Rules and Conduct
MOMENTUM NETWORK POLICIES AND PROCEDURES
Effective September 1, 2023
SECTION 1 – INTRODUCTION
1.1 CODE OF ETHICS
1.2 POLICIES INCORPORATED INTO INDEPENDENT MOMENTUM PARTNER AGREEMENT
1.3 CHANGES TO THE INDEPENDENT MOMENTUM PARTNER AGREEMENT, POLICIES PROCEDURES, OR COMPENSATION PLAN
1.4 DELAYS
1.5 POLICIES AND PROVISIONS SEVERABLE
1.6 WAIVER
SECTION 2 – BECOMING AN INDEPENDENT MOMENTUM PARTNER
2.1 REQUIREMENTS TO BECOME AN INDEPENDENT MOMENTUM PARTNER
2.2 NEW INDEPENDENT MOMENTUM PARTNER REGISTRATION BY INTERNET OR FACSIMILE
2.3 INDEPENDENT MOMENTUM PARTNER BENEFITS
SECTION 3 – INCOME DISCLOSURE POLICY
SECTION 4 – ADVERTISING
4.1 ADHERENCE TO THE MOMENTUM NETWORK COMPENSATION PLAN
4.2 USE OF SALES AID
4.3 INTELLECTUAL PROPERTY
4.4 WEB POLICY
4.5 ADVERTISED PRICE
4.6 GENERIC BUSINESS ADVERTISEMENTS
4.7 MEDIA AND MEDIA INQUIRIES
4.8 UNSOLICITED EMAIL AND FAX COMMUNICATION
SECTION 5 – OPERATING A MOMENTUM NETWORK BUSINESS
5.1 BUSINESS ENTITIES
5.1.1 Changes to a Business Entity
5.1.2 Change of Sponsor
5.1.3 Change of Placement
5.2 UNAUTHORIZED CLAIMS AND ACTION
5.2.1 Indemnification
5.2.2 Endorsement of Momentum Network Services
5.3 CONFLICTS
5.3.1 Non-Solicitations
5.3.2 Sale of Competing Goods or Services
5.3.3 Targeting Other Direct Sellers5.3.4 Privacy and Confidentiality
5.3.5 The Data Management Rule
5.4 CROSS SPONSORING
5.5 GOVERNMENTAL APPROVAL OR ENDORSEMENT
5.6 IDENTIFICATION
5.7 INCOME TAXES
5.8 INDEPENDENT CONTRACTOR STATUS
5.9 BONUS BUYING
5.10 STACKING
5.11 ONE MOMENTUM PARTNER BUSINESS PER INDEPENDENT MOMENTUM PARTNER
5.12 SUCCESSION
5.13 SALE, TRANSFER, OR ASSIGNMENT OF A MOMENTUM PARTNER BUSINESS
5.14 SEPARATION OF A MOMENTUM PARTNER BUSINESS
5.15 SPONSORING
5.16 CUSTOMERS THAT BECOME INDEPENDENT MOMENTUM PARTNERS
SECTION 6 – RESPONSIBILITIES OF INDEPENDENT MOMENTUM PARTNERS
6.1 CHANGE OF ADDRESS, TELEPHONE, EMAIL ADDRESS
6.2 SPONSORING INDEPENDENT MOMENTUM PARTNER RESPONSIBILITIES
6.2.1 Initial Training
6.2.2 Ongoing Training Responsibilities
6.3 NON-DISPARAGEMENT
6.4 REPORTING POLICY VIOLATIONS
SECTION 7 – BILLING
7.1 BILLING
SECTION 8 – BONUSES AND COMMISSIONS
8.1 COMMISSION QUALIFICATIONS
8.2 BONUS BUYING PROHIBITED
8.3 REPORTS
8.4 ADMINISTRATION FEES
8.5 COMMISSION PAYMENT DELAY
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 DISCIPLINARY SANCTIONS
9.2 MEDIATION
9.3 ARBITRATION
9.4 GOVERNING LAW, JURISDICTION, AND VENUE
SECTION 10 – EFFECT OF CANCELLATION
10.1 EFFECT OF CANCELLATION AND TERMINATION
10.2 NON-RENEWAL
SECTION 11 – DEFINITIONS
SECTION 1 – INTRODUCTION
1.1 – Code of Ethics
Momentum Partner (hereafter “Momentum Partner” or “the Company”) is a values-based company that prides itself on the quality and character of its Independent Momentum Partners.
The following guidelines help ensure a uniform standard of excellence throughout our organization. Every Independent Momentum Partner is expected to practice the following ethical behaviors:
- Respect every person I meet while doing Momentum Partner related business.
- Conduct myself and my business in an ethical, moral, legal, and financially sound manner.
- Avoid activities that would bring disrepute to Momentum Partner.
- Refrain from making discouraging or disparaging claims toward other Independent Momentum Partners.
- Avoid negative language and slanderous statements.
- Provide support and encouragement to customers for a successful experience with Momentum Partner.
- Correctly represent all bonus/compensation plans and the income potential.
- Abide by all of Momentum Partner’s Policies & Procedures now and as amended in the future.
1.2 – Policies Incorporated Into Independent Momentum Partner Agreement
These Policies and Procedures (“Policies”), in their present form and as amended at the sole discretion of Momentum Partner, are incorporated into, and form an integral part of, the Momentum Partner Independent Momentum Partner Agreement (hereafter “Independent Momentum Partner Agreement”).
When the term “Agreement” is used, it collectively refers to the Momentum Partner Independent Momentum Partner Agreement, these Policies, and the Momentum Partner Compensation Plan.
1.3 – Changes to the Independent Momentum Partner Agreement, Policies and Procedures, or Compensation Plan
Momentum Partner reserves the right to amend the Agreement and the prices of its Momentum Partner Services due to changes in federal, state, and local laws, as well as the business environment.
Notification of amendments shall appear in Official Momentum Partner Materials, effective upon publication through various methods such as:
- Posting on Momentum Partner’s website
- E-mail distribution
- Publication in Momentum Partner’s newsletter
- Product inserts
- Any other commercially reasonable method
1.4 – Delays
Momentum Partner shall not be responsible for delays and failures in performance due to circumstances beyond its reasonable control.
1.5 – Policies and Provisions Severable
If any provision of the Agreement is found to be invalid or unenforceable, only the invalid portion(s) shall be severed, and the remaining terms shall remain in full force and effect.
1.6 – Waiver
The Company never waives its right to insist on compliance with the Agreement and applicable laws.
No failure of Momentum Partner to exercise any right or power under the Agreement shall constitute a waiver of its right to demand compliance.
Waivers can only be effectuated in writing by an authorized officer of the Company.
SECTION 2 – BECOMING AN INDEPENDENT MOMENTUM PARTNER
2.1 – Requirements to Become an Independent Momentum Partner
To become a Momentum Partner Independent Momentum Partner, each applicant must:
- Be of the age of majority in his or her state of residence.
- Reside in the United States or other countries officially opened by Momentum Partner.
- Have a valid Social Security Number or Federal Tax Identification Number.
- Submit a properly completed and signed Independent Momentum Partner Agreement to Momentum Partner electronically or via fax.
2.2 – New Independent Momentum Partner Registration by the Internet and Facsimile
A prospective Independent Momentum Partner may self-enroll on the sponsor’s website. In such an event, instead of a physically signed Independent Momentum Partner Agreement, Momentum Partner will accept the agreement by accepting the “electronic signature,” stating that the new Independent Momentum Partner has accepted the terms and conditions of the Independent Momentum Partner Agreement. Please note that such an electronic signature constitutes a legally binding agreement between the Independent Momentum Partner and Momentum Partner. Faxed agreements must include both the front and back of the Independent Momentum Partner Agreement.
2.3 – Independent Momentum Partner Benefits
Once an Independent Momentum Partner Agreement has been accepted by Momentum Partner, the benefits of the Compensation Plan and the Independent Momentum Partner Agreement are available to the new Independent Momentum Partner. These benefits include the right to:
- Sell Momentum Partner services.
- Participate in the Momentum Partner Compensation Plan (receive bonuses and commissions, if eligible).
- Sponsor other individuals as customers or Independent Momentum Partners into the Momentum Partner business and thereby build an organization and progress through the Momentum Partner Compensation Plan.
- Receive periodic Momentum Partner literature and other Momentum Partner communications.
- Participate in Momentum Partner-sponsored support service training, motivational and recognition functions.
- Participate in promotional and incentive contests and programs sponsored by Momentum Partner for its Independent Momentum Partners.
SECTION 3 – INCOME DISCLOSURE POLICY
In an effort to conduct best business practices, Momentum Partner has developed the Income Disclosure Statement (IDS). The Momentum Partner IDS is designed to convey truthful, timely, and comprehensive information regarding the income that Momentum Partner Independent Partners earn.
To accomplish this objective, a copy of the IDS must be presented to:
- All prospective Independent Momentum Partners
- Anyone when the Compensation Plan is presented or discussed
- Any situation where an income claim or earnings representation is made
The terms “income claim” and/or “earnings representation” (collectively “income claim”) include:
- Statements of average earnings
- Statements of non-average earnings
- Statements of earnings ranges
- Income testimonials
- Lifestyle claims
- Hypothetical claims
Examples of “statements of non-average earnings” include:
- “Our number one Independent Momentum Partner earned over a million dollars last year.”
- “Our average ranking Independent Momentum Partner makes five thousand per month.”
An example of a “statement of earnings ranges” is:
“The monthly income for our higher-ranking Independent Momentum Partners is ten thousand dollars on the low end to thirty thousand dollars a month on the high end.”
In any meeting that is open to the public in which the Compensation Plan is discussed, or any type of income claim is made, you must provide every prospective Independent Momentum Partner with a copy of the IDS.
Copies of the IDS may be printed or downloaded without charge from the company website at www.momentumnetwork.net.
SECTION 4 – ADVERTISING
4.1 – Adherence to the Momentum Partner Compensation Plan
Independent Momentum Partners must adhere to the terms of the Momentum Partner Compensation Plan as set forth in Official Momentum Partner Materials. Independent Momentum Partners shall not offer the Momentum Partner opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically stated in Official Momentum Partner Materials. Independent Momentum Partners shall not require or encourage other current or prospective customers or Independent Momentum Partners to participate in Momentum Partner in any manner that varies from the program as set forth in Official Momentum Partner Materials. Independent Momentum Partners shall not require or encourage other current or prospective customers or Independent Momentum Partners to execute any agreement or contract other than official Momentum Partner agreements and contracts in order to become a Momentum Partner Independent Momentum Partner. Similarly, Independent Momentum Partners shall not require or encourage other current or prospective customers or Independent Momentum Partners to make any purchase from, or payment to, any individual or other entity to participate in the Momentum Partner Compensation Plan other than those purchases or payments identified as recommended or required in Official Momentum Partner Materials.
4.2 – Use of Sales Aids
To promote both the services and the opportunity Momentum Partner offers, Independent Momentum Partners must use the sales aids and support materials produced by Momentum Partner. If Momentum Partner Independent Momentum Partners develop their own sales aids and promotional materials (which includes Internet advertising), notwithstanding Independent Momentum Partners’ good intentions, they may unintentionally violate any number of statutes or regulations affecting a Momentum Partner business. These violations, although they may be relatively few in number, could jeopardize the Momentum Partner opportunity for all Independent Momentum Partners. Accordingly, Independent Momentum Partners must submit all written sales aids, promotional materials, advertisements, websites, and other literature to the Company for Company’s approval prior to use. Unless the Independent Momentum Partner receives specific written approval to use the material, the request shall be deemed denied. All Independent Momentum Partners shall safeguard and promote the good reputation of Momentum Partner and the service plans provided by its preferred partners. The marketing and promotion of Momentum Partner, the Momentum Partner opportunity, the Compensation Plan, and Momentum Partner services shall be consistent with the public interest and must avoid all discourteous, deceptive, misleading, unethical, or immoral conduct or practices.
4.3 – Intellectual Property
Momentum Partner will not allow the use of its trade names, trademarks, designs, or symbols outside of corporate produced and approved sales aids by any person, including Momentum Partner Independent Momentum Partners, without prior written authorization from Momentum Partner. Furthermore, no Independent Momentum Partner may use, publish, reproduce, advertise, sell, or display in any manner the name, picture or likeness, or voice of another Independent Momentum Partner without prior written consent from the named Independent Momentum Partner. This consent must be on file with Momentum Partner’s Compliance department prior to any use.
4.4 – Web Policy
A. General
It is your responsibility to ensure that your online marketing activities are truthful, not deceptive, and do not mislead customers or potential Momentum Partners in any way. Websites and online promotion activities and tactics that mislead or are deceptive, regardless of intent, will not be allowed. This may include any representation that you are an authorized representative for Momentum, spam linking (or blog spam), unethical search engine optimization (SEO) tactics, misleading click-through ads (i.e., having the display URL of a PPC campaign appear to resolve to an official Momentum Partner Corporate Site when it goes elsewhere), unapproved banner ads, and unauthorized press releases. Momentum will be the sole determinant of truthfulness regarding whether specific activities are misleading or deceptive.
B. Domain Names, Email Addresses, and Online Aliases
You cannot use or register domain names, email addresses, and/or online aliases that could cause confusion or be misleading or deceptive, making individuals believe or assume that the communication is from or is the property of Momentum by appearing as the sender of an email.
