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| key_people = Blake M. Roney <small>([[Chairman]])</small><br />M. Truman Hunt <small>(President, [[Chief executive officer|CEO]], and Director)</small><br/>Ritch N. Wood <small>(Vice President and [[Chief Financial Officer|CFO]])</small><ref name="hoovers2">{{cite web|url=http://www.hoovers.com/free/co/people.xhtml?ID=52386|title=Nu Skin Executives|publisher=Hoover's, Inc.|accessdate=2008-12-26}}</ref>
| key_people = Blake M. Roney <small>([[Chairman]])</small><br />M. Truman Hunt <small>(President, [[Chief executive officer|CEO]], and Director)</small><br/>Ritch N. Wood <small>(Vice President and [[Chief Financial Officer|CFO]])</small><ref name="hoovers2">{{cite web|url=http://www.hoovers.com/free/co/people.xhtml?ID=52386|title=Nu Skin Executives|publisher=Hoover's, Inc.|accessdate=2008-12-26}}</ref>
| industry = [[Personal care]], [[nutraceuticals]]
| industry = [[Personal care]], [[nutraceuticals]]
| revenue = {{increase}} [[United States dollar|US$]] 1.74 billion <small>(2011)</small><ref name="selectedFin">[http://www.nuskin.com/content/corpcom/en_US/newsroom/press_releases1/2012/nu_skin_enterprisesreportsrecordfourth-quarterand2011results.html Nu Skin Reports Record Fourth Quarter and 2011 Results] ''Selected Financial Data'' - page 34</ref>
| revenue = {{increase}} [[United States dollar|US$]] 2.170 billion <small>(2012)</small><ref name="10K-2012">{{cite web| title=Nu Skin Enterprises / United States Securities and Exchange Commission Form 10-K |url=http://www.sec.gov/Archives/edgar/data/1021561/000102156113000033/nus10k2012.htm | date=26 February 2013|accessdate=26 April 2013}}</ref>
| operating_income = {{profit}} [[United States dollar|US$]] 233.742 million <small>(2011)</small><ref name="selectedFin"/>
| operating_income = {{increase}} [[United States dollar|US$]] 340.844 million <small>(2012)</small><ref name="10K-2012"/>
| net_income = {{profit}} [[United States dollar|US$]] 153.330 million <small>(2011)</small><ref name="selectedFin"/>
| net_income = {{increase}} [[United States dollar|US$]] 221.645 million <small>(2012)</small><ref name="10K-2012"/>
| assets = {{increase}} [[United States dollar|US$]] 990.956 million <small>(2011)</small><ref name="selectedFin"/>
| assets = {{increase}} [[United States dollar|US$]] 1.153 billion <small>(2012)</small><ref name="10K-2012"/>
| equity = {{increase}} [[United States dollar|US$]] 574.236 million <small>(2011)</small><ref name="selectedFin"/>
| equity = {{increase}} [[United States dollar|US$]] 590.612 million <small>(2012)</small><ref name="10K-2012"/>
| num_employees = 3,733 <small>(Dec 2012)</small><ref name="10K-2012"/>
| homepage = {{URL|www.nuskin.com}}
| homepage = {{URL|www.nuskin.com}}
| footnotes =
| footnotes =
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[[File:Nu Skin High Rise.jpg|thumb|right|Headquarters in [[Provo, Utah]]]]
[[File:Nu Skin High Rise.jpg|thumb|right|Headquarters in [[Provo, Utah]]]]


'''Nu Skin Enterprises''' is an [[United States|American]] [[direct selling]] and [[multilevel marketing]] company which develops and sells personal care products and [[dietary supplement]]s (under the '''Pharmanex''' brand).<ref>{{cite web | url = http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NUS:US | title = Nu Skin Enterprises Company Description | work = [[BusinessWeek]] | accessdate = February 21, 2012}}</ref> Nu Skin was founded in 1984 in [[Provo, Utah]].<ref>{{cite web | url = http://utahvalleybusinessq.com/uv50/2011-uv50-top-10-revenue-companies | work = Utah Valley BusinessQ | date = March 10, 2011 | title = 2011 UV50 TOP 10 Revenue Companies}}</ref> The company originated in the U.S. 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.<ref>http://www.referenceforbusiness.com/history2/21/Nu-Skin-Enterprises-Inc.html</ref> In 1996 the company listed on the [[New York Stock Exchange]].
'''Nu Skin Enterprises''' is an [[United States|American]] [[direct selling]] and [[multilevel marketing]] company which develops and sells personal care products and [[dietary supplement]]s (under the '''Pharmanex''' brand).<ref>{{cite web | url = http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NUS:US | title = Nu Skin Enterprises Company Description | work = [[BusinessWeek]] | accessdate = February 21, 2012}}</ref> Nu Skin was founded in 1984 in [[Provo, Utah]].<ref>{{cite web | url = http://utahvalleybusinessq.com/uv50/2011-uv50-top-10-revenue-companies | work = Utah Valley BusinessQ | date = March 10, 2011 | title = 2011 UV50 TOP 10 Revenue Companies}}</ref> The company originated in the U.S. 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.<ref>http://www.referenceforbusiness.com/history2/21/Nu-Skin-Enterprises-Inc.html</ref> In 1996 the company listed on the [[New York Stock Exchange]]. The company markets its products in 53 international markets through a network of approximately 950,000 independent distributors.<ref name="10K-2012"/>


