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POLICIES AND PROCEDURES
Effective September 1, 2012
SECTION I — The Paparazzi Mission Statement
To change the lives of our Consultants and their customers by providing
fashionable and affordable accessories, and by providing an opportunity to
financially benefit their lives and the lives of their families in a positive way.
SECTION 2 — Introduction
2.1 Independent Consultant Agreement
The Independent Consultant Agreement comprises of the following items, any
formal agreement to such Independent Consultant Agreement or any action
representing Paparazzi as an Independent Consultant through the purchase
of product at wholesale price, participation of the compensation plan, or the
retail of any Paparazzi product constitutes an agreement to abide by the
a. The Independent Consultant Agreement
b. The Policies and Procedures (this document)
c. The Paparazzi Compensation Plan
When referring to the Consultant Agreement or Agreement, it is referring to all
of the documents and components as described above. All Independent
Consultants of Paparazzi carry the responsibility to read all components of
the Agreement, and to be compliant with all aspects of said Agreement.
When sponsoring or enrolling a new Independent Consultant into Paparazzi, it
likewise is their responsibility to become familiar with said Agreement and
components thereof before signing the Independent Consultant Agreement
or enrolling through an online form. It is the responsibility of all sponsoring
Consultants to inform their new enrollments of the existence of these
agreements, and that by enrolling as an Independent Consultant they are
bound by such Agreements.
In this document or any component of the Agreement, when referring to
Paparazzi as a corporate structure, and any entities incorporated therein, they
will be referred to by either “Company” or “Paparazzi.”
2.2 Purpose of the Policies and Procedures
The purpose of this Agreement and these Policies and Procedures is to
define the relationship between the Independent Consultant, other
Independent Consultants, and the Company, and to clearly articulate the
expected behavior and acceptable business conduct of all parties involved.
By agreeing to the Independent Consultant Agreement and its components,
the Independent Consultant is required to comply with it and its components,
as well as with all federal, state, and local laws governing the Independent
Consultant’s business activities.
If there are any questions in relation to the Independent Consultant
Agreement all Independent Consultants have their sponsors, and the
corporate Consultant Support staff available to help answer any questions.
2.3 Changes to the Agreement
Paparazzi reserves the right to amend the Agreement and any or all of its
components, as well as its prices and commissionable volume levels, at its
sole and absolute discretion. By executing or agreeing to the Consultant
Agreement or any of its components, a Consultant agrees to abide by all
amendments or modifications that Paparazzi elects to make. Amendments
shall be effective upon notice (or a reasonable attempt to notify) to all
Consultants that the Agreement or any of its components have been
modified. Notification of amendments shall be published in any official
capacity by Paparazzi. Paparazzi shall provide or make available to all
Consultants a complete copy of the amended provisions by one or more of
the following methods: (1) posting on the Company’s official website; (2)
electronic mail (e-mail); (3) inclusion in any Company publications; or (4) any
special mailings. The continuation of a Consultant‘s Paparazzi business,
activity, purchases, or sale of Paparazzi product, as well as any acceptance of
bonuses or commissions constitutes acceptance and agreement of any and
all amendments to the Agreement, any of its components, and the updated
documents in their entirety.
If any amendments or modifications to this Agreement are not acceptable to
the Consultant they have 20 (twenty) days from the Agreements original
publication date to notify the Company and request the termination of their
2.4 Business Delays Beyond Paparazzi's Control
Paparazzi is not responsible for any or all delays or failures in the
performance of its obligations when such performance is made commercially
impractical due to circumstances beyond its reasonable control. This
includes, without limitation, strikes, labor difficulties, riot, war, fire, natural
disasters, death, curtailment of a party’s sources of supply, or government
decrees or orders.
This also applies to third party vendors of Paparazzi and limitations within
their services, including but not limited to delivery of packages or product, or
any other feature, function, or service that is not expressly within the
2.5 Invalid or Unenforceable Policies
If any part of the Agreement is held to be invalid or unenforceable, only that
invalid or unenforceable portion may be removed and the remainder of the
Agreement shall remain intact and in force.
2.6 Compliance Enforcement
The Company never gives up its right to insist on the Independent
Consultants compliance with the Agreement and with the applicable laws
governing the conduct of a business. No failure of Paparazzi to exercise any
right or power under the Agreement or to insist upon strict compliance by a
Consultant with any obligation or provision of the Agreement, and no custom
or practice of the parties at variance with the terms of the Agreement, shall
constitute a waiver of Paparazzi’s right to demand exact compliance with the
Agreement or any components thereof. Waiver by Paparazzi can be
effectuated only in writing by an authorized officer of the Company.
Paparazzi‘s waiver of any particular breach by a Consultant shall not affect or
impair Paparazzi’s rights with respect to any subsequent breach, nor shall it
affect in any way the rights or obligations of any other Consultant. Nor shall
any delay or omission by Paparazzi to exercise any right arising from a
breach affect or impair Paparazzi’s rights as to that or any subsequent
breach. The existence of any claim or cause of action of a Consultant against
Paparazzi shall not constitute a defense to Paparazzi‘s enforcement of any
term or provision of the Agreement.
Any action or enforcement taken by Paparazzi in relation to a compliance
issue is address solely between Paparazzi and the parties involved. There is
no requirement of notification to any other parties as to the outcome of such
SECTION 3 — Becoming a Consultant
3.1 Requirements to Become a Consultant
To become a Paparazzi Consultant each applicant must:
a. Be of the age of majority in your state of residence, or 18 years of age;
b. Reside in the United States;
c. Have a valid Social Security Number (SSN) or Federal Tax ID Number
d. Read and agree to abide by the company’s Consultant Agreement and
all components therefore;
e. Remit payment of a Consultant Enrollment Fee;
f. Complete and submit (physically or electronically) an Independent
Consultant Application and Agreement to Paparazzi.
New Consultants may enroll online. An application with any secured or
protected information, such as SSN or EIN and credit card information,
represents the personal application and agreement for such actions from the
principle of such secured information. An existing Paparazzi Consultant must
not fill out, sign, or accept the agreement for another Paparazzi Consultant.
Paparazzi reserves the right to reject or deny any new Consultant Agreement
or Application, and/or to reject any Agreement after its execution for any
violation of policy as documented by the Agreement.
3.2 One Consultant Business Per Household /Vested Interest
To uphold the nature of the Paparazzi Compensation Plan, only one
Consultant Business may be open per household. This includes only having
one executed Consultant Agreement per family, married couple, or live-in
resident of the domicile. A corporation or business is also considered a single
unit, household, or domicile for the purpose of this Agreement.
This restriction also includes the limitation that no consultant can have a
vested interest in more than one Consultant's business or Paparazzi account,
including but not limited to: order placing, account management, or any
interest or action in a position with the Paparazzi Tree which may define,
enhance, or create an increase in commissions as a result.
3.3 Consultant Enrollment Fee
Each Consultant is required to pay an enrollment fee of $40 USD. This
enrollment fee covers the cost associated with the data creation of their
account within the Consultant Management software package, supports the
costs associated with management and service, provides the licensing of the
Paparazzi name as an Independent Consultant, and creates a financial
vestment in association with the adherence to the Agreement. In exchange
for the Enrollment Fee, Paparazzi Consultants are free to use the Paparazzi
brand in the distribution of their Paparazzi Inventory, and to purchase the
Paparazzi product at a discounted wholesale price (see Section 3.4). The
Enrollment Fee may be waived only if purchasing a Starter Kit during the
initial enrollment process.
