Articles in this section

petPro POLICIES & PROCEDURES

Jana Gilmore
  • Updated

pawTree®, LLC

IpP Terms & Policies

  1. The Agreement
  2. Adherence to the Agreement
  3. Changes to the Agreement
  4. IpPs’ Rights
  5. Independent Contractor Status
  6. Assignment of Rights and Delegation of Duties
  7. Waiver
  8. Waiver of Right of Publicity
  9. Minimum Age
  10. Severance
  11. Term and Renewal of a pawTree® Business
  12. Maryland Residents
  13. Puerto Rico Residents
  14. General Conduct
  15. IpP Web Sites & Internet Policies
  16. Social Media
  17. Linking Policy
  18. IpP Web Sites, Mobile Applications and Collateral Sales Tools
  19. Promoting Your pawTree® Replicated Web Site Through Search Engines
  20. Trademarks and Copyrights
  21. Sales Outlets
  22. Service-Related Establishments
  23. Change of Sponsor
  24. Waiver of Claims
  25. Product Claims
  26. Weight Loss Testimonials
  27. Income Claims
  28. Compensation Plan and Program Claims
  29. Media Inquiries
  30. Nonsolicitation
  31. Nondisparagement
  32. Confidential Information
  33. Handling Personal Information
  34. Product Inventory & Bonus Buying
  35. Limitations on IpP and Household Businesses
  36. Business Entities
  37. Actions of Third Parties
  38. Tampering With Product Packaging
  39. Sales Receipts
  40. Adjustment to Bonuses and Commissions
  41. Return of Merchandise and Sales Aids by IpPs Upon Cancellation
  42. Montana Residents
  43. Louisiana, Massachusetts and Wyoming Residents
  44. Satisfaction Promise
  45. Other Cancellation Rights
  46. Disciplinary Sanctions
  47. Compliance Disclosure to Upline
  48. Indemnification
  49. Effect of Cancellation
  50. Voluntary Cancellation
  51. Involuntary Cancellation (Termination)
  52. Business Transfers
  53. Re-Instatement
  54. Re-Enrollment
  55. Demotion
  56. Transfer Upon an IpP’s Death
  57. Business Distribution Upon Divorce
  58. Dissolution of a Business Entity
  59. Inducing IpPs to Violate the Agreement
  60. Reporting Errors

 

 

  1. The Agreement.

The term “Agreement” collectively refers to these Terms and Policies, the pawTree® Compensation Plan, the Arbitration & Dispute Resolution Policy in their current form and as may be changed in the future.  IpPs shall be referred to herein as “IpPs.” pawTree®, LLC shall be referred to as “pawTree®” or the “Company.”  Any promises, representations, offers, or other communications not expressly set forth in the Agreement are of no force or effect.  

 

  1. Adherence to the Agreement.

IpPs must comply with the Agreement. If you have not yet reviewed the Terms and Policies (the “Policies”) at the time you execute this Agreement, they are posted in your IpP Back-Office. You must review the Terms and Policies within five days from the date on which you execute this Agreement. If you do not agree to the Terms and Policies, your sole recourse is to notify the Company and cancel your pawTree® Agreement. Failure to cancel constitutes your acceptance of the Terms and Policies. You must be in good standing, and not in violation of the Agreement, to be eligible for bonuses or commissions from pawTree.

 

  1. Changes to the Agreement.

The Company reserves the right to change the Agreement as reasonably necessary. Changes shall be effective 30 days after notice of the changes and publication of the notice in each IpP’s Back-Office, but changes shall not apply retroactively to conduct that occurred prior to the effective date of the changes. If you do not agree to any changes, your recourse is to cancel your pawTree® Agreement.

 

  1. IpPs’ Rights.

pawTree® IpPs:

  • Have the right to sell, and solicit orders for, pawTree® products in accordance with these Terms and Policies. It is within the exclusive right of pawTree® to accept or reject orders submitted by IpPs;
  • Have the right to enroll others as pawTree® IpPs;
  • If qualified, have the right to earn commissions pursuant to the pawTree® Compensation Plan.

 

  1. Independent Contractor Status.

IpPs are independent contractors and not employees, partners, legal representatives, or franchisees of pawTree®, LLC. IpPs are solely responsible for paying all expenses they incur, including but not limited to travel, food, lodging, secretarial, office, long distance telephone and other business expenses. IpPS SHALL NOT BE TREATED AS A PAWTREE® EMPLOYEE FOR FEDERAL OR STATE TAX PURPOSES.  pawTree® is not responsible for withholding and shall not withhold or deduct FICA, or taxes of any kind from IpPs’ compensation. IpPs are not entitled to workers compensation or unemployment security benefits of any kind from pawTree®.

