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(571578-X) • (AJL931663)
Since the introduction of the Direct Sales and Anti-Pyramid Act 1993 (DSAPA 1993), direct selling has created a new spectrum of business opportunity for all Malaysians. As the industry forges into new heights, the effort by government to tighten the direct sales and anti-pyramid laws comes in timely. The networkers (direct sellers) must play a more important and active role to ensure this industry remains progressive and held in high regard through ethical and professional direct selling.
As a member of MC-Ocean, I must understand and conduct this direct sales business in accordance to the laws under the DSAPA 1993 and other government regulations. This is to prevent misunderstanding and in breach of laws that will result in been prosecuted and penalized in court.
All members and distributors must observe all the Terms & Conditions as follows:
(Make Sure You Understand Each & Every Rule Before You Click ‘AGREE’.)
Member has signed a member application form and shall constitute the contract signed once it is accepted by the Company. The membership in the company can be terminated any time by notifying the company officially. Each person can only have ONE membership in the company.
MC-Ocean is a legitimate licensed direct selling company doing selling & marketing of products by way of multi-level-marketing method. Company is NOT an investment company whatsoever. So no interest or so called dividend or guaranteed returns will be paid to members. The sales commission is paid strictly according to Sales of Products done by member and his groups, and NO commission will be paid on just recruiting new members. There is NO such thing as guaranteed commission or rewards without putting in any effort.
Member must SELL & Market company products to customers, and share the benefits & goodness of the products. Member must honestly and truthfully explain the quality and performance of company products when developing your networks. Member must NOT use force, threats or unfair practices to induce customers into buying designated products, and the price must be the company official retail price. When purchasing products from company, member should bank in their payments DIRECTLY into MC-Ocean bank accounts, and NOT into any upline or leader personal bank account.
Company does NOT encourage its member to purchase large quantity of products more than they can sell off within a reasonable period of time. Under the DSAPA 1993, Buy Back Policy of any UNSOLD products by company is subject to 10 working days Cooling Off Period from purchase date for 100% refund of unsold products. If the unsold products are returned to company within 6 months from date of invoice, 10% administration fee will be charged.
Sales commission received or receivable by the terminating member since the date of his membership in the company, shall be deducted accordingly; and all related uplines to the terminating member who have received sales bonus as a result of or in relation to the sale of the Unsold Products shall immediately make refund to the terminating member. It is the sole responsibility of ALL related uplines to refund the sales bonus (if any) to the terminating member.
Members should attend product training and other marketing training or seminar organized by the company to enhance their selling & marketing skill.
MC-Ocean Holding Sdn Bhd (hereafter referred to as the Company) is a network-marketing company. The Company encourages and supports its Distributors to engage in selling our products, by ways of retailing and building network of members.
The Company sells its products vide a unique marketing plan to all Distributors who ultimately sell them to customers. All Distributors are to make retail sales monthly and keep such sales records for reporting of income to the relevant authority.
A Distributor is one who has signed a Distributor Application Form (DAF), and officially been accepted and confirmed by the Company as a Distributor.
Once the DAF has been accepted and officially registered:
(a) Distributor MUST understand and conduct the sales business in accordance to the laws and government regulations as contained in the Direct Sales and Anti-Pyramid Scheme Act 1993.
(b) Distributor shall abide and comply with the Member Policy & Procedures content herein.
(c) Any non-compliance and/or breach of the Member Policy & Procedures shall render the membership in the Company been suspended and/or terminated.
All Distributors shall be deemed to know, understand and accept the Member Policy & Procedures enforced by the Company. It is the duty and responsibility of all Distributors to check and keep abreast with the latest edition of the said policy and procedures. Pleading ignorance of the Member Policy & Procedures shall not be accepted.
Membership is open to "Individual" or "Corporation" by submitting a signed Distributor Application Form (DAF) to the Company. Once accepted and confirmed by the Company, this DAF shall constitute membership contract with the Company.
The application must be sponsored by an active Distributor of the Company.
The Company reserves the right and authority to reject any application without giving any reason whatsoever.
A Distributor is only allowed to hold one (1) membership under the same name. If a Distributor is found to have more than one membership under the same name, Company shall terminate one of them, whichever deemed fit and necessary.
If error or discrepancy occur or found in a line of networks, Company reserves the right to make amend, adjustment, restoration and/or any rectification deem fit and necessary.
Once the DAF is accepted by the Company, a payment of RM137.80 (inclusive GST) is payable to the Company. This payment shall include the membership fee, sales kit and member card.
(a) Must be of age 18 years and above, and is not an un-discharged bankrupt.
