Ruutos head office. Products purchased directly from Ruutos head office are credited to the buying Associate. Associates are prohibited from marketing or requiring the purchase by others of any materials that are inconsistent with Company policies and procedures. Associates who sell company approved promotional or training literature, whether in hard copy or electronic form, shall: (i) utilise only materials that comply with the same standards to which the Ruutos adheres, (ii) refrain from making the purchase of such sales aids a requirement of downline Associates, (iii) provide sales aids at a reasonable and fair price, equivalent to similar material available generally in the marketplace, and (iv) Offer 30 days money back guaranteed refund policy All Associates must provide an official completed Ruutos Retail Order Form to all Retail Customers prior to the sale. A detailed invoice or receipt must be issued to all Retail Customers

7 when the sale is complete. These documents must identify Ruutos and must list the description and quantity of the products sold, the sales price of products sold, the date of the sale, name, address and contact details of the Associate and the Customer. Associates are required to maintain their copy of all Retail Order Forms and invoices on file for a period of three (3) years. Ruutos maintains the right to request copies of Retail Order Forms and to verify the transactions and the terms of sale, and the service provided by the Associate. In the case of a sale made through the , telephone, Internet, or other (Non face-to-face), a copy of the Retail Order Form and sales receipt/invoice shall be provided to the customer. At all times, Associates are to provide a receipt/invoice with a clearly stated 30-day money-back guarantee. COOLING OFF PERIOD MONEY BACK GUARANTEE In terms of the Consumer Protection Act companies are required to provide to all customers a cooling off period of no less than 5 working days from date of sale of products. Ruutos has surpassed this requirement of the Consumer Protection Act and provides 30 days money back guarantee refund to customers on all sales. DELIVERY All Associates shall fulfil their Customer's orders in a timely manner. MAINTAINING REPUTATION AND IMAGE OF THE COMPANY NO Associate shall act in a manner that may be detrimental to the reputation or image of Ruutos, its products, brand, Associates, employees, trademarks, trade names or goodwill. IDEMNITY Without prejudice to the rights of Ruutos, Associates shall indemnify Ruutos from and against all actions, claims, demand, prosecutions, fines, penalties and the costs thereof (including Ruutos's actual costs), which may be made or brought against Ruutos in respect of, or arising directly or indirectly out of any breach of any laws or regulations applying to the operation of their Associate Agreement. Ruutos shall bear no liability to any Associate in respect to cost, loss, damage or expense suffered by any Associate directly or indirectly as a result of any act, omission, representation or statement of any Associate. MARKETING PLAN MANIPULATION AND IMPROPER ENROLLMENT PRACTICES In all of our dealings, Associates must comply with the letter and spirit of the Ruutos Code of Ethics and Conduct and the Ruutos Marketing and Compensation Plan. Proper enrollment of Applicants to become Associates is essential for proper operation of the Marketing Plan. To become an Associate: Applicants must be sponsored by a Ruutos Independent Associate