 

  1. Assignment of Rights and Delegation of Duties.

Neither party shall assign its rights nor delegate its duties under the Agreement without the prior written authorization of the other Party. Not withstanding the foregoing, if the assets of pawTree®, or a controlling ownership interest in pawTree®, is transferred to a third party, pawTree® may assign its rights and delegate its duties and obligations to all IpPs under the Agreement to such third party as part of the transfer and need not obtain IpPs’ prior written authorization.

 

  1. Waiver.

Any waiver by either Party of any breach of the Agreement must be in writing and signed by an authorized agent of the Party against which the waiver is asserted. Any waiver of a breach by a Party shall be a one-time waiver only and shall not operate or be construed as a waiver of any subsequent breach. 

 

  1. Waiver of Right of Publicity.

IpPs grant pawTree® an irrevocable license to reproduce and use their name, photograph, video, personal story, testimonial, and/or likeness in its advertising or promotional materials, including but not limited to use in online forums. IpPs waive all claims for remuneration for such use and all rights to inspect or approve all draft, beta, preliminary, and finished material.  

 

  1. Minimum Age.

Persons under age 18 may not be IpPs and no IpP shall knowingly recruit or sponsor, or attempt to recruit or sponsor, any person under age 18. IpP applicants in Puerto Rico under age 21 must also submit a parental consent form (obtained in the Resource Library of your pawTree® Office or by emailing support@pawtree.com.)

 

  1. Severance.

If any provision of the Agreement, in its current form or as changed in the future, is held void or unenforceable, only the void or unenforceable portion(s) of the provision shall be severed from the Agreement and the remaining provisions shall remain in effect. The severed provision shall be reformed so that it is in compliance with the law and reflects the purpose of the original provision as closely as possible. The existence of any claim or cause of action of an IpP against pawTree® shall not constitute a defense to pawTree’s enforcement of any term or provision of the Agreement. 

 

  1. Term and Renewal of a pawTree® Business.

The term of this agreement is three months. Thereafter, the term is month-to-month and is renewed when an IpP pays his/her monthly web services fee (subject to cancellation per the Policies). pawTree® reserves the right to terminate all IpP Agreements upon 30 days’ notice if the Company elects to: (1) cease business operations; (2) dissolve as a business entity; or (3) terminate distribution of its products and/or services via direct selling channels.  

 

A participant in this multilevel marketing program has a right to cancel at any time, regardless of reason.

Cancellation may be submitted in writing to the company at its principal business address or via the IpP’s Back-Office.

 

  1. Maryland Residents:

A participant may cancel the contract for any reason within 3 months after the date of receipt of goods or services first ordered; upon cancellation, the Company shall repurchase the goods; and the repurchase price shall be at least 90% of the original price paid by the participant. 

 

  1. Puerto Rico Residents:

You may cancel this Agreement at any time within 90 days from the date of enrollment, or at any time upon showing the Company’s noncompliance with any of the essential obligations of the distribution contract or any act or omission by the Company adversely affecting the interests of the dealer in the development of the market of the properties or services. Your cancellation may be sent to the Company in writing and sent via registered mail. If you cancel under these conditions, the Company shall: (a) Reacquire the total of the products that you purchased from the Company which are in your possession and in good condition at a price of not less than ninety percent (90%) of their original net cost; (b) Return to you not less than ninety percent (90%) of the original net cost of any services that you acquired from the Company; (c) Return 90% of any sum paid by you for the purpose of participating in the business.

 

  1. General Conduct.

IpPs shall safeguard and promote the good reputation of pawTree® and its products, and shall not engage in illegal, deceptive, misleading, unethical, or immoral conduct or practices, and must exhibit high moral character in their personal and professional conduct. IpPs shall not engage in any act or omission in their personal or professional activities that a reasonable person would believe could damage the Company’s goodwill or reputation. While it is impossible to specify all misconduct that violates this provision, and the following list is not a limitation of prohibited conduct, the following examples are practices that are specifically prohibited under this policy:

 

  • Making statements that are deceptive, untruthful, unfair, or misleading;
  • Making any implied or express representation that any state or federal government official, agency, or body has approved or endorses pawTree®, its program, or products;
  • Engaging in criminal or fraudulent conduct in business or in one’s personal life that could reasonably be foreseen to damage the Company’s reputation or the culture that exists within the field sales force;
  • Engaging in conduct that can reasonably be interpreted as constituting harassment, intimidation, discrimination, predatory, abusive, obscene, humiliating to others or conduct that threatens violence;
  • The unwanted disclosure of a third-party’s personal information;
  • Using a pawTree® business to promote a social, political, or religious purpose.

