Last Updated: DECEMBER 16, 2014 Avon General Policies and Procedures * The shortened versions of the terms ‘Independent Sales Representative’ (Representative) and ‘Independent Leadership Representative’ (Sales Leader) are used in this document for readability and conciseness purposes only. Acronyms: DSM = District Sales Managers PC = President’s Club Members HS = Honour Society Members DHM = David H. McConnell Members PCC = President’s Club Council Members LOA = Length of Association with Avon (campaigns: 2-week Representative selling period) LDC = Local Delivery Company QV = Qualifying Volume RMA = Returned Merchandise Authorization Achievement Levels (Tiers) & Guaranteed Discounts Achievement Levels: All Representatives are grouped into one of seven Achievement Levels determined by cumulative Qualifying Volume within the Annual Qualifying Cycle (C1 of the current year to C26 of the current year, same as the PC Cycle): Qualifying Volume for the Annual Qualifying Cycle beginning with the 2015 cycle: - Bronze – Less than $1,000 Silver - $1,000 to $4,499.99 Gold - $4,500 to $9,999.99 President’s Club - $10,000 to $24,999.99 Honour Society - $25,000 to $49,999.99 David H. McConnell - $50,000 to $74,999.99 President’s Council - $75,000 plus Guaranteed Discount: All Representatives receive a Guaranteed Discount based on their Achievement Level. A Guaranteed Discount means that the discount on every order is always the same, regardless of the order size. Each Achievement Level has a separate Guaranteed Discount for Beauty and NonBeauty Items. - Beauty Items are: Color, Skin Care, Fragrance, Bath & Body, Jewellery. - Non-Beauty Items are: Watches, Apparel, Accessories, Expressions, Footwear, Houseware, Giftables and Kids. Once a Representative achieves a specific level, she/he will earn that particular discount for the entire cycle. Once a discount is locked in for a cycle, it will not decrease for the entire cycle unless the Representative’s cumulative Qualifying Volume cycle-to-date reaches the next Achievement Level (Tier). In this case, the Representative’s Guaranteed Discount will increase to the next Achievement Level (Tier) two campaigns following 1 achievement. The higher Guaranteed Discount will continue for the remainder of the cycle and the entire next cycle. Avon will determine the Representative’s Achievement Level at the close of C26 and Representatives who achieved a higher segment, will benefit from the higher Achievement Level starting in C2. Special offers such as bundles and brochure premiums may have a specific discount level regardless of the Representative’s Achievement Level. This will be indicated in the brochure. Achievement Level (Tier) for New Representatives: A New Representative is someone who has been with Avon for up to 6 campaigns (LOA 1-6). Avon determines the first campaign by the date of the first order (i.e. if the Representative places her first order in C15, she is a New Representative from C15-20) In the 7th campaign, Avon will determine the New Representative’s Achievement Level based on the first 6 campaigns. The Achievement level Discount will apply in the 8th campaign. If a Representative’s Qualifying Volume (QV) is less than $350, she/he will be at the Bronze level. If the QV is between $350 - $1149.99, the Representative will be at the Silver level and if the QV is $1150 or more, she/he will have achieved Gold. To achieve Top Seller Achievement Level (President’s Recognition program), the full amount must be met, (i.e. PC = $10,000, etc.) For the first 7 campaigns, new Representatives will earn 25% for Beauty and 15% for Non-Beauty. Here is the Guaranteed Discount Chart: 2 Brochures & Literature 1. Representatives must place an order to automatically receive one (1) free brochure per campaign. They do not however have to place an order for brochures. 2. Brochures are sold in packs of 10 or individually in both English and French. 3. Individual brochures may be ordered but cannot be combined in the two languages for the price of a pack (i.e. the Representative cannot order 6 English and 4 French brochures at pack price.) The Representative will be charged individually in this case. 4. Brochures can be ordered up to two (2) campaigns in advance. 5. PC and above will have the privilege of ordering brochure packs and individual brochures three (3) campaigns in advance. 6. If a Representative does not place an order, she/he will need to order any literature with her/his next order. 7. Pricing for 1 pack – 10 packs of brochures will remain the same for all Representatives. Pricing for 11 packs and up varies depending on the Representative Achievement Level (Tier). The price for individual brochures is the same for all Representatives. mark. magalogs 1. All Representatives will automatically receive FREE mark. magalog packs (packs of 5) equal to the number of brochure packs ordered (packs of 10). Free magalogs will only be offered in the first campaign of availability (for instance FREE C14/15 magalogs will only be sent when ordering packs of C14 Brochures. They will not be sent when ordering packs of C15 Brochures). 