8 The Applicant and the enroller must fully complete the Application Form by providing the Sponsor's full names and unique ID number in the relevant fields. Applicants must complete all sections on the Application form. A copy of the Application Form must be provided to the Applicant upon the completion and signing by the Applicant. The Application must be submitted immediately to the Ruutos head office. Fraudulent or unlawful enrollment of an Associate is strictly prohibited. (Examples of fraudulent or unlawful enrollment are: a) Filling out the Application form with false or misleading information b) Enrolling someone in circumstances in which the enroller knows or has reason to believe violates the code of Ethics or Marketing plan, such as promising that the Applicant that the Sponsor will provide downline Associate for the Applicant once he or she becomes an Associate. c) Enrolling an individual who has already been enrolled as a Ruutos Associate) RESIGNATION OF AN ASSOCAITE An Associate may choose to resign as an Associate at any time. The Associate must submit a signed letter of resignation to Ruutos head office and complete the necessary resignation forms. The resignation becomes effective when received, validated and accepted by Ruutos. Associates should note that if the Company does not receive the resignation letter or if the conditions are not met, then the Associate is still deemed an Associate until deleted by Ruutos. Example: A resigning Associate who fails to submit or inform Ruutos head office of his or her intention to leave the business will still be considered an Associate until the Associate becomes inactive- following 12 consecutive months of inactivity in his/her business. Joining the Ruutos business as an Associate is completely voluntary; Associates may choose to exit the business at any time whenever the need arises. INVENTORY REPURCHASE If an Associate decides to resign from the business, Ruutos will buy back all unsold products and sales materials that are in a resalable condition and that had been purchased from Ruutos within the 12 months prior to the Associate resigning at the price paid by the Associate less a 10% administration fee. The resigning Associate must provide proof of product purchase, unopened and unused Ruutos products, sales material and any other item. All incentives paid to the Associate based on the purchase of the products being bought back by Ruutos will be deducted from the buyback payment of the Associate. All commissions, bonuses and other incentives paid to the uplines of the Associate based on the purchase of the products being bought back by Ruutos will be deducted from the uplines' future earnings. An Associate who resigns will still be liable for any unpaid debts owed to Ruutos or for liabilities for violations of the Ruutos Code of Ethics that govern the business practices of the Associate. Debts owed by the Associate will be removed from any monies owed to the Associate by Ruutos.

9 INVENTORY LOADING Associates are strongly discouraged from purchasing quantities of unreasonably inventory that exceeds that which can be expected to be resold and/or consumed within a reasonable period of time. The company shall take reasonable steps to ensure that a fair percentage of products purchased by Associates during a month are being resold. SPONSORING AND LEADERSHIP One of the major roles of a Sponsor Associate is to stay informed with policies at Ruutos. This allows Associates to properly advise and train downline Associates on a regular basis on Ruutos product and usage, the Ruutos Code of Ethics and Conduct, the Sales & Marketing Plan, and the proper use of advertising, including the use of literature and sales aid. A sponsor must maintain and uphold the independent relationship between themselves and other Associates. They may assist their downline, as is appropriate for a sponsor, by training and educating them on the Ruutos products and business opportunity. Sponsors may not develop an employee/employer relationship between themselves and their downline. In order to protect the Sponsor, no Associate may interfere with the relationship between another Associate and their Sponsor in any way. An Associate may not offer, entice, encourage, solicit, or otherwise influence or attempt to persuade another Associate to change their Sponsor or line of Sponsorship, either directly or indirectly. All Associates are advised to inform the company of any changes to their contact details, physical address and other relevant information. TRAINING Basic training for Associates is obligatory and Ruutos will provide for Associates comprehensive training in both selling methods and product knowledge. The training programme shall include such subjects as extent of personal involvement, amount of work necessary for certain returns, expected expenses and be provided without charge. Any charges imposed for further training shall be reasonable. This may be accomplished by training sessions or through written manuals or guides, or audio-visual material. Ruutos shall provide adequate training to enable Associates to operate ethically. Ethics training may be accomplished through in-person training sessions, online training sessions, written manuals or guides, or audio-visual materials and may be included in a broader training program. No Associate may require payment from a personally sponsored Associate for training or training facilities, unless they fully explain that the Associate may choose whether or not they want to participate in such training and state in advance the cost for such training. If however the Associate declines to participate in such paid training, the Sponsor is obligated to provide, at no cost, the basic training necessary to learn the business.