Examples of improper use include but are not limited to: [email protected]; www.momentumpartnerdirect.com; www.momentumpartnerjoin.com; www.myspace.com/momentumpartner; www.momentumpartnerpresident.com, or derivatives as described herein.
Examples of permitted URLs, email addresses, and online aliases might appear as follows: myspace.com/ilovemomentumpartner; johnsmith.com/momentumpartner, etc.
Determinations regarding what could cause confusion, mislead, or be considered deceptive are at the sole discretion of Momentum. If you have a question about whether your chosen name is acceptable, you may submit it to [email protected] for review before use.
C. Approved Independent Momentum Partner Websites
The term Independent Momentum Partner Website refers to the Independent Momentum Partner website offered by Momentum or an approved vendor to Independent Momentum Partners. The term Social Media website refers to any site that is not specifically prohibited within the terms and conditions of this Agreement, such as Facebook.com, MySpace.com, Twitter.com, YouTube.com, personal blogs, or other personal websites.
D. Online Classifieds
You may not use online classifieds (including Craigslist) to list, sell, or promote specific Momentum services. You may use online classifieds (including Craigslist) for prospecting, recruiting, sponsoring, and informing the public about the Momentum opportunity provided you follow the other requirements of this agreement, such as identifying yourself as an independent representative of Momentum, only using approved images and versions of any trademarked logos, and without using fraudulent or misleading product or income claims.
E. Online Retailing
Approved Independent Financial Director websites are intended to provide Independent Financial Directors with the tools and means to generate leads, prospect business, communicate with others, sell products and services, and otherwise advance their Momentum business. You may not sell Momentum services on any other online retail store or e-commerce site, nor may you enlist or knowingly allow a third party (customer) to sell Momentum products on any online retail store or e-commerce site.
Social Media sites such as Facebook may also be used to promote your Momentum business. You must provide approved Momentum links to your Independent Financial Director replicated website for sales and order processing. All online sales of Momentum products must take place and be processed through the Independent Financial Director Replicated website (or corporate site).
F. Banner Advertising
You may place banner advertisements on a website provided you use Momentum-approved templates and images. All banner advertisements must link to your Independent Financial Director Website. You may not use blind ads or web pages that make non-compliant product or income claims that are ultimately associated with Momentum products or the Momentum business opportunity.
G. Spam Linking
Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites, or other publicly accessible online discussion boards or forums and is not allowed. This includes blog spamming, blog comment spamming, and/or spamdexing. Any comments you make on blogs, forums, guest books, etc. must be unique, informative, and relevant.
H. Social Networking Sites
Network Marketing companies are built on a foundation of building relationships through person-to-person contact. Social networking websites, such as Facebook, Google +, Twitter, and LinkedIn, are natural extensions of this foundation. Social networking websites can provide useful tools for a Independent Momentum Partner to build and maintain contacts.
You may advertise your Momentum business on your social networking website if the advertisement is limited to the social networking sharable content provided by Momentum, posting a video link, flyer, or other approved marketing tool found by clicking on the Marketing tab in the Independent Momentum Partner Back Office, or by posting material approved by the Compliance Department. While you are encouraged to advertise Momentum on your social networking website, you may not use Momentum or a confusingly similar name as your account name, group name, page name, discussion name, or other social networking presence, and may not use the Momentum logo, the Momentum ‘Shield,’ or a Momentum service picture as your profile picture.
If you use a social networking website to market Momentum Network, you must identify yourself as a Momentum Partner and not represent yourself as an official representative or employee of Momentum Network. If you participate in any network marketing company other than Momentum Network, you may not advertise both Momentum Network and the other network marketing opportunity on the same social networking profile. Momentum Network considers advertising other network marketing opportunities to your network of Momentum Network contacts contained in a list of social networking contacts to constitute improper solicitation and cross sponsoring. Momentum Network maintains its own social networking profiles that permit our Momentum Partners to join pages created by Momentum Network Corporate to effectively communicate with the Momentum Network Community. You may not, however, create your own groups and pages using the Momentum Network name, trademarks, logos, or brands.
If your compliance has not been met above, you agree that you will immediately take down a non-compliant site at the request of Momentum Network. Appeals regarding compliance may be submitted after the site has been taken down. Appeals should be directed to the email address [email protected].
I. YouTube and Other Video Hosting Websites
Momentum Network maintains an Official Momentum Network Account on YouTube to help our Momentum Partners disseminate the official videos we produce. These videos may also be found by clicking on Opportunity or Services of your Momentum Network provided website or obtained in your back-office business center for downloading individually on your computer (when you do not have Internet Access). We encourage you to link to or embed the YouTube videos on your own Independent Website or social networking pages. You may only use the Corporate Approved YouTube videos in their original form and may not alter them in any way. Independent Financial Directors may upload Corporate Approved videos produced by Momentum Network on social platforms or Independent Websites provided that your website has been pre-approved by the Compliance Dept. Directing a prospective lead to a website with one of our videos can be an effective tool for you to begin a discussion about the Momentum Network services and the Momentum Network business opportunity. You may not create your own accounts on YouTube and other video hosting websites to post Momentum Network Corporate Approved videos. Momentum Network has ensured that videos are available in many locations, which allows Momentum Network to keep the most recent and effective videos available for all of our Momentum Partners. If you create your own Momentum Network video, including a video testimonial, you must receive written approval from the Compliance Department prior to distributing the video.
J. Sponsored Links / Pay-Per-Click (PPC) Ads
Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to your Independent Momentum Partner Website. The display URL must also be to your Independent Momentum Partner Website and must not portray any URL that could lead the user to assume they are being led to a Momentum Network Corporate site or be inappropriate or misleading in any way.
K. External Websites
You are allowed external websites to promote your Momentum Network business and the Momentum Network opportunity. If you wish to use an external website, you must do the following:
a.)Identify yourself as a Momentum Partner for Momentum Network.
b.)Use only the approved images and wording authorized by Momentum Network.
c.)Adhere to the branding, trademark, and image usage policies described in this document.
d.)Agree to modify your website to comply with current or future Momentum Network policies.
You are solely responsible and liable for your own website content, messaging, claims, and information and must ensure your website appropriately represents and enhances the Momentum Network brand and adheres to all Momentum Network guidelines and policies. Additionally, your website must not contain disingenuous popup ads or promotions or malicious code. Decisions and corrective actions in this area are at Momentum Network’s sole discretion. You are encouraged to use the approved Momentum Network images that are available through the business suite.
L. Momentum Partner Image Mandate
When using a Social Media or external website, it must contain:
a.)A Momentum Partner Logo from the approved templates.
b.)Your Name and Title (example: Joan Arc, Momentum Partner, Momentum Network).
c.)A link to your Momentum Partner Replicated website.
Although Momentum Network brand themes and images are desirable for consistency, anyone landing on your page needs to clearly understand that they are at a Momentum Partner site, and not a Momentum Network Corporate page.
SECTION 5 – OPERATING A MOMENTUM NETWORK BUSINESS
5.1 – Business Entities
A corporation, partnership, or trust (collectively referred to in this section as a “Business Entity”) may apply to be a Momentum Network Partner by submitting a Momentum Network Partner Application and Agreement along with its Certificate of Incorporation, Articles of Organization, Partnership Agreement, or trust documents (these documents are collectively referred to as the “Entity Documents”) to Momentum Network. A Momentum Network business may change its status under the same Sponsor from an individual to a partnership, corporation, or trust, or from one type of entity to another. To do so, the Momentum Partner(s) must provide the Entity Documents to Momentum Network. The Momentum Partner Application must be signed by all of the shareholders, partners, or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to Momentum Network.
5.1.1 – Changes to a Business Entity
Each Momentum Partner must immediately notify Momentum Network of any changes to the type of business entity they utilize in operating their Momentum Network business, and the addition or removal of business associates. A Momentum Network business may change its status under the same sponsor from an individual to a partnership, corporation, or trust, or from one type of entity to another. The Momentum Partner Agreement form must be signed by all of the shareholders, partners, or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to Momentum Network.
5.1.2 – Change Of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all Momentum Partners, Momentum Network rarely allows changes in sponsorship, with the rare exception of direct line changes (meaning placement is not affected). A direct line change request must be made by submitting a completed Sponsor Change Request Form within a seven (7) day period from the date of enrollment and must come from the current listed sponsor.
5.1.3 – Change Of Placement
A request for a change of placement must be submitted within seven (7) days of the date of enrollment and must be requested by the current listed sponsor. A Momentum Partner can only be moved inside of the same sponsor’s organization. If approved, a Momentum Partner is placed in the first available open bottom position on the date that the change is made. Momentum Partners who have earned commissions or achieved rank are not eligible for placement changes. Please note that decisions made for any change request (sponsor or placement) are at the sole discretion of Momentum Network.
5.2 – Unauthorized Claims and Action
5.2.1 – Indemnification
A Momentum Partner is fully responsible for all of their verbal and/or written statements made regarding Momentum Network services and the Compensation Plan, which are not expressly contained in Official Momentum Network Materials. Momentum Partners agree to indemnify Momentum Network and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Momentum Network as a result of the Momentum Partner’s unauthorized representations or actions. This provision shall survive the cancellation of the Momentum Partner Agreement.
5.2.2 – Endorsements of Momentum Network Services
No claims as to any services offered by Momentum Network may be made except those contained in Official Momentum Network Materials.
5.3 – Conflicts
5.3.1 – Non-Solicitations
Momentum Partners are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “Network Marketing”). However, during the term of this Agreement, Momentum Partners may not directly or indirectly recruit other Momentum Partners or Customers, that are not personally sponsored by them, for any other Network Marketing business. Following the cancellation of a Momentum Partner Agreement, and for a period of one (1) calendar year thereafter, a former Momentum Partner may not recruit any Momentum Partner or Customer to another Network Marketing business.
5.3.2 – Sale of Competing Goods or Services
During this agreement and for 6 months thereafter, Momentum Partners must not sell, or attempt to sell, any competing non-Momentum Network programs. Any program, product, service, or direct selling opportunity in the same generic categories as the Momentum Network services are deemed to be competing, regardless of differences in cost, quality, or other distinguishing factors.
5.3.3 – Targeting Other Direct Sellers
Should Momentum Partners engage in solicitation and/or enticement of members of another direct sales company to sell or distribute Momentum Network services, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against a Momentum Partner alleging that they engaged in inappropriate recruiting activity of its sales force or Customers, Momentum Network will not pay any of the Momentum Partner’s defense costs or legal fees, nor will Momentum Network indemnify the Momentum Partner for any judgment, award, or settlement.
5.3.4 – Privacy and Confidentiality
All Momentum Partners are required to abide by the Company’s Privacy Policy regarding Momentum Partner and customer information.
5.3.5 – The Data Management Rule
The Data Management Rule is intended to protect the Line of Sponsorship (LOS) for the benefit of all Momentum Partners, as well as Momentum Network. LOS information is information compiled by Momentum Network that discloses or relates to all or part of the specific arrangement of sponsorship within the Momentum Network business, including, without limitation, Momentum Partner lists, sponsorship trees, and all Momentum Partner information generated therefrom, in its present and future forms. The Momentum Network LOS constitutes a commercially advantageous, unique, and proprietary trade secret (Proprietary Information), which it keeps proprietary and confidential and treats as a trade secret. Momentum Network is the exclusive owner of all Proprietary Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by Momentum Network and its Momentum Partners. Through this Rule, Momentum Partners are granted a personal, non-exclusive, non-transferable, and revocable right by Momentum Network to use Proprietary Information only as necessary to facilitate their business as contemplated under these Policies and Procedures. The Company reserves the right to deny or revoke this right, upon reasonable notice to the Momentum Partner stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of Momentum Network, such is necessary to protect the confidentiality or value of Proprietary Information. All Momentum Partners shall maintain Proprietary Information in strictest confidence and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain the confidentiality thereof.
5.4 – Cross Sponsoring
Actual or attempted cross-group sponsoring of any sideline Momentum Partner to another leg of business within Momentum Network or to any other Network Marketing Opportunity is strictly prohibited. “Cross-group sponsoring” is defined as the enrollment, indirect or otherwise, of an individual or entity that already has a current customer number or Momentum Partner Agreement on file with Momentum Network or who has had such an agreement within the preceding six (6) calendar months. The use of a spouse’s or relative’s name, tradenames, DBAs, assumed names, corporations, partnerships, trusts, Federal Tax Identification Numbers, or fictitious identification numbers to circumvent this policy is prohibited. This policy shall not prohibit the transfer of a Momentum Network business in accordance with the “Sale, Transfer or Assignment of Momentum Network Business” section of these Policies and Procedures.
5.5 – Governmental Approval or Endorsement
Neither federal nor state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Momentum Partners shall not represent or imply that Momentum Network or its Compensation Plan have been “approved,” “endorsed,” or otherwise sanctioned by any government agency.
5.6 – Identification
All Momentum Partners are required to provide their Social Security Number, Federal Employer Identification Number, or their Government Issued ID Number to Momentum Network either on the Momentum Partner Agreement or at the company’s request. Upon enrollment, the Company will provide a unique Momentum Partner Identification Number to the Momentum Partner by which they will be identified. This number will be used to place orders and track commissions and bonuses.
5.7 – Income Taxes
Every year, Momentum Network will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident as required by the Internal Revenue Service. Each Momentum Partner is responsible for paying local, state, and federal taxes on any income generated as a Momentum Partner. If a Momentum Network business is tax-exempt, the Federal Tax Identification Number must be provided to Momentum Network. Any Momentum Partner that does not provide a valid social security number is subject to the federal backup withholding laws, and 28% of their commissions and bonus will be withheld and submitted to the IRS.