3.4 Consultant Benefits
After an Independent Consultant Application and Agreement has successfully
been completed and accepted by Paparazzi, all the benefits from the
Paparazzi program, including the product offering, marketing materials, and
Compensation Plan are available to the Consultant. These benefits include:
a. The ability to purchase Paparazzi Accessories and products at
b. The ability to retail Paparazzi Accessories with the intention of earning
a retail profit from the sale thereof;
c. The ability to hold house parties, larger parties, or promote larger
shows under the Paparazzi name as an Independent Consultant;
d. The ability to participate in the Paparazzi Compensation Plan (receive
bonuses and commissions, if eligible);
e. The ability to sponsor other Independent Consultants;
f. The ability to receive Paparazzi training and communication;
g. The ability to participate in Paparazzi sponsored events, services,
trainings, motivational functions, and recognition programs;
h. The ability to participate in any promotional or incentive contests and
programs sponsored by Paparazzi for its Consultants.
3.5 Business Entities
Certain types of corporations or businesses can apply to be a Paparazzi
Independent Consultant through the Independent Consultant Agreement.
Business Entities are allowed to retail the product through any medium
available to them (internet, retail store, etc.) as long as the retail or sales price
to the end consumer is never lower (advertised or otherwise) than the
suggested retail price per unit ($5 USD). Any exceptions to the suggested
retail price offering must be approved in writing by an authorized officer of
Paparazzi, and will only be considered for show events. This is in an effort to
protect the business of all Independent Consultants.
During the registration process, all policies still apply that are applicable from
the Agreement. All persons, including consultants, principles, and employees,
of the corporation or business entity are held to the “Vested Interest” clause
in Section 3.2.
After the initial application process, maintaining an Independent Consultant
status and placement within the Paparazzi Commission Tree Structure is
contingent upon the following things:
a. Adhering and maintaining all published policies, Agreements, and
components thereof (be in good standing);
b. Order at least 200 PV of inventory within the previous twelve (12)
consecutive calendar months;
c. Be up-to-date on any invoices, owing balances, or retractions.
If at any point any of the items documented above are not maintained, the
account will be terminated, and the position will be removed from the
Commission Tree structure. At which point the Consultant will lose all claim,
rights, and privileges associated with the former position or account. If at any
point a terminated Consultant wishes to re-engage as a Consultant of
Paparazzi in good standing, the individual may reapply and pending approval
may be re-enrolled into the organization. Reapplying Consultants will not be
placed in previous locations or gain any of their former privileges associated
with their former position.
SECTION 4 — Consultant Relationship with Paparazzi
4.1 Independent Contractor Status
When a Consultant joins Paparazzi, they are an Independent Consultant, or
Independent Contractor. They do not purchase a franchise or business
opportunity, and the agreement between the Independent Consultant and
Paparazzi does not create an employer/employee relationship, partnership, or
joint venture. As a result, the Independent Consultant is solely responsible for
paying all local, state, and federal taxes owed from any compensation
earned, in the form of retail profits retained at the sale of all product or the
bonus/commission plan offered by Paparazzi. Paparazzi will not withhold any
FICA or taxes of any kind from any commission or bonuses paid out.
4.2 Income Taxes
As an Independent Contractor, Independent Consultants will receive an IRS
Form 1099 (Non-employee Compensation) earnings statement to each U.S.
resident that has earnings of over $600 paid from Paparazzi in the previous
The Independent Consultant is solely responsible for paying local, state, and
federal taxes on any income generated as an Independent Consultant. A
copy of all IRS Form 1099s that are generated as a result of the criteria above
will be remitted and sent to the United States Internal Revenue Service for the
applicable tax year. If at any point the Federal Tax Information (name, SSN,
EIN, etc.) provided by the Independent Consultant is wrong or contains an
error, Paparazzi may hold all future earnings until the error is rectified within
Paparazzi’s records and the correction is remitted to the IRS; in these
circumstances, pending the severity of error, the Consultant may be subject
to be liable for any fines incurred by excessive errors submitted to the IRS.
4.3 Reporting Errors
If at any time an Independent Consultant feels that there is an error made by
Paparazzi in regards to data display, volume accumulation, commission
calculation, order delivery, tree placement of consultants, or any other error -
the Consultant has 30 days to notify Paparazzi, in writing, or when the
purported error or incident occurred. Failure to do so will waive Paparazzi’s
liability to correct, rectify, or make any adjustments for the issue in question.
4.4 Limitations of Liability
By signing or agreeing to the Independent Consultant Agreement or any
component thereof, the Independent Contractor agrees to release, discharge,
and hold harmless Paparazzi, and anyone directly affiliated with Paparazzi
(employees, officers, etc.) from any loss or damages, including costs and
fees, incurred or suffered by you as a result of:
d. Any incorrect data or display information displayed by the Virtual
e. The Independent Contractors failure to provide any information to
Paparazzi that may be necessary for Paparazzi to operate its business;
f. The Independent Contractors failure to execute their personal
4.5 Request for Records
A Consultant's request for physical copies of invoices, applications, downline
reports or other records will require a review and approval by the compliance
department and will be subject to a $1.00 charge per page, as well as any
applicable shipping charges.
4.6 Roll-Up of Downline Organization
When a vacancy occurs in a Downline Organization due to the voluntary
termination of a Paparazzi business, all Consultants or positions shifts up one
level in order to fill that vacancy within the organization. This process and the
removal of the terminated position is at the sole discretion and approval of
the company, and may take up to three months to review. Roll-up of Downline
Organization may not be approved in circumstances where there is any
manipulation in the roll-up or termination process, or there is a significant
rank advancement or commission increase that will occur as a result of such
roll-up. In circumstances where Roll-up of the Downline Organization is not
approved then the vacant position will still be terminated, and will remain
empty until the company deems necessary.
When an account is terminated involuntarily by the Company, for any reason,
and the original position had generated a Commission earning in excess of
$50, the position will not be removed from the organization and the
proceeding downline will not be “rolled-up.” This is due to the potential
consequences as detailed above in such moves. The position will remain
there, but be deemed inactive. As a result of Compression in the Paparazzi
Compensation Plan it is anticipated that this activity will not negatively affect
commission payout through the Unilevel program, however it will keep
operated, the sale, transfer, or assignment of it is subject to certain limitations
and corporate approval. If you wish to sell your Paparazzi business or position
within the organization structure, you must receive written authorization from
the Company, and the Company has first right to purchase the position. In
order to sell, transfer, or assign a Paparazzi business, the following criteria
must be met:
a. The line of sponsorship must always be maintained, and the business
must continue on;
b. The organization must be protected, and an agreement must be
signed from the departing Consultant that it will be protected for the
next 24 months after the transaction — resulting in no contact,
recruiting, or cross recruiting;
c. The departing Consultant agrees not to enroll as a Paparazzi
Consultant for a period of no less than twelve months, or as a
Consultant or distributor for any network marketing or direct sales
company for a period of no less than six months;
d. The purchasing agent must not be a current, or have been a
Consultant for the previous twelve months — must be new to Paparazzi;
e. The purchasing agent must enroll through the transaction as a new
Consultant, signing the Agreement, and a new account created;
f. No history is transferable, only the position and location in tree;
g. Before the sale is finalized, it must be brought to Paparazzi’s attention
h. All participants must have been in good standing for the previous
i. A $250 Transfer Fee must be paid prior to the approved transfer being
Paparazzi reserves the right to deny the transfer or sale of any organization at
its sole discretion, request additional information, or documentation. Upon
approval or denial, Paparazzi will give further directions or timeline associated
with the decision.
4.8 Separation of a Business
In circumstances where joint owners or partners of a single position or
Paparazzi business no longer wish to continue the business relationship due
with the business in question. If such an action is not possible, then Paparazzi
will involuntarily terminate the Consultant Agreement, and the position,
account, or business entity will be terminated.