2. Magalog quantities exceeding Brochure quantities will be charged to the Representative’s account. They will be charged at 65 cents (plus tax) per pack. 3. Representatives are eligible to receive free magalogs in as many orders that are submitted within the first campaign of availability (as long as packs of brochures are ordered each time). 4. If a Representative orders English and French packs of brochures, she will be allowed to order any number of English and French packs of magalogs as long as they match the total number of packs ordered in each language. 5. Packs of magalogs can also be purchased for 65 cents (plus tax) per pack for all Representatives. 6. Individual magalogs will not be given out free. Representatives can order individual mark. magalogs for 15 cents (plus tax) each. Flyers All flyers (Expressions, Beauty, Outlet, What’s New, etc.) will continue to be free based on brochure pack purchase. Demonstration Products (Demos) 1. Demos are limited to one (1), with the following exceptions: Fashions (as shown by a symbol), choose only one of an item (either one size or one color), Jewellery (including Watches) choose only one of an item (size, set, birthstone, zodiac, initial, month) as stipulated in “What’s New.” Demos and redemos can be ordered 2 campaigns or 1 campaign in advance. 2. Gifts with demo purchase and purchases with demo purchases are also limited to one per Representative. 3. The term “net” means that no additional Representative discounts will be granted on the product. 3 4. Demos and Sales Aids cannot be returned, however any defective demo can be exchanged. 5. Demo prices featured in “What’s New” exclude all taxes. 6. Demos ordered for the first time are GST/QST/HST exempt. If you re-order the same demo, it will be taxed at the Customer price. Missing Boxes / Orders 1. If there is a delivery delay due to weather, road closure or mechanical failure, an Avon voice message from Avon will be sent to the DSM and to the impacted Representatives. 2. Representatives should wait 24 hours after expected delivery before taking any action. 3. For specific delivery issues, Representatives should click on Orders, Order History, select the correct order and click on Track. 4. The Representative can email or call Avon directly and a Phone or Internet Specialist will forward the issue to the Transportation department. Payment Payment in full for the previous campaign is due by the date indicated on the Avon Online Account Statement. A $5.00 late payment fee will be charged on overdue amounts and accounts will be frozen for non-payment. Avon does not accept cash, post-dated cheques or Customer cheques. Incomplete cheques, post-dated and non-negotiable cheques will be destroyed without further notice. Note: NSF cheques will incur a $20.00 service charge imposed by Avon. This will be in addition to any charge levied by the financial institution. Payment Terms New Representatives will be given 7 days from the statement date to make payment. Established Representatives at the Bronze Achievement Level will be given 7 days from the statement date to make payment. Established Representatives at the Silver or Gold Achievement Levels will be given 10 days from the statement date to make payment. Top Representatives in the President’s Recognition Program will be given 17 days from the statement date to make payment. Payment Options: Cheque Cheques must be mailed, along with the payment stub to: Avon Canada Inc., P.O. Box 4498 STN A, Toronto, Ontario M5W 4J3 Credit Card An account may be paid by credit card (Visa or MasterCard). The account will be updated immediately (in real-time). Telebanking and Internet Payment should be made at least two (2) business days before order submission to ensure payment is processed. 1. Payment may be made by Internet or Telebanking through all major financial 4 institutions. 2. When registering Avon as a payee on their bank’s site, the Representative enters her 10-digit Avon account number. 3. To make a payment at a bank teller or an ATM (Automatic Teller Machine), the Representative simply sets up their Avon account as a new payee at their financial institution. Direct Debit An account may be paid directly through a bank account and payment will be processed in real-time (immediately). Auto-Pay Representatives may enroll for Auto-Pay, providing Avon with default payment details (i.e. credit card, direct debit account, etc.) and accepting the Pre-Authorized Payment Terms and Conditions (available online), and Avon will automatically charge the credit card or debit the bank account for the balance due on or shortly after the due date. Reinstatements A Representative is an Active Representative the moment the first order is placed. Active is also defined as a Representative who has a positive QV (net of returns) at the end of each campaign. An account remains active as long as an order is placed every Campaign. After three (3) consecutive campaigns of inactivity (no positive QV), an account is deactivated. Once