5.8 – Independent Contractor Status
You are an independent contractor. You are not a representative, employee, partner, or in a joint venture with the Company. You may not represent yourself as anything other than a Momentum Partner. You have no authority to bind Momentum Network to any obligation. You are responsible for paying your own self-employment taxes, federal income taxes, and other taxes required by law. You must obey any federal, state, and local laws, as well as Company rules and regulations pertaining to your independent Momentum Network Business or the acquisition, receipt, holding, selling, distributing, or advertising of Momentum Network. Momentum Partners may not answer the telephone by saying “Momentum Network,” “Momentum Network Incorporated,” or by any other manner that would lead the caller to believe that they have reached Momentum Network’s corporate offices. A Momentum Partner may only represent that they are a Momentum Network Partner. Therefore, all correspondence and business cards relating to or in connection with a Momentum Partner’s Momentum Network business shall contain the Momentum Partner’s name followed by the term “Momentum Network Partner.”
5.9 – Bonus Buying
Subscribing for services solely for the purpose of collecting bonuses or achieving rank is prohibited. All services purchased by Momentum Partners must be specifically for personal use.
5.10 – Stacking
Stacking is the unauthorized manipulation of the Momentum Network compensation system and/or the marketing plan in order to trigger commissions or cause a promotion of a downline Momentum Partner in an unearned manner. One example of stacking occurs when a sponsor places participants under an inactive downline partner (who may not know or have any relationship with the clients) in order to trigger unearned qualification for commissioning. Another example of stacking is the manipulative placement of Momentum Partners within a downline organization in order to trigger a promotion. Stacking is unethical and unacceptable behavior and is a punishable offense with measures up to and including the termination of the Momentum Partner positions of all individuals found to be directly involved.
5.11 – One Momentum Network Business per Momentum Partner
A Momentum Partner may operate or have an ownership interest, legal or equitable, in only one Momentum Network business. No individual may have, operate, or receive compensation from more than one Momentum Network business, unless prior approval is received from Momentum Network and this action does not violate any of Momentum Network’s other policies and procedures. Individuals of the same family unit may each enter into or have an interest in their own separate Momentum Network business.
5.12 – Succession
Upon the death or incapacitation of a Momentum Partner, their business may be passed to a designated heir(s). Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Whenever a Momentum Network business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Momentum Partner’s marketing organization provided the following qualifications are met:
•Execute a Momentum Partner Agreement.
•Comply with terms and provisions of the Agreement.
•Meet all of the qualifications for the deceased Momentum Partner’s rank/status.
•Provide Momentum Network with an “address of record” to which all bonus and commission checks will be sent. Bonus and commission checks of a Momentum Network business transferred pursuant to this section will be paid in a single check jointly to the successor(s).
•Form a business entity and acquire a federal Taxpayer Identification Number, if the business is bequeathed to joint successors. Momentum Network will issue all bonus and commission checks and one 1099 to the business entity.
5.13 – Sale, Transfer, or Assignment of a Momentum Network Business
Although a Momentum Network business is a privately owned, independently operated business, the sale, transfer, or assignment of a Momentum Network business is subject to certain limitations. If a Momentum Partner wishes to sell their Momentum Network business, the following criteria must be met:
A.The new owner must be an existing Momentum Partner, otherwise, they will be required to enroll as one.
B.Protection of the existing line of sponsorship must always be maintained so that the Momentum Network business continues to be operated in that line of sponsorship.
C.There is a specified administrative transfer fee.
D.Before the sale, transfer, or assignment can be finalized and approved by Momentum Network, any debt obligations the selling Momentum Partner has with Momentum Network must be satisfied.
E.The selling Momentum Partner must be in good standing and not in violation of any of the terms of the Agreement to be eligible to sell, transfer, or assign a Momentum Network business.
Prior to selling a Momentum Network business, the selling Momentum Partner must notify Momentum Network by email [email protected] of their intent to sell the Momentum Network business. No changes in the line of sponsorship can result from the sale or transfer of a Momentum Network business. A Momentum Partner may not sell, transfer, or assign portions of their business—the position must be sold in its entirety.
5.14 – Separation of a Momentum Network Business
Momentum Partners sometimes operate their Momentum Network businesses as partnerships, corporations, or other legal entities. In the event of a separation or division of the business due to divorce or entity dissolution, arrangements must be made to ensure that the interests and income of other Partners and the Company are not adversely affected. If the separating parties fail to provide for the best interests of other Partners and the Company in a timely fashion, Momentum Network may take appropriate actions, including termination of the Momentum Partner Agreement.
During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
A.One of the parties may, with the consent of the other(s), operate the Momentum Network business pursuant to an assignment in writing whereby the relinquishing partner, shareholders, partners, or trustees authorize Momentum Network to deal directly and solely with the other partner or non-relinquishing shareholder, partner, or trustee.
B.The parties may continue to operate the Momentum Network business jointly on a “business-as-usual” basis, whereupon all compensation paid by Momentum Network will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above. The Company will never remove a party to a position from a Partner account without that party’s written permission and signature. Under no circumstances will the downline organization of divorcing partners or a dissolving business entity be divided. Under no circumstances will Momentum Network split commission payouts between divorcing partners or members of dissolving entities. Momentum Network will recognize only one downline organization and will issue only one commission payout per Momentum Network business per commission cycle. Commission payouts shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Momentum Partner Agreement shall be involuntarily canceled.
5.15 – Sponsoring
All Qualified Momentum Partners in good standing have the right to sponsor and enroll others into Momentum Network. Each prospective customer or Momentum Partner has the ultimate right to choose his or her own Sponsor. If two Momentum Partners claim to be the Sponsor of the same new Momentum Partner or customer, the Company shall regard the first application received by the Company as controlling.
5.16 – Customers That Become Momentum Partners
Existing customers that choose to become Momentum Partners may have the option to become their own customer for qualification and commission purposes.
SECTION 6 – RESPONSIBILITIES OF MOMENTUM PARTNERS
6.1 – Change of Address, Telephone, Email Address
To ensure timely communications, delivery of support materials, and commission payouts, it is critically important that Momentum Network’s files are current. Momentum Partners planning to move or change their email address must submit an amended Momentum Partner Agreement complete with the new information.
6.2 – Sponsoring Momentum Partner Responsibilities
6.2.1 – Initial Training
Any Momentum Partner who sponsors another Momentum Partner into Momentum Network must perform a bona fide assistance and training function to ensure that their downline is properly operating their Momentum Network business. Momentum Partners must provide the most current version of the Policies and Procedures, the Income Disclosure Statement, and Compensation Plan to individuals whom they are sponsoring to become Momentum Partners before the applicant signs a Momentum Partner Agreement.
6.2.2 – Ongoing Training Responsibilities
Momentum Partners must monitor the Momentum Partners in their downline organizations to ensure that downline Momentum Partners do not make improper product or business claims or engage in any illegal or inappropriate conduct. Upon request, every Momentum Partner should be able to provide documented evidence to Momentum Network of their ongoing fulfillment of the responsibilities of a Sponsor.
6.3 – Non-Disparagement
Momentum Partners must not disparage, demean, or make negative remarks about Momentum Network, other Momentum Partners, Momentum Network’s services, the Compensation plan, or Momentum Network’s owners, board members, directors, officers, or employees.
6.4 – Reporting Policy Violations
Momentum Partners observing a Policy violation by another Momentum Partner should submit an email to [email protected] of the violation, complete with all supporting evidence and pertinent information. It is important to understand that information that is submitted will be kept confidential.
SECTION 7 – BILLING
7.1 – Automatic Billing
Memberships are automatically renewed each month using the payment method on file. If a Momentum Partner has a pending Daily Pay or Monthly Pay commission balance, next month’s fees will be deducted from the pending balance.
SECTION 8 – BONUSES AND COMMISSIONS
8.1 – Bonus and Commission Qualifications
In order to qualify to receive commissions as outlined in the Momentum Network Compensation Plan, a Momentum Partner must be Qualified and in good standing and comply with the terms of the Momentum Partner Agreement and these Policies and Procedures. From time to time, Momentum Network will run contests and promotions outside of the Compensation Plan. In order to qualify to receive additional contest or promotion-related compensation, the Momentum Partner must be Qualified during the term of the contest or promotion, and any Momentum Partner or Customer requirements necessary to qualify for the additional compensation must be Qualified and/or Active during the duration of any such contest or promotion.
Commission payments will be charged back in the event that a commission-triggering event is canceled within thirty (30) days of the trigger date, such as the cancellation of a customer. If a Momentum Partner is Unqualified and is a Momentum Score member, positive Daily Pay and/or eWallet commission balances will be debited for the purchase of the membership. Commission payments will be nullified if not transferred out of the eWallet within ninety (90) days of payment and/or within three (3) days of payment if a Momentum Partner Agreement is canceled. A Momentum Partner is not required to become a customer but may do so if desired for the purposes of this section.
8.2 – Bonus Buying Prohibited
Bonus buying is strictly and absolutely prohibited. Bonus buying includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of a Momentum Partner Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a Momentum Partner or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Momentum Partners or Customers (“phantoms”); (d) purchasing Momentum Network services on behalf of another Momentum Partner or Customer, or under another Momentum Partner’s or Customer’s ID number, to qualify for commissions or bonuses; (e) enrolling a Momentum Partner or Customer using your own credit card for the purpose of qualifying for bonuses; (e) enrolling non-arm’s length Customers for the purpose of qualifying for bonuses and/or (f) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.
8.3 – Reports All information provided by Momentum Network, including but not limited to personal sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable.Nevertheless, due to various factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and commission payouts, a Momentum Partner whose Momentum Partner Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation). A Momentum Network participant has a right to cancel at any time, regardless of the reason. Cancellation request must be submitted by email to [email protected]. In order to process the cancellation request, the Momentum participant must submit the email from the email address that is registered to his/her Momentum Network account/s. IMPORTANT NOTE: A Momentum Network account can only be cancelled by the account holder.
8.4 – Administration Fees Administration fees of $1.95 will be deducted from commissions. Returned payments will result in a $5 return fee to the Momentum Partner.
8.5 – Commission Payment Delay Momentum Network is not responsible for loss of commissions or delay in payment due to any of the following: (i) the Agreement is not on file with Momentum Network or is incomplete, incorrectly filled out or not executed; (ii) improper notification of change of address has occurred; (iii) outdated forms are submitted to Momentum Network; or (iv) there are issues in processing customer information.
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 – Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive, or unethical business conduct, or any act or omission by a Momentum Partner that, in the sole discretion of the Company, may damage its reputation or goodwill (such damaging act or omission need not be related to the Momentum Partner’s Momentum Network business), may result, at Momentum Network’s discretion, in one or more of the following corrective measures:
- Issuance of a written warning or admonition.
- Requiring the Momentum Partner to take immediate corrective measures.
- Imposition of a fine, which may be withheld from bonus and commission payouts.
- Loss of rights to one or more bonus and commission payouts.
- Withholding from a Momentum Partner all or part of the Momentum Partner’s bonuses and
commissions during the period that Momentum Network is investigating any conduct allegedly contrary to the Agreement. If a Momentum Partner’s business is cancelled for disciplinary reasons, the Momentum Partner will not be entitled to recover any commissions withheld during the investigation period.
- Suspension of the individual’s Momentum Partner Agreement for one or more pay periods.
- Involuntary termination of the offender’s Momentum Partner Agreement.
- Any other measure expressly allowed within any provision of the Agreement or which
Momentum Network deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Momentum Partner’s policy violation or contractual breach.• Instituting legal proceedings for monetary and/or equitable relief. Each violation is reviewed on a case-by-case basis, and all disciplinary actions are at the sole discretion of Momentum Network.
9.2 – Mediation
Prior to instituting arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least ten (10) days in advance of the mediation. Each party shall pay its own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Fort Lauderdale, Florida, and shall last no more than two (2) business days.
9.3 – Arbitration
If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by confidential arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Momentum Partners waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Fort Lauderdale, Florida. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel which the American Arbitration Panel provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement.
NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.
Nothing in these Policies and Procedures shall prevent Momentum Network from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect Momentum Network’s interest prior to, during, or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
9.4 – Governing Law, Jurisdiction, and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Fort Lauderdale, Florida. The Federal Arbitration Act shall govern all matters relating to arbitration. The laws of Florida shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision in this Agreement, residents of the State of Louisiana shall be entitled to bring an action against Momentum Network in their home forum and pursuant to Louisiana law.