(b) Application by a Malaysian must be accompanied by a copy of I/C, i.e. MYKAD, and bank passbook or statement for direct-crediting of sales commission.
(c) Application by a non-citizen must be accompanied by a copy of passport, valid working permit and a Malaysia bank account statement or passbook. Due to Malaysian Income Tax law requirement, Company shall deduct whatever applicable withholding tax from the income of the non-resident before paying the commission to the Distributor.
(a) For Sole Proprietor or Partnership Applicant - the following supporting documents must be furnished when submitting the DAF to the Company:
(b) For Corporate Sdn Bhd Applicant - the following supporting documents must be furnished when submitting the DAF to the Company:
(c) Only one representative from the corporate applicant is recognized by the Company. Thus, the person managing the network of the corporate applicant must be indicated on the Distributor Application Form.
(d) However, any sales commission/bonus shall be paid to the corporation, and NOT to the representative.
Any non-compliance of the above application requirement shall be rejected by the Company.
Application containing fraudulent or forged information shall be considered as null and void.
(a) Membership in the Company shall subject to renewal every 2 (two) year.
(b) Renewal fee is RM80.00 .
(c) Distributor is responsible for his own Membership Renewal in the Company 1 (one) month before the membership expires.
(d) Renewal of Membership is NOT automatic, and Company reserves the absolute right to reject any application for renewal if it deem fit and necessary to do so without assigning any reason whatsoever.
(e) In the event of any failure, neglect or refusal to renew his membership after the expiry as aforesaid, the membership shall be effectively expired.
(f) Distributor whose membership has expired shall lose all his right, entitlement, status, benefits and privileges under the Company marketing plan.
(a) Distributor who has self-terminated or has his old membership expired for more than 6 (six) months may re-apply to be a new Distributor in the Company again.
(b) Company reserves the right whether to accept or reject the re-application of membership without assigning any reasons whatsoever.
(c) The New Distributor shall start afresh under the Company marketing plan regardless of whatever rank he has achieved before the self-termination or expiry of old membership.
(d) The New Distributor may elect a new sponsor differ from the old sponsor before his self-termination or expiry of the old membership.
(e) The downline groups of the New Distributor under the old membership before self-termination or expiry are NOT allowed to move over to be placed under the New Distributor.
(a) For business needs, Distributor under individual name can submit application to change his individual name name to that of a company name.
(b) Application must be supported by all documents needed for a corporate membership under section 2.8
(c) The original Distributor must be the owner of the new company membership.
(d) Any attempt to transfer membership under this section shall be subjected to section 4 policy. (Transfer of Membership)
Double membership with the same name in the Company is strictly prohibited.
Subject to section 2.4, if there are two applications with the same name, the first IN time shall prevail.
Without prejudice to section 3.2 above, the second application may override the first application if after due inquiry is done and found that the first application has been forged, or submitted without the knowledge and consent of the applicant, whether express or implicit.
Company reserves the right and authority whether to approve the second application.
(a) Distributor shall NOT use dual identity or proxy to operate two lines of network under two different sponsors.
(b) Operating the networks under dual identity or proxy shall be construed as Line-Switching (or Line-pinching), and shall be dealt with as violation of codes of conduct under section 7.
(a) Husband and wife are allowed to sponsor each other and hold separate membership in the Company, but must be under the same line of sponsorship.
(b) If the two Distributors have been holding the membership in the Company prior to their marriage, two options are available to them:
(i) Terminate either one of the two membership; or
(ii) Notify the Company of their marriage immediately, and continue holding these two memberships.
(c) In the case of divorce, the existing membership code and name shall continue to apply, unless otherwise notified in writing by the Distributor concerned to the Company.
(d) When submitting application for a change of Distributor name under the affected member code of the divorced party, legal documents pertaining to the divorce must be furnished to indicate who should take over the existing membership code in the Company.
Membership in the Company cannot be transferred, sold or reassigned except on the occurrence of the followings:
(a) Death
(b) Old Age
(c) Incapacitated
(d) Medically certified to be unfit
(e) Special Approval by the Company
(a) The membership in the Company is considered as an estate of the deceased.
(b) When a Distributor dies with a Will, the person named in the will shall inherit the membership in the Company.
(c) When a Distributor dies without a Will, the spouse shall inherit the membership, or whoever shall inherit the membership by operation of local distribution law.
Any request to transfer membership under section 4.1 above must be done officially by a written application with supporting documents.
Upon acceptance by the Company, the new Distributor shall execute a consent letter to assume full responsibility and liability under the existing member code, and shall assume full responsibility on the income / commissions earned under the said member code and submit to the relevant authority.
