Can a Network Marketing Company Disallow Me from Developing My Online Resource

[George_s24]

Hello,

I recently began purchasing health and wellness products from a network marketing company because I thought I'd enjoy the products. So far I enjoy the products and am not obliged to "sell" or "recruit" (although I do have a few people in my downline because they too enjoy the products). Nonetheless, the company was only founded in 2008 and already operates in 7 different countries (USA, Canada, Mexico, Costa Rica, Guatemala, Peru, Colombia) and looks like it will be expanding to multiple other countries very soon. As a result, I came up with a resource that I believe will be lucrative for the company, its independent contractors, and myself.

My proposed resource was the following: Create a professional web page which generates the most traffic possible via SEO strategies and connecting through social media. The point would be for people to be directed to this website which would offer factual information on the company, products, etc. Basically, the website would serve to reach a larger audience in the countries where the company operates. The "money maker" if you will, would be the database which this website would offer. The independent contractors of this network marketing company would have the option of entering their information into a database, so that when a person, say from Miami, Florida, wants to learn more about this network marketing company, they type in their address and their nearest registered independent contractor's location and details appears on a map. Thus, the service I would provide is free marketing for the company and the chance for their independent contractors to be contacted by local "leads" through this website. NOTE: I have NO INTENTION on retailing the products of this network marketing company. Me and my partners would strictly be offering this service to independent contractors at a small fee (around $8.00/moth) in order for them to harness their most powerful resource available: the internet.

This is the issue: I contacted Customer Service and they denied me using this resource because "they wanted to keep such resources in house" despite the fact THEY OFFER NO SUCH RESOURCE! Additionally, I stumbled upon the Compliance policy of the website which then reads that any independent contractor who wishes to use any other marketing tools (including the internet) must receive permission from the network marketing company prior to publishing it. Thus, not only did Customer service WRONGLY deny me permission, I also believe the compliance department may be just as incompetent and may not fully understand the resource I am looking to develop.

Does the network marketing company have any say as to whether or not I can develop this website and database? Is there any problem legally if I follow their trademark and copyright stipulations? Please keep in mind I am more than willing to cooperate with the company and edit or delete any information they wish. I just fear they may wrongly deny me the ability to develop this resource that would be valuable for all parties involved.

Facts of importance when looking into the mater:
- The company is American
- I am American but I CURRENTLY live in Canada. The website would be developed in Canada as well
- I myself am an independent contractor and thus I have the right to use any marketing tool to enhance my independently owned business

It's obviously a very difficult subject to answer but I am curious as to the comments, questions or solution every may put forth. Thanks in advance for all your contributions.

-- George

[Disagreeable]

Yes, they do have the right to regulate that. Sorry you are not a good enough salesman to even sell them on the idea.

[Mr. Knowitall]

You are free to develop your own products and market them any way you wish. If you want to ignore the rules of a network marketing program, you can expect that they will end your participation. You seem to be describing the same sort of restriction that was imposed on the "Internet version" of Amway, Quixtar, and while I think that the notion of online shopping without online marketing helped lead to the demise of that program I have not heard of their restrictions being successfully challenged in any jurisdiction.

As for what is or is not legal for them to do in Canada, you will need to discuss that with a lawyer in Canada.

[George_s24]

Thank you for your reply. I am going to look up the restrictions imposed on the "Internet version" of Amway and Quixtar and do some research on the topic. I still plan on developing the website and service but I'm looking to save trouble for the future.