10 USE OF COPYRIGHTS, TRADEMARKS, TRADE NAMES AND LOGOS No Associate or any other person may reproduce, in whole or in part, any printed materials that have been produced by Ruutos. These materials are protected by copyright, whether registered or unregistered, and are considered proprietary of Ruutos. Associates may use Ruutos produced literature or promotional materials solely for the purpose of conducting their own Ruutos business. The Company head office address may not be used, published or promoted by any Associate as their own. The Company endeavours to produce and make available promotional literature and sales tools for Associates' use in advertising or promoting their business. LOCAL LAWS In addition to the Ruutos Code of Ethics and Conduct, Associates must comply with all laws or regulations of the country when advertising or promoting their Ruutos business or the Ruutos business opportunity. PRICE ADVERTISING Ruutos Associates are independent business persons and may sell Ruutos products. Associates may advertise prices and price information to existing customers, downline and potential new customers who have made direct, personal contact and have indicated an interest in purchasing Ruutos's products. Materials of any kind, whether produced by Ruutos or by the Associate, that indicates Ruutos suggested retail prices may not be provided or shown to person who have not had a prior contact with the Associate in connection with the Ruutos product or opportunity. Ruutos produced materials or literatures cannot be modified by Associates in any way. ACTIVITIES AND LOCATION The fundamental business of an Associate is the selling of Ruutos products to consumers through direct selling (sales occurring away from a Retail Location). Direct selling by Associates may be face-to-face or over a long distance in a transaction in which there is a direct and personal interaction between Associates and Customers. Retail Establishment: Associates shall not directly or indirectly sell through any person, display or sell Ruutos products in retail establishments, including but not limited to pharmacies, grocery stores, health stores, kiosks, mall outlet or any other location that is inconsistent with direct selling. Associate's Private Office Doctors and Professionals An Associate with a private office may sell, sample and display Ruutos product, Ruutos literature and or promotional items, provided that products are not advertised for sale and no product signs, posters, flyers or brochures are visible from the exterior and provided that such sale, sampling or display does not contravene the code of the professional body that the Professional belongs to.

11 Service Establishment Beauty Salons, SPAs, Gyms and Health Clubs (how do we do this since we are in the salon trade) Associates may not advertise that Ruutos products are available at a service establishment. Products, product related literature, promotional items, or signs may not be visible from the exterior of the location that indicates to a passer-by that Ruutos products are available inside. Subject to these restrictions, we allow sampling and usage of Ruutos products within the salon area. Trade Fairs and Trade Show Event Ruutos products may not be available for sale at trade fairs and trade show events. However, sampling and display of Ruutos products are allowed. Swap Meet, Flea Market, Open-Air Market/Vendor Cart Associates are not allowed to sell, sample or display Ruutos products at Swap Meet, Flea Market, Open-Air Market/Vendor Cart or similar location. Ruutos determines, in its sole and absolute discretion, these are inconsistent with direct selling and not conductive to the brand image of Ruutos. FRANCHISES OR TERRITORIES Ruutos does not have territories or franchises. No Associate may represent, imply or mention in any way, that there are franchises or territories available under the Ruutos Sales and Marketing Plan. When presenting or offering the Ruutos business opportunity, Associates must: Clearly indicate that the principal activity of an Associate is to sell and distribute Ruutos products to Retail Customers. Not imply or represent that an Associate can benefit solely by the sponsoring of other Associates. Not imply that an Associate is under any obligation to sponsor others to become an Associate. Not imply that success may be achieved with little or no effort. Not represent that there is any obligation to purchase products, literature or sales aids except for the Ruutos Business starter Kit. Not imply that benefits may be obtained solely from the purchase of products rather than the sale of products. Not make statements which are not accurate and truthful. Not misrepresent the extent to which the activities of an Associate can be conducted solely in the home. Not represent to Customers or potential Customers that there is an obligation to become an Associate. The Ruutos business opportunity is an opportunity for Associates to earn a livelihood, but under no circumstance is it a JOB as is commonly misunderstood and should never be portrayed as being a job. Associates are at all times self-employed and may not claim, represent or imply that they are employed by the company.