The title transferred under the aforesaid shall be restricted only to the entitlement to the sales commission/bonus under the Company compensation plan. It does not cover the status, ranking or privilege that the deceased or the assignor enjoyed before the transfer.
(a) Where there are unusual or special circumstances that warrant the Company to review application for transfer of membership under section 4.1(e), the Company shall at its absolute discretion to peruse each case on individual basis.
(b) Company shall have the right and authority whether to grant the above application without giving any reason. The decision shall be final.
Covenant between the Distributor and the Company.
Distributor operates the business as an independent individual business entity, and there is no agency or direct employment relationship between the Distributor and the Company.
A Distributor is NOT an employee, agent or legal representative of the Company, and is NOT authorized to act and speak on behalf of or bind the Company or its affiliates, shareholders, directors, officers or employees.
Distributor shall not make any claims, representations or statements about the Company; and/or shall not claim to represent or have the authority to represent the Company in any matters or transactions whatsoever; and shall NOT claim to have special business relationship with the Company, or its affiliates, shareholders or officers. Distributor shall indemnify the Company against any legal liability arising out of unauthorised claims, representations or statements made by the Distributor.
Company shall not be held responsible and liable for any demand from Distributor or any third party, for any compensation, claim, loss, cost or fees incurred from any consequences of non-compliance with the Member Policy & Procedures, negligence or disputes created by the Distributor, or arising from disputes between Distributor and third party.
Distributor shall not defame, slander and/or libel against the Company and its officers, and other Distributors.
Distributor shall not, either act in single or jointly as a group, to interfere or influence the Company operations and administration that would affect just and fair business trading in the Company, and shall not deliberately with the intention to go against the Company.
Regardless of any rank, Distributor does NOT have, or shall NOT claim to have, any special or exclusive right or agency right to any particular business territory.
Distributor shall subject to the Key Performance Indicator (KPI) enforced by the Company. Any non-fulfilment of the KPI qualification shall render his/her membership been suspended or terminated.
Sponsor is the one who has successfully referred a Person (who signs the Distributor Application Form under him) to the products and services under the Company Marketing Plan.
It is the responsibility of the Sponsor to provide training and support to that newly signed up Distributor (who is now his/her Downline), and to explain and ensure the new Distributor has read and understand the GPS, Member Policy & Procedures, and the Direct Sales & Anti-Pyramid Scheme Act 1993.
Sponsor must introduce the Company products and marketing plan to the new prospect and Distributor in accordance to the Company approved information and materials, and must not overemphasizing on disproportionately high sales bonus payout.
Sponsor must NOT use force, threats or unfair practices, and/or make any untrue representation, or use deceptive means and omission or mislead the new Distributor.
Sponsor must make clear to the new Distributor that sales commission or bonus is paid based on sales of products generated; and no fee will be paid for mere sponsoring of new Distributor.
Subject to section 1, Distributor shall conduct the business in accordance to the laws, rules and regulations under the Direct Sales and Anti-Pyramid Scheme Act 1993.
Distributor can develop his/her business and establish his/her networks within the ambit of Member Policy & Procedures.
Distributor must NOT participate or involve in any unlawfully transaction prohibited by government laws, or involve in any money "Pyramid Scheme" or money "Laundering Scheme", or any interest scheme not approved or not licensed by the government authority.
Distributor shall, where applicable, register his/her business with the relevant authority and pay all required taxes to the Inland Revenue authority.
Distributor must through his words, action and conduct, reflect the good image and integrity of the Company.
Distributor must conduct the business in a just and fair manner, and with honesty, seriousness and responsibility, and with full commitment.
Distributor must: -
(a) Honestly and truthfully represent and explain the quality, value and performance of Company products.
(b) Honestly and truthfully explain and portray the earning potential of the Company marketing plan, and must not overemphasizing on disproportionately high sales bonus pay-out.
Line-switching or Line-pinching is unethical and is strictly prohibited.
(a) Distributor must not offer any free gifts, lucky draws, discounted prices, incentives or any other inducement to get a new prospect, or other Distributor to join his group of networks.
(b) Distributor must not use force, threaten or any other form of unethical means to persuade a new prospect, other Distributor to join his group of networks.
Distributor must not, whether directly or indirectly involve with any other Distributor or downlines, enter into, or involve, or indulge in any form of financial arrangement or dealings, apart from normal sale of products as permitted under the Company marketing plan.
(a) Must not involve in any financial borrowing or lending.
((b) Must not involve in any money-laundering activity.
Distributor must NOT engage or participate, whether directly or indirectly, to entice and / or to canvas and to solicit other Distributor to participate or join in the following activities.