SECTION 10 – EFFECT OF CANCELLATION
10.1 – Effect of Cancellation and Termination
So long as a Momentum Partner remains Qualified and complies with the terms of the Momentum Partner Agreement and these Policies, Momentum Network shall pay commissions to such Momentum Partner in accordance with the Compensation Plan. A Momentum Partner’s bonuses and commissions constitute the entire consideration for the Momentum Partner’s efforts in generating sales and all activities related to generating sales (including, but not limited to, building a downline organization). Following a Momentum Partner’s non-continuation of his or her Momentum Partner Agreement, cancellation for inactivity, or voluntary or involuntary cancellation (termination) of his or her Momentum Partner Agreement (all of these methods are collectively referred to as “Cancellation”), the former Momentum Partner shall have no right, title, claim, or interest to the downline organization which he or she operated, or any commission or bonus from the sales generated by the organization. Momentum Partners waive any and all rights, including, but not limited to, property rights, in the downline which they may have had. Following a Momentum Partner’s cancellation of his or her Momentum Partner Agreement, the former Momentum Partner shall not hold him or herself out as a Momentum Network Momentum Partner and shall not have the right to sell Momentum Network products or services. A Momentum Partner whose Momentum Partner Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
A Momentum Network participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted via email to [email protected]. In order to process the cancellation, the Momentum participant must submit the email from the email address that is registered to his/her Momentum Network account/s. IMPORTANT NOTE: A Momentum Network account can only be cancelled by the account holder. Momentum Network refers to the same concepts: AGREEMENT: The contract between the Company and each Momentum Partner; includes the Momentum Partner Agreement, the Momentum Network Policies and Procedures, and the Momentum Network Compensation Plan, all in their current form and as amended by Momentum Network in its sole discretion. These documents are collectively referred to as the “Agreement.”
CANCEL: The termination of a Momentum Partner’s business. Cancellation may be either voluntary, involuntary, or through non-renewal after sixty (60) days of Inactive status.
COMPENSATION PLAN: The guidelines and referenced literature for describing how Momentum Partners can generate commissions and bonuses.
CUSTOMER: A Customer who purchases Momentum Network services and does not engage in building a business or selling the service.
MOMENTUM PARTNER: An individual who purchases service plans, generates sales and business building commissions.
LINE OF SPONSORSHIP: A report generated by Momentum Network that provides critical data relating to the identities of Momentum Partners, sales information, and enrollment activity of each Momentum Partner’s organization. This report contains confidential and trade secret information which is proprietary to Momentum Network.
ORGANIZATION: The Customers and Momentum Partners placed below a particular Momentum Partner.
OFFICIAL MOMENTUM NETWORK MATERIAL: Literature, audio or video tapes, and other materials developed, printed, published, and distributed by Momentum Network to Momentum Partners.
PLACEMENT: Your position inside your Sponsor’s organization.
RECRUIT: For purposes of Momentum Network’s Conflict of Interest Policy, the term “Recruit” means the actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Momentum Network Independent Financial Director or Customer to enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.
SPONSOR: A Momentum Partner who enrolls a Customer or another Momentum Partner into the Company and is listed as the Sponsor on the Momentum Partner Agreement. The act of enrolling others and training them to become Momentum Partners is called “sponsoring.”
In the context of Momentum Network, the term “UPLINE” refers to the Momentum Partners or Momentum Partners above a particular Momentum Partner in a sponsorship line up to the Company. It is the line of sponsors that links any particular Momentum Partner to the Company.
MOMENTUM NETWORK RULES AND CONDUCT
Effective as of September 1, 2023
TABLE OF CONTENTS
SECTION 1 – INTRODUCTION
1.1 Code of Ethics
1.2 Policies Incorporated into the Independent Momentum Partner Agreement
1.3 Changes to the Independent Momentum Partner Agreement, Policies and Procedures, or Compensation Plan
1.4 Delays
1.5 Severability of Policies and Provisions
1.6 Waiver
SECTION 2 – BECOMING AN INDEPENDENT MOMENTUM PARTNER
2.1 Requirements to Become an Independent Momentum Partner
2.2 Registration of a New Independent Momentum Partner via Internet or Fax
2.3 Benefits of the Independent Momentum Partner
SECTION 3 – INCOME DISCLOSURE POLICY
SECTION 4 – ADVERTISING
4.1 Adherence to the Momentum Network Compensation Plan
4.2 Use of Sales Aids
4.3 Intellectual Property
4.4 Web Policy
4.5 Advertised Price
4.6 Generic Business Advertisements
4.7 Media and Media Inquiries
4.8 Unsolicited Email and Fax Communications
SECTION 5 – OPERATING A MOMENTUM NETWORK BUSINESS
5.1 Business Entities
5.1.1 Changes in a Business Entity
5.1.2 Change of Sponsor
5.1.3 Change of Placement
5.2 Unauthorized Claims and Actions
5.2.1 Indemnification
5.2.2 Endorsements of Momentum Network Services
5.3 Conflicts
5.3.1 Non-Solicitation
5.3.2 Sale of Competitive Goods or Services
5.3.3 Focusing on Other Direct Sellers
5.3.4 Privacy and Confidentiality
5.3.5 Data Management Rule
5.4 Cross Sponsoring
5.5 Government Approval or Endorsement
5.6 Identification
5.7 Income Taxes
5.8 Independent Contractor Status
5.9 Bonus Buying
5.10 Stacking
5.11 One Momentum Business per Independent Momentum Partner
5.12 Succession
5.13 Sale, Transfer, or Assignment of a Momentum Network Business
5.14 Separation of a Momentum Network Business
5.15 Sponsorship
5.16 Customers Who Become Independent Momentum Partners
SECTION 6 – RESPONSIBILITIES OF INDEPENDENT MOMENTUM PARTNERS
6.1 Change of Address, Phone, Email
6.2 Responsibilities of the Sponsoring Independent Momentum Partner
6.2.1 Initial Training
6.2.2 Ongoing Training Responsibilities
6.3 Non-Disparagement
6.4 Reporting Policy Violations
SECTION 7 – BILLING
7.1 Billing
SECTION 8 – BONUSES AND COMMISSIONS
8.1 Qualifications for Commissions
8.2 Prohibition of Bonus Buying
8.3 Reports
8.4 Administrative Fees
8.5 Delay in Commission Payments
8.6 Refunds, Chargebacks and Commission Adjustments
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEDURES
9.1 Disciplinary Sanctions
9.2 Mediation
9.3 Arbitration
9.4 Governing Law, Jurisdiction and Venue
SECTION 10 – EFFECT OF CANCELLATION
10.1 Effect of Cancellation and Termination
10.2 Non-Renewal
SECTION 11 – DEFINITIONS
SECTION 12 – REGULATORY COMPLIANCE (FTC, TSR, CROA, TCPA, CAN-SPAM, FLORIDA AND APPLICABLE STATE RULES)
12.1 Purpose and Scope
12.2 General Rules Against Deceptive Practices (FTC)
12.3 Essential Clarification: No Credit Restoration/Repair by Momentum Network; Optima and Provider
12.4 Mandatory Rules for Credit Restoration/Repair Communications (CROA and Applicable Rules)
12.5 Telemarketing and Consumer Contact (TSR, Do-Not-Call, TCPA, and State Laws)
12.6 Recruiting and Network Marketing Rules (Anti-Pyramid Focus and Income Claims)
12.7 Florida: DBPR and Other Applicable State Agencies
12.8 Training, Monitoring, Audits, and Sanctions
12.9 Endorsements, Testimonials, Reviews and Influencers
12.10 Digital Communication and Anti-Spam (CAN-SPAM and Analogous Rules)
12.11 Materials, Scripts and Paid Advertising (Brand Control)
12.12 Incident Reporting and Cooperation Additional Definitions (Compliance)
SECTION 13 – ADDITIONAL PROVISIONS (UPDATE)
13.1 Events and Activities
13.2 Merchandising (Merch) and Handling of Surplus
13.3 Intellectual Property (Content Created by an IMP)
13.4 Six-Month Rule for Sponsor Change
13.5 Business Inheritance
13.6 Independent Education System
SECTION 1 – INTRODUCTION
1.1 – Code of Ethics
Momentum Network (hereinafter “Momentum Network” or “the Company”) is a values-based company that takes pride in the quality and character of its Independent Momentum Partners. The following guidelines help ensure a uniform standard of excellence throughout our organization. Each Independent Momentum Partner is expected to practice the following ethical behavior when acting on behalf of the Company:
- A. I will be respectful to every person I meet while conducting business related to Momentum Network.
- B. At all times, I will conduct myself and operate my business in an ethical, moral, legal, and financially sound manner.
- C. I will not participate in activities that may discredit Momentum Network, any corporate officer or employee of Momentum Network, myself, or other Independent Momentum Partners.
- D. I will not make discouraging or disparaging statements about other Independent Momentum Partners. I will ensure that in all Independent Momentum Partner business dealings I refrain from using negative language. I will refrain from making any type of defamatory statements.
- E. I will provide support and encouragement to my customers to ensure their experience with Momentum Network is successful. I understand that it is important to provide follow-up service and support to my downline.
- F. I will accurately represent all bonus/compensation plans available through Momentum Network and the income potential represented in them. I understand that I may not use my own income as an indication of the potential success of others, nor may I use compensation checks as marketing material. Further, I understand that I may only disclose Independent Momentum Partner income for the purpose of recruiting a prospective Independent Momentum Partner(s) after I have provided a copy of the Income Disclosure Statement to the prospective Independent Momentum Partner(s).
- G. I will comply with all Momentum Network Independent Momentum Partner Policies and Procedures now in effect and as they may be modified in the future.
1.2 – Policies Incorporated into the Independent Momentum Partner Agreement
These Policies and Procedures (“Policies”), in their current form and as amended at Momentum Network’s sole discretion, are incorporated into and form an integral part of the Independent Momentum Partner Agreement (hereinafter the “Independent Momentum Partner Agreement”). Throughout these Policies, when the term “Agreement” is used, it refers collectively to the Independent Momentum Partner Agreement, these Policies, and the Momentum Network Compensation Plan. These documents are incorporated by reference into the Independent Momentum Partner Agreement (all in their current form and as may be amended by Momentum Network). It is each Independent Momentum Partner’s responsibility to read, understand, comply with, and ensure he or she is aware of and operating under the most current version of these Policies. When sponsoring a new Independent Momentum Partner, it is the sponsoring Independent Momentum Partner’s responsibility to provide the most current version of these Policies and Procedures before he or she executes the Independent Momentum Partner Agreement.
1.3 – Changes to the Independent Momentum Partner Agreement, Policies and Procedures, or Compensation Plan
Because federal, state, and local laws, as well as the business environment, change periodically, Momentum Network reserves the right to amend the Agreement and the prices of its Momentum Network services in its sole and absolute discretion. Notice of amendments will appear in Momentum Network Official Materials. Amendments will be effective once published in Momentum Network Official Materials, including, but not limited to, postings on Momentum Network’s website, distribution by email, postings in the Momentum Network newsletter, product inserts, or any other commercially reasonable method. An Independent Momentum Partner’s continued conduct of a Momentum Network business or acceptance of bonuses or commissions constitutes acceptance of each and every amendment.
1.4 – Delays
Momentum Network will not be responsible for delays and failures in performance of its obligations when performance becomes commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riots, war, fires, floods, death, limitation of supply of a party, or governmental decrees or orders.
1.5 – Severability of Policies and Provisions
If any provision of the Agreement, in its current form or as amended, is found invalid or unenforceable for any reason, only the invalid portion(s) of the provision will be severed, and the remaining terms and provisions will remain in full force and effect and will be construed as if such invalid or unenforceable provision had never been part of the Agreement.
1.6 – Waiver
The Company never waives its right to insist on compliance with the Agreement and with applicable laws governing the conduct of a business. No failure by Momentum Network to exercise any right or power under the Agreement or to insist on strict compliance by an Independent Momentum Partner with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, will constitute a waiver of Momentum Network’s right to demand exact compliance with the Agreement. Waivers by Momentum Network may be effected only in writing by an authorized officer of the Company.
SECTION 2 – BECOMING AN INDEPENDENT MOMENTUM PARTNER
2.1 – Requirements to Become an Independent Momentum Partner
To become an Independent Momentum Partner, each applicant must:
- A. Be of legal age in his or her state of residence.
- B. Reside in the United States or other countries that have been officially opened by Momentum Network.
- C. Have a valid Social Security Number or Federal Tax Identification Number.
- D. Submit a properly completed and executed Independent Momentum Partner Agreement to Momentum Network electronically.
- E. Not have been convicted of felonies and not be subject to legal restrictions that prevent participation in a direct sales opportunity or financial services, as applicable.
- F. Momentum Network reserves the right, in its sole discretion and to the extent permitted by law, to reject an application or terminate an Agreement if it discovers material information (including background) that, in the Company’s judgment, may present a legal, regulatory, reputational, or compliance risk.
2.2 – Registration of a New Independent Momentum Partner via Internet
A prospective Independent Momentum Partner may enroll on the sponsor’s website. In that event, in lieu of a physically signed Independent Momentum Partner Agreement, Momentum Network will accept the Agreement by accepting the “electronic signature,” indicating that the new Independent Momentum Partner has accepted the terms and conditions of the Independent Momentum Partner Agreement. Please note that such electronic signature constitutes a legally binding agreement between the Independent Momentum Partner and Momentum Network.
2.3 – Benefits for the Independent Momentum Partner
Once an Independent Momentum Partner Agreement has been accepted by Momentum Network, the benefits of the Compensation Plan and the Independent Momentum Partner Agreement are available to the new Independent Momentum Partner. These benefits include the right to:
- A. Sell Momentum Network services.
- B. Participate in the Momentum Network Compensation Plan (receive bonuses and commissions, if eligible).
- C. Sponsor other people as customers or Independent Momentum Partners in the Momentum Network business, thereby building an organization and advancing through the Momentum Network Compensation Plan.
- D. Receive Momentum Network literature and other communications periodically.
- E. Participate in support service trainings sponsored by Momentum Network, motivational and recognition functions;
- F. Participate in promotional contests and incentive programs sponsored by Momentum Network for its Independent Momentum Partners.