 

 

  1. IpP Web Sites & Internet Policies.

The national scope of the Internet creates not only an excellent resource, but also a challenge to pawTree® to develop a global strategy that ensures this resource supports and accurately promotes your independent contractor relationship and our direct selling marketing philosophy.  To take full advantage of the Internet, pawTree® has developed the following Internet Policies.  The Internet Policies will help protect the business and the image of pawTree® and its petPros, pro-mote a consistent Company message free from unauthorized, untruthful, or exaggerated claims and rumors, as well as deter poor Web site design.

 

  1. Social Media.

In addition to meeting all other requirements specified in these Terms & Policies, should an IpP utilize any form of social media in connection with their pawTree® business, including but not limited to blogs, Facebook, Twitter, Linkedin, YouTube, or Pinterest, the IpP agrees to each of the following:

 

  • IpPs are responsible for the content of all material that they produce and all their postings on any social media site, as well as all postings on any social media site that they own, operate, or control.
  • IpPs shall not make any social media postings, or link to or from any postings or other material that is sexually explicit, obscene, pornographic, offensive, profane, hateful, threatening, harmful, defamatory, libelous, harassing, or discriminatory (whether based on race, ethnicity, creed, religion, gender, sexual orientation, physical disability, or otherwise), is graphically violent, is solicitous of any unlawful behavior, that engages in personal attacks on any individual, group, or entity, or is in violation of any intellectual property rights of the Company or any third party.
  • No product sales or enrollments may occur on or through any social media site. To process sales or enrollments, a social media site must link only to the IpP’s pawTree® replicated website, pawTree’s corporate website or an official pawTree® corporate social media page.
  • It is each IpP’s responsibility to follow the social media site’s terms of use.
  • Any social media site that is directly or indirectly operated or controlled by an IpP that is used to discuss or promote pawTree’s products, or the pawTree® opportunity may not link to any website, social media site, or site of any other nature that promotes the products, services, or business program of any direct selling company other than pawTree®.
  • During the term of the Agreement and for 12 calendar months after the cancellation of an IpP’s business for any reason, an IpP shall not take any action on any social media site on which they discuss or present, or have discussed or presented, pawTree’s products or the pawTree® business that may reasonably be foreseen to draw an inquiry from pawTree’s IpPs relating to the IpP’s other direct selling business activities or products. Violation of this provision shall constitute a violation of the nonsolicitation provision in Policy 30.
  • If an IpP creates a business page on any social media site to promote or relates to pawTree®, its products, or opportunity, the page may not promote or advertise the products or opportunity of any other network marketing business other than pawTree® and its products. If the IpP’s pawTree® business is cancelled for any reason or if the IpP becomes inactive, the IpP must deactivate the page.
  • IpPs shall respect the privacy of other social media users. IpPs shall not engage in abusive social media practices including but not limited to harvesting or trolling for connections, shaming or bullying others.

 

  1. Linking Policy.

Linking to your replicated web site from another Web site can be a great way to direct customers to you and generate additional sales. If you choose to link to your replicated web site, the site to which you link must comply with each of pawTree’s Policies:

 

  • The website shall not imply, either directly or indirectly, that pawTree is endorsing its contents;
  • No product sales or enrollments may occur on or through any social media site. To process sales or enrollments, a social media site must link only to the IpP’s pawTree® replicated website, pawTree’s corporate website or an official pawTree® corporate social media page;
  • The website shall not replicate in any manner any content in your replicated website;
  • If your replicated web site is no longer displayed on the Internet (cancelled or terminated subscription), you must remove the link to your replicated web site from all pages where a link was inserted.

 

  1. IpP Web Sites, Mobile Applications and Collateral Sales Tools.

Subject to the requirements set forth in these Policies, IpPs may create their own sales aids, non-business presentations, advertising, and promotional materials (collectively “Sales Tools”) with the exception of product samples. IpPs must use only pawTree® approved pre-packaged samples and products for sampling.   IpP produced or sponsored websites are not permitted under this policy.

 

To ensure that the Sales Tools are of professional quality, are not deceptive and contain only substantiated claims, all IpP created Sales Tools must be submitted to the Company and receive written approval before they can be used or made public. IpPs who receive written authorization from pawTree® to produce and publish Sales Tools may make approved Sales Tools available to other IpPs free of charge if they wish but may not sell the Sales Tools to other pawTree® IpPs.

 

pawTree® reserves the right to rescind approval for any approved Sales Tools, and IpPs waive all claims against pawTree®, its officers, directors, owners, employees, and agents for damages, expenses, costs, or remuneration of any other nature arising from or relating to such rescission.