During any business separation or divorce proceedings, the following options
are available in which Paparazzi will support:
a. One party, with consent of the other, continues to operate the business
pursuant to the Agreement. All claimants on the position will deal
directly with the party selected, and Paparazzi will deal and respond
only to the selected account operator;
b. The parties may continue to operate the account as joint owners and
In the event that the parties cannot come to a resolve for the dispute,
Paparazzi will terminate the Consultant Agreement and execute its right to
either terminate the position or take control of the account.
4.9 Transfer Upon Death of a Consultant
To affect a transfer upon the death of a Consultant, the claimant will need to
provide the following:
a. Copy of the death certificate;
b. Notarized letter or legal instrument establishing the rightful successor;
c. Completion of a new Consultant Agreement.
A Consultant is fully responsible for all of his/her verbal and written actions or
statements made regarding Paparazzi products and the Paparazzi Marketing
and Compensation Opportunity that are not expressly contained with official
Paparazzi materials. Consultants agree to indemnify Paparazzi and
Paparazzi’s directors, officers, agents, and employees and hold them
harmless from any liability including judgments, civil penalties, refunds,
attorney fees, court costs, or lost business incurred by Paparazzi as a result
of the Consultant’s unauthorized representations or actions. This provision
shall survive the termination of the Agreement.
Consultants may not make any claims in relation to the product or income generated by Paparazzi.
4.12 Consultant Support and Responsibilities to Retail Customers
Paparazzi offers Consultant Support for enrolled or enrolling Paparazzi Independent Consultants. Paparazzi does not offer Consultant Support to Retail Customers of Paparazzi Consultants. Consultants are expected to offer support and services and be a liaison between their customers and Paparazzi.
4.13 Paparazzi Right to Data
Paparazzi reserves the right to store acquired data from the Consultant. They
also maintain the right to own, share, or display such data (excluding secure
data) within reasonable means to increase the business of the Consultant, or
the offering of Paparazzi. This right includes sharing contact information,
general location information, success information, or any other reasonable
data through appropriate mediums, such as the Paparazzi website, replicated
sites, web based communication, letters, telephone, or other accepted
mediums of communication.
Paparazzi commits to protect the integrity of such data to the full extent it is
reasonably capable of doing, and to avoid selling or distributing any sensitive
information with organizations or persons that are in-line with the mission and
goals of Paparazzi, or that is in the reasonable welfare of their Consultants.
4.14 Disparaging Remarks
Consultants may not use disparaging remarks in relation to Paparazzi corporate staff, employees, directors, officers, or any other Representative of Paparazzi, including but not limited to other Independent Consultants. Consultants are to conduct their business with positivity and in a manner that uplifts everyone. Comments made by Consultants which may be negative in nature that relate to others potentially damage their own business, the business of others, and the Paparazzi brand. Consultants should be courteous, polite, and always seek an amicable resolution to any disagreement or dispute.
Owners of social media sites, forums, blogs, or community pages, are responsible to ensure that all messaging and content by contributors to those pages remain positive, uplifting, and supportive of the Paparazzi business, operators, Consultants, and programs. All comments made on any such sites are the sole responsibility of the owner to monitor, and any violation or disparaging comments made on such forums, will also be the responsibility of the site owner or manager as if they were made by them directly.
SECTION 5 – Operating a Paparazzi Business
5.1 Adherence to the Paparazzi Marking and Compensation Plan
Consultants must adhere to all published Paparazzi Marketing and Compensation Plan literature. Paparazzi Consultants may not offer Paparazzi products or opportunity in conjunction with any other system, program, or method of marketing other than that which is set forth in the published Paparazzi Marketing literature. Consultants may not enforce, require, or encourage Customers or Consultants to execute any agreement other than the official Independent Consultant Agreement
5.2 General Advertising
Paparazzi Consultants shall safeguard and promote the good reputation of
Paparazzi and its products. The marketing of Paparazzi products, opportunity,
compensation plan, and marketing shall be consistent with the public
interest, and must avoid all discourteous, deceptive, misleading, slanderous,
unethical or immoral conduct or practices.
Any personalized promotional material or advertising attempt must be
approved by Paparazzi and its legal department to ensure that there are no
claims or violations to the Paparazzi trademark, namesake, or other legal
issues. Consultants are not permitted at any time to make any income claims
in relation to the Paparazzi opportunity. All labels, trademarks, logos, names
or titles, must include the title “Independent Consultant” prominent enough to
easily identify that the Consultant represents their own business and not
Paparazzi as a whole or as a corporation.
5.3 Use of Paparazzi Name
Consultants may not use the Paparazzi name or any of its registered
trademarks, names, services, or products in any personalized or personally
owned businesses, webpage addresses, e-mail address domains, or internet
Consultants, or anyone, may not use Paparazzi trademarks, designs, or
symbols, without its express prior written permission. Consultants may not
record Paparazzi sponsored Company events, speeches, conference calls, or
any other event or function through any medium without the prior written
consent from Paparazzi.
Consultants may only use the Paparazzi name in casual communication (i.e.
social media communication, online forums, blogs, email addresses, etc.)
under the following considerations: (1) it is with the intention of building their
Paparazzi business, (2) when there are no plural terms used in the title of use
of the Paparazzi name, so as to not represent a group of individuals, and (3)
there is a specific individual identifier clearly indicating not only the use of it
by an Independent Consultant, but which independent Consultant is using
the term (such as Consultant Identification Number or name).
5.4 Paparazzi Brand
At no time may a Consultant re-label or remove the label of any Paparazzi
product for retail sale. Such relabeling or repackaging would violate this
Agreement and governing laws which could result in severe criminal
penalties. Civil liabilities may also result when the persons using the products
suffer any type of injury or their property is damaged as a consequence of
the repackaging or relabeling of products.
Any media inquiries in relation to Paparazzi must be responded to by
Paparazzi’s Communications Department and corporate headquarters, and
Consultants should not attempt to respond to any inquiries without express
written permission to do so.
5.5 Use of the Paparazzi Logo
At no time can any Consultant create or distribute any item or literature that
contains the Paparazzi logo and brand that was not created by Paparazzi
directly and distributed for that intended purpose.
Independent Consultants are free to use the “Paparazzi Independent
Consultant" logo, which is available to all Consultants online; as long as they
do not alter or distort the logo in any way. Consultants may make any tools,
or accessories necessary for them to build their business using the Paparazzi
Independent Consultant logo, for personal use or consumption. No
Consultant may create and then sell, distribute, or promote, any items with
the Independent Consultant logo to other Consultants, members of their
teams, or anyone else.
5.6 Team Use of Consultant Logo and Team Services
The only exception to using and reselling an item with the Paparazzi
Independent Consultant logo that will be considered will be for the purpose
of team use, and only under the following considerations:
1) The Consultant creating, designing, and reselling the item has
proven themselves capable both financially and through building a
successful organization, and has reached the rank of A-Lister for a
minimum of two consecutive months;
2) The qualified Consultant has also formally agreed to all terms within
the Consultant Licensing Agreement (which can be requested once
qualifications are met);
3) All items with the Paparazzi logo use the Paparazzi Independent
Consultant logo, and also include an additional team logo
prominently displayed on the item;
4) All items are submitted and approved by Paparazzi, before they are
produced, created, generated, and sold to the general public;
5) All items are to be tasteful, and of quality.