In the 1990s, the [[Federal Trade Commission]] (FTC) investigated Nu Skin over complaints of its multilevel marketing practices.<ref name="nyt-sites"/> In 1992, Nu Skin reached settlements with 5 states which had accused the company of deceptive advertising and overstating the income earned by distributors.<ref name="deseret-wrinkles">{{cite news | work = [[Deseret News]] | title = Nu Skin still has wrinkles to iron out in Connecticut | first = Dennis | last = Romboy | date = January 3, 1992 | accessdate= February 21, 2012 | url = http://news.google.com/newspapers?id=wSwhAAAAIBAJ&sjid=xHoFAAAAIBAJ&pg=5043,882660}}</ref> In 1994, following an 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.<ref name="FTC2">{{cite web|url=http://www.ftc.gov/os/decisions/docs/vol117/FTC_VOLUME_DECISION_117_(JANUARY_-_JUNE_1994)PAGES_316_-_418.pdf|title=Consent Order C-3489|date=1994-04-01|publisher=[[Federal Trade Commission]]|accessdate=2010-12-25}}</ref> In 1997, the company paid an additional $1.5 million to the FTC to settle ongoing allegations of unsubstantiated promotional claims.<ref name="FTC1">{{cite web|url=http://www.ftc.gov/opa/1997/08/nuskin3.htm|title=Nu Skin to Pay $1.5 Million Penalty to Resolve FTC Charges Over Fat-Loss Claims for Supplements|date=1997-08-06|publisher=[[Federal Trade Commission]]|accessdate=2008-12-26}}</ref>
In the 1990s, the [[Federal Trade Commission]] (FTC) investigated Nu Skin over complaints of its multilevel marketing practices.<ref name="nyt-sites"/> In 1992, Nu Skin reached settlements with 5 states which had accused the company of deceptive advertising and overstating the income earned by distributors.<ref name="deseret-wrinkles">{{cite news | work = [[Deseret News]] | title = Nu Skin still has wrinkles to iron out in Connecticut | first = Dennis | last = Romboy | date = January 3, 1992 | accessdate= February 21, 2012 | url = http://news.google.com/newspapers?id=wSwhAAAAIBAJ&sjid=xHoFAAAAIBAJ&pg=5043,882660}}</ref> In 1994, following an 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.<ref name="FTC2">{{cite web|url=http://www.ftc.gov/os/decisions/docs/vol117/FTC_VOLUME_DECISION_117_(JANUARY_-_JUNE_1994)PAGES_316_-_418.pdf|title=Consent Order C-3489|date=1994-04-01|publisher=[[Federal Trade Commission]]|accessdate=2010-12-25}}</ref> In 1997, the company paid an additional $1.5 million to the FTC to settle ongoing allegations of unsubstantiated promotional claims.<ref name="FTC1">{{cite web|url=http://www.ftc.gov/opa/1997/08/nuskin3.htm|title=Nu Skin to Pay $1.5 Million Penalty to Resolve FTC Charges Over Fat-Loss Claims for Supplements|date=1997-08-06|publisher=[[Federal Trade Commission]]|accessdate=2008-12-26}}</ref>


In 2010, Nu Skin was listed among ''[[Forbes]]'' "100 Most Trustworthy Companies".<ref>{{cite web | url = http://www.forbes.com/2010/04/05/most-trustworthy-companies-leadership-governance-100_2.html | work = [[Forbes]] | title = The 100 Most Trustworthy Companies | accessdate = May 2, 2012 | first = Helen | last = Coster | date = April 5, 2010}}</ref> In 2011, Nu Skin reported its highest ever earnings with US$1.74 billion in revenue in 52 international markets.<ref name="selectedFin" />
In 2010, Nu Skin was listed among ''[[Forbes]]'' "100 Most Trustworthy Companies".<ref>{{cite web | url = http://www.forbes.com/2010/04/05/most-trustworthy-companies-leadership-governance-100_2.html | work = [[Forbes]] | title = The 100 Most Trustworthy Companies | accessdate = May 2, 2012 | first = Helen | last = Coster | date = April 5, 2010}}</ref>


