Distributors carry the name of 1UP.

As such, all Distributors have the following basic duties and responsibilities:

 

Section 1. Distributors are obliged to observe professionalism, to act in accordance with high ethical standards and personal integrity, and observe the governance VALUES of 1UP in their selling and business activities. Any act or acts of Distributors must not impair or prejudice 1UP’s honor and reputation.

 

Section 2. Distributors shall uphold and maintain respect toward fellow Distributors, and toward the directors, officers, employees and shareholders of 1UP.

 

Section 3. Distributors are required to reveal and state their full name when placing the Company’s name or its products, or any other name or brand that 1UP in their digital and online platforms, personal website, actual marketing tools, and in all business dealings, to avoid misrepresentation. Distributors shall not endorse or publish any promotional materials without the express written approval of 1UP, and are further required to include the following DISCLAIMER in all their promotional materials:

 

DISCLAIMER: This tool and information is not an official publication of the 1UP. This tool is designed for (please indicate the name of

Distributor). For 1UP’s official publication, please visit the website:

1up.world.

 

Section 4. Distributors should be responsible in the use of digital, online and actual marketing tools or publications involving 1UP and must use the official cover photos of 1UP designed for online marketing when promoting products of 1UP. All Distributors must avoid using any sign, mark, logo, trademark or other symbols of other companies that may result in or cause misrepresentation or which may be misconstrued as an official tie-up or partnership of the other parties or companies with 1UP.

 

Section 5. Distributors shall be responsible for online posting, tagging or sharing of articles or contents in their website/s, social media accounts and other digital platforms. It is the duty of all Distributors to refrain from posting or sharing digital contents which are illegal, immoral, indecent, unethical, malicious or distasteful, one that degrades, belittles or mocks the core values of 1UP and the Multi-Level Marketing (MLM) industry in general.

 

Section 6. Distributors shall refrain from posting comments in the social media, personal websites, blogs and other similar online platforms that may contradict the existing rules, policies and procedures of 1UP.

 

Section 7. Distributors shall not import or export any of the 1UP products from or to other countries with an existing official importer, exporter, exclusive dealer or master franchisee.

Distributors, in the exercise of their rights and privileges, and in the performance of their duties and responsibilities, must act with justice, give everyone their due, and observe honesty and good faith in all their dealings and transactions as Distributor. As such, Distributors are expected and required to observe the following:

 

Section 1. Distributors shall faithfully comply with commitments, duties and responsibilities enumerated in the Distributorship Agreement which they signed and agreed to, the 1UP Distribution Policy, and all Company rules and regulations on the matter, including any and all new rules, regulations and policies that may be published in the website of 1UP.

 

Section 2. Distributors shall refrain from uttering offensive or profane language and any immoral act toward fellow Distributors, and directors, officers, employees, and shareholders of 1UP.

 

Section 3. Distributors shall not, in any way sell, distribute nor dispose of any 1UP products and all other products 1UP distributes lower than the standard retail price (SRP) and the official pricing according to the official pricelist.

 

Section 4. Distributors shall not offer promotions (promos), freebies or any similar marketing strategy that is not offered by 1UP that may cause unfair competition to fellow distributors or under-value the products of 1UP through the use of the said promos. Distributors shall not offer, present nor promote marketing and business strategies in the form of, but not limited to, incentive packages, enticements or other arrangements which are outside the business program of 1UP or anything related that could jeopardize and/or harm the interests of 1UP.

 

Section 5. Distributors must refrain from exaggerating or hyping the products or potential earnings thru promotion of flamboyant or exorbitant endorsement(s) or advertisement(s), such as but not limited to overstating the benefits of the products, or, one that guarantees big results, great rewards or risk-free endeavors without exerting actual sales efforts.

 

Section 6. Distributors shall not offer, interfere or accept any prospective

Distributor whose duly signed and accomplished Distributorship Agreement Form was submitted by another Distributor to any of the offices of 1UP, validated and stamped by 1UP cashiers, within the six (6) months cooling- off period described below:

 

The six (6) months cooling-off period is the period of time when a Distributor is prohibited from sponsoring a person to become a Retailer or a Distributor who has been previously sponsored by another Distributor and a duly accomplished Distributorship Agreement Form has been submitted to any office of 1UP for validation within One Month from the date of signing. The six (6) months cooling-off period starts from the date of signing of the Distributorship Agreement Form.