SECTION 3 – INCOME DISCLOSURE POLICY
In an effort to conduct best business practices, Momentum Network has developed the Income Disclosure Statement (“IDS”). The Independent Momentum Partner IDS is designed to convey truthful, timely, and complete information about the income earned by Momentum Network Independent Momentum Partners. To achieve this goal, a copy of the IDS must be provided to all prospective Independent Momentum Partners.
A copy of the IDS must be presented to a prospective Independent Momentum Partner (someone who is not a party to a current Independent Momentum Partner Agreement) any time the Compensation Plan is presented or discussed, or any type of income claim or earnings representation is made.
The terms “income claim” and/or “earnings representation” (collectively, an “income claim”) include:
- (1) Average earnings statements,
- (2) Non-average earnings statements,
- (3) Income range statements,
- (4) Income testimonials,
- (5) Lifestyle claims, and
- (6) Hypothetical claims.
Examples of “non-average earnings statements” include: “Our top Independent Momentum Partner earned over one million dollars last year,” or “Our average-rank Independent Momentum Partner earns five thousand per month.” An example of an “income range statement” is: “Monthly income for our highest-ranking Independent Momentum Partners is ten thousand dollars at the low end to thirty thousand dollars per month at the high end.”
At any meeting open to the public where the Compensation Plan is discussed or any type of income claim is made, you must provide each prospective Independent Momentum Partner a copy of the IDS. Copies of the IDS may be printed or downloaded at no charge from the Company website at www.momentumnetwork.net.
SECTION 4 – ADVERTISING
4.1 – Adherence to the Momentum Network Compensation Plan
Independent Momentum Partners must adhere to the terms of the Momentum Network Compensation Plan as set forth in Momentum Network Official Materials. Independent Momentum Partners must not offer the Momentum Network opportunity through, or in combination with, any other system, program, or method of marketing not specifically set forth in Momentum Network Official Materials. Independent Momentum Partners must not require or encourage other current or prospective customers or Independent Momentum Partners to participate in Momentum Network in any manner that varies from the program as set forth in Momentum Network Official Materials. Independent Momentum Partners must not require or encourage other current or prospective customers or Independent Momentum Partners to execute any agreement or contract other than Momentum Network’s official agreements and contracts to become an Independent Momentum Partner. Similarly, Independent Momentum Partners must not require or encourage other current or prospective customers or Independent Momentum Partners to make any purchase or payment to any individual or other entity to participate in the Momentum Network Compensation Plan other than those purchases or payments identified as recommended or required in Momentum Network Official Materials.
4.2 – Use of Sales Aids
To promote both the services and the opportunity offered by Momentum Network, Independent Momentum Partners must use sales aids and support materials produced by Momentum Network. If Independent Momentum Partners develop their own sales aids and promotional materials (including Internet advertising), despite their good intentions, they may inadvertently violate statutes or regulations that affect a Momentum Network business. These violations, even if few, could jeopardize the Momentum Network opportunity for all Independent Momentum Partners. Accordingly, Independent Momentum Partners must submit all written sales aids, promotional materials, advertisements, websites, and other literature to the Company for Company approval before use. Unless an Independent Momentum Partner receives specific written approval to use the material, the request will be deemed denied. All Independent Momentum Partners must protect and promote the good reputation of Momentum Network and the service plans provided by its preferred partners. Marketing and promotion of Momentum Network, the Momentum opportunity, the Compensation Plan, and Momentum Network services must be consistent with the public interest and must avoid any conduct or practice that is unpleasant, deceptive, false, unethical, or immoral.
4.3 – Intellectual Property
Momentum Network will not allow the use of its trade names, trademarks, designs, or symbols outside of sales aids produced and approved by the corporation by any person, including Independent Momentum Partners, without prior written authorization from Momentum Network. In addition, no Independent Momentum Partner may use, publish, reproduce, advertise, sell, or display in any manner the name, image or likeness, or voice of another Independent Momentum Partner without the prior written consent of the named Independent Momentum Partner. This consent must be on file with the Momentum Network Compliance Department before any use.
4.4 – Web Policy
- [email protected]
- www.momentumpartnerdirect.com
- www.momentumpartnerjoin.com
- www.myspace.com/momentumpartner
- www.momentumpartnerpresident.com
- facebook.com/ilovemomentumnetwork
- johnsmith.com/momentumnetwork
F. Banner Advertising
You may place banner advertising on a website so long as you use Momentum Network approved templates and images. All banner ads must link to your Independent Momentum Partner website. The use of blind ads or web pages that make non-compliant product or income claims ultimately associated with Momentum Network products or the Momentum Network business opportunity is not permitted.
G. Spam Linking
Spam linking is defined as the repetitive submission of multiple identical or similar postings to blogs, wikis, guestbooks, websites, or other publicly accessible online discussion forums, and is not allowed. This includes blog spam, blog comment spam, and/or spamdexing. Any comment you make in blogs, forums, guestbooks, etc. must be unique, informative, and relevant.
H. Social Media Websites
Network marketing companies are built on a foundation of building relationships through person-to-person contact. Social media websites, such as Facebook, Google+, Twitter, and LinkedIn, are natural extensions of this foundation. Social media websites can provide useful tools for an Independent Momentum Partner to build and maintain contacts.
You may advertise your Momentum Network business on your social media website if the advertisement is limited to social media shareable content provided by Momentum Network, by posting a video link, flyer, or other approved marketing tool found by clicking the Marketing tab in the Independent Momentum Partner Virtual Office, or by posting material approved by the Compliance Department. Although you are encouraged to advertise Momentum Network on your social media website, you may not use Momentum Network or a confusingly similar name as your account name, group name, page name, discussion name, or other social media presence, and you may not use the Momentum Network logo, the Momentum Network “Shield,” or an image of a Momentum Network service as your profile picture.
If you use a social media website to market Momentum Network, you must identify yourself as an Independent Momentum Partner and not represent yourself as an official representative or employee of Momentum Network. If you participate in any network marketing company in addition to Momentum Network, you may not advertise both Momentum Network and the other network marketing opportunity on the same social media profile. Momentum Network considers advertising other network marketing opportunities to your Momentum Network contact network contained in a social media contact list to be improper solicitation and cross-sponsoring. Momentum Network maintains its own social media profiles that allow our Independent Momentum Partners to join pages created by Momentum Network corporate to communicate effectively with the Momentum Network community. However, you may not create your own groups and pages using the Momentum Network name, trademarks, logos, or marks.
If the above compliance is not met, you agree that you will immediately remove a non-compliant site upon Momentum Network’s request. Appeals regarding compliance may be submitted after the site has been removed. Appeals must be directed to [email protected].
I. YouTube and Other Video Hosting Websites
Momentum Network maintains an Official Momentum Network YouTube Account to help our Independent Momentum Partners disseminate the official videos we produce. These videos may also be found by clicking Opportunity or Services on your Momentum Network-provided website or obtained in your virtual office business center to download individually to your computer (when you do not have Internet access). You are encouraged to link to or embed the YouTube videos on your own independent website or social media pages. You may use only the corporation-approved YouTube videos in their original form and may not alter them in any manner. Independent Momentum Partners may upload corporation-approved videos produced by Momentum Network to social platforms or independent sites provided that the site has been preapproved by the Compliance Department. Directing a prospect to a website with one of our videos can be an effective tool to begin a discussion about Momentum Network services and the Momentum Network business opportunity. You may not create your own YouTube accounts or other video hosting accounts to post Momentum Network corporation-approved videos. Momentum Network has ensured that the videos are available in many locations, allowing Momentum Network to maintain the most recent and effective videos available to all Independent Momentum Partners. If you create your own Momentum Network video, including a video testimonial, you must receive written approval from the Compliance Department before distributing the video.
J. Sponsored Links / Pay-Per-Click (PPC) Ads
Sponsored links or pay-per-click (PPC) ads are acceptable. The destination URL must be to your Independent Momentum Partner website. The display URL must also be to your Independent Momentum Partner website and must not depict any URL that could lead a user to assume they are being directed to a Momentum Network corporate site or otherwise be inappropriate or misleading in any manner.
K. External Websites
You are permitted to have external websites to promote your Momentum Network business and the Momentum opportunity. If you wish to use an external website, you must do the following:
- Identify yourself as an Independent Momentum Partner for Momentum Network.
- Use only Momentum Network authorized, approved images and copy.
- Comply with the brand, trademark, and image-use policies described in this document.
- Agree to modify your website to comply with current or future Momentum Network policies.
You are solely responsible and liable for your own website’s content, messages, claims, and information, and must ensure your website properly represents and enhances the Momentum Network brand and complies with all Momentum Network guidelines and policies. In addition, your website must not contain dishonest pop-up ads or promotions or malicious code. Decisions and corrective actions in this area are within Momentum’s sole discretion. You are encouraged to use approved Momentum Network images that are available through the business toolkit.
L. Independent Momentum Partner Image Mandate
When using a social network or external website, it must contain:
- A Momentum Network logo from approved templates.
- Your name and title (example: Joan Arc, Independent Momentum Partner, Momentum Network).
- A link to your replicated Independent Momentum Partner website.
While Momentum Network brand themes and images are desirable for consistency, anyone landing on your page must clearly understand they are on an Independent Momentum Partner site, not a Momentum Network corporate page.
4.5 – Advertised Price
You may not advertise any Momentum Network service at a price LOWER than the Company’s highest published price for the equivalent service. Advertising special incentives is not permitted. This includes, but is not limited to, free membership offers or other offers that provide advantages beyond those available through the Company.
4.6 – Generic Business Advertisements
If advertising through newspapers or other media, the following rules apply:
- No advertisement may imply that a job, position, salary, or any type of employment is available.
- No advertisement may promote, represent, or imply salaried positions, management positions, hourly wages, full-time or part-time employment, or guaranteed income. The Momentum Network opportunity is not a job and may not be presented as such. Terms such as “manager trainee,” “management positions available,” “travel provided,” “call for interview,” “positions available,” “now hiring,” and other misleading statements are not permitted.
- No specific income may be promised or implied, and any reference to compensation must use the word “commissions” to indicate the independent contractor status of Independent Momentum Partners.
- Advertisements may not contain references to Momentum Network or its services and may not use any Momentum Network trademarks or trade names.
- It is strictly prohibited to market or post the Momentum Network opportunity as “employment” or a “job offer” on job boards or job resources (including, but not limited to, Indeed, Monster, CareerBuilder, SimplyHired, and similar sites).
Any request for variations to the above rules must be submitted to Momentum Network and approved in writing prior to publication. Please direct any inquiries to [email protected].
4.7 – Media and Media Inquiries
Independent Momentum Partners must not initiate any interaction with the media nor attempt to respond to media inquiries regarding Momentum Network, its services, or their independent Momentum Network business. All inquiries by any type of media must be immediately referred to the Momentum Network Compliance Department. This policy is designed to ensure that accurate and consistent information is provided to the public, as well as an appropriate public image.
4.8 – Email Communication
Momentum Network does not allow Independent Momentum Partners to send unsolicited emails unless such emails strictly comply with applicable laws and regulations, including relevant anti-spam laws. Any email sent by an Independent Momentum Partner that promotes Momentum Network, the Momentum opportunity, or Momentum Network services must comply with the following:
- There must be a functional return email address to the sender.
- The email must contain a notice advising the recipient that they may respond to the email, through the functional return email address, to request that no further email solicitations or correspondence be sent (a functional “opt-out” notice).
- The email must include the Independent Momentum Partner’s physical mailing address.
- The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.
- The use of deceptive subject lines and/or false header information is prohibited.
- All opt-out requests, whether received by email or regular mail, must be honored. If an Independent Momentum Partner receives an opt-out request from an email recipient, the Independent Momentum Partner must forward the opt-out request to the Company.
Momentum Network may periodically send commercial emails on behalf of Independent Momentum Partners. By entering into the Independent Momentum Partner Agreement, the Independent Momentum Partner agrees that the Company may send such emails and that the Independent Momentum Partner’s physical and email addresses will be included in such emails as described above. Independent Momentum Partners must honor opt-out requests generated as a result of such Company-sent emails. Except as provided in this section, Independent Momentum Partners may not use or transmit unsolicited faxes or use an automatic telephone dialing system in connection with operating their Momentum Network businesses.
G. Telemarketing and cold calls: it is prohibited to make cold calls or initiate mass telephone contact to people with whom you do not have a prior relationship, outside of your warm market, or in violation of Do-Not-Call rules and applicable state laws.
H. Autodialers, prerecorded messages, and automation: it is prohibited to use automatic dialing systems, prerecorded messages/robocalls, or automated systems to promote Momentum Network, except where legally permitted, with the required consent, and (when applicable) with prior written authorization from the Compliance Department.
I. Flyers, pamphlets, and printed materials: distributing flyers, brochures, or materials not produced or approved by Momentum Network for the purpose of acquiring Customers or Independent Momentum Partners is prohibited.
J. Informal markets: marketing or recruiting at flea markets, garage sales, swap meets, or similar events is prohibited, as it does not align with the professional image the Company seeks to maintain.
K. TV/Radio advertising: Independent Momentum Partners will not use radio or television media to advertise or promote Momentum Network services or the Momentum opportunity without prior written authorization from the Company.
L. Messaging and SMS: sending SMS or automated messaging for commercial purposes must comply with applicable consent and legal requirements (including TCPA and state rules). It is prohibited to send unsolicited bulk SMS or ignore unsubscribe/do-not-contact requests.
