Rodan + Fields



March 8, 2016

Dear Level V Leaders,

Rodan + Fields® is committed to protecting the businesses of our Consultants and the vibrant opportunity that R+F provides to entrepreneurs. We understand that as Leaders and independent business owners you take pride in providing resources and training to your teams. We also understand the concerns that many of you have raised regarding some of the third party trainers who make themselves available to you and your teams. The Executive Team joins you in considering this a serious issue. This is not just a technical issue in the Policies & Procedures ("P&Ps"); it is a fundamental issue that impacts the protection of your businesses and the culture of R+F, as well as our ethics and integrity. Let us explain these concerns in greater detail and let you know what you can do to help mitigate potential risks.

First, why do we care?

We care passionately because we want to do everything in our power to keep your teams strong and intact, to protect our special and unique culture and to ensure that R+F business is always conducted in a fully compliant manner. We know you feel strongly about all of these issues, as well.

What are the risks?

Some third party trainers—specifically third party trainers who target direct selling companies—have individual histories that are not in line with R+F values. For example, there are trainers who have a history of legal problems with other direct selling companies and who have been visible, leading advocates of direct selling companies who have been investigated by the FTC.

We have also encountered outside trainers who teach non-compliant behaviors. For example, we have attended trainings where the speaker has urged Consultants to not focus on or lead with our Products, to only recruit those who decide to buy our most expensive Business Kit, or that all Consultants must subscribe to CRP or Pulse. These trainers, who are often singularly focused on how to earn money, do not model the values that R+F proudly embraces. Not only does this encourage non-compliant behavior within your teams, it erodes the culture we all hold so dear.

There is also a very real risk that the trainer you or others hire will obtain the contact information of your Downlines and solicit them for other services. There is a history of this happening repeatedly in our sales channel, so please be very aware of this real risk.

So, what are we doing?

Effective immediately, Consultants are not permitted to hire any individual as a trainer for their team who is a current distributor or employee for another direct selling company.

In this regard, you should also be very wary of former distributors who have had a history of building downlines and may decide to do so in the future, using the contact information they have gathered during their training sessions. If you have an event planned with such trainers and have any questions about how to extricate from the upcoming event, please feel free to contact Janine Weber or our Compliance Team at compliance@.

We have created a Third Party Trainer Agreement that all Consultants and hired trainers must sign and submit prior to their event. This agreement is not an approval of the trainer or the content of the training, but rather is provided to ensure that the trainer and the sponsoring Consultant understand and agree to abide by all rules that apply to the training session. The Agreement is available in the Pulse Business Development Library and should be submitted to the Compliance Department for record-keeping.

The R+F Compliance and Field Development teams have committed to attending training events that Consultants sponsor with outside trainers and to monitor training content for compliance.

The R+F Global Field Learning and Development team welcomes your suggestions for training content that would be valuable for your teams. Please connect with your Field Development Regional Director to offer your suggestions for additional training topics.

How we can partner together to mitigate this problem?

Please make sure that your teams are aware of our policy regarding outside trainers. Consultants are responsible for the content of any third party training session that they sponsor for their Downline teams. Any such presentation must comply with all aspects of the P&Ps. Partner with Compliance on any third party training sessions, and be sure to submit the Third Party Trainer Agreement before your event. It is also important to help your teams understand the risks associated with such trainers, as discussed above.

If you or your teams are planning to hire someone to train your team, please do your research! Most of the information we have regarding non-compliant trainers is publicly available. Be cautious about who you put in front of your teams, especially those who have histories that conflict with R+F values.

We also encourage you to reach out to your fellow Leaders as resources. We have a wonderfully diverse group of R+F Consultants you can network with and invite to train your teams. 

We understand that the growth and success of your teams is important to you; it is important to us too! We highly encourage individual and team growth, and we understand that this will sometimes come from places outside of R+F. Of course we want to support you and your teams as much as possible. As mentioned above, if you have any suggestions on training that we can offer, please do not hesitate to let us know.

Best,

Michelle Leetham

Chief Legal Officer & Secretary

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