 

pawTree® reserves the right to rescind approval for any approved website, and IpPs waive all claims against pawTree®, its officers, directors, owners, employees, and agents for damages, expenses, costs, or remuneration of any other nature arising from or relating to such rescission.

 

Approved Tools will be posted in the IpPs’ Back-Offices and will be made available to all IpPs free of charge. The IpP who submitted the Sales Tool to the Company waives all claims to remuneration for such use and grants pawTree®an irrevocable license to use the Sales Tools, and to allow pawTree to provide the Tools to other IpPs free of charge, as the Company deems appropriate. 

 

  1. Promoting Your pawTree® Replicated Web Site Through Search Engines.

pawTree® does not register your replicated web site with search engines (e.g., Yahoo®, Google®). We feel that it is of greater benefit to IpPs to have the official corporate Web site, www.pawTree.com, be found in a search.

 

If you choose to submit or register your Replicated Web Site with a search engine, each of the following applies:

 

  • The search string or title you submit must not contain any Company trademarks (e.g., “pawTree”)
  • IpPs shall not use any trademarks, tradenames, distinctive phrases or logos of the company, or any term confusingly similar thereto - in any form on the internet.
  • IpPs shall not use the official corporate pawTree® website or social media pages to drive business, solicit business, drive people to your own site or recruit petPros. pawTree® trademarked brand name cannot be used to drive traffic away from the corporate site.
  • Sometimes you're asked to describe the Web site. The description given cannot contain any Company trademarks.
  • If your replicated web site is no longer displayed on the Internet (cancelled or terminated subscription), you must contact the search engine provider to remove your submission or listing.
  • Search engine promotion must comply with all of pawTree’s Policies.

 

  1. Trademarks and Copyrights.

The name “pawTree” and other names as may be adopted by the Company are proprietary trade names, trademarks, and service marks of pawTree®. Subject to pawTree’s search engine policy, the Company grants IpPs a limited license to use its trademarks and trade names in promotional material in accordance with these Policies for so long as the IpP’s Agreement is in effect. Upon cancellation of an IpP’s Agreement for any reason, the license shall expire and the IpP shall immediately discontinue all use of the Company’s trademarks and trade names. Under no circumstances may an IpP use any of pawTree’s trademarks or trade names in any email address, website domain name, social media handle, social media name or address, or in any unapproved Sales Tools. 

 

pawTree® commonly puts on live and recorded events as well as webinars and telephone conference calls. During these events Company executives, IpPs, and guests appear and speak. The content of such events is copyrighted material that is owned exclusively by the Company. IpPs may not record company functions for any reason, whether such event is live, a webinar, via conference call, or delivered through any other medium.

 

In addition, Company produced Sales Tools, videos, audios, podcasts, and printed material is also copyrighted. IpPs shall not copy any such materials for their personal or business use without the Company’s prior written approval.

 

  1. Sales Outlets.

To support the Company’s direct selling distribution channel and to protect the independent contractor relationship, IpPs agree that they will not sell pawTree® products in any wholesale, warehouse, or discount establishment, or any online auction or buy-sell site (including but not limited to eBay® and Amazon®) without prior written approval from pawTree®. Notwithstanding the foregoing, IpPs may display and sell pawTree® products at professional trade shows.

 

  1. Service-Related Establishments.

IpPs may promote and sell pawTree® products in service-related establishments. A service-related establishment is one whose primary revenue is earned by providing personal service rather than by selling products. Such establishments include offices of veterinarians and groomers; health clubs or fitness centers; beauty salons; and any other business where customer use of the establishment is controlled by membership or appointment. pawTree® reserves the right to make the final determination as to whether an establishment is service-related or is a proper place for the sale of its products.

 

  1. Change of Sponsor.

The only means by which an IpP may legitimately change his/her sponsor are by: 

 

  • Voluntarily canceling his/her pawTree® business in writing and remaining inactive for six (6) full calendar months. Following the six-calendar month period of inactivity, the former IpP may reapply under a new sponsor. If an IpP cancels through any other method, he/she must remain inactive for 6 calendar months after the cancellation goes into effect. Under either scenario the IpP will lose all rights to his/her former downline organization upon his/her cancellation; or
  • If an IpP was assigned a sponsor by the Company's referral system, the IpP may contact the home office and request a change within 30 days of that assignment. Once 30 days have passed, requests for change will not be accepted.

 

  1. Waiver of Claims.

In cases wherein an IpP improperly changes his/her sponsor, pawTree® reserves the sole and exclusive right to determine the final disposition of the downline organization that was developed by the IpP in his/her second line of sponsorship. IpP’s WAIVE ANY AND ALL CLAIMS AGAINST PAWTREE®, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM PAWTREE’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN IpP WHO HAS IMPROPERLY CHANGED HIS/HER SPONSOR.  