SECTION 5 – OPERATING A MOMENTUM NETWORK BUSINESS
5.1 – Business Entities
A corporation, partnership, or trust (collectively referred to in this section as a “Business Entity”) may apply to be an Independent Momentum Partner by submitting an Independent Momentum Partner Application and Agreement along with its Certificate of Incorporation, Articles of Organization, Partnership Agreement, or trust documents (collectively, the “Entity Documents”) to Momentum Network. A Momentum Network business may change its status under the same Sponsor from an individual to a partnership, corporation, or trust, or from one type of entity to another. To do so, the Partner(s) must provide the Entity Documents to Momentum Network. The Partner application must be signed by all shareholders, partners, or trustees. The members of the entity are jointly and severally responsible for any debt or other obligation to Momentum Network.
5.1.1 – Changes in a Business Entity
Each Independent Momentum Partner must immediately notify Momentum Network of any change in the type of business entity used to operate his or her Momentum Network business, and of the addition or removal of business associates. A Momentum Network business may change its status under the same sponsor from an individual to a partnership, corporation, or trust, or from one type of entity to another. The Partner Agreement form must be signed by all shareholders, partners, or trustees. The members of the entity are jointly and severally responsible for any debt or other obligation to Momentum Network.
5.1.2 – Change of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all Independent Momentum Partners, Momentum Network rarely permits sponsor changes, with the rare exception of direct upline changes (meaning placement is not affected). A direct upline change request must be made by submitting a completed Sponsor Change Request Form within seven (7) days of the enrollment date and must come from the currently listed sponsor.
5.1.3 – Change of Placement
A request for a placement change must be submitted within seven (7) days of the enrollment date and must be requested by the currently listed sponsor. An Independent Momentum Partner may be moved only within the same sponsor organization. If approved, an Independent Momentum Partner is placed in the first available open position at the bottom on the date the change is made. Independent Momentum Partners who have earned commissions or achieved a rank are not eligible for placement changes. Please note that decisions on any change request (sponsor or placement) are within Momentum Network’s sole discretion.
5.2 – Unauthorized Claims and Actions
5.2.1 – Indemnification
An Independent Momentum Partner is fully responsible for all verbal and/or written statements made regarding Momentum Network services and the Compensation Plan that are not expressly contained in Momentum Network Official Materials. Independent Momentum Partners agree to indemnify and hold Momentum Network harmless from all liability, including judgments, civil penalties, refunds, attorney fees, court costs, or loss of business incurred by Momentum Network as a result of the Independent Momentum Partner’s unauthorized representations or actions. This provision survives cancellation of the Independent Momentum Partner Agreement.
5.2.2 – Endorsements of Momentum Network Services
No claims may be made regarding any service offered by Momentum Network except those contained in Momentum Network Official Materials.
5.3 – Conflicts
5.3.1 – Non-Solicitation
Independent Momentum Partners are free to participate in other network marketing businesses or marketing opportunities (collectively “Network Marketing”). However, during the term of this Agreement, Independent Momentum Partners may not directly or indirectly recruit other Independent Momentum Partners or Customers, who are not personally sponsored by them, for any other Network Marketing business. After cancellation of an Independent Momentum Partner Agreement, and for a period of one (1) calendar year thereafter, a former Independent Momentum Partner may not recruit any Independent Momentum Partner or Customer for another Network Marketing business.
5.3.2 – Sale of Competitive Goods or Services
During this Agreement and for 12 months thereafter, Independent Momentum Partners must not sell, nor attempt to sell, any non-Momentum Network program that is competitive. Any program, product, service, or direct-sales opportunity in the same general categories as Momentum Network services is considered competition, regardless of differences in cost, quality, or other distinguishing factors.
5.3.3 – Focusing on Other Direct Sellers
If Independent Momentum Partners engage in soliciting and/or enticing members of another direct sales company to sell or distribute Momentum Network services, they risk being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against an Independent Momentum Partner alleging improper recruiting activities of that company’s sales force or Customers, Momentum Network will not pay any defense costs or legal fees for the Independent Momentum Partner, nor indemnify the Independent Momentum Partner for any judgment, award, or settlement.
5.3.4 – Privacy and Confidentiality
All Independent Momentum Partners must comply with the Company’s Privacy Policy regarding Independent Momentum Partner and customer information.
5.3.5 – Data Management Rule
The Data Management Rule is intended to protect the Line of Sponsorship (LOS) for the benefit of all Independent Momentum Partners and Momentum Network. LOS information is information compiled by Momentum Network that reveals or relates to all or part of the specific sponsorship arrangement within the Momentum Network business, including, without limitation, Partner lists, sponsorship trees, and all Partner information generated therefrom, in present and future forms. Momentum Network’s LOS constitutes a unique, commercially advantageous, proprietary trade secret (“Proprietary Information”) that Momentum Network keeps proprietary, confidential, and treats as a trade secret. Momentum Network is the sole owner of all Proprietary Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by Momentum Network and its Partners. Through this Rule, Independent Momentum Partners are granted a personal, non-exclusive, non-transferable, and revocable right (revocable by Momentum Network) to use the Proprietary Information only as necessary to facilitate their business as contemplated under these Policies and Procedures. The Company reserves the right to deny or revoke this right, upon reasonable notice to the Independent Momentum Partner stating the reason(s) for such denial or revocation, provided that, in Momentum Network’s reasonable opinion, such action is necessary to protect the confidentiality or value of the Proprietary Information. All Independent Momentum Partners shall hold Proprietary Information in the strictest confidence and take all reasonable and appropriate measures to safeguard Proprietary Information and maintain its confidentiality.
5.4 – Cross Sponsoring
Actual or attempted cross sponsoring of any Independent Momentum Partner from one lateral group to another branch of business within Momentum Network or to any other Network Marketing opportunity is strictly prohibited. “Cross sponsoring” is defined as the enrollment, directly or indirectly, of an individual or entity who already has a current customer number or an Independent Momentum Partner Agreement on file with Momentum Network, or who has had such an agreement within the previous six (6) calendar months. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, Federal Tax Identification Numbers, or fictitious identification numbers to circumvent this policy is prohibited. This policy does not prohibit the transfer of a Momentum Network business in accordance with the “Sale, Transfer, or Assignment of a Momentum Network Business” section of these Policies and Procedures.
5.5 – Government Approval or Endorsement
Neither federal nor state regulatory agencies nor officials approve or endorse any direct sales or network marketing company or programs. Therefore, Independent Momentum Partners must not represent or imply that Momentum Network or its Compensation Plan has been “approved,” “endorsed,” or otherwise sanctioned by any government agency.
5.6 – Identification
All Independent Momentum Partners must provide their Social Security Number, Federal Employer Identification Number, or government-issued identification number to Momentum Network either in the Independent Momentum Partner Agreement or upon Company request. Upon enrollment, the Company will provide a unique Independent Momentum Partner Identification Number by which the Partner will be identified. This number will be used to place orders and track commissions and bonuses.
5.7 – Income Taxes
Each year, Momentum Network will provide an IRS Form 1099-MISC earnings statement (Nonemployee Compensation) to each U.S. resident as required by the Internal Revenue Service. Each Independent Momentum Partner is responsible for paying local, state, and federal taxes on any income generated as an Independent Momentum Partner. If a Momentum Network business is tax-exempt, the Federal Tax Identification Number must be provided to Momentum Network. Any Independent Momentum Partner who does not provide a valid Social Security Number is subject to federal backup withholding laws, and 28% of his or her commissions and bonuses will be withheld and remitted to the IRS.
5.8 – Independent Contractor Status
You are an independent contractor. You are not an agent, employee, partner, or in a joint venture with the Company. You may not represent yourself as anything other than an Independent Momentum Partner. You have no authority to bind Momentum Network to any obligation. You are responsible for paying your own self-employment taxes, federal income taxes, and other taxes required by law. You must obey all federal, state, and local laws, as well as the Company’s rules and regulations related to your Independent Momentum Network business or the acquisition, receipt, holding, sale, distribution, or advertising of Momentum Network services.
5.9 – Bonus Buying
Subscribing to services solely for the purpose of collecting bonuses or achieving a rank is prohibited. All services purchased by Independent Momentum Partners must be specifically for personal use.
5.10 – Stacking
Stacking is the unauthorized manipulation of the Momentum Network compensation system and/or marketing plan to trigger commissions or cause an Independent Momentum Partner in the downline to be promoted in an unearned manner. An example of stacking occurs when a sponsor places participants under an active or inactive downline Partner (who may not know or have any relationship with the customers) to trigger an unearned commission qualification. Another example is the manipulative placement of Independent Momentum Partners within a downline organization to trigger a promotion. Stacking is unethical and unacceptable behavior and is punishable by measures up to and including termination of the Independent Momentum Partner positions of all individuals found to be directly involved.
5.11 – One Momentum Business per Independent Momentum Partner
An Independent Momentum Partner may operate or have an ownership interest, legal, equitable, direct or indirect, in only one (1) Momentum Network business. No person may have, operate, manage, control, influence, benefit from, or receive compensation, directly or indirectly, from more than one (1) Momentum Network business, unless Momentum Network grants prior, express written authorization. Any such authorization will be granted only exceptionally, interpreted restrictively, and subject to ongoing compliance with all Company Policies and Procedures.
For all purposes of the Agreement, these Policies, and the Compensation Plan, persons who are legally married to each other will be considered by Momentum Network as one and the same economic and operating entity. Accordingly, legally married persons may not, under any reason or circumstance, operate, own, manage, control, sponsor, or participate in two (2) separate Momentum Network businesses, directly or indirectly, regardless of their place of residence, marital property regime, separation of assets, prenuptial or postnuptial agreements, use of separate legal entities, distinct tax identification numbers, separate bank accounts, trade names, DBAs, trusts, corporations, partnerships, straw third parties, or any other legal, contractual, or administrative mechanism.
Persons who live in the same residence but are not legally married to each other may operate independent Momentum Network businesses only when each business is truly independent, with no shared control, no shared direct or indirect economic benefit, no strategic coordination, no cross sponsoring, no stacking, no simulation, no collusion, and no other conduct that, in Momentum Network’s sole discretion, has the purpose or effect of evading these Policies, manipulating the Compensation Plan, or undermining the integrity of the network. The burden of proving such independence rests exclusively on the Partners involved.
Any attempt to evade, circumvent, or simulate compliance with this policy, whether through the use of family members, friends, third parties, legal entities, apparent transfers, undisclosed private agreements, or other artifices, constitutes a material and serious breach of the Agreement.
Failure to comply with this policy may result, at Momentum Network’s sole discretion, in one or more of the disciplinary measures set forth in Section 9 of these Policies and Procedures, including involuntary termination of the Agreement.
5.12 – Succession
Upon the death or incapacity of an Independent Momentum Partner, his or her business may be passed to designated heir(s). Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Provided that a Momentum Network business is transferred by will or other probate process, the beneficiary acquires the right to collect all bonuses and commissions from the marketing organization of the deceased Independent Momentum Partner, provided the following qualifications are met:
- Execute an Independent Momentum Partner Agreement.
- Comply with the terms and provisions of the Agreement.
- Meet all qualifications for the rank/status of the deceased Independent Momentum Partner.
- Provide Momentum Network a “record address” to which all bonus and commission checks will be sent. Bonus and commission checks of a business transferred under this section will be paid in a single check jointly to the successor(s).
- Form a business entity and obtain a federal taxpayer identification number if the business is bequeathed to joint successors. Momentum Network will issue all bonus and commission checks and a 1099 to the business entity.
5.13 – Sale, Transfer, or Assignment of a Momentum Network Business
Although a Momentum Network business is a private business, independently operated, the sale, transfer, or assignment of a Momentum Network business is subject to certain limitations. If an Independent Momentum Partner wishes to sell his or her Momentum Network business, the following criteria must be met:
- The new owner must be an existing Independent Momentum Partner; otherwise, he or she will be required to enroll as such.
- The protection of the existing line of sponsorship must always be maintained so that the Momentum Network business continues operating in that line of sponsorship.
- A specified administrative transfer fee applies.
- Before the sale, transfer, or assignment can be finalized and approved by Momentum Network, any debt obligations of the selling Independent Momentum Partner to Momentum Network must be satisfied.
- The selling Independent Momentum Partner must be in good standing and not in violation of any terms of the Agreement to be eligible to sell, transfer, or assign a Momentum Network business.
Before selling a Momentum Network business, the selling Independent Momentum Partner must notify Momentum Network by email at [email protected] of the intent to sell the Momentum Network business. No changes in the line of sponsorship may result from the sale or transfer of a Momentum Network business. An Independent Momentum Partner may not sell, transfer, or assign portions of his or her business; the position must be sold in its entirety.
5.14 – Separation of a Momentum Network Business
At times, Independent Momentum Partners operate their Momentum Network businesses as partnerships, corporations, or other legal entities. In the event of a separation or division of the business due to divorce or dissolution of the entity, arrangements must be made to ensure that the interests and income of other Partners and the Company are not adversely affected. If the separating parties do not timely provide for the best interests of other Partners and the Company, Momentum Network may take appropriate action, including cancellation of the Independent Momentum Partner Agreement.
During the divorce or dissolution process, the parties must adopt one of the following methods of operation:
- One party may, with the consent of the other party(ies), operate the Momentum Network business pursuant to a written assignment in which the resigning partner/shareholder/partner/trustee authorizes Momentum Network to deal directly and exclusively with the other non-resigning partner/shareholder/partner/trustee.
