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* [http://www.nuskin.com/ Nu Skin company website]
* [http://www.nuskin.com/ Nu Skin company website]
* [http://www.facebook.com/nuskin Nu Skin Facebook Page]


[[Category:Multi-level marketing companies based in Utah]]
[[Category:Multi-level marketing companies based in Utah]]

Revision as of 13:41, 5 April 2012

Nu Skin Enterprises
Company typePublic
NYSE: NUS
IndustryPersonal care, nutraceuticals
Founded1984 (1984)
FounderBlake Roney, Steve Lund, Sandie Tillotson
Headquarters
Provo, Utah
,
United States
Area served
Worldwide
Key people
Blake M. Roney (Chairman)
M. Truman Hunt (President, CEO, and Director)
Ritch N. Wood (Vice President and CFO)[1]
RevenueIncrease US$ 1.74 billion (2011)[2]
Increase US$ 233.742 million (2011)[2]
Increase US$ 153.330 million (2011)[2]
Total assetsIncrease US$ 990.956 million (2011)[2]
Total equityIncrease US$ 574.236 million (2011)[2]
Websitewww.nuskin.com

40°14′00″N 111°39′37″W / 40.2334366°N 111.6601706°W / 40.2334366; -111.6601706

File:Nu Skin High Rise.jpg
Headquarters in Provo, Utah

Nu Skin Enterprises (NYSE: NUS) is an American direct selling and multilevel marketing company which develops and distributes personal care products and dietary supplements (under the Pharmanex brand).[3] Nu Skin was founded in 1984 in Provo, Utah.[4]

The company originated in the U.S. on June 4, 1984, and began its first international operation in Canada in 1990. One year later, the company began operations in Asia with the opening of Hong Kong.[5] In 1996 the company listed on the New York Stock Exchange. In 2010, the company reported its highest ever earnings with US$1.54 billion in revenue in 51 international markets.[2] As of 2011, Nu Skin operates in 52 countries in North America, Europe, Asia, and Pacific.[6] The company sells a range of products, from skin and hair products to a flagship line of dietary supplements marketed as anti-aging.

Brands and products

Under the Nu Skin and Pharmanex brands, the company develops and sells more than 200 personal care products marketed as helping people look and feel younger.[7]

Pharmanex, a dietary-supplement company, was acquired by Nu Skin in 1996.[8] A portion of proceeds from some product lines is donated internally to the Nu Skin Force for Good Foundation.[9]

LifeGen Technologies, a genomics company based in Madison, Wisconsin,[10] was acquired by Nu Skin in December, 2011. Nu Skin began working with LifeGen in 2009. LifeGen's genetic database aided in the development of Nu Skin's products, launching the ageLOC brand.[11]

Business model, sponsorships, and humanitarian efforts

Nu Skin Enterprises’ business model combines direct selling with multi-level marketing. Each distributor markets products directly to potential customers, and can also recruit and train customers to become distributors. Distributors are paid from the retail markup on products they are able to sell personally, as well as a performance bonus based on the sales of distributors they have recruited.[12]

Since the beginning of the 1992–93 professional basketball season, Nu Skin has sponsored the Utah Jazz Dancers.[13] Nu Skin also sponsors the Brigham Young University athletic program and the America's Freedom Festival at Provo, one of the nation's largest Independence Day celebrations.[14][15][16]

The Nu Skin Force for Good Foundation is based in Provo, Utah and is a registered 501(c)(3) non-profit organization in the United States.[17] The force for good campaign was introduced in conjunction with the Nu Skin Epoch® product line in 1996.[18] A donation of 25 cents from the sale of each Epoch product is directed to indigenous people around the world.[19] Nu Skin Enterprises provides for all overhead and administrative costs of the Nu Skin Force for Good Foundation, ensuring that all donations go directly to those receiving aid.[20]

Nourish The Children (NTC) was launched in 2002.[21] NTC is an Nu Skin initiative that produces VitaMeal, a nutrient-dense food for malnourished children which is distributed around the world.[22]

Scrutiny and reception

In the early 1990s, Nu Skin was investigated by the states of Connecticut, Pennsylvania, Florida, Illinois, Ohio, and Michigan over allegations of misleading marketing practices.[23] Ultimately, in 1992 the company settled with 5 of these states, admitting no wrongdoing but agreeing to pay the states' investigative costs, refund disgruntled distributors, and revamp its promotional practices.[24][25][26][27] However, the Connecticut Attorney General did not agree to those terms and sued Nu Skin, charging the company with misleading its distributors and operating a pyramid scheme.[23][28][29]

In 1992, Nu Skin reached settlements with 5 states which had accused the company of operating a pyramid scheme.[23] Following a 1994 investigation by the Federal Trade Commission (FTC), the company paid $1 million and signed a consent decree prohibiting it from making deceptive or unsubstantiated claims about its products.[30]

In 1994, the company paid $1 million and signed a consent decree prohibiting it from making deceptive or unsubstantiated claims about its products.[30]

In 1997, the company paid an additional $1.5 million to the FTC to settle ongoing allegations of unsubstantiated promotional claims.[31]

In 1997, the Attorney General of Pennsylvania sued Nu Skin, alleging that the company operated a pyramid scheme through a subsidiary, QIQ Connections. The Attorney General's office alleged that distributors paid for the right to market technology services which did not, in fact, exist. Nu Skin discontinued the QIQ subsidiary, allowing those who had paid QIQ to transition to Big Planet, another Nu Skin interest marketing Internet technology. The president of Big Planet described the pyramid-scheme allegations as a matter of "a few distributors who in their enthusiasm have been overzealous in some of their marketing activities."[32]