 

Section 7. Distributors shall not commit the following violations: “Poaching”, “Cross-Sponsoring”, or “Cross-Lining”. 

 

“Poaching” is defined as entertaining the inquiries of, or explaining the procedures of 1UP to, a prospective client who has previously committed to be sponsored by another Distributor for the purpose of sponsoring such prospective customer for their own benefit. “Poaching” may also be committed by answering any query on the social media account which includes the comment section of a Distributor’s post or ad, personal website, and similar online platform of other Distributors.

 

“Cross-Sponsoring”, otherwise known as “pirating”, is committed by registering a Distributor with existing OTC under their line of sponsorship in the following manner:

1. Register the spouse of an existing Distributor with existing OTC as a Distributor or Retailer under their line of sponsorship.

 

ii.Sponsor an existing Distributor as a new Distributor or Retailer despite knowledge that the proposed Sponsor is already a Distributor.

 

iii.Re-sponsor a Distributor without the observance of the Re 

Sponsorship Policies;

 

iv.Any other act that is likely to circumvent the company policy producing similar act or with relative effect; and

 

v.Sponsoring a prospective client, who have already signed a validated Distributorship Agreement Form with another Distributor. 

 

“Cross-Lining” is defined as “Registration of sponsorship of any person with an existing OTC registered to a different line” committed through any of the following:

 

i.Register the spouse of a Distributor to a line different from that of their spouse;

 

ii.Transfer the sponsorship or cause the transfer of the sponsorship of another without observing the Re-Sponsorship Policies;

 

iii.Register as, or joining another, Distributor after having previously signed a Distributorship Agreement with another Distributor;

 

iv.Any and all acts o fsimilar nature that may tend to circumvent the policy against Cross-Lining

 

Section 8. Re-Sponsorship Policies - Distributors may be re-sponsored in any of the following manner:

 

1. Automatic Re-Sponsorship; and
2. Re-Sponsorship with Ethics Committee Approval.

 

Section 8.1. Automatic Re-Sponsorship - Distributors shall be eligible for automatic re-sponsorship under any of the following conditions:

 

1. Distributors that are terminated after 60 days;
2. Distributors who are inactive with no income or bonus in the last six

(6) months; and

3. Distributors with inactive uplines who had no income or bonus in the last six (6) months.

 

Distributors who have met the above qualifications may immediately transfer to a different sponsor upon notice from the Ethics Committee. Inactive members who will be re-sponsored will not require the deletion of the points in the OTC of uplines but will require the deletion of all points of the re-sponsored parties.

 

Section 8.2. Re-Sponsorship with Ethics Committee Approval - For Distributors who failed to meet the qualifications for automatic re- sponsorship, but may have meritorious reasons to be considered, they may submit a duly accomplished Re-Sponsorship Form, along with a valid ID with three (3) specimen signatures to the Ethics Committee.

 

Re-Sponsorship Due to Strained Relations with Upline – Distributors with strained relations with their uplines shall be allowed to transfer sponsorship regardless of the inactivity period without the burden of violating the company’s policy on cross-lining.

 

“Strained Relations” for the purpose of this provision shall be defined as a relationship between uplines and their downlines that has become spiteful due to some overt acts by the upline that a chance of harmonious, productive and professional working environment is no longer viable.

 

The affected Distributor may transfer under any of the following conditions:

 

➢ That there must be justifiable reason/s for the transfer. The justifiable reason is subject to the determination of the Ethics Committee. ➢ That the strained relationship is due to a commission of the sponsor/upline of a serious or gross misconduct towards the Applicant such as but not limited to:

 

• Non-encoding or preventing to encode transactions for an unreasonable length of time;
• Bullying a member whether physically or through other forms such as social media to compel the member to act against their will;
• Non-delivery of products for an unreasonable length of time;
• Non-payment of debt in connection with their 1UP business; • Withholding Company information such as public posts, promos, updates and/or memorandum;
• Any form of deception or machination amounting to “Kamada”;
• Any other violations that are serious and gross in nature as determined by the Ethics Committee.