- The parties may continue operating the Momentum Network business jointly on a “business as usual” basis, in which case all compensation paid by Momentum Network will be paid in accordance with the status quo as it existed prior to the filing of divorce or dissolution proceedings. This is the default procedure if the parties do not agree to the format set forth above. The Company will never remove a party from a Partner position on an account without that party’s written permission and signature. Under no circumstances will Momentum Network split the downline organization of divorcing Partners or dissolving business entities. Under no circumstances will Momentum Network split commission payments between divorcing Partners or members of dissolving entities. Momentum Network will recognize only one downline organization and will issue only one commission payment per Momentum Network business per commission cycle. Commission payments will always be issued to the same individual or entity. If the parties to a divorce or dissolution proceeding cannot resolve a dispute regarding commission disposition and business ownership in a timely manner as determined by the Company, the Independent Momentum Partner Agreement will be involuntarily canceled.
5.15 – Sponsorship
All qualified Independent Momentum Partners in good standing have the right to sponsor and enroll others in Momentum Network. Each prospective Customer or prospective Independent Momentum Partner has the ultimate right to choose his or her own Sponsor. If two Independent Momentum Partners claim to be the Sponsor of the same new Independent Momentum Partner or Customer, the Company will consider the first application received by the Company to prevail.
5.16 – Customers Who Become Independent Momentum Partners
Existing Customers may become Independent Momentum Partners by paying the conversion fee.
SECTION 6 – RESPONSIBILITIES OF INDEPENDENT MOMENTUM PARTNERS
6.1 – Change of Address, Phone, Email Address
To ensure timely communications, delivery of support materials, and commission payments, it is critically important that Momentum Network records are current. Independent Momentum Partners planning to move or change their email address must submit a completed amended Independent Momentum Partner Agreement with the new information.
6.2 – Responsibilities of the Sponsoring Independent Momentum Partner
6.2.1 – Initial Training
Any Independent Momentum Partner who sponsors another Independent Momentum Partner in Momentum Network must perform a genuine assistance and training function to ensure his or her downline is operating the Momentum Network business properly. Independent Momentum Partners must provide the most current version of the Policies and Procedures, the Income Disclosure Statement, and the Compensation Plan to the persons they are sponsoring to become Independent Momentum Partners before the applicant signs an Independent Momentum Partner Agreement.
6.2.2 – Ongoing Training Responsibilities
Independent Momentum Partners must supervise Independent Momentum Partners in their downline organizations to ensure they do not make improper claims about the products or the business, nor engage in illegal or inappropriate conduct. Upon request, each Independent Momentum Partner should be able to provide Momentum Network documented evidence of ongoing compliance with Sponsor responsibilities.
6.3 – Non-Disparagement
Independent Momentum Partners must not defame, disparage, or make negative comments about Momentum Network, other Independent Momentum Partners, Momentum Network services, the Compensation Plan, or Momentum Network owners, board members, directors, officers, or employees.
6.4 – Reporting Policy Violations
Independent Momentum Partners who observe a violation of the Policies by another Independent Momentum Partner must send an email to [email protected] regarding the violation, including all supporting evidence and pertinent information. It is important to understand that the information submitted will be kept confidential.
SECTION 7 – BILLING
7.1 – Automatic Billing
Memberships renew automatically every 30 days using the payment method on file (including the Optima Membership, when applicable). If an Independent Momentum Partner has an outstanding weekly balance or a monthly payment due, the next month’s fees may be deducted from the outstanding balance.
SECTION 8 – BONUSES AND COMMISSIONS
8.1 – Qualifications for Bonuses and Commissions
To qualify to receive commissions as described in the Momentum Network Compensation Plan, an Independent Momentum Partner must be Qualified and in good standing and comply with the terms of the Independent Momentum Partner Agreement and these Policies and Procedures. From time to time, Momentum Network will run contests and promotions outside the Compensation Plan. To qualify for additional compensation related to a contest or promotion, the Independent Momentum Partner must be Qualified during the contest or promotion term, and any Independent Momentum Partner or Customer requirements needed to qualify for such additional compensation must be Qualified and/or Active during the duration of the contest or promotion.
8.2 – Prohibition of Bonus Buying
Bonus buying is strictly and absolutely prohibited. Bonus buying includes: (a) enrolling individuals or entities without the knowledge and/or execution of an Independent Momentum Partner Agreement by such individuals or entities; (b) fraudulently enrolling an individual or entity as an Independent Momentum Partner or Customer; (c) enrolling or attempting to enroll non-existent individuals or entities as Independent Momentum Partners or Customers (“phantoms”); (d) purchasing Momentum Network services in the name of another Independent Momentum Partner or Customer, or under another Independent Momentum Partner’s or Customer’s identification number, to qualify for commissions or bonuses; (e) enrolling an Independent Momentum Partner or Customer using your own credit card for the purpose of qualifying for bonuses; (f) enrolling Customers who are not independent for the purpose of qualifying for bonuses; and/or (g) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by legitimate purchases of products or services by end consumers.
8.3 – Reports
All information provided by Momentum Network, including but not limited to personal sales volume (or any portion thereof) and downline enrollment activity, is believed to be accurate and reliable. However, due to factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; credit card payment denials; and commission disbursements, an Independent Momentum Partner whose Agreement is canceled will receive commissions and bonuses only for the last complete pay period in which he or she worked before cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation). A Momentum Network participant has the right to cancel at any time, regardless of the reason. The cancellation request must be sent by email to [email protected]. To process the cancellation request, the Momentum participant must send the email from the email address registered on his or her Momentum Network account(s). IMPORTANT NOTE: A Momentum Network account may only be canceled by the account holder.
8.4 – Administrative Fees
Administrative fees of $3.99 will be deducted from commissions. Returned payments will result in a $30 return fee for the Independent Momentum Partner.
8.5 – Delay in Commission Payments
Momentum Network is not responsible for lost commissions or delayed payments due to any of the following: (i) the Agreement is not on file with Momentum Network or is incomplete, incorrectly completed, or not executed; (ii) improper notice of a change of address has occurred; (iii) outdated forms are submitted to Momentum Network; or (iv) there are problems processing customer information.
8.6 – Refunds, Chargebacks, and Commission Adjustments
In the event of refunds, returns, cancellations, chargebacks, or returned payments, Momentum Network may adjust, withhold, recover, or offset related bonuses and commissions, to the extent permitted by law and by the then-current Compensation Plan.
- A. Deductions: Momentum Network may deduct from future commissions amounts previously paid in commissions/bonuses associated with the refund or chargeback.
- B. Additional recovery: If future commissions are not sufficient to cover the adjustment, the Independent Momentum Partner authorizes the Company to apply any other balance in favor or to require payment of the amount owed, in accordance with the Policies and applicable law.
- C. Abuse prevention: The Company may investigate unusual patterns of refunds/chargebacks and apply disciplinary measures pursuant to Section 9 when appropriate.
- D. Chargeback Protection Fee: For each chargeback, an administrative protection fee (“Chargeback Protection Fee”) will be charged in the amount in effect at Momentum at the time the chargeback is processed. This fee may vary and increase over time and will be applied according to Momentum’s published or established price for that fee at that time.
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEDURES
9.1 – Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive, or unethical business conduct, or any act or omission by an Independent Momentum Partner that, in the Company’s sole discretion, may damage its reputation or goodwill (such harmful act or omission need not be related to the Independent Momentum Partner’s Momentum Network business), may result, at Momentum Network’s discretion, in one or more of the following corrective measures:
- Issuance of a written warning or reprimand.
- Requiring the Independent Momentum Partner to take immediate corrective action.
- Imposition of a fine, which may be withheld from bonus and commission payments.
- Loss of rights to one or more bonus and commission payments.
- Withholding all or part of the Independent Momentum Partner’s bonuses and commissions during the period Momentum Network is investigating any allegedly Agreement-violating conduct. If an Independent Momentum Partner’s business is canceled for disciplinary reasons, the Independent Momentum Partner will not be entitled to recover any commissions withheld during the investigation period.
- Suspension of the individual’s Independent Momentum Partner Agreement for one or more pay periods.
- Involuntary termination of the violator’s Independent Momentum Partner Agreement.
- Any other measure expressly permitted within any provision of the Agreement or that Momentum Network deems practical to implement and appropriate to equitably resolve injuries caused partially or exclusively by the policy violation or contractual breach.
- Initiating legal proceedings for monetary and/or equitable relief.
Each violation is reviewed case by case, and all disciplinary actions are within Momentum Network’s sole discretion.
9.2 – Mediation
Before initiating arbitration, the parties will meet in good faith and attempt to resolve any dispute arising out of or relating to the Agreement through non-binding mediation. A mutually acceptable person will be appointed as mediator. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, will be divided equally between the parties. Each party will pay its share of the shared fees and costs in advance at least ten (10) days before the mediation. Each party will pay its own attorneys’ fees, costs, and individual expenses associated with conducting and attending mediation. The mediation will be held in Miami, Florida, and will last no more than two (2) business days.
9.3 – Arbitration
If mediation is unsuccessful, any controversy or claim arising out of the Agreement or its breach will be resolved by confidential arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and the award rendered by the arbitrator may be entered in any court having jurisdiction. Independent Momentum Partners waive all rights to a jury trial or any court. All arbitration proceedings will be held in Miami, Florida. All parties will be entitled to all discovery rights in accordance with the Federal Rules of Civil Procedure. There will be one arbitrator, an attorney, who must have experience in business-law transactions with a strong preference for being an attorney knowledgeable in the direct selling industry, selected from the panel provided by the American Arbitration Panel. Each party to the arbitration will be responsible for its own arbitration costs and expenses, including legal and filing fees. The arbitrator’s decision will be final and binding on the parties and, if necessary, may be reduced to judgment in any court of competent jurisdiction. This arbitration agreement survives any termination or expiration of the Agreement.
NO CLASS ACTION, REPRESENTATIVE ACTION, OR PRIVATE ATTORNEY GENERAL ACTION, NOR THE JOINDER OR CONSOLIDATION OF A CLAIM WITH ANOTHER PERSON’S CLAIM OR CLASS OF CLAIMANTS, WILL BE PERMITTED.
Nothing in these Policies and Procedures prevents Momentum Network from seeking and obtaining from any court with jurisdiction an attachment order, temporary restraining order, preliminary injunction, permanent injunction, or other available relief to safeguard and protect Momentum Network’s interest before, during, or after the filing of any arbitration or other proceeding or pending a decision or award in connection with any arbitration or other proceeding.
9.4 – Governing Law, Jurisdiction, and Venue
Jurisdiction and venue for any matter not subject to arbitration shall reside exclusively in Miami, Florida. The Federal Arbitration Act governs all matters related to arbitration. Florida law governs all other matters related to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision in this Agreement, residents of the State of Louisiana have the right to bring an action against Momentum Network in their local forum and in accordance with Louisiana law.
SECTION 10 – EFFECT OF CANCELLATION
10.1 – Effect of Cancellation and Termination
As long as an Independent Momentum Partner remains Qualified and complies with the terms of the Independent Momentum Partner Agreement and these Policies, Momentum Network will pay commissions to that Independent Momentum Partner in accordance with the Compensation Plan. An Independent Momentum Partner’s bonuses and commissions constitute the total consideration for the Independent Momentum Partner’s efforts in generating sales and all activities related to generating sales (including, but not limited to, building a downline organization). After non-continuation, cancellation for inactivity, or voluntary or involuntary cancellation (termination) of an Independent Momentum Partner Agreement (collectively, “Cancellation”), the former Independent Momentum Partner will have no right, title, claim, or interest in the downline organization he or she operated, nor in any commission or bonus from sales generated by that organization. Independent Momentum Partners waive any and all rights, including but not limited to property rights, in the downline they may have had.
After cancellation, the former Independent Momentum Partner will not represent himself or herself as an Independent Momentum Partner and will have no right to sell Momentum Network products or services. An Independent Momentum Partner whose Agreement is canceled will receive commissions and bonuses only for the last complete pay period in which he or she worked before cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
A Momentum Network participant has the right to cancel at any time, regardless of the reason. Cancellation must be sent by email to [email protected]. To process cancellation, the Momentum participant must send the email from the email address registered on his or her Momentum Network account. IMPORTANT NOTE: A Momentum Network account may only be canceled by the account holder.
SECTION 11 – DEFINITIONS
For purposes of these Policies and Procedures, the following definitions apply:
AGREEMENT:
The contract between the Company and each Independent Momentum Partner; includes the Independent Momentum Partner Agreement, the Momentum Network Policies and Procedures, and the Momentum Network Compensation Plan, all in their current form and as amended by Momentum Network at its sole discretion. These documents are collectively referred to as the “Agreement.”
CANCEL:
Termination of an Independent Momentum Partner’s business. Cancellation may be voluntary, involuntary, or for non-renewal after sixty (60) days of Inactive status.
COMPENSATION PLAN:
The guidelines and reference literature describing how Independent Momentum Partners may generate commissions and bonuses.
CUSTOMER:
A customer who purchases Momentum Network services and does not participate in building a business or selling the service.
MOMENTUM PARTNER:
An individual who purchases service plans, generates sales, and earns commissions by building a business.
LINE OF SPONSORSHIP (LOS):
A report generated by Momentum Network that provides critical data related to the identities of Independent Momentum Partners, sales information, and enrollment activity of each Independent Momentum Partner’s organization. This report contains confidential information and trade secrets owned by Momentum Network.