Paparazzi reserves the right to deny any design on the grounds of brand
protection. Consultants may not charge other Consultants or team members
for any type of products, services, or training (material or immaterial) unless
they have proved their ability to succeed with Paparazzi by reaching the rank
of A-Lister for a minimum of two consecutive months, and have the express
written approval of Paparazzi to do so through the approved Licensing
In the event where there is a personal or team brand, or any other brand
related to the business of a Consultant - at no time may that brand be seen
to circumvent, replace, overshadow, or supersede the Paparazzi brand, in any
forum, which may include but not be limited to online activity, shows or
expositions, or any other related activity which is reasonably intended to build
the Paparazzi brand.
5.7 International Sales
Consultants are only allowed to sell Paparazzi Products and Opportunity
within the United States, and those countries which Paparazzi has announced
they are officially launched in (currently only United States).
5.8 Consultant Release
By agreeing to the Agreement or any of its components, the Independent
Consultant authorizes Paparazzi to use their name, testimonials, likeness, or
experiences in Paparazzi advertising or promotional material with no
remuneration. Further, any reproduction of any photos, images, testimonials,
stories, conversations, or documentation that is created by Paparazzi or
provided to the company is also authorized for reproduction in any form
5.9 Unsolicited Communication
Independent Consultants may not initiate any unsolicited communication
(faxes, e-mails, phone, etc.) to anyone who they are not personally aware of
(or to people they do not know).
5.10 Online Activity
Independent Consultants may not use any online forum (eBay, classifieds,
CraigsList, or any other online retail tool) to bundle, distribute, or sell
Paparazzi products. Independent Consultants are not allowed to use Mass E-
Mailer or generate “SPAM” for their Paparazzi Business.
Social media or networking is permitted for the intention of developing a
warm market, or networking with current associates, but is not permitted for
the direct sale or distribution of Paparazzi product. Consultants are not
allowed to recruit through any Corporate social media page, or through any
social media page that does not directly belong to that Consultant. This also
includes directly contacting someone through instant messages or e-mails
that were found through a social media site not directly owned by that
Consultant. Violation of this policy can result in termination, as potential
Consultants who are interested in doing Paparazzi can quickly become
disinterested through heavy online recruiting activities.
Any and all online activity of Consultants with the intention of promoting
Paparazzi must be appropriately designated as an “Independent Consultant.”
5.11 Retailing or Reselling
After the initial product or inventory is purchased, no product can be resold
or retailed for less than the suggested retail price (no product under $5 USD).
Any exceptions must be approved prior to the sale or event by an authorized
Paparazzi officer in writing. Any activity in which the product is sold under the
suggested retail price from any Consultants risks the program of all
5.12 Recruiting or Enrolling Promotions
At no point may a Consultant advertise or promote an enrolling or recruiting
promotion which discounts the price or value of the enrollment process. This
includes, but is not limited to, offering discounted Enrollment Fees or Starter
Kits, reimbursements, cash offers for enrollment, extra personal inventory, or
anything else that is seen to increase the value or decrease the value of the
enrollment process. This activity is often seen as an attempt to create an
unfair advantage to other Consultants.
5.13 Parties, Fairs, Expositions, and Other Temporary Sales Forums
Parties, fairs, expositions, and other temporary sales forums represent good
opportunities to both sell product and expose a population of people to the
Paparazzi lifestyle, culture, product, and business opportunity. Paparazzi does
not have any control over the business practices or the behaviors of the
event organizers, hostess home environments, or managers at the event; and
Paparazzi has no intention of mediating within these environments. Therefore,
Paparazzi requests that all Consultants who wish to participate in these
activities adhere to the following, and acknowledge the same through this
a. All transactions are on a cash carry basis, or through an independently
established merchant account provider. Paparazzi will not process
charges, or accept funds on behalf of an Independent Consultant
unless at a Paparazzi sponsored event and such is permitted.
Paparazzi does not issue or accept any liability for the decline of
charges, charge backs, lost cash, or any other transaction difficulties
that may take place at such events. All transactions for retail product
are the sole responsibility of the Independent Consultant.
b. Paparazzi does not offer or accept any liability insurance for any home
party, meeting, booth, bazaar, seminar, show, or any other event or
sales location initiated by the Independent Consultant. Such events are
the Independent Consultant’s meetings, and therefore all liabilities and
ownership are the Consultant‘s responsibility.
c. Only one Paparazzi booth is allowed per show or event. It is the
Consultants responsibility to check with the show managers or
promoters to ensure that there are no Paparazzi Consultants
contracted before you contract for any space.
d. Paparazzi show booths must exclusively offer Paparazzi Accessories.
Paparazzi Accessories may not be mixed with any other products or
offerings within a show booth.
e. The Consultant must make it known to the show managers and
promoters that they are a Paparazzi Consultant and that they can be
the only Paparazzi Consultant present. This must be done in writing, as
well as the reception of such information from the show manager or
promoter. Failure to obtain written acknowledgement from the show
manager or promoter that they understand this policy minimizes the
Consultant’s ability to mediate any potential issues that may arise.
f. If there are any disputes in relation to this policy, and there is more
than one Consultant selling Paparazzi products at a show, the
challenging consultant must take it up with the show promoter or
manager that they contracted the space with in an effort to resolve the
issue. Paparazzi will not mediate such disputes.
g. The Consultant may never offer a sale, deal, or promotion at a show
which lowers the retail or sale value below the suggested retail value of
$5 per unit.
h. No competing jewelry or similar products may be offered alongside or
in the same booth, as Paparazzi products in order to maintain its good
name, and to minimize comparison with inferior products.
i. The Independent Consultant, or an agent thereof, must attend all
hostess parties, home parties, show booths, or events that they are
sponsoring or supporting (gaining retailing product at). The booth or
party may never be left unattended at any time, or with someone who
is not a Paparazzi Consultant.
It should be noted that only the Show Director has the ability to resolve any
issues on the premises. As any concerns or issues are directed towards
Paparazzi, it can only be in relation to a claim of policy violation, and the
Consultant who has followed the policy as outlined above, and has their
documentation dated and in writing will overrule. No circumstance, in which
neither disputing party in relation to a policy violation has followed the above
policy, will be considered by Paparazzi. A failure to comply with the policy as
outlined above, equates to failure to dispute or challenge another‘s right
within the policy.
5.14 Change of Sponsor or Placement
To protect the integrity of all marketing organizations and the hard work of all
Consultants within the organization, Paparazzi will seldom allow changes to
the sponsorship or placement of another Consultant or organization.
Maintaining the integrity of the sponsorship and placement trees is critical for
the success of every Consultant and marketing organization. Accordingly, the
transfer of a Paparazzi business from one position to another is rarely
Requests for a change of Sponsor or Placement within an organization must
be submitted in writing to the Paparazzi Consultant Support Department in
writing via email (firstname.lastname@example.org), and must include the
reason for the request. Transfers will only be considered in the following
a. Cases involving fraudulent or unethical sponsoring. All requests of this
nature must be made with 60 days of the alleged activity;
b. Consultants may terminate their positions voluntarily, wait the required
12 (twelve) months, and then re-enroll within the desired organization;
c. The request is made and received within 72 hours of the initial
enrollment or placement.
It will be left to the sole discretion of Paparazzi whether any downline or team
members may be moved in the process of such requests. At no time will a
request be approved if it directly affects the ranking or significantly affects
the monetary rewards from an organization (as a result of the move itself).
There is a $25 non-refundable fee to investigate any requested changes.
If at any time an Independent Consultant is deemed inactive for a period of
three consecutive months, that Independent Consultant forfeits all rights to
have their approval required for any requested changes within their
organization, at the discretion of the Company.