 

• A Distributor under these conditions may file a letter request with the Ethics Committee for such transfer of sponsorship.
• If re-sponsoring is granted, the Distributor will no longer be required to pay or purchase any new package. 1UP will facilitate the transfer to the new upline sponsor, along with the organization down the line at no cost, provided that the downlines sign a Placement Re-sponsorship Consent Form concurring to the transfer.
• All uplines that will accept the re-sponsoring active members and the re-sponsored active member/s as well must consent to zeroing out the points of their OTC.
• Any abuse of this privilege, such as using it to restructure one’s organization to undermine and abuse 1UP’s program or to circumvent the company’s policies to discriminate a responsible and professional upline shall result in corresponding disciplinary action.

Re-sponsorship Request Form, together with a copy of a valid government issued ID with specimen signature of the Distributor and the Placement Responsorship Consent Form of the downlines may be submitted in any of the following ways:

 

• Email: [email protected]
• Facebook: 1UP – Ethics Committee • In Person: 1UP Head Office at

1008 Quezon Ave. Brgy. Paligsahan,

Quezon City or in any 1UP branches

 

Section 9. Distributors shall not commit any act, directly or indirectly, that may cause harm or injury towards fellow Distributors, or any of the directors, officers, employees and shareholders of 1UP, such as, but not limited to, any of the following acts:

 

1. Forgery, falsification, and/or imitation of any handwriting or signature of another in any deed, document, or forms, including IDs;
2. Give false and/or inaccurate statement or narration of facts, especially on public documents such as affidavits and sworn statements;
3. Falsification of documents/alteration of documents, changing information or data from the original contents of the document or any unauthorized modification of the information;
4. Institute and/or pursue malicious and/or vexatious complaint(s) or action(s) before the Ethics Committee, Courts of Justice and/or government agencies/Instrumentalities with judicial/quasi-judicial functions despite knowledge of the falsity and/or baselessness of the same for the purpose of harassing or causing an injury/trouble to the person or good name/standing of another Distributor, or any of the directors, officers, employees and shareholders of 1UP; e. Alter the quality and/or quantity of 1UP products;
5. Issue any deed, document, paper or form claiming to be the copy of an original document which does not exist;
6. Produce and/or sell fake good(s) or product(s) and make them appear to be products of 1UP;
7. Cause unreasonable delay in the delivery of any paid 1UP products and activation codes;
8. Commit an unreasonable delay in encoding the new client to the 1UP system. Unreasonable delay shall mean non-encoding without a valid reason immediately from the date of purchase, or upon demand of the prospective client.
9. Use fictitious name or dummy account for registration or sponsorship with the intention to defraud;
10. Violation of Batas Pambansa Blg. 22, also known as Anti-Bouncing

Checks Law, relative to 1UP transactions only;

1. Promoting and selling regulated products that are illegal and/or prohibited. For this purpose, a regulated product that is not properly registered and/or issued a license/permit by the Government regulatory body or commission shall be considered illegal and prohibited;

• Commission of an act or acts that create or promote any marketing schemes or strategies that are foreign to 1UP’s approved marketing programs, especially one that guarantees big results, great rewards or risk-free endeavors without exerting efforts or putting in the work.

1. Commission of any other form of dishonesty, deceit, estafa, fraud or misrepresentation within the course of their duties and responsibilities as Distributor.

 

Section 10. All Distributors are required to declare their true, accurate, and complete income from 1UP in their Income Tax Return, file the correct

Income Tax Return, and pay the correct taxes due the Government.8

 

A Certificate of Distributorship for purposes of securing a Tax Identification Number, Value Added Tax (VAT) registration, and BIR Form 2307 may be secured from any 1UP office.