ORGANIZATION:
The Customers and Independent Momentum Partners placed beneath a particular Independent Momentum Partner.
MOMENTUM NETWORK OFFICIAL MATERIALS:
Literature, audio or video tapes, and other materials developed, printed, published, and distributed by Momentum Network to Independent Momentum Partners.
PLACEMENT:
Your position within your Sponsor’s organization.
RECRUIT:
For purposes of Momentum Network’s Conflict of Interest Policy, the term “Recruit” means the solicitation, enrollment, encouragement, or current or attempted effort to otherwise influence, directly or indirectly, or through a third party, another Independent Momentum Partner or Customer to enroll or participate in another multi-level marketing, network marketing, or direct selling opportunity.
SPONSOR:
An Independent Momentum Partner who enrolls a Customer or another Independent Momentum Partner in the Company and is listed as the Sponsor on the Independent Momentum Partner Agreement. The act of enrolling others and training them to become Independent Momentum Partners is called “sponsoring.”
UPLINE:
In the context of Momentum Network, the term “UPLINE” refers to the Independent Momentum Partners above a particular Independent Momentum Partner in a line of sponsorship up to the Company. It is the sponsor line linking any particular Independent Momentum Partner to the Company.
SECTION 12 – REGULATORY COMPLIANCE (FTC, TSR, CROA, TCPA, CAN-SPAM, FLORIDA AND APPLICABLE STATE RULES)
12.1 – Purpose and Scope
This section establishes mandatory compliance rules to protect Momentum Network (the “Company”), Independent Momentum Partners, and consumers. It applies to all promotion, referrals, sales, recruiting, and communication related to Momentum Network, including calls, SMS, emails, direct messaging, social media, in-person events, webinars, paid ads, external pages, and any digital or printed content. These rules do not replace legal advice; each Independent Momentum Partner is responsible for complying with all applicable federal, state, and local laws, in addition to the Agreement, these Policies, the Compensation Plan, Section 3 (IDS), and the Company’s current Official Materials.
12.2 – General Rules Against Deceptive Practices (FTC)
A. Making false or misleading statements, or omitting material information, in any advertisement, post, call, message, or presentation is prohibited.
B. Any statement about results, income, costs, timelines, benefits, approvals, “guarantees,” or probabilities must be truthful, substantiable, and consistent with Official Materials.
C. Representing or implying that Momentum Network, its services, or its Compensation Plan are “approved,” “endorsed,” or “certified” by a government agency, credit bureaus, or regulatory bodies is prohibited.
D. Deceptive tactics such as false urgency, simulated scarcity, unverifiable comparisons, absolute claims (“always,” “guaranteed”), or any practice that could mislead a reasonable consumer are prohibited.
12.3 – Essential Clarification: Momentum Network Does Not Perform Credit Restoration/Repair; Optima and Provider
A. Momentum Network does not provide, perform, or execute credit restoration/repair services and is not the direct provider of such services.
B. Credit restoration/repair offered under the Optima membership (Optima Membership), when applicable, is provided through Momentum American Credit, a non-profit organization.
C. In all communications (calls, messages, social media, presentations, ads, web pages, and events), the Independent Momentum Partner must clearly disclose that: (1) Momentum Network does not perform credit repair; and (2) the service (when applicable) is provided by Momentum American Credit under its own terms, processes, disclosures, and contracts.
D. It is strictly prohibited to represent or imply that Momentum Network “fixes credit,” “removes negatives,” “raises the score,” or “guarantees approvals,” or that the consumer contracts such services directly with Momentum Network.
E. Promising specific or guaranteed results is prohibited (e.g., “we will raise your score by X points,” “we remove everything in X days,” “approval guaranteed,” “loan guaranteed”), whether attributed to Momentum Network, Optima, or Momentum American Credit.
F. The Independent Momentum Partner must always identify as an independent contractor and avoid any appearance of being a credit bureau, government agency, law firm, or official entity.
12.4 – Mandatory Rules for Communications About Credit Restoration/Repair (CROA and Applicable Rules)
If an Independent Momentum Partner participates directly or indirectly in activities related to credit restoration/repair (including referrals, lead capture, follow-up, closing, or collections), he or she must comply with the following:
A. Prohibition on advance fees when applicable: do not request, demand, charge, or accept payment in violation of applicable law.
B. Written contract: the service must be formalized in writing when required, clearly describing services, costs, estimated timelines, and material conditions.
C. Right to cancel: the consumer must receive and understand the right to cancel within the applicable legal timeframe (including the 3 business-day period when applicable), with clear instructions.
D. Mandatory disclosures: required legal disclosures must be delivered and acknowledgments/signatures retained where required by law.
E. No guaranteed results: promising specific or guaranteed results is prohibited.
F. Prohibition on improper or fraudulent advice: it is prohibited to instruct a consumer to dispute information that the Independent Momentum Partner knows or should know is accurate, or to suggest fraudulent practices (e.g., creating a new credit identity).
G. Role transparency: the Independent Momentum Partner must clearly describe his or her role (referrer/affiliate/Independent Partner), avoiding any appearance of an official entity.
H. Data protection: collecting, storing, or sharing sensitive consumer information (e.g., SSN, ID, credit reports) outside Company-authorized processes, forms, and systems and/or those of the applicable provider is prohibited.
12.5 – Telemarketing and Consumer Contact (TSR, Do-Not-Call, TCPA, and State Laws)
If an Independent Momentum Partner conducts or coordinates calls, SMS, or campaigns that qualify as telemarketing, he or she must:
A. Make clear disclosures at the outset: identity of the contact, identification as an Independent Momentum Partner, commercial purpose, and nature of the service/offer.
B. Avoid misrepresentations: false statements about prices, terms, refunds, “likelihood of success,” risks, or conditions are prohibited.
C. Respect Do-Not-Call / Do-not-contact: honor “do not call/do not contact” requests and maintain internal suppression lists; comply with applicable Do Not Call registries.
D. Respect legal contact hours and any consumer-specific restrictions.
E. Use technology only when legal: prerecorded/robocalls, automated systems, or automated dialing only with the required consent and legal requirements.
F. Maintain reasonable records: scripts, materials, consents, opt-out/no-call proof, and campaign documentation.
G. It is prohibited to conceal or falsify identity, manipulate Caller ID, or use equivalent deceptive practices.
12.6 – Recruiting and Network Marketing Rules (Anti-Pyramid Focus and Income Claims)
A. Presenting the opportunity as “employment,” “salary,” “position,” “opening,” “fixed income,” or “guaranteed income” is prohibited.
B. Income and lifestyle claims: any claim about income, bonuses, commissions, or lifestyle must comply with Section 3 (IDS) and must be substantiated; the IDS must be provided before discussing income or the Plan.
C. The focus must be legitimate sales of services to end consumers. Promoting recruiting as the primary source of income is prohibited.
D. Inducing purchases or payments primarily to qualify for bonuses/ranks, beyond what is permitted by Official Materials and these Policies, is prohibited.
E. Using screenshots of commissions, back office, deposits, or checks as recruiting material is prohibited unless expressly authorized in writing and compliant with the IDS.
12.7 – Florida: DBPR and Other Applicable State Agencies
When an Independent Momentum Partner contacts or sells to consumers located in Florida, or conducts telemarketing into Florida from any location, he or she must verify and comply with applicable state requirements (e.g., registration/licensing, financial assurances, disclosures, and Do Not Call lists where applicable). Momentum Network may require documentary evidence of compliance as a condition to authorize campaigns or to continue operating in that jurisdiction.
12.8 – Training, Monitoring, Audits, and Sanctions
Momentum Network may require compliance training (FTC/TSR/CROA/TCPA/CAN-SPAM/state laws), review materials and scripts, request evidence of compliance, order removal of non-compliant content, and suspend campaigns. Noncompliance with this section constitutes a material breach of the Agreement and may result in sanctions under Section 9, including involuntary termination.
12.9 – Endorsements, Testimonials, Reviews, and Influencers (Disclosure and Truthfulness)
A. Any testimonial, review, success story, or “lifestyle” content must be real, verifiable, and not misleading.
B. If there is a material connection (commission, discount, incentive, free membership, benefit, or compensation), it must be clearly and visibly disclosed in the same content.
C. Buying fake reviews, posting fabricated testimonials, or incentivizing reviews without disclosing the incentive is prohibited.
D. Editing testimonials in a way that changes their meaning or suggests guaranteed results is prohibited.
12.10 – Digital Communication, Email, and Anti-Spam (CAN-SPAM and Analogous Rules)
A. Sending unsolicited commercial emails or messages is prohibited unless they strictly comply with applicable laws and these Policies.
B. All commercial messages must include functional opt-out mechanisms where applicable, and opt-out requests must be honored promptly.
C. Using deceptive subject lines, false headers, malicious links, or spam practices, including unauthorized automation, is prohibited.
12.11 – Materials, Scripts, and Paid Advertising (Brand Control and Pre-Approval)
A. Any paid advertisement, script, landing page, funnel, recorded webinar, mass posting, creative, or “claim” must be Official Material or have prior written approval from the Compliance Department.
B. Content must direct, when applicable, to Company-authorized links (e.g., the Independent Momentum Partner replicated website) and not to pages that simulate corporate pages or confuse consumers.
C. Publishing or distributing misleading “before/after” content, unverifiable comparisons, or messaging that implies guaranteed results is prohibited.
12.12 – Incident Reporting and Cooperation
Each Independent Momentum Partner must immediately report to [email protected] any significant complaint, investigation, subpoena, lawsuit, or government notice related to credit restoration (including Optima/Momentum American Credit), telemarketing, automated messaging, data privacy, or income claims. Good-faith cooperation in internal compliance investigations is required, including providing materials, ads, scripts, consent records, and opt-out/no-call evidence when requested.
ADDITIONAL DEFINITIONS (COMPLIANCE)
FTC: Federal Trade Commission (U.S. federal agency tasked with protecting consumers from unfair or deceptive practices).
TSR: Telemarketing Sales Rule (federal rule applicable to telemarketing practices and certain transactions, with specific restrictions).
CROA: Credit Repair Organizations Act (federal law applicable to credit repair organizations/services; requires disclosures and prohibits certain practices).
TCPA: Telephone Consumer Protection Act (federal law related to calls, SMS, use of automatic dialing, prerecorded messages, and consent requirements).
CAN-SPAM: U.S. federal law related to commercial email messages and requirements for headers, content, and opt-out.
DBPR: Florida Department of Business and Professional Regulation (state agency regulating multiple businesses and professions in Florida, as applicable).
Telemarketing: Telephone contact or equivalent means (including SMS) to solicit or promote the purchase of goods or services, as defined by applicable law.
Do-Not-Call / Do not call: Consumer request not to receive calls/contact; includes internal suppression lists and applicable registries.
Consent (when applicable): Consumer permission granted in the format and scope required by applicable law (e.g., express written consent for certain SMS/robocalls).Momentum American Credit: Non-profit organization through which certain services related to credit restoration/repair are provided under the Optima Membership, when applicable.
Optima Membership: Trade name of a membership/plan offered within the Momentum Network ecosystem, as described in the then-current Official Materials.
SECTION 13 – ADDITIONAL PROVISIONS (UPDATE)
The following provisions are added to the current Momentum Network Rules and Conduct document. They do not replace existing sections; they supplement them. In the event of an apparent conflict, the interpretation that preserves the integrity of the Agreement, the Policies, and the Official Materials will prevail, and the Company may issue clarifications.
13.1 – Events and Activities
Any event or activity directly or indirectly linked to Momentum Network or any of its organizations, with an estimated attendance of more than 25 people, must have prior approval from the Company. Events in which tickets/entries are charged or any type of payment is received for access must be managed, administered, and regulated by the Company (including, when applicable, the payment platform, access controls, accounting, and refund policies).
13.2 – Merchandising (Merch) and Handling of Surplus
It is strictly prohibited for an Independent Momentum Partner (or any third party on his or her behalf) to manufacture, sell, resell, or profit from merchandise (merch) that is directly or indirectly related to Momentum Network, its brands, events, leaders, teams, organizations, or community, unless prior written authorization is obtained from the Company. Any merch initiative related to Momentum Network may be created, managed, and regulated only by the Company. When the Company authorizes a specific action, it may establish conditions for design, production, inventory, distribution, and brand control. Any surplus derived from ticket/entry revenue and/or merch sales (when applicable) will be administered and allocated at the Company’s discretion.
13.3 – Intellectual Property (Content Created by an IMP)
All content (including, without limitation, images, audio, videos, scripts, designs, templates, text, and creative pieces) created under an IMP contract may be used by the Company even after the IMP’s contract has ended, to the extent permitted by law and applicable agreements.
13.4 – Six-Month Rule for Sponsor Change
Except for the exceptions expressly permitted in these Policies (e.g., corrections requested within the initial permitted windows and in accordance with Company procedure), to request a sponsor change, the Momentum Partner must have remained inactive for a minimum of 6 consecutive months. Any sponsor change request is subject to review and approval at the Company’s sole discretion and may require additional documentation and verification.
13.5 – Business Inheritance
Momentum Network/IMP businesses may be inherited for up to 3 generations, subject to standard industry requirements, compliance with these Policies, and applicable legal documentation.
13.6 – Independent Education System
It is prohibited to create, operate, promote, or market an independent education system related directly or indirectly to Momentum Network, its programs, its opportunity, or its community, unless prior written authorization is obtained from the Company.
