Tier 1 Restriction is a temporary safeguard applied to Reward Phalicoins earned from selected products. When you purchase an eligible product, a portion of your Reward Phalicoins is temporarily reserved while your applicable refund rights remain active.

During this period, the reserved Reward Phalicoins cannot be redeemed. They remain safely associated with your account and become redeemable once the Tier 1 Restriction has been removed through one of the available unlocking methods.

Tier 1 Restriction is designed to balance customer benefits with the long-term sustainability of the Reward Phalicoins Program.

Reward Phalicoins are reserved only for selected products that are covered by the Tier 1 policy.

The temporary reservation helps protect the Reward Phalicoins Program while your refund rights remain available. It prevents the immediate redemption of Reward Phalicoins that are linked to purchases which may still be eligible for a refund.

This approach allows customers to continue enjoying Reward Phalicoins while maintaining fairness, preventing misuse, and supporting a sustainable rewards program for all members.

You may remove Tier 1 Restriction using either of the following methods:

Option 1 – Waive your applicable refund rights

If you have decided to keep your eligible product permanently, you may voluntarily waive your applicable refund rights. Once your waiver request is approved, the Tier 1 Restriction linked to that product is removed.

Option 2 – Continue earning Reward Phalicoins

If you prefer to retain your refund rights, simply continue purchasing eligible products and earning Reward Phalicoins. Once your eligible Reward Phalicoins reach the required unlocking target, the Tier 1 Restriction is removed automatically.

Both methods achieve the same result. You may choose the option that best suits your preferences.

If you are satisfied with your eligible product and no longer wish to use the applicable refund facility, you may submit a request to waive your refund rights.

Once the waiver request is approved, the Tier 1 Restriction associated with that product is removed, allowing the reserved Reward Phalicoins to become redeemable.

Please ensure that you fully understand the consequences of waiving your refund rights before submitting a request. Once approved, the waiver is generally treated as final and the applicable refund rights for that product cannot ordinarily be restored, except where required by law or expressly permitted by the Company.

You are not required to waive your refund rights in order to remove Tier 1 Restriction.

Instead, you may continue purchasing eligible products and earning Reward Phalicoins in the normal course of shopping.

Once the total eligible Reward Phalicoins earned after your qualifying purchase become equal to 50% of the Maximum Retail Price (MRP) of the eligible product, the Tier 1 Restriction is removed automatically.

This method allows you to unlock your reserved Reward Phalicoins while continuing to retain your applicable refund rights during the qualifying period.

Only eligible Reward Phalicoins earned under the Reward Phalicoins Program are considered for Tier 1 unlocking.

Reward Phalicoins that are cancelled, reversed, adjusted due to refunds, removed because of fraudulent activity, or otherwise declared ineligible under the Reward Phalicoins Terms & Conditions will not be counted.

The Company may verify all qualifying transactions before removing Tier 1 Restriction.

Tier 1 Restriction is removed as soon as either of the following conditions is satisfied:

• Your refund waiver request has been approved; or
• You have earned eligible Reward Phalicoins equal to 50% of the MRP of the eligible product.

Once either requirement has been fulfilled and all necessary verification has been completed, the reserved Reward Phalicoins become redeemable in accordance with the Reward Phalicoins Program.