Commission by a Distributor of any of the following acts is considered a Serious Misconduct, a violation of this Code, and the offender shall be subjected to appropriate penalties:

 

1. Knowingly use an Activation Code, “Scratch Card”, and/or 1UP OTC that is fake, spurious, or not issued in the regular course of business whether or not such use caused or resulted in any damage to another Distributor and/or to 1UP;

 

1. Create, or attempt to create, disharmony, bitterness, or resentment among Distributors and/or the public at large by voicing out his/her

concern(s), spreading rumors and/or unfounded allegations against 1UP and/or any of its officers, employees, or members of the Board of Directors in order to gain sympathy and/or cause disharmony, whether or not such actions produced the intended result;

 

1. Theft of any property or assets of 1UP, whether tangible or intangible;

 

1. Any other form of misconduct that poses or may pose a serious detriment to 1UP, its directors, shareholders, officers, employees, and fellow Distributors.

Any and all acts that is gross, flagrant, systematic, or severe violations of the core policies of 1UP, or a deliberate act intended to violate

those policies that should be treated with respect is considered a Gross Misconduct, such as, but not limited to, the following:

 

1. Engaging with any person or entity engaged in a similar industry as, or a competitor of 1UP for the purpose of employment, representation, association, sponsorship;

 

1. Recruitment of or inducing a Distributor to sell, promote, sponsor, and/or introduce, the products, services, business, marketing plans or strategy of a competitor of 1UP;

 

1. Joining, associating with, registering, subscribing, promoting, representing, or any other form of affiliation and membership to any entity, group, or company, duly declared by any government agency, bureau, judicial or quasi-judicial bodies, or other government institutions and instrumentalities, including the declaration of the government of any country that such entity, group, or company as illegal or a scam. Distributors shall not recruit, convince, offer, assist, sponsor, or any similar act thereto, other Distributors or any other person to join, subscribe, associate with, or register membership to said illegal, scam or unregistered companies;

 

1. Selling or offering for sale, promoting and/or inviting to join, participate or become interested in a corporation, a commercial enterprise or profit- making venture, whether or not evidenced by a certificate, contract, or instrument, written or electronic in character, including, but not limited to:

 

• Investment contracts, certificates of interest or participation in a profit-sharing agreement, certificates of deposit for a future subscription;
• Shares of stocks, bonds, debentures, notes, and evidences of indebtedness;
• Certificates of participation, trust certificates, voting trust

certificates or similar instruments; or

• Pre-need plans. without a registration certificate issued by the proper government agency or not being registered with the proper government regulatory office.

Any and all acts that is gross, flagrant, systematic, or severe violations of the core policies of 1UP, or a deliberate act intended to violate

those policies that should be treated with respect is considered a Gross Misconduct, such as, but not limited to, the following:

 

1. Engaging with any person or entity engaged in a similar industry as, or a competitor of 1UP for the purpose of employment, representation, association, sponsorship;

 

1. Recruitment of or inducing a Distributor to sell, promote, sponsor, and/or introduce, the products, services, business, marketing plans or strategy of a competitor of 1UP;

 

1. Joining, associating with, registering, subscribing, promoting, representing, or any other form of affiliation and membership to any entity, group, or company, duly declared by any government agency, bureau, judicial or quasi-judicial bodies, or other government institutions and instrumentalities, including the declaration of the government of any country that such entity, group, or company as illegal or a scam. Distributors shall not recruit, convince, offer, assist, sponsor, or any similar act thereto, other Distributors or any other person to join, subscribe, associate with, or register membership to said illegal, scam or unregistered companies;

 

1. Selling or offering for sale, promoting and/or inviting to join, participate or become interested in a corporation, a commercial enterprise or profit- making venture, whether or not evidenced by a certificate, contract, or instrument, written or electronic in character, including, but not limited to:

 

• Investment contracts, certificates of interest or participation in a profit-sharing agreement, certificates of deposit for a future subscription;
• Shares of stocks, bonds, debentures, notes, and evidences of indebtedness;
• Certificates of participation, trust certificates, voting trust

certificates or similar instruments; or

• Pre-need plans. without a registration certificate issued by the proper government agency or not being registered with the proper government regulatory office.

Section 1. Jurisdiction. – Except as otherwise provided under this Code, the Ethics Committee, headed by its Chairman - President and CEO, shall have the exclusive jurisdiction to handle issues, concerns and complaints for violation of any of the provisions in this Code and the Distributor Policy.