12 BECOMING AN ASSOCIATE An applicant must be sponsored by a Ruutos Independent Associate in good standing and Ruutos must receive the Applicant's application form. Associate Application forms are available with the purchase of a Ruutos Business Starter Kit from the Sponsoring Associate. The Business Starter Kit is the only required cost needed to begin your journey as an Associate. All applicants must be at least 18years of age to become an Associate. Applicants between 16 and 18 years old may become Ruutos Associates with the written permission of their parents or legal guardians. MARRIED COUPLES All Associates are limited to one (1) distributorship at any given time. Husbands, wives or common-law couples (collectively spouses ) who wish to become a Ruutos Associate must enroll as one (1) Ruutos entity under a single sponsor. However, in the event that two (2) Associates marry, they may each maintain the existing distributorship they had previous to the marriage. TAXATION All Ruutos Associates will be treated as independent contractors for tax purposes. As independent contractors, Associates will not be treated as employees, franchisees, joint ventures partners or agents. Associates are responsible for the payment of all income, selfemployment and other taxes relating to their business and earning. At the end of each year, Ruutos will issue an IRP 5 form for non-employee compensation for Associates as required by law. VIOLATIONS OF THE CODE OF CONDUCT Whenever there is any violation of Ruutos Code of Ethics and Conduct or other rules and regulations and/or any procedures or directions issued by Ruutos, Ruutos may in its sole and absolute discretion take whatever actions or measures it deems necessary and appropriate, including but not limited to, suspension of buying privileges, suspension of earnings, monetary fines or deletion or termination of the Associate. PENALTIES FOR VIOLATIONS Any violation of these Rules may result in legal or regulatory problems for the company and endanger the business for all Associates. For this reason, the penalties to Associates who directly or indirectly, violate these Rules will be severe. Ruutos shall have sole and absolute discretion to determine the appropriate penalty based on the severity of the violation and damage that resulted or could result including but not limited to: Suspension of all Associate rights and privileges Monetary sanctions Obligation to reimburse Ruutos legal fees Disqualification from participating in all commission and bonus programs

13 Termination of Associate Agreement Important Notice: Ruutos may hold the upline(s) of the violator responsible for violation of these Codes if investigations find they have knowledge of them or were a party to them In order to protect the goodwill and reputation of Ruutos and its Associates, Ruutos urges its Associates to promptly report alleged violation of the Code of Conduct to the Company as soon as they become aware by completing an official complaint form obtained at Ruutos head office. THINGS TO REMEMBER: As an Associate, you should expect the company to: Provide you with accurate information about the company's compensation plan, products pricing and sales methods. Describe the relationship between you and the company in writing. Be accurate in any comparisons about products, services or opportunities Refrain from any unlawful or unethical recruiting practice and exorbitant entrance or training fees. Ensure that you are not just buying products solely to qualify for downline commissions. Require you to abide by the requirements of the Code of Ethics. Safeguard your private information. Provide adequate training to help you operate ethically. Base all actual and potential sales and earnings claims on documented facts. Encourage you to purchase only the inventory you can sell in a reasonable amount of time. Repurchase resalable inventory and sales aids that you have purchased from Ruutos within the past 12 months at purchase price less 10% if you decide to leave the business. Explain the repurchase option in writing. Have reasonable start-up fees and costs.

14 As a consumer you should expect Associates to: Tell you who they are, why they're approaching you and what products they are selling. Promptly end a demonstration or presentation at your request. Provide a receipt with a clearly stated 30 day money back guaranteed refund Explain how to return a product or cancel an order. Provide you with promotional materials that contain the address and telephone number of the Company. Provide a written receipt that identifies Ruutos and the Associate, including contact information for either. Respect your privacy by calling at a time that is convenient for you. Safeguard your private information. Provide accurate and truthful information regarding the price, quality, quantity, performance, and availability of their product or service. Offer a written receipt in language you can understand. Offer a complete description of any warranty or guarantee. Never present themselves as Ruutos the company Comply with this Code of Ethics and Conduct at all times.

15 COMPLAINTS All complaints relating to the contravention of this Code of Ethics and Conduct are required to be submitted in writing by or post to: Kindly complaints to Or Post to: P.O.Box 274 Ferndale 2160 Johannesburg, South Africa

16 CODE OF ETHICS