 

  1. Product Claims.

IpPs must not make claims, including but not limited to testimonials, about pawTree’s products or services that are not contained in official pawTree® literature or posted on pawTree’s official website. Under no circumstances shall any IpP state or imply that any pawTree® product is useful in the diagnosis, treatment, cure, or prevention of any disease, illness, injury, or other medical condition.

 

  1. Weight Loss Testimonials.

IpPs must not make any claim or representation that their pet lost weight by using pawTree® products.

 

  1. Income Claims.

When presenting or discussing the pawTree® opportunity or Compensation Plan to a prospective IpP, IpPs may not make income projections, income claims, income testimonials, or disclose their pawTree® income (including, but not limited to, the showing of checks, copies of checks, bank statements, or tax records), or the income of any other pawTree® IpP. Nor may IpPs make “lifestyle” income claims. A “lifestyle” income claim is a statement or depiction that infers or states that the IpP is able to enjoy a luxurious or successful lifestyle by virtue of the income they earn from their pawTree® business. Examples of prohibited lifestyle claims include, but are not limited to, representations (either through audio or visual medium) that an IpP was able to quit his/her job, acquire expensive or luxury material possessions, or travel to exotic or expensive destinations, or that becoming an IpP can lead to financial freedom.

 

  1. Compensation Plan and Program Claims.

When presenting or discussing the pawTree® compensation plan, you must make it clear to prospects that financial success in pawTree® requires commitment, effort, and sales skill. Conversely, you must never represent that one can be successful without diligently applying themselves. Examples of misrepresentations in this area include, but are not limited to:

 

  • It’s a turnkey system.
  • The system will do the work for you.
  • Just get in and your downline will build through spillover.
  • Just join and I’ll build your down-line for you.
  • The Company does all the work for you.
  • You don’t have to sell anything.
  • All you do is buy your products every month.

 

The above are just examples of improper representations about the Company’s program. It is important that you do not make these, or any other representations, that could lead a prospect to believe that they can be successful as an IpP without commitment, effort, and sales skill. 

 

  1. Media Inquiries.

IpPs must not inter-act with the media regarding the pawTree® business or products. All inquiries from the media, including radio, television, print, online (which includes, but is not limited to, bloggers), or any other medium, shall be directed to pawTree’s Support department.  

 

  1. Nonsolicitation.

pawTree® IpPs are free to participate in other network marketing programs. However, during the term of this Agreement and for one year thereafter, with the exception of an IpP’s personally sponsored downline IpPs, an IpP may not directly or indirectly Recruit other pawTree IpPs for any other network marketing business. The term “Recruit” means the direct or indirect, actual or attempted, sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, another pawTree® IpP to enroll or participate in another network marketing opportunity. This conduct constitutes Recruiting even if the IpP’s actions are in response to an inquiry made by another IpP or customer. Any action that is reasonably foreseeable to result in an IpP contacting another individual or entity about another network marketing business or its products is “Recruiting” and is a violation of this Policy.  

 

If an IpP is engaged in another network marketing program, it is the responsibility of the IpP to ensure that his or her pawTree® business is operated entirely separate and apart from all other businesses and/or Network Marketing programs. To this end, the IpP must not:

 

  • Display pawTree® promotional material, sales aids, or products with or in the same location as, any non-pawTree® promotional material or sales aids, products or services (Pinterest and similar social media sites are exempt from this provision).
  • Offer the pawTree opportunity, products or services to prospective or existing customers or IpPs in conjunction with any non-pawTree program, opportunity or products.
  • Offer, discuss, or display any non-pawTree® opportunity, products, services or opportunity at any pawTree® related trunk-show, meeting, seminar, convention, webinar, teleconference, or other function.

 

  1. Nondisparagement.

Negative comments in the field serve only to sour the enthusiasm of other IpPs. Therefore, IpPs shall not disparage, libel, slander, or make negative or critical comments to any other IpP or third party regarding the pawTree®, its management, products or compensation plan. All criticism must be directed exclusively to the Company at support@pawtree.com.