 

Section 2. Who May Initiate. – Proceedings for the violation of any of the provisions of this Code of Conduct and Ethical Standards may be initiated by the Ethics Committee motu proprio or upon the complaint of a Distributor.

 

Section 3. Requisites of a Valid Complaint. – The complaint by a Distributor against a fellow Distributor must be signed by the Complainant, written in a clear, simple and concise language, and shall contain the following:

 

1. Full name and address of the Distributor Complainant, including a list of all of their available contact details;
2. Full name of the Distributor complained of, including a list of all of their available contact details, if known;
3. A narration of the relevant and material facts which show the acts or omissions allegedly committed;
4. Copies of documentary evidence, if any; and
5. Copies of valid identification with three (3) specimen signature.

In cases initiated by the Ethics Committee, a show cause order is sufficient. Section 4. When and Where to File a Complaint. – A complaint for the violation of any of the provisions of this Code may be filed at any time with the Ethics Committee in any of the following ways:

 

• Email: [email protected]
• Facebook: 1UP – Ethics Committee
• In Person: 1UP Head Office at the

1008 Quezon Ave. Brgy. Paligsahan,

Quezon City or in any 1UP branches

 

Section 5. Notice of Charge/s. –Should the Ethics Committee determine probable cause to charge the Distributor complained of for violation of any of the provisions of this Code, it shall issue a Notice of Charge/s against them including a narration/description of their violation(s) and a directive to answer the charge(s), or submit an explanation, within five (5) days from receipt of the notice.

 

Section 6. Answer/Explanation. – The Answer/Explanation should be in writing, specific, and contain material facts in support of the defense of the Distributor complained of, including documentary evidence, statements covering testimonies of witnesses, if there be any.

 

Section 7. Failure to File an Answer. – If the Distributor complained of fails or refuses to file their answer/explanation within the period provided in the Notice of Charge/s, the Distributor shall be considered to have waived their right to submit the same and the case may be decided based on the available records.

 

Section 8. Preventive Suspension. –The Distributor complained of, upon the petition of the Distributor Complainant, or the Ethics Committee, motu proprio, may be placed under Preventive Suspension by the Ethics Committee pending investigation for the following violations: a. Under-Pricing;

1. Multiple offenses;
2. Gross Violations; and
3. Any violation that is detrimental to 1UP as determined by the Ethics Committee.

 

Section 9. Effects and Consequences of Preventive Suspension. – The following are the effects of the issuance of a Preventive Suspension upon the Distributor complained of:

1. All the privileges granted to a Distributor shall be blocked/suspended until the final resolution of their case;
2. The OTC shall not be accessible to the said Distributor until the final resolution of the case or until determination by the Ethics Committee that Preventive

Suspension is no longer necessary;

1. If the Distributor is declared innocent of the violations charged with, all the suspended privileges and benefits shall be restored and shall retroact from the date of theSuspension Order;
2. If the Distributor is proven and declared guilty of the charges, the period of Preventive Suspension shall be deducted from the penalty of suspension imposed by the Ethics Committee.

 

Section 10. Mediation. – At any time after an Answer/Explanation is filed, the Ethics Committee, in its discretion, may call the parties to a Mediation for them to arrive at conciliation or the freedom of the parties to make their own arrangements to resolve conflicts/disputes to arrive at a settlement, which settlement must be approved by the Ethics Committee.

 

In the event Mediation between the parties fails, the Ethics Committee shall decide the case based on its merits.

 

Section 11. Period to Decide a Case. – The Ethics Committee shall decide the case within thirty (30) days from receipt of the Answer/Explanation of the Distributor complained of, or after the lapse of the period to file an Answer/Explanation without an Answer/Explanation being filed.

 

Section 12. Finality of the Decision. – All Decisions rendered by the Ethics Committee shall be final and immediately executory.

 

Section 13. Distributors who immediately and timely file a complaint against their uplines for delayed and unreasonably controlled encoding of a new Distributor to the 1UP system shall be eligible for re-sponsorship together with their entire organization free of charge, once allegations have been proven with finality by the Ethics Committee. The erring upline shall suffer the penalties for a Major Offense.