(a) To join other network-marketing company or direct-selling company.
(b) To involve in any other trades or businesses.
(c) To buy and sell any other products detrimental to the Company business.
(d) To organize or involve in any other training seminar detrimental to the Company training and seminar.
(e) To involve in any business activities detrimental to the Company business.
Distributor must sell the products at the suggested retail price recommended by the Company.
(a) Selling the products at discounted prices is strictly prohibited.
(b) Using unfair trade practices that indirectly selling the products below the suggested retail price is strictly prohibited.
Distributor should NOT purchase large quantity of products or any large amount more than they could dispose of within a reasonable period of time.
Distributor must not use force, threats or unfair practices to induce any customer into buying the products.
Distributor shall not display or sell any Company's Products at any retail shops, outlets or counters, shopping complex or departmental stores without prior written consent from The Company
Any Distributor regardless of rank, who does NOT comply to or in violation of any above policies & procedures, once proven by the Company after due inquiry is done, shall have his membership suspended or terminated in accordance to section 8.
Suspension and/or Termination of membership in the Company shall mean severance of all right, entitlement and privileges under the Company marketing plan, or specially conferred to a Distributor by the Company.
Distributor whose membership has been suspended or terminated shall lose all his right, entitlement, status, benefits and privileges under the marketing plan.
Termination can be broadly categorized under the followings: -
(a) Deem termination of membership
(b) Suspension and/or termination by the Company
(c) Self-Termination (voluntary termination) by Distributor
Membership in the Company shall be deemed terminated if the following has been committed, whether within or without Malaysia:
(a) Distributor has committed a criminal act under any criminal laws.
(b) Distributor has been convicted in any court of laws.
(a) Company reserves the right and authority to suspend and/or terminate a Distributor, and to take whatever action deem fit and necessary against a Distributor at any time for any non-compliance, breach or violation of any laws under Direct Sales and Anti-Pyramid Scheme Act 1993, Member Policy & Procedures, laws and government regulations.
(b) Distributor whose membership has been suspended or terminated by the Company may appeal to the Company in writing within fourteen (14) days from the date of suspension or termination. Letter of appeal must reach the Company headquarters and officially stamped receipt by the Company authorized official within the stated 14 days.
(c) Company reserves the right and authority to the final decision of the appeal, whether to lift the suspension / termination, or uphold the suspension / termination, or any other decision so decided by the Company.
(a) If Distributor wishes to resign/self-terminate his membership in the Company, he/she may do so by submitting a written request to the Company.
(b) The effective date of resignation / termination is the day Company accepts and confirm the termination request.
(c) When making request for self-termination, following documents must be submitted: -
- Letter of Termination duly signed by the terminating Distributor
- All original copy of Invoices and Delivery Orders for the products purchased from the Company.
- For our reference and improvement of service, please state reasons for your termination.
(d) After accepting and confirming the termination request, Company shall arrange for an appropriate day for the terminating Distributor to return unsold products.
(e) The unsold products to be returned and purchased-back by the Company shall subject to Buy-Back Policy under section 9.
Once the Company accepts and confirm the termination request and receive the Unsold Products, then the original sales of such Unsold Products shall be considered as cancelled.
Since the sales are deemed as cancelled, whoever sponsor and uplines under the following situation shall be affected by the cancelled sales: -
(a) The ranking of sponsor and all uplines of the terminated Distributor that have been achieved vide the "cancelled sales PV shall be forfeited and/or reverted back to their original ranking.
(b) Once the sales of the unsold products is deemed as cancelled, any sales commission and bonus received or receivable by the terminating member since the date of his/her recruitment by the Company, shall be deducted accordingly; and ALL related uplines to the terminating member who have received sales bonus as a result of or in relation to the sale of the returned unsold products shall immediately be refunded to the terminating member. It is the sole responsibility of ALL related uplines to immediately refund the sales bonus to the terminating Distributor.
(c) The cancelled sales for the returned products shall be deducted from the sales BV of those qualified uplines who have previously received quarterly paid profit-sharing bonus. If after deducting the cancelled sales BV and resulting in the BV fall below the required amount for the profit sharing bonus, then those affected uplines shall be deemed disqualified to receive the profit sharing bonus. Therefore, the whole amount of profit sharing bonus received previously shall be paid-back to the Company.
The affected sponsor and all uplines shall upon demand by the Company, be liable to repay, return or compensate to the Company for any bonuses, prizes or any other incentives received from the Company derived from the cancelled sales of the returned unsold products.