 

  1. Confidential Information.

“Confidential Information” includes, but is not limited to, the identities, contact information, and/or sales information relating to pawTree’s IpPs and/or customers:

 

  • That is contained in or derived from any IpPs’ respective IpP Back-Office;
  • That is derived from any reports issued by pawTree® to IpPs to assist them in operating and managing their pawTree® business; and/or
  • To which an IpP would not have access or would not have acquired but for his/her affiliation with pawTree®: and pawTree’s trade secrets. Confidential Information constitutes belongs exclusively to pawTree® and is provided to IpPs in strict confidence. Confidential Information shall not be directly or indirectly disclosed to any third party nor used for any purpose other than IpP’s use in building and managing his/her Independent pawTree®

 

  1. Handling Personal Information.

If you receive Personal Information from or about prospective IpPs or customers, it is your responsibility to maintain its security. You should shred or irreversibly delete the Personal Information of others once you no longer need it. Personal Information is information that identifies, or permits you to contact, an individual. It includes a customer’s, potential customers, IpPs and prospective IpPs’ name, address, email address, phone number, credit card information, social security or tax identification number and other information associated with these details.

 

  1. Product Inventory & Bonus Buying.

The Company strongly encourages that all products be direct shipped from the Company to the consumer, but IpPs may carry a limited inventory of pawTree® products for resale if they wish. Bonus buying is strictly prohibited. Bonus buying is the purchase of merchandise for any reason other than bona fide resale or use, or any mechanism or artifice to qualify for rank advancement or maintenance, incentives, prizes, commissions, or bonuses that is not driven by bona fide product purchases by consumers for actual use.   

 

  1. Limitations on IpP and Household Businesses.

IpPs may own, operate, control, or have an interest in, only one pawTree® business, and there may be only one pawTree® business in a household. A “household” is defined as spouses or couples, and dependent children of one or both spouses or couples, living in the same home of the spouses.

 

  1. Business Entities.

A “Business Entity” is any corporation, partnership, limited liability company, trust or other entity that owns or operates a pawTree® independent business. The term “Affiliate Party” means any individual, partnership, trust, limited liability company or other entity that has an ownership interest in, or formal or informal management responsibility for, a Business Entity. If any Business Owner or Affiliated Party violates the Agreement, the violation may be imputed, and corresponding disciplinary action may be taken, against some, all or each of the following: the Business Entity, the owners of the Business Entity, any Affiliated Party and/or its owners.

 

  1. Actions of Third Parties.

If a third party acting on behalf of, or with the active or passive assistance of an IpP engages in conduct that would be a violation of the Agreement if performed by an IpP, the conduct of the third-party may be imputed to the IpP.

 

  1. Tampering With Product Packaging.

IpPs shall not alter the original packaging or labeling of pawTree’s products.

 

  1. Sales Receipts.

IpPs must provide their retail customers that purchase merchandise directly from the IpP with two copies of an official pawTree® sales receipt at the time of the sale and advise them of the right to rescind the transaction which is set forth on the receipt. IpPs must maintain all retail sales receipts for a period of two years and furnish them to pawTree® at the Company’s request. IpP’s can download sales receipts from their Back-Office. Retail customers who purchase from an IpP’s replicated website need not be provided with a sales receipt as the receipt will automatically be sent by the Company via email at the time the order is placed.   

 

  1. Adjustment to Bonuses and Commissions.

Compensation stemming from product sales is fully earned when the applicable return, repurchase, and charge-back periods applicable to product sales have all expired.  If a product is returned to pawTree® for a refund or is repurchased by the Company, or a chargeback occurs, the compensation attributable to the returned or repurchased product(s) will be recovered by the Company. Unearned compensation will be deducted, in the month in which the refund is issued or the chargeback occurs and continuing every pay period thereafter until the commission is recovered, from the upline IpPs who received bonuses and commissions on the sales of the refunded products. Likewise, if it is the responsibility of an IpP to issue a refund to a customer, but pawTree® issues the refund, the Company may deduct the amount refunded to the customer from the IpP’s subsequent bonuses and commissions.

 

pawTree® reserves the right to withhold or reduce any IpP’s compensation as it deems necessary to comply with any garnishment or court order directing pawTree® to retain, hold, or redirect such compensation to a third party.

 

  1. Return of Merchandise and Sales Aids by IpPs Upon Cancellation.

Within 30 days from the cancellation or termination of an IpP’s Agreement, the IpP may return products and Sales Tools that he or she personally purchased from pawTree® within 12 months prior to the date of cancellation (the one-year limitation shall not apply to residents of Louisiana, Massachusetts and Wyoming and Puerto Rico) so long as the goods are in currently marketable condition and are returned to the Company within 30 days from the date of the IpP’s cancellation or termination. Upon the Company’s timely receipt of returned goods and confirmation that they are in currently marketable condition, the IpP will be reimbursed 90% of the net cost of the original purchase price(s). Shipping and handling charges will not be refunded. If the purchases were made through a credit card, the refund will be credited back to the same account. Goods are in “currently marketable condition" if they are unopened and unused and packaging and labeling has not been altered or damaged. Merchandise that is clearly identified at the time of sale as nonreturnable, closeout, discontinued, or as a seasonal item is not in currently marketable condition. Back Office and Replicated website fees are not refundable except as may be required by applicable state law. 