Paparazzi Consultants are free to participate in other multilevel, network
marketing, or party planning companies and organizations (“network
marketing“). However, during the term of this Agreement, and to survive for 12
months after the termination of this Agreement, Consultants may not solicit or
recruit (attempted or successful) other Paparazzi Consultants to any other
network marketing business.
Consultants must not sell, or attempt to sell, any competing non-Paparazzi
products at any event where Paparazzi products are being sold. This
includes but is not limited to jewelry, hair accessories, or other network
Consultants may not display Paparazzi promotional material, signage, or
literature in a way or fashion that may confuse or mislead a prospective
customer or Consultant into believing there is a relationship between
Paparazzi and non-Paparazzi products or services. Consultants may not offer
the Paparazzi opportunity side by side, or in conjunction with, any non-
Paparazzi opportunity, product, or service.
5.16 Downline Activity Reports (Genealogy)
Downline Activity Reports are available to Consultants to access and view
their Paparazzi Sales Organization. These reports are available in the
Paparazzi Back Office. These reports are property of Paparazzi, and therefore
the information contained therein is confidential. The use of these reports
outside the intended use of supporting and building a Paparazzi organization
is in direct violation of this agreement, and may bring legal action upon the
violating Consultant. A Consultant shall not, on his/her own behalf, or on the
behalf of any other person, partnership, association, corporation or other
a. Directly or indirectly disclose any information contained in any
Downline Activity Report to any third party;
b. Directly or indirectly disclose the password or access code to his/her
Downline Activity Report, or to the Reports of any other Consultant;
c. Use the information to compete with Paparazzi or for any purpose
other than promoting his/her Paparazzi business;
d. Recruit or solicit any Consultants or Customers of Paparazzi listed on
any report, or in any manner attempt to influence or induce any
Consultant of Paparazzi to alter their business relationship with
e. Use or disclose to any person, partnership, association, corporation, or
other entity any information contained in any Downline Activity Reports
- including sponsorship or placement relationships.
Upon demand by Paparazzi, any current or former Consultant will return the
original and all copies of any Downline Activity Reports to the Company.
5.17 Cross Sponsoring
Actual or attempted cross sponsoring is strictly prohibited. “Cross
Sponsoring” is defined as the enrollment (or attempted enrollment) of an
individual or entity which is already or has a current Independent Consultant
Agreement on file, which has not expired or been terminated for the duration
of 12 consecutive months. The use of a spouse’s or relative’s name, trade
names, DBAs, assumed names, corporations, partnerships, trusts, federal ID
numbers, fictitious ID numbers, or any other artifice to circumvent this policy
is prohibited. Consultants must not demean, discredit, or defame other
Consultants in an attempt to entice another Consultant to become a part of a
new organization with Paparazzi or within another company.
If cross sponsoring is discovered, it must be brought to the Company’s
attention immediately. Paparazzi will then conduct a compliance investigation,
in which Paparazzi reserves the right to permanently terminate any
agreements involved, rectify the organization as they deem appropriate, and
potentially initiate legal action.
5.18 Inventory Loading
Consultants must never purchase more products than they can reasonably
use or sell to Retail Customers in a month, and therefore must not influence
other Consultants to purchase more product than they can reasonably sell
within a month. Not only will excess product not be returnable, it may be seen
as Bonus Buying and a violation of Section 5.19.
5.19 Bonus Buying
Bonus Buying is strictly and absolutely prohibited. “Bonus Buying" involves
any method of directly or indirectly maintaining or increasing a Consultants
rank, volume, or commission level by purchasing products for which the
Consultant does not have a bona fide need for personal use or bona fide
reason or intent to resell within the next 30 days from the date of the order;
or, placing orders personally with the intention of hitting or maintaining a rank,
volume, or commission level. This also includes using multiple positions within
the organization to achieve the goal of “buying” the bonus or achievement.
If it is determined by the Compliance Department that a Consultant is Bonus
Buying, that Consultant may be subject to suspension, termination, loss of
commissions, loss of rank, or temporary or permanent suspension of the
return policy. Product determined to be used or purchased in an abusive
manner (i.e. Bonus Buying) will not be allowed to be returned.
5.20 Fraudulent Behavior
Consultants, and the hosts they work with, are obligated to work in an ethical,
fair, and honest manner. If a Consultant’s behavior or interactions are
dishonest or fraudulent in any way, they will be immediately suspended,
investigated, and potentially terminated. It is also expected that Consultant
uphold all agreements, contracts, or obligations entered into with any other
party, through the course of building their Paparazzi business.
SECTION 6 — RESPONSIBILITES OF CONSULTANTS
6.1 Change of Address, Telephone, or Contact Information
To avoid any disruption in business practices, the Consultant is responsible
to notify Paparazzi of any changes to the contact information provided on the
Consultants account. Most changes can be made online, but can also be
done via phone through the Consultant Support Department. A Post Office
Box (“P.O. Box") is acceptable for a billing address, but not acceptable for a
Shipping Address, as inventory packages will NOT be shipped using the
USPS and will NOT be delivered to a USPS P.O. Box unless a delivery
confirmation waiver is received. Paparazzi is not held liable for missing
shipments, commission payments, or any action or delayed response as a
result of inaccurate or outdated contact information on the Consultant‘s
account. This includes name, billing address, shipping address, telephone
numbers, texting numbers, email address, and any other means of
6.2 Changes to the Agreement
It is the Consultant’s responsibility to update or initiate any updates if there
are any changes to the Agreement, including government ID numbers,
applicant names, or business entities. These changes can be initiated
through Consultant Support, and require a newly executed and completed
Agreement submitted. There may be an additional $25 fee to change
principles, Business Entities, or taxable Government IDs on file.
6.3 Continuing Leadership
Any Consultant who sponsors another Consultant into Paparazzi must
perform a bona fide assistance and training function to ensure that his/her
organization is properly operating their Paparazzi business and that they are
in full compliance with local and federal laws, and this Agreement. It is
expected that Consultants will monitor the activities of their organizations and
support full compliance with the Company’s polices contained within this
Agreement. In any circumstances, where it is discovered by a Consultant that
a member of their team may be in violation to this Agreement, they are to do
all within their power to bring them back into compliance with this Agreement
if that is not possible or completed, they are to notify Paparazzi Compliance
Consultants are expected to support, train, and mentor other Consultants in
the organization to help them build success. It is expected that sponsoring
Consultants be available to be contacted, attend meetings, and support their
organizations. Failure to do so will result in a lack of personal success within
6.4 Providing Documentation
When enrolling a new Consultant, the sponsoring Consultant must be able to
provide or ensure that they have access to, and have reviewed, the latest
version of the Policies and Procedures, the Compensation Plan, and the
Distributor Agreement before the new Consultant signs the Independent
Consultant Agreement, or completes the process online.
6.5 Reporting Obligation
All Consultants have an obligation to report any policy violation that they may
witness or be aware of to the Paparazzi Compliance Department. Failure to
do so may result in compliance actions taken against them.
6.6 Laws and Ordinances
All Consultants must be aware of, and adhere to any local or federal laws and
ordinances that may affect or be a part of their Paparazzi business or sales
6.7 Federal Regulations
Certain federal regulations govern the direct sale of inventory, which includes
Paparazzi Accessories. In order to comply with those regulations, Consultants
must ensure the following information is provided on all sales receipts at
a. Date of transaction;
b. Product issued (units purchased);
c Name and Address of selling Consultant; and
d. Signature of purchaser, indicating receipt of product.
They must also be aware of the Consultant’s return policy of the product.
Consultants are required to issue sales receipts for the retail purchase of
Paparazzi product, as well as to keep a copy for themselves for no less than
two years from the transaction documented.