Those affected Distributors under section 8.8 & 8.9 above shall be liable to pay-back to the Company within 3 months. Failing which, Company shall have the right and authority to suspend/terminate their membership under section 8.5
Distributor who has been suspended / terminated by the Company shall NOT be allowed to be present in Company premises, or engaged or participate in any activity organized or sanctioned by the Company.
Distributor who is self-terminating his membership in the Company may make a request in writing to the Company to Buy-Back his unsold products.
Unsold Products to be returned and purchased-back by the Company must fulfill the following terms & conditions; -
(a) Products must not be opened or used.
(b) Products must be in good and marketable condition.
(c) Date of Invoice for products purchased must be within 180 days.
[refer Direct Sales (Scheme and Conduct) Regulations 2001, section 6]
Refund on the Unsold Products purchased-back by the Company shall subject to the followings.
| If the Unsold Products are returned and Purchased-back by the Company:- | Any Administration Fee charged ? |
|---|---|
| (a) Within ten (10) working days from Date of Invoice | No Admin Fee Will be charged |
| (b) Within 180 days from Date of Invoice | 10% Admin Fee will be charged, [refer Direct Sales (Scheme and Conduct) Regulations 2001, section 6] |
Once the sale of the unsold products is deemed as cancelled, any sales commission received or receivable by the terminating Distributor since the date of his/her recruitment by the Company, shall be deducted accordingly.
All related uplines to the terminating Distributor who have received sales bonus as a result of or in relation to the sale of the Unsold Products shall immediately be refunded to the terminating Distributor. It is the sole responsibility of ALL related uplines to immediately refund the sales bonus (if any) to the terminating Distributor. This is not the responsibility of the Company.
Net refund amount for the products purchased-back by the Company will be paid within 30 days from the date of products returned and received by the Company.
Distributor may purchase products from the Company at wholesale price (Distributor price).
Payment for purchase of products must be in cash terms, or any other legal tender or payment instrument enforced by the Company.
(a) The monthly closing date for purchase of products is the Last Business Day of the month.
(b) Distributors must ensure their monthly maintenance sales are done before the closing business hours of Last Business Day of the month.
(c) Company shall NOT be held liable or responsible for any loss of sales commission/bonuses due to purchase orders been submitted after the business hours of Last Business Day of the month.
(a) Distributor is required to maintain a valid bank account for direct-crediting of monthly sales commission/bonus, if he qualifies to receive.
(b) Sales Commission/bonus are paid direct to the registered Distributor name only. Any request to pay commission/bonus to any payee name other than the registered Distributor name will NOT be accepted.
(c) Monthly sales commission of a sales bonus month shall be calculated to those qualified Distributors in accordance to the approved marketing plan; and shall be paid on or before 20th of the following calendar month, subject to Saturday, Sunday, public holiday or non-business working days observed by the banking institutions. Due to IBG transfer time requirement, actual date of crediting may differ for different banks used by Distributor.
(d) If no bank account is given, sales bonus will be paid by cheque. In this situation, the Company shall not be held responsible for any delay of payment by cheque.
No Company name, logo or trademark may be displayed or used on any residential house or apartment, or any commercial shop, office or storefront where it can be viewed or seen by passing-by persons.
Distributor is prohibited from using any form of media, or multimedia to advertise or promote Company business and products, or engaged in any interviews with the media, articles in media publications, news reports, or any other public information releases.
Distributor shall not use the Company's logo, trade name, trademark, product names, service names, or any other Company intangible intellectual property, registered or otherwise, in any form of advertising or promotion WITHOUT specifically obtaining a written approval letter from the Company.
Distributor shall NOT use business cards or other personalized sale aids containing the Company logo, name or trademark without obtaining prior written approval from the Company.
Subject to section 11.3 & 11.4: -
(a) The word Independent Distributor must be indicated on the business card and other personalized sales aids approved by the Company.
(b) Use of Company business designation or business address is strictly prohibited.
(c) The business cards and personalized sales aids may be distributed vide personal contacts only, and shall not be posted in public places or internet website.
Any violation under this section 11 shall render the Company entitle to injunctive relief and damages under all applicable laws.
Company reserves the right to prohibit any violative advertisements or promotions and to pursue all appropriate damages and remedies under all applicable laws.
Company reserves the right and authority at any time to amend, alter, add or delete any Member Policy & Procedures contained herein as it deem fit and necessary to do so due to changes in business and market conditions without prior notice.
The official copy of the Member Policy & Procedures kept at the headquarters shall be the final authentic copy used by the Company.
In case of any ambiguity the interpretation shall base on the English version and the interpretation made by the Company shall be final and binding.