 

  1. Montana Residents:

A Montana resident may cancel his or her IpP Agreement within 15 days from the date on which this application is submitted and may return his or her IpP Kit within such time. 

 

  1. Louisiana, Massachusetts and Wyoming Residents:

If you cancel your IpP Agreement, upon receipt of your written request, pawTree® will refund 90% of the costs you have incurred to participate in the program during the current year.

 

  1. Satisfaction Promise.

If you’re not completely happy with your pawTree® purchase, you may return your item(s) for a refund within 90 days from the date of sale for a full refund (less shipping). This satisfaction promise is not applicable to sale items, display items and business supplies and sales kits. Shipping fees are not refundable.

 

  1. Other Cancellation Rights.

Customers, Preferred Customers and newly enrolled IpPs have three business days within which to cancel their initial purchase and obtain a full refund. Residents of Alaska have five business days and residents of North Dakota age 65 and over have 15 days to cancel and receive a full refund. An explanation of these rights is explained on the sales receipt.

 

  1. Disciplinary Sanctions.

The Company may craft any disciplinary measure reasonably addresses or rectifies an act or omission by an IpP that is in violation of this Agreement. In situations deemed appropriate by pawTree®, the Company may institute legal proceedings for monetary and/or equitable relief.  

 

  1. Compliance Disclosure to Upline.

If disciplinary action is taken against an IpP for violation of the Agreement, the Company may disclose the details of the matter and its resolution to the disciplined IpP’s upline.  

 

  1. Indemnification.

IpPs agree to indemnify pawTree® for any and all costs, expenses, consumer reimbursements, fines, sanctions, damages, settlements or payments of any other nature that pawTree® incurs resulting from or relating to any act or omission by IpP that is illegal, fraudulent, deceptive, negligent, unethical, or in violation of the Agreement. pawTree® may elect to exercise its indemnification rights through withholding any compensation due the IpP. This right of setoff shall not constitute pawTree’s exclusive means of recovering or collecting funds due pawTree® pursuant to its right to indemnification.  

 

  1. Effect of Cancellation.

An IpP whose business is cancelled for any reason will lose all IpP rights, benefits and privileges. This includes the right to represent yourself as an Independent pawTree® IpP, to sell pawTree® products and services and the right to receive commissions, bonuses, or other income resulting from his/her own sales and the sales and other activities of the IpP and the IpP’s former down-line sales organization. There is no whole or partial refund for tangible sales kits that are not currently marketable, IpP Back-Office, replicated website or renewal fees if an IpP’s business is cancelled.

 

  1. Voluntary Cancellation.

A participant in this network-marketing plan has a right to cancel at any time, regardless of reason.  Cancellation shall be effective by:

 

  • Submitting written cancellation to the Company;
  • The Company may (but is not required to) rely on any public announcement of resignation or Cancellation by the IpP (including but not limited to any announcement on social media) as an effective cancellation;
  • Failure to pay web services fees;
  • Revoking your authorization to contract electronically;
  • Inactivity;
  • Any other means authorized by pawTree®. If an IpP is also on the EZ ship program, the IpP’s EZ ship order shall continue unless the IpP also specifically requests that his or her customer EZ ship order also be canceled.

 

  1. Involuntary Cancellation (Termination).

Any of the following conduct may result in the involuntary cancellation of an IpP’s pawTree® business:

 

  • A material violation of the Agreement;
  • Illegal, fraudulent, deceptive or unethical business conduct in an IpP’s professional or personal capacity that a reasonable person would believe could damage the Company’s reputation or goodwill;
  • Any act or omission in an IpP’s professional or personal capacity that a reasonable person would believe could damage the Company’s reputation or goodwill.

 

  1. Business Transfers.

IpPs in good standing who wish to sell or transfer their business must receive pawTree’s prior written approval before the business may be transferred. A business that is on disciplinary probation, suspension, or under disciplinary investigation is not in good standing and may not be transferred unless and until the disciplinary matter is resolved. Requests to transfer a business must be submitted in writing to support@pawtree.com. The request to transfer will be denied if the business is not in good standing or if there is another reasonable reason for denying the request. Prior to transferring a business to a third party, the IpP must offer the Company the right of first refusal to purchase the business on the same terms as negotiated with a third party. The Company shall have ten days to exercise its right of first refusal.

