Introduction
This manual outlines the full compliance framework, risk controls, enforcement structure, and operational protections governing Melanin Magic wholesale distribution. It is confidential, internal, and applies to all wholesale partners operating under CrownThrive LLC.
Compliance protects the brand, the retailers, and the long-term profitability of the wholesale ecosystem. This manual is non-negotiable and mandatory for all Authorized Retailers.
Section 1: Compliance Purpose & Scope
The goals of this manual:
- Protect brand integrity
- Ensure fair pricing across all retail locations
- Prevent product diversion and unauthorized reselling
- Safeguard wholesale partners from market distortion
- Maintain consistent customer experience
- Provide frameworks for identifying and eliminating risk
This manual applies to:
- All wholesale accounts
- Authorized Retailers
- Salons, boutiques, barbers, and beauty supply stores
- Online retailers with approved websites
Section 2: Core Compliance Areas
Melanin Magic compliance focuses on five major categories:
- MAP Pricing (Minimum Advertised Pricing)
- Marketplace Restrictions
- Diversion Prevention
- Authenticity & Packaging Rules
- Volume & Ordering Compliance
These rules exist to protect ALL wholesale partners.
Section 3: MAP Pricing Enforcement
MAP Policy Requirements
Retailers must:
- Never advertise or sell below MSRP
- Maintain consistent pricing online and in-store
- Avoid unapproved discounts or markdowns
- Avoid bundling that reduces effective price below MSRP
MAP Violation Penalties
- First Violation: Written warning
- Second Violation: Temporary wholesale suspension
- Third Violation: Permanent removal from program
MAP protects margins for everyone.
Section 4: Marketplace Restrictions
The following platforms are strictly prohibited for reselling Melanin Magic:
- Amazon
- Walmart Marketplace
- eBay
- Etsy
- Poshmark
- Mercari
- Facebook Marketplace
- TikTok Shop (unless explicitly approved)
Unauthorized listings result in immediate account termination.
Section 5: Diversion Prevention Rules
Diversion is when products leave the approved retail channels.
Examples include:
- Selling bulk product to unapproved retailers
- Reselling products to unauthorized third parties
- Private-labeling Melanin Magic formulas
- Transferring gallons/liters directly to customers
Diversion Penalties
- Immediate wholesale termination
- Loss of Authorized Retailer status
- Possible legal action if fraud is involved
Section 6: Authenticity & Packaging Protection
Retailers must:
- Never alter labels or packaging
- Never refill Melanin Magic bottles for retail sale
- Never create "dupe" packaging or bundles using MLK products
- Keep bottles sealed and clean on shelves
Any tampering results in permanent termination.
Section 7: Ordering Compliance
Retailers must:
- Place a minimum of $750/quarter
- Maintain proper SKU mix (avoid hoarding slow products)
- Follow minimum unit requirements per SKU
- Order only through CrownThrive LLC channels
Failure to meet quarterly minimums results in account review and potential removal.
Section 8: Risk Management Categories
Melanin Magic identifies six major risk types:
- Pricing Risk – Underpricing harms market value
- Diversion Risk – Unauthorized transfers or reselling
- Brand Risk – Inappropriate representation
- Operational Risk – Incorrect handling or storage
- Inventory Risk – Overstocking and expiration risk
- Reputational Risk – Customer complaints linked to improper usage
Each category has its own mitigation strategy.
Section 9: Risk Identification & Monitoring
CrownThrive conducts routine monitoring:
- Online price scans
- Social media audits
- Marketplace sweeps
- Retailer website checks
- Mystery shopper reviews
- Quarterly performance audits
Patterns of non-compliance trigger deeper review.
Section 10: Corrective Action Framework
When a compliance issue is found:
- Document the violation
- Notify retailer in writing
- Provide correction instructions
- Set a deadline for compliance
- Monitor for adherence
- Escalate to suspension if not corrected
Section 11: Retailer Conduct Requirements
Retailers must:
- Represent the brand professionally
- Provide accurate product information
- Maintain a clean, organized retail space
- Use approved product photos and descriptions
- Avoid misinformation or unsupported claims
Inappropriate or unprofessional conduct may result in removal.
Section 12: Legal & Regulatory Compliance
Retailers must follow:
- State and federal retail laws
- Tax collection rules
- Consumer protection laws
- Online retail guidelines
- Business licensing requirements
Melanin Magic assumes no liability for non-compliance.
Section 13: Documentation Requirements
Retailers may be required to provide evidence of:
- Business registration
- Physical retail location
- POS screenshots for pricing verification
- Shelf photos for merchandising compliance
Failure to provide documentation may result in account suspension.
Section 14: Internal Escalation (CrownThrive)
CrownThrive follows a defined escalation ladder:
- Level 1: Support team review
- Level 2: Compliance officer evaluation
- Level 3: Leadership review
- Level 4: Termination or legal action
All actions are logged in internal systems.
Section 15: Reinstatement Process
Retailers removed for compliance violations may request reinstatement.
To qualify:
- Submit written reinstatement request
- Complete retraining modules
- Sign updated compliance agreement
- Provide updated retail photos/screenshots
Reinstatement is not guaranteed.
Closing Summary
The Wholesale Compliance & Risk Management Manual protects the integrity of Melanin Magic and ensures fair market conditions for all partners. Following these rules ensures long-lasting retail success and supports the