For the entire time that #BlingAuntie was a Paparazzi Accessories Independent Consultant, I was out of compliance everyday. You probably have been, too. WHAT! And it was our uplines who got us there–just saying.
Am I compliant? Are you compliant? Who knows? How do you know? There are degrees of contract breaches and Auntie passed all of them 5 months ago. Still no warning or cancellation from Paparazzi.
If you are a Paparazzi Accessories Independent Consultant (consultant), if your Independent Consultant Agreement (ICA)[i] has been terminated by Compliance (former consultant), or if you are researching Paparazzi because you’re considering becoming a consultant, you want to get this information. We are looking at 3 compliance issues: one that has been broken by every consultant I have ever known but doesn’t cause cancellation; selling products below manufacturers suggested retail price (MSRP); and disparaging Paparazzi’s good name and reputation.
Consultant Identification Numbers (I have been out of compliance with this section for 907 days):
Our sponsors and uplines run incentives in their team groups and team pages. To be eligible to receive the prize, we are instructed to post an image of the activity or a link to it, and to include our Consultant Identification Numbers (CID). In tips, tricks, and trainings for us, the uplines tell us to include our CIDs in our posts and announce our CIDs in our live streams to give us credibility as current, active consultants. This is the passage from the Enrollment Terms and Conditions (Enrollment Ts & Cs):
During the application process, the Independent Consultant must provide a Social Security Number or a Federal Identification Number to Paparazzi. Once the application is submitted and accepted, Paparazzi will assign a unique Consultant identification number. This will be used as the primary identifier of the Consultant account within Paparazzi Support, online applications, the tracking of orders, packages, and commissions processing and payments. These IDs and other identifying numbers should not be shared with others.
Selling Products for a Price Below $5 per Piece (I have been out of compliance for 144 days):
Sales had slowed going into the 2022 Christmas holiday shopping season, so I marked down all $5 jewelry by 20% to $4 for each piece. I even ran ads and Paparazzi did not warn or cancel me. In late February-early March, I did another 20% markdown to $3 per piece. Again, I ran ads and Paparazzi did not warn or cancel me. At this point, I am ready to be cancelled and want nothing but to sell down my on-hand inventory. These are the passages from the Independent Consultant Agreement:
3.5 Business Entities
Certain types of corporations or businesses can apply to be a Paparazzi Independent Consultant through the Independent Consultant Agreement. Business entities are allowed to retail the product through any medium available to them (internet, retail store, etc.) as long as the retail or sales price to the end consumer is never lower (advertised or otherwise) than the suggested retail price per unit ($5 USD).
5.11 Retailing or Reselling
After the initial product or inventory is purchased, no product can be resold or retailed for less than the suggested retail price (no product under $5 USD). This includes, but is not limited to, offering or advertising free items through buy X, get X promotions or giving free gifts with a purchase. This same policy applies whether the free promotional item being offered is a Paparazzi product or a product not carried in Paparazzi’s inventory. Offering or advertising these types of promotions lowers the retail price of each piece sold below the required $5 USD minimum. Doing so compromises the entire Paparazzi program for all Consultants. Any promotion of a Consultant’s independent business or the Paparazzi opportunity through any channel of communication (public or private) is considered advertising.
5.13.g Parties, Fairs, Expositions, and Other Temporary Sales Forums
The Consultant may never offer a sale, deal, or promotion at a show that lowers the retail or sale value below the suggested retail value of $5 per unit.
Safeguard & Promote the Good Reputation of Paparazzi and its Products (out of compliance for 59 days):
On February 11, 2023, I streamed live the pros and cons of being a Paparazzi Accessories Independent Consultant when I asked you to help me decided whether or not I should quit my MLM. On that occasion, I said and displayed the truth about my experience knowing these could be considered negative statements. Here we are two months later and I have not been warned or cancelled by Paparazzi. See what the ICA has to say about this:
4.14 Disparaging Remarks
Consultants may not use disparaging remarks in relation to Paparazzi corporate staff, employees, directors, officers, or any other representative of Paparazzi, including but not limited to other Independent Consultants. Consultants are to conduct their business with positivity and in a manner that uplifts everyone. Comments made by Consultants that may be negative in nature and relate to others potentially damage their own business, the businesses of others, and the Paparazzi brand. Consultants should be courteous, polite, and always seek an amicable resolution to any disagreement or dispute.
ICYMI: A week later, I was contacted by Compliance and informed that my ICA was terminated for 2 of the 3 reasons listed above.
Have you been terminated by Paparazzi Accessories? Did they give you a reason? Let us know in the comments.
[i] Paparazzi Accessories Independent Consultant Agreement (ICA) comprises 3 documents: Enrollment Terms and Conditions (Enrollment Ts & Cs), Paparazzi Accessories Policies and Procedures (P & P), and Paparazzi Accessories Marketing and Compensation Plan (Comp Plan). The documentation incorporated into the ICA are referenced in various ways:
Enrollment Ts & Cs, Section 4: I have carefully read and agree to comply with the Paparazzi Policies and Procedures, the Paparazzi Marketing and Compensation Plan, which are incorporated into and made a part of these Terms and Conditions (these three documents shall be collectively referred to as the “Agreement”). I understand that I must be in good standing and not in violation of the Agreement to be eligible for bonuses or commissions from Paparazzi. I understand that the Paparazzi Policies and Procedures and/or the Paparazzi Marketing and Compensation Plan may be amended at the sole discretion of Paparazzi, and I agree to abide by all such amendments.
P & P, Section 2.1: Independent Consultant Agreement
The Independent Consultant Agreement (Agreement) comprises of the following items, any formal agreement to such Independent Consultant Agreement or any action representing Paparazzi as an Independent Consultant (Consultant or Paparazzi Consultant or Independent Consultant) through the purchase of product at wholesale price, participation of the Compensation Plan, or the retail of any Paparazzi product constitutes an agreement to abide by the following articles:
a. The Independent Consultant Agreement
b. The Policies and Procedures (this document)
c. The Paparazzi Compensation Plan
When referring to the Consultant Agreement or Agreement, it is referring to all of the documents and components as described above.
(a. should read “The Enrollment Terms and Conditions”)