an account in good standing is deactivated, it remains deactivated until an order is placed within one year of deactivation. This is called a Reinstatement. Removals If an account remains deactivated for a period of 26 campaigns, one full year, the account is removed. If a Representative is removed and wishes to start placing orders again, she/he will need to be reappointed as a new Representative. Returns and the Avon Guarantee If, for any reason, an Avon product is not found to be satisfactory, just request an RMA and return the product for replacement* or account credit. Carefully examine your products upon receipt. For the Customer: Product(s) must be returned to your Independent Sales Representative, along with the receipt, within 60 calendar days of the delivery date stated on the receipt. Independent Sales Representatives have up to 120 calendar days from the invoice date to request a replacement or account credit. Account credit may be issued immediately. However, once a replacement or account credit has been requested, all returnable products** must be returned to Avon within 45 calendar days of request or the account will be recharged. All returns must be reasonable, in Avon's sole discretion. Any return requests or returned products received after the above-mentioned periods will not be honoured, nor will such products be returned to you by Avon. *If you choose Replacement you will see a list of available replacement products (e.g., 5 different size, colour, fragrance) – just select to add to your next order automatically. To “exchange” a returned product for a different item, select Credit to receive an account credit, then add the desired product to your next order. **Your Returned Merchandise Authorization will inform you which products need to be returned to Avon. Please consult the ordering information section at avon.ca. Postage/shipping costs for returns are the responsibility of the Independent Sales Representative unless Avon shipped the wrong product(s) or the product(s) arrived damaged. OUR GUARANTEE DOES NOT COVER: - Products that have been substantially used; - Products and packaging that have been broken or damaged through misuse; - Large-scale, excessive returns; - Demos, sales aids, and Representative Net Offers cannot be returned, unless defective. All sales are considered final. - For hygienic reasons, pierced earrings and underwear cannot be returned; Toys are fully tested for safety according to Canadian regulations. However, it is recommended that parents make the final decision as to the suitability of the toy for their child. Refund/Replacement Process: Representatives can quickly and easily request a Refund (account credit) or Replacement online. They must complete the RMA to request an account credit (refund). Most Representatives will receive instant credit when they make the request. If a Replacement is wanted, the Representative will see a list of available replacement products (e.g. different size, colour, fragrance)—the Representative will simply select the product to be added to their next order automatically. The replacement is free of charge. Representatives will be advised immediately if a product needs to be returned to Avon. This will be dependent on the Representative’s status and product profile. Every refund is validated against invoice history. Return Fee: The method by which they send returns to Avon will vary depending on how their order is delivered to them. If an order is delivered by a local delivery company (LDC) who participates in the Easy Returns program, for a $5.00 (plus tax) Return Fee, they can have their return picked up by the delivery driver when their next order is being delivered. Note that their return cannot exceed the size of a standard Avon packer. The dimensions should not be over 40 x 34.5 x 29 cm and the total weight should not exceed 16 kgs. For a list of LDCs participating in Easy Returns, please refer to the Sales Support section of the Info Centre on the Avon website. If the Representative receives their order via Canada Post, they can order a $5.00* Returns Label directly from Avon the same way they purchase other Avon products. (Once they receive the Return Label, they can take their package to their local Canada Post Office and send it back to Avon. Representatives should refer to the Canada Post guidelines for additional size information. 