ITV Ventures™ Minimum Advertising Price Policy

FRIDAY, FEBRUARY 29, 2008

ITV Ventures™ Minimum Advertising Price Policy - Effective April 1, 2008

TO: Independent Business Owners

FROM: Office of the General Counsel

RE: ITV Ventures™ Minimum Advertising Price Policy - Effective April 1, 2008.

EACH IBO IS FREE TO INDEPENDENTLY DECIDE WHETHER OR NOT TO FOLLOW THIS MINIMUM ADVERTISING PRICE POLICY IN CONNECTION WITH ITS ADVERTISED PRICE. HOWEVER, ADVERTISING A PRICE, OR TAKING OTHER ACTION THAT IS CONTRARY TO THIS POLICY MAY RESULT IN THE BELOW MENTIONED ACTIONS. THE MINIMUM ADVERTISING PRICE POLICY DOES NOT APPLY TO AN IBO'S ACTUAL SALES PRICES.

Effective April 1, 2008 ITV Ventures will institute a Minimum Advertised Price policy for the benefit of all of our valued IBOs. Although we actively encourage and support the advertising and promotion of our products by our IBOs, we find it necessary to implement a Minimum Advertised Price policy so that ITV is not devalued in the marketplace, and so each ITV partner can compete equally on the basis of the value they provide the customer, whether that be product knowledge, service, support, inventory or any combination of these items and more. In Network Marketing, one of the key components to making such a distribution model work is a “level playing field” for all distributors, IBOs and customers. When there are individuals out in the field trying to “under-cut” one another, it may create havoc and mistrust in the organization.

1. Although an individual IBO remains free to establish their own resale prices, immediately following ITV’s verification to its satisfaction that an IBO has advertised any ITV product at a net retail sales price, exclusive of state and local taxes, that is less than ITV’s suggested single unit retail price set forth (herein “Published Retail Price”) as published in its ITV Price List, ITV will, at its own discretion and without assuming any liability take appropriate actions. Such appropriate actions include, but are not limited to, cancelling all orders and may refusing to accept any new orders from any IBO, suspension of the IBO one or more pay periods and/or termination of the offending IBO from ITV Ventures. Any offer of free ITV products, free shipping, quantity discounts or other sales incentive that reduces the net product price below the Published Retail Price violates this Minimum Advertised Price policy.

2. This Minimum Advertised Price policy applies only to advertised prices. ITV Ventures does not and will not impose or enforce any policy with respect to the actual re-sale price of the product, and the IBO is free to sell ITV Ventures products at any price and terms it deems appropriate.

3. This Minimum Advertised Price policy applies to all advertisements of ITV products, and includes but is not limited to magazines, websites and other electronic media, broadcast emails, catalogs, flyers, coupons, newspapers, television, radio, “appointment only” business, trade shows, fairs, and other sales events. The policy does not affect any approved in-store advertising or in-store actual product pricing. Please remember: ITV does not allow the selling of any of its products on online auction sites (i.e., eBay).

4. Pricing listed on an internet site is considered an “advertised price” and must adhere to this Minimum Advertised Price policy. Once the pricing is associated with an intent to purchase (added to shopping cart or order), the price becomes the selling price and is not bound by this Minimum Advertised Price policy.

5. By way of example, the following advertising is compliant with the Minimum Advertised Price policy:


-Statements such as “add to basket to see price,” “call for price,” and “price too low to show” are acceptable.

-Advertising without reference to price.
6. From time to time, ITV Ventures may choose to offer special promotions on certain products. In such an event, we reserve the right to modify or suspend this Minimum Advertised Price policy in whole or in part by notifying all IBOs of the duration and nature of the change. ITV further reserves the right to adjust this Minimum Advertised Price policy by amending this policy as posted. It is the responsibility of each member to be aware of any policy changes.

7. Intentional and/or repeated failure to abide by this Minimum Advertised Price policy may result, at ITV’s discretion, one or more of the following corrective measures:


a) Issuance of a written warning or admonition;

b) Requiring the Representative to take immediate corrective measures;

c) Imposition of a fine, which may be withheld from bonus and commission checks;

d) Loss of rights to one or more bonus and commission checks;

e) ITV may withhold from a Representative all or part of the Representative’s bonuses and commissions during the period that ITV is investigating any conduct allegedly violative of the Agreement. If a Representative’s business is cancelled for disciplinary reasons, the Representative will not be entitled to recover any commissions withheld during the investigation period;

f) Suspension of the individual’s Representative Agreement for one or more pay periods;

g) Involuntary termination of the offender’s Representative Agreement;

h) Any other measure expressly allowed within any provision of the Agreement or which ITV deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Minimum Advertised Price policy violation.
8. This Minimum Advertised Price policy has been unilaterally adopted and implemented by ITV and nothing in the policy shall constitute an agreement between ITV and any IBO that the IBO will comply with this Minimum Advertising Price policy. The terms of the Minimum Advertising Price policy are non-negotiable and will not be altered for any IBO. ITV will not discuss any conditions of acceptance related to this Minimum Advertised Price policy. No ITV corporate employee or representative is authorized to modify, alter or grant any exception to this Minimum Advertising Price policy. Any comments to the contrary by an ITV corporate employee or representative are expressly unauthorized and disclaimed by ITV. All questions regarding the interpretation or application of this Minimum Advertising Price policy must be directed to ITV’s Compliance Officer. Nothing in this Minimum Advertising Price policy (or in any agreement between ITV and IBO) is intended to be, nor shall be construed to be, an agreement between ITV and any IBO as to the minimum prices at which the IBO shall advertise or resell ITV products.

For more info go to:
http://www.itvwithsarah.com

Sarah Tapp
3 Star Gold Executive
ITV Ventures(tm) IBO
707-483-7996
http://www.itvwithsarah.com