6.8 Adherence to Hostess Rewards Program
The success of any party planning organization rests with the success of the
Hostess. “Hostess” refers to someone who has agreed to hold a party for their
friends and associates, and have invited a Paparazzi Consultant to offer
product at their home. lncentivizing a Hostess to hold a party at their home is
key to the success of any organization. Therefore, Paparazzi has outlined the
following as the minimum amount of compensation offered to Hostesses for
hosting the party:
a. All Consultants are obligated to offer a 5% credit to the Hostess for the
retail sales generated at their hosted party; preferably to be selected
out of the inventory at the party. The credit is determined from Retail
Sales (not profit), and is exchanged for Retail Price ($5 USD).
To support and augment the cost for the Consultant to adhere to this
minimum offering for their Hostess, Paparazzi has supplemented many of the
Party Packs with additional units which may be used to fill this obligation.
Paparazzi strongly encourages Independent Consultants to increase and
enhance their Hostess Rewards program for their own Hostesses —
understanding that the more excited the Hostess is, the more excited the
customers are, and the more sales are generated.
6.9 Reception of Product
When an order is received, it is the Consultant’s responsibility to do an
immediate inventory of the product delivered to determine if there are any
damaged or missing pieces from the invoiced order. Failure to notify
Paparazzi within three business days of confirmed delivery of the shipment
will cancel your right to request a return. Any pieces that may be received
that can be reasonably corrected using the provided “Repair Kit“ within the
Starter Kit, will not be considered returnable.
6.10 Holding or Manipulation of Enrollments or Orders
A Consultant must never hold or manipulate the timing of an Independent
Consultants enrollment or order. Doing so will result in the conclusion that
such actions are in conjunction with “Bonus Buying” (see Section 5.19), and
will be subject to a compliance review. Doing so also postpones the activity
of the new Independent Consultant, and can damper an opportunity for them
6.11 Actions of Household Members
If a member of a Consultant’s immediate household engages in activities that
violate the Agreement (including these Policies), the Consultant will be
considered to be in violation of the Agreement. This section also applies to
any member of a business entity that is a business representative of
Paparazzi as a Consultant.
6.12 Business Insurance
Paparazzi does not provide or offer any form of business or liability insurance
for the Consultant’s business. Consultants are free to purchase such
insurance for their business. Homeowners or automobile coverage usually
does not provide coverage for any type of business related injury, theft, or
SECTION 7 — Bonuses and Commissions
7.1 Bonuses and Commissions
A Consultant must be active (with a minimum of 50 PV in inventory monthly
inventory purchases), in good standing, and in compliance with the
Agreement to qualify for bonuses and commissions. So long as the
Consultant complies with the terms of the Agreement, Paparazzi shall pay
commissions to qualified Consultants in accordance with the Marketing and
Compensation plan and their qualifications. The minimum amount for which
Paparazzi will issue a check or deposit is $20.00 (after a $2.50 commission
processing fee). If a Consultants earnings for the month is less than the
required amount, those funds will be placed on their account to be added to
the next commission payout cycle and paid once the minimum amount has
7.2 Commission Times
Commissions are only paid in the form of checks or direct deposit, and are
paid as a whole payment in relation to the activity within the last previously
closed commission period. Commission Periods (and Qualification Periods)
begin the first day of every calendar month at 12:00 AM EST, and conclude
the evening of the last day of every calendar month at 11:59 PM EST. After a
commission period is closed, a monthly audit and commission calculation
begins. Final commission calculations will be posted (via the internet based
Back Office) around the 10th of the month, and the checks mailed and
deposits made no later than the 20"‘ day of the following month for which the
commissions are being processed for. Commission checks are only mailed to
the Mailing Address on file, and are printed only to the name which is the
Primary Name on file (personal or business).
7.3 Compensation Plan Adjustment
Paparazzi reserves the right to make any adjustments necessary to the
Compensation Plan at its sole discretion with 30 days prior notice in writing.
Such notice would be made via e-mail, and through any notifications on the
web-based Back Office.
7.4 Bonus Adjustments from Returns
In the event that a commission has been issued on the sale of product that is
eventually returned or on inventory that is accepted back by Paparazzi, any
bonuses or commissions that were calculated and paid on the initial sale of
the inventory or products will be deducted from the month in which the
refund or return took place. This may continue for subsequent months until
the paid commissions are recovered from all Consultants up the tree which
may have earned commissions from the initial sales of the refunded
7.5 Bonus and Volume Reports
All information provided by Paparazzi over the phone, online, or through any
type of Downline Activity Reports, including but not limited to personal and
group sales volume (or any part thereof), and downline sponsoring activity is
believed to be accurate and reliable. Nevertheless, due to various factors
including the inherent possibility of human and mechanical error; the
accuracy, completeness, and timeliness of orders; denial of credit cards and
payments, returned product or inventory, credit cards and payment method
charge backs, the information is not guaranteed by Paparazzi or any person
creating or transmitting the information. All sales volume information is
provided “as is“ without warranties, expressed or implied, or representations
of any kind whatsoever. In particular, but without limitation, there shall be no
warranties of merchantability, fitness for a particular use, or non-infringement.
To the fullest extent permissible under applicable law, Paparazzi and/or other
persons creating or transmitting the information will in no event be liable to
any Consultant or anyone else for any direct, indirect, consequential,
incidental, special or punitive damages that arise out of the use of or access
to sales volume information (including but not limited to lost profits, bonuses,
or commissions, loss of opportunity, and damages that may result from
inaccuracy, incompleteness, inconvenience, delay, or loss of the use of the
information), even if Paparazzi or other persons creating or transmitting the
information shall have been advised of the possibility of such damages. To
the fullest extent permitted by law, Paparazzi or other persons creating or
transmitting the information shall have no responsibility or liability or other
theory with respect to any subject matter of this agreement OR terms and
conditions related thereto.
Access to and use of the Paparazzi online and telephone reporting services
and the Consultant's reliance upon such information is at the Consultant’s
own risk. If the Consultant is dissatisfied with the accuracy or quality of the
information, their sole and exclusive remedy is to discontinue use of and
access to Paparazzi’s online and telephone reporting services and their
reliance upon the information.
7.6 Compensation Plan Calculations
All calculations within the Paparazzi Compensation Plan (qualification and
bonus calculations) are based off of the Personal or Product Volume (PV)
accumulated within such account or organization. This includes all ranks,
commissions, bonuses, rebates, promotions, or any other form of rewards
offered by Paparazzi within or outside of the Paparazzi Compensation Plan.
Paparazzi Compensation Plan is audited monthly in an attempt to ensure
accuracy. Any errors that are discovered are to be reported to Consultant
Support within 30 days of the publication of the Commission run. Paparazzi
has no responsibility in relation to any issues that are not reported within that
30 day period. Paparazzi does all due diligence to ensure accuracy in all
calculations and payouts.
SECTION 8 — Payment & Sales Tax
8.1 Insufficient Funds
It is the Consultants responsibility to ensure that there are sufficient funds
through the approved transaction type or credit card. If the funds or credit is
not available, the system may not accept the Consultant’s order, or the orders
of their organization. If the order payment is not resolved by the end of the
commission period, the order will be canceled, and any lost commissions,
qualifications, or business as a result of the lost order is the sole
responsibility and liability of the Consultant.
8.2 Sales Tax
In states where the Paparazzi products are subject to sales tax, the
Consultant is charged for the sales tax at the full Retail Sales amount at the
time of the wholesale purchase of inventory. This is intended to ensure that
each state tax agency is made whole on any potential sales from the
transactions of that wholesale product. The sales tax is charged at the local
level of the location where the order is shipped. Paparazzi collects these
taxes at the time of wholesale inventory purchase and remits it to the state on
behalf of the Retail Sale that the Consultant may now have.