6 Avon will continuously monitor the Representative usage of the Canada Post $5.00 Returns Fee option. Avon reserves the right to change this fee or provide restrictions at any time, at its sole discretion. * A Representative can purchase any number of Canada Post return labels in any given campaign. However, the Representative will be charged $5.00 for the first two (2) labels purchased and $15.00 (plus tax) for any additional labels purchased. Returning a product due to an Avon error (wrong product/damaged product) If Avon shipped the wrong product or a product was received damaged (and Avon has requested that it be returned), the Representative can include it with other returns or, if the Representative does not have any other returns to send to Avon, she/he should call Avon’s Customer Care department for instructions. The Representative may have to complete an RMA and Avon will reimburse the Representative for the $5.00 shipping fee or a Customer Care agent may complete the RMA for the Representative and issue a credit on the spot. TOP Shipping & Handling Fees All orders are subject to a Shipping & Handling Fee, based on Achievement Level (Tier), the size of the order and the Delivery Date chosen. For orders $30 and over (before taxes), the Representative will pay a fee of $2.00, $4.00 or $6.00. For orders under $30 (before taxes), the Representative will pay a fee of $8.00. Multiple orders of any size can be placed within a campaign, provided a delivery day exists. A Shipping & Handling Fee will be applied to each order based on the size of the order. Note that taxes will be charged on all Shipping & Handling Fees. * Before taxes 7 Direct Shipping Fee Representatives are responsible for the delivery of products and collection of payment from Customers. Customers may choose the Direct Delivery option and the Representative may also decide to have orders sent via Direct Delivery when they deem it appropriate. However, the Representative is always responsible for collecting payment on these orders as the Representative will be billed for them. The direct shipping fee will also be charged to the Representative and it is up to her to determine whether or not she charges the Customer a delivery fee. Receipts and Cancellation Notices Representatives must provide written or printable electronic receipts to their Customers along with information regarding the Buyer’s Cancellation Rights for all Avon products purchased by them. The BUYER’S RIGHT TO CANCEL (FOR CANADA) states: You may cancel this contract from the day you enter into the contract until 10 days after you receive a copy of the contract. You do not need a reason to cancel. If you do not receive the goods or services within 30 days of the date stated in the contract, you may cancel the contract within one year of the contract date. You lose that right if you accept delivery after 30 days. There are other grounds for extended cancellation. For more information, you may contact your provincial/territorial consumer affairs office. If you cancel this contract, the seller has 15 days to refund your money and any trade-in, or the cash value of the trade-in. You must then return the goods. To cancel, you must give notice of cancellation at the address below: 5500 Trans-Canada Highway Pointe Claire, Québec, Canada, H9R 1B6 Phone:1-800-265-2866 Fax:514-630-8787 You must give notice of cancellation by a method that will allow you to prove that you gave notice such as registered mail, fax, email, personal delivery, etc. The STATEMENT OF CONSUMER CANCELLATION RIGHTS (FOR QUEBEC) states: You may cancel this contract for any reason within 10 days after you receive a copy of the contract along with the other required documents. If you do not receive the goods or services within 30 days of the date stated in the contract, you may cancel the contract within one year. You lose that right if you accept delivery after the 30 days. There are other grounds for an extension of the cancellation period to one year, for example if the itinerant merchant does not hold a permit or has not provided the required security at the time the contract is made, if the goods are never delivered or the services never performed, or if the contract is incorrectly made or worded. For more information, you may seek legal advice or contact the Office de la protection du consommateur. If you cancel the contract, the itinerant merchant must refund all amounts you have paid, and return to you the goods received in payment, as a trade-in or on account; if the merchant is unable to return the goods, you are entitled to receive an amount of money 8 corresponding to the value indicated in the contract or the cash value of the goods, within 15 days of cancellation. You also have 15 days to return to the merchant any goods you received from the merchant. To cancel, you must return the items received from the merchant to the merchant or the merchant’s representative, send the merchant the cancellation form (printed on the back of every Customer Receipt), or send the merchant written notice of cancellation. The form or written notice must be sent to the merchant or the merchant’s representative at the address indicated on the form or at any other address indicated in the contract. You must give notice of cancellation by personal delivery or by any other method that will allow you to prove that you gave notice, including registered mail, email, fax and courier. Shipping Labels TOP How to Read Avon Carton Label LDC AND CANADA POST LABEL LDC AND UPS SHIPPING LABEL All details are the same as the Canada Post label above except for points 18 to 21, which refer to UPS Shipping Label specifically. 