Designer Commission Policy
DANIEL HOUSE CLUB
DESIGNER COMMISSION POLICY
Effective Date: May 1, 2026
1. Purpose
This Designer Commission Policy (the “Policy”) governs the structure, administration, and treatment of commissions issued through the Daniel House Club Designer Commission Program (the “Program”).
This Policy defines the legal characterization of commissions each participating designer (“Designer”) is entitled to receive under the Program (the “Designer Commissions”);
This Policy is intended to ensure legal compliance, reduce regulatory exposure, and provide consistent internal administration standards.
2. Nature of the Program
The Program allows Designers to elect to share a portion of Daniel House Club’s product discount with their clients or to retain a portion of that discount.
For clarity, the Designer Commission is effectively a retained portion of a product discount (sometimes referred to internally as a “designer discount share”) that a Designer elects not to pass through to a client.
For all contractual, accounting, and compliance purposes:
- The Designer Commission is a voluntary promotional incentive.
- It is not wages, salary, or employment compensation.
- It is not consideration for services rendered to Daniel House Club.
- Designers participating in the Program are customers of Daniel House Club and do not provide services to the Company by participating.
- A Designer Commission is earned, if at all, only on completed and qualifying transactions (each a “Qualifying Purchase”) in accordance with Program terms in effect at the time of the Qualifying Purchase.
3. Designer Commissions
3.1 Claim Requirement
Designers must provide and maintain accurate and current ACH or wire payout information with Daniel House Club in order to receive cash payment of earned Designer Commissions.
Failure to maintain valid payout information or active account status may delay or prevent cash payment.
3.2 One-Year Cash Claim Period
Daniel House Club will make reasonable efforts for up to six (6) months following the end of the calendar month in which the Designer Commission is earned to notify the Designer of any payable balance and get their payout information.
Reasonable efforts may include email communications, account notifications, or other standard contact methods.
3.3 Conversion to Store Credit
If a Designer Commission remains unclaimed six (6) months after the end of the calendar month in which it was earned due to:
- Inactive account status;
- Failure to maintain valid payout information; or
- Failure to respond to payment communications;
the unpaid balance shall automatically convert to a Daniel House Club digital gift card (store credit).
Upon conversion:
- The amount is no longer payable in cash;
- The balance becomes subject to Daniel House Club gift card terms and conditions; and
- The balance shall be administered in compliance with applicable federal and state gift card laws.
3.4 Gift Card Validity and Expiration (Promotional Gift Cards)
All digital gift cards issued under this Policy are provided as promotional instruments and are not sold or purchased by customers. As such, they are not subject to the minimum five (5) year expiration requirement under the federal Credit Card Accountability Responsibility and Disclosure Act of 2009 (“CARD Act”).
Accordingly:
1. Validity Period
Gift cards issued pursuant to this Policy shall expire eighteen (18) months from the date of issuance, unless otherwise required by applicable federal or state law.
2. State Law Compliance
Certain states prohibit expiration of some or all gift cards or impose stricter limitations than federal law. These states include, but are not limited to:
- California
- Connecticut
- Colorado
- Massachusetts
- Minnesota
- New Jersey
- New York
Where applicable state law prohibits expiration or requires longer validity, Daniel House Club shall administer the gift card in compliance with that state’s law.
3. Disclosure of Terms
The expiration date and all material terms and conditions shall be clearly and conspicuously disclosed at the time of issuance.
4. No Dormancy Fees
Daniel House Club shall not impose dormancy, inactivity, or service fees on gift cards issued under this Policy unless permitted by applicable law and clearly disclosed.
5. Compliance and Recordkeeping
- Finance and Legal shall monitor federal and state gift card and unclaimed property laws on an ongoing basis.
- Where state law conflicts with this Policy, the Company shall apply the rule most protective of the Designer.
- Documentation of commission earnings, payment attempts, conversion dates, issuance dates, expiration dates (if applicable), and redemption activity shall be retained for audit and compliance purposes.
6. Prospective Modifications
Daniel House Club reserves the right to modify, suspend, or terminate the Program prospectively at any time.
Any modification shall apply only to Qualifying Purchases occurring after the effective date of such modification.
7. Internal Administration Responsibility
The Finance Department, in coordination with Legal and Operations, is responsible for:
- Tracking earned commissions;
- Monitoring the six-month claim period;
- Executing conversion to store credit when applicable; and
- Maintaining records sufficient to defend the Company’s administration of the Program.
This Policy is approved and effective as of May 1, 2026.