 

  1. Re-Instatement.

An IpP who has voluntarily cancelled his/her PawTree® business or has been cancelled for Inactivity may re-instate his/her status as a petPro within six months and need not purchase a new enrollment kit, however each of the following applies to both re-instatements:

 

  • The IpP will not be entitled to his/her former downline or customers;
  • The IpP will be reinstated at the petPro rank;
  • The IpP will be re-activated under the same sponsor he/she had prior to cancellation;
  • The IpP must bring all renewal and web service fees current;
  • The IpP must wait a minimum of three months before re-activating
  • An IpP may re-activate and/or re-enroll no more than three times during his/her PawTree® career;
  • IpPs who re-activate are not eligible to earn Promotion Bonuses if a second time;
  • The IpP is not eligible to earn the Fast Start bonus.

 

  1. Re-Enrollment.

An IpP whose pawTree® business was Involuntarily cancelled, or which has been cancelled for six months or more may re-enroll his/her pawTree® business, but each of the following apply:

 

  • It Is within pawTree's discretion whether to accept the re-enrollment;
  • The former IpP must submit a new IpP application and must purchase a new IpP enrollment kit;
  • The former IpP must wait at least six months before submitting a new IpP application and agreement;
  • The IpP will not be entitled to his/her former downline or customers;
  • The IpP will be re-enrolled at the petPro rank;
  • An IpP may re-activate and/or re-enroll no more than three times during his/her PawTree® career;

 

  1. Demotion.

IpPs at the rank of Vice President and higher must be Paid As their Career title at least once every 6 months to maintain their Career Title. If a Vice President (or higher) is not Paid As their Career Title at least once within 6 consecutive months their Career Title will be demoted to their Paid As title in the 6th month. There are no demotions for titles lower than Vice President.

 

Once demoted, the petPro and their Sponsor are not eligible for any title promotion bonuses or matching bonuses included in the comp plan or campaigns and incentives related to future title promotions until the demoted petPro has promoted beyond the top Career title achieved. Campaigns and incentives include monthly campaigns, the pawTrip incentive (pawTrip points) or any additional temporary rewards program that includes title promotion rewards. Also once demoted, the petPro is not eligible for title promotion recognition until he/she has promoted beyond the top Career Title achieved.

 

  1. Transfer Upon an IpP’s Death.

An IpP may devise his/her business to his/her heirs. Because pawTree® cannot divide commissions among multiple beneficiaries or transferees, the beneficiaries or transferees must form a business entity (corporation, LLC, partnership, etc.), and pawTree® will transfer the business and issue commissions to the business entity. In the case of a business transfer via testamentary instrument, the beneficiary of the business must provide pawTree® with certified letters testamentary and written instructions of the trustee of the estate, or an order of the court, that provides direction on the proper disposition of the business. The beneficiary must also execute and submit to the Company a pawTree® IpP Agreement within 30 days from the date on which the business is transferred by the estate to the beneficiary or the business will be cancelled.

 

  1. Business Distribution Upon Divorce.

pawTree® is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, in divorce cases, any settlement or divorce decree must award the business in its entirety to one party. pawTree® will recognize as the owner of the business the former spouse to who is awarded the business pursuant to a legally binding settlement agreement or decree of the court. The former spouse who receives the pawTree® business must also execute and submit a pawTree® IpP Agreement within 30 days from the date on which the divorce becomes final or the business will be cancelled.

 

  1. Dissolution of a Business Entity.

pawTree® is not able to divide commissions among multiple parties, nor is it able to divide a downline organization. Consequently, if a business entity that operates a pawTree® business dissolves, the owners of the business entity must instruct the Company on the identity of the proper party who is to receive the business. The pawTree® business must be awarded to a single individual or entity that was previously recognized by the Company as an owner of the business entity; the Company cannot divide the business among multiple parties or issue separate commission payments. If the business entity wishes to sell or transfer its pawTree® business, it must do so pursuant to policy 56. In addition, the recipient of the pawTree® business must also execute and submit a pawTree® IpP Agreement to the Company within 30 days from the date of the dissolution of the business entity or the pawTree® business will be cancelled.

 

  1. Inducing IpPs to Violate the Agreement.

IpPs shall not directly or indirectly induce, encourage, or assist another IpP to violate the Agreement.

 

  1. Reporting Errors.

If an IpP believes that pawTree® has made an error in his/her compensation, the structure or organization of his/her genealogy, or any other error that impacts the IpP’s income, he/she must report it to the Company in writing within 60 days from the date on which the mistake occurred. While pawTree® shall use its best efforts to correct errors reported more than 60 days after the date of the error, pawTree® shall not be responsible to make changes or remunerate

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