Giveaways & Hostess Rewards
Hostess Rewards and giveaways are each governed by different rules.
Hostess Rewards are governed by 6.8 Adherence to Hostess Rewards Program and can only be earned when a person has hosted an online or in-person event. When there isn’t a predetermined hostess (as with mystery hostess giveaways), any free accessories offered are considered giveaways and are governed by the rules listed below.
The rules for giveaways are as follows:
- Paparazzi Accessories cannot be sold, offered, promoted, or given away alongside non-Paparazzi products during vendor events, home parties, live videos, or on websites, including social media pages.
- A purchase cannot be required for a person to enter or win a giveaway.
- Free shipping and tax-free purchases can be offered as rewards. Please see General Sales Tax Information for information regarding a Consultant’s obligation for payment, collection, and reporting of sales and use tax.
- Accessories cannot be discounted. Accordingly, "buy X, get X free" deals, coupons, coupon codes, credits, and bling bucks are prohibited. Paparazzi gift cards or gift certificates can be sold for use by a third party but cannot be used as giveaways. See PAPARAZZI GIFT CERTIFICATE/GIFT CARD.
- Consultants can charge for shipping free giveaways to customers. If a Consultant is charging for shipping a giveaway, they should disclose this when they announce the giveaway. Additionally, charging an excessive amount of shipping for "free" accessories is not ethical and in the case of many free items (such as $100 shipping for 100 accessories), this can be seen as selling below the mandated prices in violation of Section 5.11.
- Games that require a purchase or payment of money for a chance to win, such as raffles and other games of chance, are prohibited pursuant to Section 5.11 Retailing or Reselling. Games of chance also violate Section 6.6 Laws and Ordinances as they are considered gambling, which is illegal in some states.
- With the exception of Paparazzi Possible merchandise, Back Office Boutique items cannot be given away or sold because they are for Consultant use only and do not carry a retail price. Because Paparazzi Possible merchandise is available online for customers to purchase, it can be given away.
- Consultants cannot give away items with Paparazzi’s Independent Consultant Logos or Corporate Logos. See Section 5.5 of the Policies and Procedures.
- Auctions are only allowed if the accessories will be sold for at least the mandated prices ($5, $25). If accessories are auctioned for more than the mandated prices, the Consultant should consult a tax advisor regarding potential sales tax liability.
Share Giveaway Exception: Share giveaways are a way of rewarding people who share a Consultant’s Paparazzi sales site or live video. Paparazzi strongly encourages Consultants to give away Paparazzi Accessories rather than non-Paparazzi products, and normally, non-Paparazzi products are not to be given away or sold alongside Paparazzi Accessories (see Sections 5.10, 5.11, and 5.13 of the Policies and Procedures). However, Paparazzi allows Consultants to give non-Paparazzi products for share giveaways only.
As mentioned above, Consultants cannot sell, offer, promote, or give away non-Paparazzi products during a live Paparazzi video. Consultants can announce a share giveaway, draw a name, and identify the winner during a live video if desired, but the non-Paparazzi giveaway should only be shown and identified on the Consultant’s timeline. Any timeline post regarding the giveaway must indicate the non-Paparazzi prize is for a share giveaway.
These restrictions apply only to non-Paparazzi share giveaways.