This also allows the Paparazzi Consultant the option of charging their local
taxes on their Customer transactions and recuperate that cost, or absorbing
it into their business structure; while at the same time not bringing any
uncovered sales tax liability on Paparazzi or the Consultant.
Paparazzi is required to remit sales tax this way.
8.3 Automated Payment Processing
In the circumstance where Paparazzi offers a payment package for any event
or experience ticket, the Consultant agrees to the terms proposed through
the payment process. Tickets for Paparazzi events, shows, or trainings are
non-refundable. All Consultants must pay the full amount of the ticket after
they have registered for the event, regardless of whether they attend or not.
All automatic recurring payments, as designated and agreed to by the
Consultant upon registration, must be completed and the ticket must be paid
SECTION 9 — Warranties, Guarantees, Returns, and Repurchases
9.1 Manufacturer Defects
Paparazzi only warrants against manufacturer defects. Consultants are
required to inventory their product within three days upon receipt and
immediately report any defective products (in accordance with Section 6.9).
There are times when small pieces of jewelry may be loose (i.e. jump rings)
and only need a small adjustment; these are not manufacturer defects.
Consultants are expected to report any issues to Consultant Support, and
describe the issue to identify what might be done to resolve the issue. If
indeed, it is determined that there is a manufacturer defect, the Consultant
Support Representative will approve an RMA (Return Merchandise
Authorization) Number for the defective pieces ONLY. Upon receipt either a
replacement (if available) will be sent, a similar replacement, or credit will be
issued for that piece. Product that is returned under this policy must be
received by Paparazzi within 15 days of notification, or 18 day from the receipt
of the order. Any product received outside of this window will not be
considered for a return, exchange, or refund.
9.2 No Warranty of Used Product
Paparazzi does not guarantee or warranty its product after it is removed from
the packaging and/or used. Paparazzi Accessories are fashionable, trendy,
and inexpensive. There is no intention or claim at the time of retail purchase
of any life of the product, guarantee, or warranty. Consultants are encouraged
to have their own satisfaction offerings within their own business, but to never
offer any type of product life guarantee by Paparazzi. Used or opened
product will not be returnable to Paparazzi, whether by a Retail Customer or
an Independent Consultant, unless the product falls under the manufacturer
defects mentioned in Section 9.1.
9.3 Purchase Policy
Any Consultant who has an active account may purchase Paparazzi product
as inventory to resell. Purchased Paparazzi product is the inventory of the
Consultant, and is their responsibility to sell or move. Consultants should not
purchase more than they reasonably believe they can resell. Upon purchase
and opening of the product the Consultant accepts the responsibility to sell
that product, and remove any liability of Paparazzi to make any retail sales on
their behalf. Product purchased for inventory carries no warranties (see
Section 9.2) and in most circumstances may not be returned (see Section 9.4)
and the purchasing Consultant accepts those liabilities.
9.4 Return Policy
As a result of the nature of the Paparazzi business, excess inventory from a
show or a house party is not returnable. In relation to the nature of Paparazzi,
fashion trends, and rotating inventory, once the product is purchased and is
delivered that item is not returnable unless it falls under the guidelines of
“Manufacturer Defects” (see Section 9.1), and is identified within three days of
receipt. Once a product package is no longer offered, returned inventory is
no longer available to be restocked and therefore resold. Any excess
products from a show or party that the Consultant may have ordered, are
encouraged to be used at the next party or show or as Hostess Gifts. As a
result of the fast change of fashion, the potential handling of the product, and
the inability to track single pieces, or to resell returned kits that have already
rotated out of the online catalogue, most jewelry that has been received may
not be considered resalable, and therefore should not be requested to be
Any and all volume from the returned product will be retracted from the sales
organization if within a current commission period, or any commissions
issued would be retracted back from the upline per Section 7.4
9.5 Return of Enrollment
Consultants have 30 days from the time of their enrollment to select not to be
a Consultant with Paparazzi. As long as Paparazzi is notified of within the first
30 days from the time of their initial enrollment, Paparazzi will refund their
enrollment fee of $40 (if applicable), or allow any unopened, unused, or
undisplayed product to be returned with the use of an RMA Number.
Returning items must be received no later than 15 days from notification, or
45 days from initial enrollment date (whichever is sooner). Returning product
is at the expense of the Consultant.
9.6 Inventory Buy Back
In the event that a Consultant wishes to terminate their account, and request
that any remaining inventory be purchased back by Paparazzi only unused,
not previously displayed, unopened, never previously worn, and only those
with the original Paparazzi tags would be considered for inventory buy back.
In such an event, the inventory buy back, as a result of the changing world of
fashion, will be at a discounted rate of $2 per acceptable unit piece (with a
retracted 2 PV for each unit). Acceptable pieces will be determined at the
sole discretion of Paparazzi and only after review and inspection upon the
return. An RMA number issued and approved by Consultant Support is
required prior to any Inventory Buy Back returns taking place — or the
Inventory Buy Back will not be honored. The full accumulation of the returned
product volume will be retracted from the organization as in Section 7.4, and
the most recent commissions which may have been earned by the
terminating Consultant may be retracted or removed from the returning funds
as a result of the retracting volume which may have qualified them within the
Paparazzi Compensation Plan for previous awarded bonuses.
9.7 Refused Deliveries
In any circumstance where a Paparazzi Inventory order is refused at the door
and returned to Paparazzi, the ordering Consultant will be liable for a $15.00
refusal fee (issued by the delivering service) as well as a 10% restocking fee
to restock the unopened inventory.
9.8 Business Protect Autoship Process
In the event that Paparazzi offers a Business Protect Autoship, the Consultant
acknowledges that it is an optional service, and is in no form required by this
document, literature, or training. This offering is only designed to help
Consultants who actively opt into the program ensure that they are doing the
a) Achieve their minimum level of Personal Volume (PV) to maximize
their potential earnings;
b) Maintain new inventory through ensuring regular inventory
shipments, the size of which are specifically designated by the
Due to the nature of fashion as well as Paparazzi‘s inventory process, when a
Business Protect Autoship Package is selected by the Consultant, the
Consultant acknowledges the following:
a) There is no guarantee, option, or perception that any single piece,
accessory, or item will be part of the Business Protect Package;
b) That each package is selected with the intent to increase inventory
of the Consultant by the specified amount, not to increase any
particular item or accessory, and that a Consultant has the potential
of getting any piece which has previously been offered by
c) That due to the nature and purpose of the Business Protect
Autoship, Business Protect Packages are non refundable,
returnable, or disputable, for any reason, including but not limited
to: selection of items received, color of items received, ration of any
particular accessory, or satisfaction of the items received. Only
item that fall under the guidelines of a Manufacturer Defect and
falls under the considerations of Section 9.1 will be able to request
Autoships must be cancelled three full business days previous to their
scheduled processing date in order to ensure that any changes within the
system take effect before they are processed for the month. Any Autoships
that are processed and ordered that are in the system three days prior to the
date is the responsibility of the Consultant which received the order, and is
non returnable. We encourage all Consultants to be aware of the process of
the Business Protect Autoship process and how it will be conducted. Any
returns (as detailed above) which are approved will be shipped back at the
expense of the Consultant.
