Subject: Prevention of deceptive behaviors and practices and false advertising
Greetings
Whereas company marketers, by resorting to deceptive behaviors and practices and false and misleading advertising on social networks (such as Instagram, WhatsApp, and Telegram), are promoting and advertising the company and recruiting new marketers in such a manner that, with a simple search of the company's name and sales teams, these behaviors can easily be observed, and all such instances may be regarded as evidence for establishing a violation by the company and the marketers concerned; therefore, in order to prevent the commission of the aforesaid violation as set out in Clause (7) of Article (10) and Clause (14) of Section (a) of Article (13) of the Bylaw referred to in Articles (2) and (12) and the Note to Article (87) of the Guild System Law, all companies, by incorporating the provisions of this Notice into the behavioral and motivational instructions given to their marketers and sales groups, must continuously search for the company's name and the relevant sales teams on social media pages (such as Instagram, WhatsApp, and Telegram), advertisement-posting platforms, video-sharing platforms, etc., and must avoid any oral, written, or visual representation provided that includes the following.
1. Claiming an income opportunity other than the approved profit plan through which the marketer might earn multi-level income (such as earning income through tokens, cryptocurrency, or daily or weekly income).
2. Using high-pressure sales techniques to pressure new marketers in a manner that deprives the marketer of the opportunity to study and think about joining the company and purchasing products. (Employing any method that stresses a time limit and involves insistence and persistence, such as "last offer," "last chance," "last person," or "if you do not act now, the opportunity will be lost.")
3. Any act that incites or provokes for the purpose of recruiting a new marketer. (Such as exploiting a person's life circumstances or income situation - stating that joining the company will change your life – encouraging a person to quit their full-time job - earning astronomical income.)
4. Exaggerated display of expensive apartments, villas, and automobiles as a means of demonstrating one's success and income in order to recruit a new marketer.
5. Use of titles and designations by a marketer intended to establish superiority, dominance, or self-credibility over other marketers (outside the terms of the profit plan).
5. Emphasizing the recruitment of new marketers as the only way to earn income.
6. A marketer endorsing or prescribing a product under the guise of an expert, beyond the expertise and experience gained from personal use of the product.
7. Using the names of governmental and security organs and institutions in a manner suggesting the company's influence and power.
8. Using the names, titles, and images of well-known individuals and institutions in a manner that deceives the marketer.
9. Any claim implying the company's superiority or global standing that is made without the requisite capability, or that is vague, general, and exaggerated without any specific basis in fact. (Such as claiming a global ranking among foreign network marketing companies and operations abroad, or having a university or educational institutions.)
10. Any claim implying the superiority or global standing of the products without legal support, and the explicit use of comparative and superlative adjectives, or the use of any other method in writing or reading the text intended to convey a notion of superiority or supremacy without the approval of the competent authorities (including expressions such as "miraculous," therapeutic properties, and guaranteed results from using the product).
11. A false or untrue claim that causes deception or a mistake regarding the purchase of a product in terms of quantity or quality.
12. The instrumental use of women and children who play a principal role in presenting products and generating the company's income.
13. Citing certificates of appreciation, awards, and certifications issued by official centers approved by the competent authorities, beyond the scope of their actual content.
It is again emphasized that companies must formulate clear and effective instructions regarding compliance with the foregoing matters and communicate them to their marketers - particularly to higher-level marketers who lead sales groups - and, through the strict and decisive enforcement thereof, must restrict or suspend, as applicable, the activity of the offending marketer, thereby laying the groundwork for prevention and for fostering this culture among other marketers. Furthermore, in view of the contractual relationship between the company and its marketers and the company's benefit from their actions, all companies are obligated, on the company's website, to publish the offending individual's network marketing code together with a full explanation repudiating the aforesaid behaviors and practices, and to submit to this Center the results of their monitoring and enforcement action, accompanied by sufficient documentation, demonstrating either that these unlawful behaviors and practices are unrelated to that company, or that the necessary measures have been taken to deal with the offending marketer. It is self-evident that, as of the end of Bahman of the current year, this Notice shall be applied by the Supervisory Committee and the corresponding provincial committees as a criterion for evaluating the performance of network marketing companies, and the offending company and marketer shall be dealt with in accordance with the regulations.