9 An Avon Carton Label has 21 important points for you to review as follows; 1. Representative’s Account Number 2. Campaign Number 3. Carton Number of Number of Cartons to Deliver 4. Number of Products in Carton 5. Carrier Bar Code Scan 6. BSN Number 7. Type of carton and weight of carton 8. Representatives Telephone Number 9. Comments 10. Representative’s Address 11. Shipment number 12. Transportation Zone 13. First four Letters, is Avon’s Truck Code. (Can be up to 5 characters). The Last three characters are the Carriers route and sequence number. 14. Canada Post Bar Code Scan 15. Canada Post Postal Code 16. Canada Post Signature Required Indicator 17. Canada Post Delivery Instructions 18. UPS Sort Facility # and City 19. UPS Tracking Number 20. UPS Bar Code Scan 21. UPS Number of Cartons 22. UPS Weight Transportation (Carrier service complaint) See also Missing Boxes / Orders To report a carrier complaint/issue, please see the Contact Us section of this document. Fees/Charges 10 Avon Representatives agree to incur and pay, to the fullest extent permitted by applicable law, fees and/or charges that may be communicated by Avon from time to time and charged in relation to their account. This includes but is not limited to the following: a non-refundable Appointment Fee of $10 an NSF cheque charge of $20, in addition to any charge levied by a financial institution; an administration charge of $1 for any incomplete transactions arising from a payment failure other than an NSF cheque (e.g., reversed payment, funds not cleared, account frozen or closed, incomplete cheque, post-dated cheque); a late payment fee of $5 for payments made after the payment due date; the annual InterAvon website fee of $26; the Shipping and Handling fees as described in the Shipping & Handling Fees section; a $5 (plus tax) fee for returns for which local delivery company pickup is requested. Should a Representative fail to make a payment on a past due account, after receiving written notification, Avon will be entitled to recover the amounts paid in legal fees and expenses and/or court fees; or, in the alternative and without prejudice to Avon's right to collect and recover actual debts that are owed, liquidated damages. Retail Selling Rules Representatives selling at an event of business must: Inform their District Sales Manager of the event so that the DSM can partner with them and provide guidance. Ensure that set up is professional and image-enhancing: - Avon logo tablecloth/banner - No homemade or handwritten signage - Tasteful display, uncluttered - Business cards, recruiting flyers, brochures displayed Only sell current products, not old, out-of-date products. Dress for success Acceptable Events/Businesses to sell products at: Fitness Centers, Gyms, Health Clubs Curves, Weight Watchers meetings Beauty Salons, Tanning Salons, Nail Salons Craft Shows, Home Shows, Bridal Shows, Trade Shows Networking Groups, Women’s Entrepreneur Meetings Cultural Events and Expos Ladies Night Sports Events Festivals and Fairs Gift Shops Golf Courses Gas Stations/Convenience Stores Note: Selling at a business should be an “event” unless the Avon Representative owns 11 the business. In that case as an Avon Representative that owns a business, she/he would have the opportunity to sell products at their business. Representatives cannot stock shelves with Avon products in a business belonging to another party that is not an Avon Representative. They cannot open an “Avon Store” or have a storefront sign with the name Avon in it. Selling at Flea Markets and Garage sales is prohibited. It is the Representative’s responsibility to meet all requirements prior to selling/displaying products at an event – for example, insurance, a permit may be required. Contacting Avon Representative Contact Center Whenever possible, Representatives should try to handle situations through the Representative Contact Center. To save time and expense, Representatives should be prepared with their name, account number, campaign number (if applicable) and situation already written down to make it easier to explain. Website: Click on Contact Us The website is used for General Questions. For specific delivery issues, Representatives should click on Orders, Order History, select the correct order and click Track. Phone: Interactive Voice Response (IVR) 1-877-286-6776 This is used for basic account information and orders. This toll-free line cannot transfer to a live agent. President’s Council desk: Special number given to President’s Council Members. Mon- Fri. 8:00 a.m. to 4:15 p.m. EST. Customer Care Center: 514-694-0810 Mon. – Fri. 8:00 a.m. to 8:00 p.m. EST This line is used for general questions and delivery issues. Consumer Contact Center Website: The public can go to www.avon.ca, and click on Contact Us The website is used for product questions, quality concerns and corporate information. Phone Line: 1-800-265-2866 Mon. – Fri. 8:00 a.m. to 8:00 p.m. EST Used for product questions Avon reserves the right to modify these policies and procedures at any time, at its sole discretion. 12
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