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OneLife Legal Opinion Germany June2016 .pdf


Original filename: OneLife_Legal_Opinion_Germany_June2016.pdf
Title: ver.di Brief-Vorlage
Author: Sandra Kriseleit

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LAW Y E R S- O L E S CH - RE C HT S AN W Ä LT E
Mechthildenstr. 31, 80639 München, Tel.: +49 (0)89 66 85 30, Fax: +49 (0)89 12 71 18 10

Lawyers Olesch Rechtsanwälte
Mechthildenstr. 31 D-80639 München

Rechtsanwälte
Dr. Jost Seytter (-2014)
Dr. Norbert Olesch

kanzlei@law-olesch.com
Mobile: +49 (0)176-17 27 21 33

One Network Services Ltd.
6-A Petko R. Slaveykov Sq,
1000 Sofia

Judith Funcia Moreda / Abogada
jfuncia@law-olesch.com

05.07.2016
OL/gr
Opinion governed by German Law regarding the Compensation Plan of “One Life Network”,
Version 11 June 2016
Dear Sir or Madam,
Our opinion regarding the compensation plan is based on general competition rules, in
particular as set forth in Sect. 16 II of the German Act against Unfair Competition and Sect. 3 III
Annex No. 14 of the German Act against Unfair Competition (establishing, operating or
promoting a sales promotional scheme creating the impression that compensation can be
obtained solely or primarily form introducing other participants into the scheme - scheme with
a snowball effect or pyramidal structure).
The Compensation Plan is addressed to Independent Marketing Associates (IMA). These are
authorized as Commercial Agents under an IMA Agreement to sell the services and goods of
the ONELIFE NETWORK. Consumers are not the addressees of the compensation plan.
The Compensation Plan on which we have been asked to give our opinion mainly relates to the
OneAcademy Advanced Learning System (ALS). The amount of commission earned depends
exclusively on ALS or other products or services sales. The purchase of goods and services is
not required under the Compensation Plan. However, it is mentioned that apart from the sale
of goods and services, that their own personal purchases can contribute to the possibility for
reaching a higher commission level.
An IMA may start as a “Rookie” and can earn a 10% commission for each ALS sold. At this stage
he is not entitled to any further bonuses offered by the OneLife Network.
At the next level the IMA can earn different commission rates for specified sales targets to be
reached within the organization he/she has built (Team Building Commission). For example, as
a “Trader IMA” reaching an ALS sales volume of €5,000.00 he can earn commission up to a
maximum amount of €3,500.00 per cycle period. There are four levels up to a “Tycoon Trader”,

Partner of the German Direct Selling Association – Bundesverband Direktvertrieb Deutschland
Bankverbindung Dr. Norbert Olesch: Deutsche Bank AG, München, Konto-Nr. 1905330, BLZ 700 700 24
IBAN-Nr. DE93700700240190533000, Swiftcode: DEUTDEDBMUC

which can generate a sales volume (BV) of €50,000 and a commission in the maximum amount
of €35,000.
Apart from these functional positions there is a further “Team Building Matching Bonus” for
the sales volume personally achieved by the IMA, based on tiered sales volumes.
It is true that this commission plan is a sales promotion scheme within the meaning of Sect. 3
III of the German Act against Unfair Competition. However, the services and goods of the
OneLife Network are only intended to be sold by commercial sales representatives and not by
consumers. This remains true despite the possibility of purchasing services and goods for
private consumption. The focus of the Compensation Plan is on the payment of commission for
the sale of goods and services. It is not possible to earn commission for the enrolment of new
IMAs.
The fact that 60% of the commission are paid into a cash account and 40% into a trading
account would only have an influence on the status as an IMA if the IMA were obligated to
purchase goods or services from the OneLife Network through the trading account. However,
this is not the case. The trading account serves to pay out the commission to the IMA and can
be used to acquire tokens/OneCoins which he is free to use as he wishes.
In summary, according to the wording of the compensation plan we are of the opinion that it is
not addressed to consumers and that the IMAs do not become users within the meaning of
Sect. 13 of the German Commercial Code by the purchase of goods or services (mainly for
demonstration purposes – see page 1, second paragraph), since the focus of the Compensation
plan is on sales and the remuneration system is not based on the enrolment of new
participants. Under these assumptions, the Compensation Plan is not in violation of Sects. 16 II,
3 III of the German Act against Unfair Competition.
It is not possible to deal in our opinion with the question of how the Compensation Plan is
implemented in practice and what conclusions must be drawn from this for its legal
assessment. For this reason, in future the crucial criteria will be the actual sales by the IMAs to
supply the end user market outside the OneLife Network distribution system in relation to the
sales for private consumption.
This opinion may not be disclosed to third parties for the use of their own business operations.
Yours sincerely,

Dr. Norbert Olesch
Attorney-at-Law

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