Section 1. Classification of Offenses. – Offenses with corresponding penalties are classified as Minor Offenses, Major Offenses,Serious Offenses, and Gross Offenses.

 

Minor Offenses are violations of provisions enumerated under the Basic Duties and Responsibilities of a Distributor under Article 4 of this Code.

 

Major Offenses are violations that maybe considered detrimental to 1UP and which pose imminent and serious threats to the reputation and operations of 1UP, including, but not limited to, violations committed against the provisions of Article 5,Main Duties and Responsibilities of a Distributor.

 

Serious Misconduct are acts or actions that pose or may pose a grave and severe detriment to 1UP, its directors, stockholders, officers, employees, and/or fellow distributors, including, but not limited to, violations of Article 6 of this Code.

 

Gross Misconduct are acts or actions of Distributors with deliberate intent to violate the core policies of 1UP, such as the commission of any of the acts enumerated in Articles 7 and 8 of this Code.

 

Section 2. Violation of Minor Offenses shall be punishable by a written reprimand, for the first violation, or a written warning wherein the Distributor is warned of their violation or misconduct and directed to correct their misconduct within a period of five (5) days from notice. Failure to correct their misconduct within the said period shall mean a suspension of their rights and privileges.

 

A second violation of Minor Offense shall merit a suspension of the rights and privileges of a Distributor for at least two (2) weeks but not more than one (1) month of the Distributor’s OTC and activities. All bonuses, privileges and other remunerations, monetary or in kind earned during the period of suspension are forfeited effective immediately. The OTC of the erring Distributor shall be put on hold until acknowledgment of the Notice to Explain was received by the Ethics Committee.

 

Section 3. Violation of Major Offenses shall be punishable by suspension of the

Distributor’s OTC and activities for at least one (1) month but not more than six (6) months for the first violation. All bonuses, privileges and other remunerations, monetary or in kind, during the period of suspension shall be forfeited.

 

Second violation of a Major Offense shall be punishable by termination of OTC including forfeiture of income, bonus, privileges and other remunerations, monetary or in kind, effective immediately, and will be put on a blacklist wherein the Distributor cannot join and register to 1UP as a Distributor for a period of two (2) years from the date of termination.

 

Section 4. Penalty for Under-Pricing. – Distributors who have been proven guilty of violating the policies against Under-Pricing shall be sanctioned to a minimum penalty of three (3) months to a maximum of six (6) months suspension and forfeiture of all income, bonus, privileges, and other remunerations, monetary or in kind earned during the period of suspension.

 

Section 5. Penalty for Serious Misconduct. – Distributors proven guilty of committing a Serious Misconduct shall be punished by the suspension of all of their rights and privileges as a Distributor for a minimum period of three (3) months to a maximum period of six (6) months, and forfeiture of all income, bonus, privileges, and other remunerations, monetary or in kind, earned during the period of suspension.

 

Section 6. Penalty for Gross Misconduct. – Distributors found guilty of commission ofa Gross Misconduct shall be punished with the revocation of the privileges of a Distributor enumerated in Article 3. The termination shall also carry with it forfeiture of income, bonus, privileges, and other remunerations from the time of their preventive suspension until they are reinstated as a Distributor. The offender shall also be put on the list of Blacklisted Distributors where they cannot join and register as a Distributor for a period of two (2) years from the date of revocation.

 

Section 7. Penalty for Multiple Violations. – A Distributor found guilty of various offenses, whether simultaneous, or in succession, shall be subjected to higher penalties, to wit:

 

i.Three (3) Minor Violations = One (1) Major Violation ii.Five (5) Minor Violations =Termination iii.Three (3) Minor, One (1) Major = Termination iv.Two (2) Major Violations=Termination

 

Section 8. Non-Eligibility for Awards. – Distributors declared guilty of violation for at least a Major Offense listed in this Code shall not be eligible for any award or recognition given by 1UP to its Distributors.

 

Section 9. Aside from the penalty for Major Offenses to which Malicious and Vexatious Filing of a Complaint belongs, the Distributor guilty of this violation shall issue a public apology to the Distributor or 1UP subject of their malicious and vexatious complaint.