In 2011, Nu Skin experienced growth in emerging markets. 43% of its $1.7 billion in revenue came from Asia, 20% from Greater China, 14% from South Asia and the Pacific, 14% from Americas, and 9% from Europe.[33]

As of February 2012, Nu Skin has an A+ rating with the Better Business Bureau.[34] The company is also a member of the Direct Selling Association and the Direct Selling Education Foundation.[35]

Evaluation of supplements

In a laboratory test by ConsumerLab.com, 60 multivitamins were reviewed, including The Pharmanex LifePak Anti-Aging supplement. It was reported as failing the overall review due to failing to clearly indicate its total Vitamin A content per FDA requirements.[36]

Political activities

In 2011, two Utah-incorporated business entities linked to top executives of Nu Skin each made a $1 million contribution to Restore Our Future, a "Super PAC" established by former aides to US presidential candidate Mitt Romney to support his bid for the White House.[37]

References

  1. ^ "Nu Skin Executives". Hoover's, Inc. Retrieved 2008-12-26.
  2. ^ a b c d e f Nu Skin Reports Record Fourth Quarter and 2011 Results Selected Financial Data - page 34
  3. ^ "Nu Skin Enterprises Company Description". BusinessWeek. Retrieved February 21, 2012.
  4. ^ "2011 UV50 TOP 10 Revenue Companies". Utah Valley BusinessQ. March 10, 2011.
  5. ^ http://www.referenceforbusiness.com/history2/21/Nu-Skin-Enterprises-Inc.html
  6. ^ "Nu Skin Global Presence" (Press release). Nu Skin Enterprises.
  7. ^ "Company History" (Press release). Nu Skin Enterprises.
  8. ^ http://sis.windhover.com/buy/abstract.php?id=199810153
  9. ^ Pugmire, Genelle (June 5–6, 1996). "Nu Skin introduces ethnobotanical products". Deseret News. {{cite news}}: Check date values in: |date= (help)
  10. ^ "LifeGEN Technologies".
  11. ^ "Nu Skin Enterprises Acquires LifeGen Technologies". PR Newswire date = December 14, 20011 (Press release). {{cite press release}}: Missing pipe in: |work= (help)
  12. ^ Xardel, Dominique (1993). The Direct Selling Revolution. Understanding the Growth of the Amway Corporation. Blackwell Publishing. pp. 1–4. ISBN 978-0631192299.
  13. ^ "Utah Jazz Cheerleaders". best-basketball-tips.com.
  14. ^ Walch, Tad (August 29, 2008). "New scoreboard means no more stiff necks at BYU". Deseret News. Retrieved February 21, 2012.
  15. ^ http://www.freedomfestival.org/get-involved/sponsors
  16. ^ America's Freedom Festival At Provo. David A. McDougal Publishing. 1989. p. 16.
  17. ^ "Nu Skin's Force For Good Foundation".
  18. ^ "Helping You Look And Feel Younger".
  19. ^ "Funding Universe, Nu Skin Enterprise".
  20. ^ "Nu Skin Third Party Review - Product Effectiveness Farce".
  21. ^ "Nourish The Children - A Unique Concept". Nu Skin.
  22. ^ "Feed The Children Partners With Nourish The Children". Feed The Children.
  23. ^ a b c Romboy, Dennis (January 3, 1992). "Nu Skin still has wrinkles to iron out in Connecticut". Deseret News. Retrieved February 21, 2012.
  24. ^ "Nu Skin settles complaints with 5 states". Pittsburgh Press. Associated Press. January 3, 1992. Retrieved February 21, 2012.
  25. ^ Yeomans, Adam (January 3, 1992). "Nu Skin settles suit with state". Ocala Star-Banner. Retrieved February 21, 2012.
  26. ^ Elmore, Charles (January 3, 1992). "Coming clean: State drops pyramid probe as Nu Skin agrees to refunds". Palm Beach Post. {{cite news}}: |access-date= requires |url= (help)
  27. ^ "Nu Skin will pay 5 states in pyramid-scheme case". Philadelphia Inquirer. January 4, 1992. {{cite news}}: |access-date= requires |url= (help)
  28. ^ "Connecticut sues Nu Skin". Boston Globe. January 3, 1992. Retrieved February 21, 2012.
  29. ^ Waggoner, John (January 3, 1992). "Nu Skin signs up for a makeover". USA Today. Retrieved February 21, 2012.
  30. ^ a b "Consent Order C-3489" (PDF). Federal Trade Commission. 1994-04-01. Retrieved 2010-12-25.
  31. ^ "Nu Skin to Pay $1.5 Million Penalty to Resolve FTC Charges Over Fat-Loss Claims for Supplements". Federal Trade Commission. 1997-08-06. Retrieved 2008-12-26.
  32. ^ "Selling Sites Like Soapflakes". New York Times.
  33. ^ Beerens, Marie (February 27, 2012). "Nu Skin Enterprises Introduces New Anti-Aging Products". Investors Business Daily.
  34. ^ "Nu Skin Enterprises Business Review". Better Business Bureau. Retrieved February 21, 2012.
  35. ^ http://www.dsa.org/forms/CompanyFormPublicMembers/search?action=find]
  36. ^ "ConsumerLab Multivitamin and Multimineral Supplements Review - Main Review". 15 June 2011. Retrieved 18 August 2011.(subscription required)
  37. ^ Martin, Jonathan (July 31, 2011). "PAC brings in $12.2 million for Mitt". Politico. Retrieved August 4, 2011. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
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