SECTION 10 — Dispute Resolution and Disciplinary Proceedings
10.1 Disciplinary Sanctions
A Consultant’s violation of the Agreement, any of its components, these
Policies and Procedures, or the 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
Consultant that, in the sole discretion of the Company may damage its
reputation or goodwill, may result, at Paparazzi‘s discretion, in one or more of
the following measures being imposed on the Consultant:
a. Issuance of a written warning;
b. Requirement that the Consultant take immediate corrective measures;
c. Imposition of a fine, which may be withheld from bonus and
d. Loss of rights to one or more bonus and commission checks;
e. Paparazzi may withhold from a Consultant all or part of the
Consultant's bonuses and commissions during any period of
investigation involving an alleged violation of the Agreement. If the
Consultants business is terminated for disciplinary reasons they will
lose all rights and will not be entitled to recover any held commissions;
f. Suspension of the individual‘s Agreement for one or more pay periods;
g. Involuntary termination of the offender’s Agreement;
h. Any other measure expressly allowed within any provision of the
i. In situations deemed appropriate by Paparazzi, the Company may
institute legal proceedings for monetary and/or equitable relief.
In the event that a written warning is issued, with specific request of
compliance or action, such agreed to terms between Paparazzi and the
disciplined Consultants are considered an appended agreement to their
Consultant Agreement, and a violation of such terms may warrant, at
Paparazzi’s full discretion, any or all of the actions detailed above.
All disciplinary actions are considered confidential and should not be
discussed without uninvolved parties. Resolutions and outcomes are not
required to be made public knowledge.
10.2 Grievances and Complaints
When a Consultant has a grievance or complaint with another Consultant
regarding any practice or conduct in relationship to their respective
Paparazzi business, the complaining Consultant should first report the
problem to his/her Sponsor who should review the matter and try to resolve it
with the other party’s upline sponsor. if the matter cannot be resolved, it must
be reported in writing to the Consultant Support Department. The Consultant
Support Department will review the facts and resolve the issue at the sole
discretion of the Compliance Department.
10.3 Arbitration and Jurisdiction
Any dispute or claim arising from or relating to the Agreement (including
these Policies and Procedures), or any other claim or grievance against
Paparazzi in any form whatsoever, including but not limited to, economic
losses, personal injury, property damage, will be subject to mediation at
Paparazzi’s corporate address using a neutral mediator of Paparazzi’s
choosing. In the event that Paparazzi and the Independent Consultant are
unable to resolve their dispute through mediation, Paparazzi and the
Independent Consultant will be subject to final and binding arbitration to be
held in Salt Lake City, Utah.
The arbitration will take place before a panel of three arbitrators to be
selected as follows: the Independent Consultant shall select one arbitrator,
Paparazzi shall select one arbitrator, and the selected arbitrators will select
the third arbitrator. The third arbitrator shall be an attorney. The party
initiating the arbitration will identify its arbitrator in its written demand for
arbitration to the other party. The other party shall identify its arbitrator within
five (5) days of receipt of the notification of intent to arbitrate, and the third
arbitrator must be selected within five (5) days of the appointment of the
second arbitrator. Paparazzi shall pay the fees of its selected arbitrator, the
Independent Consultant shall pay the fees of his/her selected arbitrator, and
Paparazzi and the Independent Consultant shall pay equal shares of the third
arbitrator’s fees. The dispute will be subject to rules of arbitration agreed
upon by the majority vote of the arbitrators and will be communicated to the
party within ten (10) days after the arbitration panel has been completed.
The prevailing party in any arbitration proceeding shall be entitled to receive
from the losing party all costs and expenses of arbitration, including legal and
filing fees. The decision of the arbitrators shall be final and binding on the
parties and may, if necessary, be reduced to a judgment in any court of
competent jurisdiction. The decision of the arbitrators shall be final, and there
shall be no right to appeal such decisions in any court or judicial system. This
agreement to arbitrate shall survive any termination or expiration of the
Nothing in these Policies and Procedures shall prevent Paparazzi 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 Paparazzi’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.
Additionally, any dispute a Consultant has with Paparazzi for any act or
omission relating to or arising from this Agreement, must be brought within
one year from the date of the alleged misconduct and by accepting this
Agreement, said Consultant waive all claims that any other statute of
Further, by accepting this agreement, the Consultant agrees and covenants
not to file suit against Paparazzi, any of its affiliates, subsidiaries, officers,
directors, or employees for any claim or grievance the Consultant may have
arising from the status as an Independent Consultant of Paparazzi.
Jurisdiction and venue of any matter not subject to arbitration shall reside in
Washington County, in the state of Utah unless the laws of the state in which
the Consultant resides expressly require the application of its laws, in which
case that state’s law shall govern all issues related to jurisdiction and venue.
The Federal Arbitration Act shall govern all matters relating to arbitration. The
laws of the State of Utah shall govern all other matters relating to or arising
from the Agreement unless the laws of the state in which a Consultant
resides expressly require the application of its laws.
10.4 Product Liability Claims
Paparazzi maintains insurance to protect the Company against product
liability claims. Paparazzi’s insurance policy contains a “Vendors
Endorsement" which extends the coverage to Independent Consultants so
long as they are marketing Paparazzi products in accordance with applicable
laws and regulations and the Agreement. Paparazzi’s product liability policy
does not extend coverage to claims that arise as a result of a Consultant's
misconduct in marketing, reselling, or representing the product or company.
SECTION 11 — Inactivity and Cancellation
11.1 Voluntary or Involuntary Cancellation
As long as the Consultant remains current, and complies with the terms of the
Agreement and these Policies and Procedures, Paparazzi will continue to pay
the Consultant all earned bonuses and commissions in accordance with the
Compensation Plan. Bonuses and commissions constitute the entire reward
for the Consultants efforts in generating sales and all activities related —
including building and support of a Downline Organization.
If a Consultant fails to meet the minimum inventory purchases or sales
requirement for a period of twelve consecutive months (with less than 200
PV), or if the Agreement is voluntarily or involuntarily terminated, the
Consultant shall be deemed to have waived all their rights, title, claim,
privileges, or interest to the Downline Organization that they operated, and to
any bonuses or commissions for the sales generated from that organization.
Additionally, the Consultant will lose the right to represent Paparazzi, the right
to sell Paparazzi products and the right to receive any further compensation,
bonuses, commissions, or other income resulting from Paparazzi activities.
11.2 Cancellation Due to Inactivity
In order to keep a Consultants Agreement and account active, the Consultant
must have accumulated at least 200 PV in personal purchases or inventory
purchases within a rolling 12 consecutive month window. If at any time the
Consultant has 12 consecutive months where no orders have been placed
which accumulate to the 200 PV minimum, the Agreement will be canceled;
the account and position terminated, and the measures in Section 11.1 will
take effect. Paparazzi will not provide or issue any written confirmation of the
11.3 Voluntary Cancellation
The Consultant has the right to cancel their Consultant Agreement at any
time, regardless of reason. Cancellation must be submitted in writing to
Consultant Support. Any cancellation notice must include name, address,
Paparazzi Consultant ID, and a signature of the primary account
representative. At the conclusion of the Agreement, all Sections which
specifically denote a life beyond the Agreement are still enforceable.
11.4 Involuntary Cancellation
Any violation of the terms of the Agreement, including any amendment that
may be made by Paparazzi at its sole discretion, may result in any of the
sanctions listed in Section 10.1, including involuntary termination or
cancellation of the Agreement at the sole discretion of Paparazzi.
Paparazzi reserves the right to cancel any or all Consultant Agreements upon
thirty (30) days written notice in the event that it elects to.
In any circumstance where there is an Involuntary Cancellation of an
Agreement on a position which previously had generated a minimum of $50
from the Compensation Plan; that account will be terminated, but will not be
removed from the Paparazzi Organization Tree — maintaining the current
structure of the organization, and protecting the integrity of the original
organization (see Section 4.6 for further detail).