==Brands and products==
==Brands and products==

Revision as of 19:40, 26 April 2013

Nu Skin Enterprises
Company typePublic
NYSE: NUS
IndustryPersonal care, nutraceuticals
Founded1984 (1984)
FounderBlake Roney, Steve Lund, Sandie Tillotson, Nedra Roney
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$ 2.170 billion (2012)[2]
Increase US$ 340.844 million (2012)[2]
Increase US$ 221.645 million (2012)[2]
Total assetsIncrease US$ 1.153 billion (2012)[2]
Total equityIncrease US$ 590.612 million (2012)[2]
Number of employees
3,733 (Dec 2012)[2]
Websitewww.nuskin.com

40°14′00″N 111°39′37″W / 40.233437°N 111.660171°W / 40.233437; -111.660171

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

Nu Skin Enterprises is an American direct selling and multilevel marketing company which develops and sells 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. 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. The company markets its products in 53 international markets through a network of approximately 950,000 independent distributors.[2]

In the 1990s, the Federal Trade Commission (FTC) investigated Nu Skin over complaints of its multilevel marketing practices.[6] In 1992, Nu Skin reached settlements with 5 states which had accused the company of deceptive advertising and overstating the income earned by distributors.[7] In 1994, following an 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.[8] In 1997, the company paid an additional $1.5 million to the FTC to settle ongoing allegations of unsubstantiated promotional claims.[9]

In 2010, Nu Skin was listed among Forbes "100 Most Trustworthy Companies".[10]

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.[11]

In the late 1990s, Nu Skin invested in Big Planet, a multi-level marketing company selling Internet services. The New York Times noted that Big Planet appeared to recruit people "even if they have little knowledge of the technology that they are supposed to be selling." A representative of the company stated: "I believe people who have never touched a computer before can become hugely wealthy in this business."[6]

In 1996, Nu Skin acquired Pharmanex, a dietary-supplement company.[12] A portion of proceeds from some product lines is donated internally to the Nu Skin Force for Good Foundation.[13]

In 2009, Nu Skin began working with LifeGen Technologies, a genomics company based in Madison, Wisconsin,[14] Nu Skin acquired LifeGen in December, 2011. LifeGen's genetic database aided in the development of Nu Skin's products, launching the ageLOC brand.[15]

Business model and sponsorships

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.[16] As of 1994, most distributors made several hundred dollars per year or less, with only about 30% exceeding that income level.[6]

Since the beginning of the 1992–93 professional basketball season, Nu Skin has sponsored the Utah Jazz Dancers.[17] 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.[18][19][20]

Corporate social responsibility

The Force for Good Campaign was introduced in conjunction with the Nu Skin Epoch product line in 1996.[21][unreliable source?] A donation of 25 cents from the sale of each Epoch product is directed to preserve environments, languages, lifestyles, and traditions of indigenous people around the world.[22]

Overhead and administrative costs for the Force for Good Foundation are paid for by Nu Skin, ensuring that all donations made to the Force for Good Foundation go directly to those receiving aid.[23][failed verification] 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.[24]

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.[7] 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.[25][26][27][28] 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.[7][29][30] Nu Skin admitted to no wrongdoing or violation of law and paid Connecticut $85,000 for consumer-protection programs as part of a settlement.[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."[6]

In 2012, Stanford University sent a cease and desist letter to halt the use of the name of one of its researchers in Nu Skin's advertising claims.[32]Stanford later released a statement regarding its long-standing, research-based relationship with Nu Skin explaining that the letter was sent to Nu Skin as a request by Stuart Kim, PhD, a professor at Stanford. Kim requested in the letter that his name be removed from Nu Skin's marketing materials as he is no longer involved with research funded by Nu Skin, however, the letter did not recognize the existing research relationship between Stanford and Nu Skin. Stanford apologized for any misunderstandings that may have resulted.[33] At the same time, Andrew Left's Citron Research issued a report "stating that Nu Skin's sales model on mainland China, the fastest growing market in direct-selling, amounted to an illegal multi-level marketing scheme. The report sent the company's shares down nearly 10 percent." [34] Nu Skin dismissed the claims calling its sales model in China kosher and had no plans to change its business model in China.[35]

Evaluation of supplements

The Pharmanex LifePak Anti-Aging supplement was tested by ConsumerLab.com, and 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 g "Nu Skin Enterprises / United States Securities and Exchange Commission Form 10-K". 26 February 2013. Retrieved 26 April 2013.
  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. ^ a b c d Davis, Ruth (May 28, 1998). "Selling Sites Like Soapflakes". New York Times. Retrieved February 21, 2012.
  7. ^ a b c Romboy, Dennis (January 3, 1992). "Nu Skin still has wrinkles to iron out in Connecticut". Deseret News. Retrieved February 21, 2012.
  8. ^ "Consent Order C-3489" (PDF). Federal Trade Commission. 1994-04-01. Retrieved 2010-12-25.
  9. ^ "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.
  10. ^ Coster, Helen (April 5, 2010). "The 100 Most Trustworthy Companies". Forbes. Retrieved May 2, 2012.
  11. ^ "Company History" (Press release). Nu Skin Enterprises.
  12. ^ http://sis.windhover.com/buy/abstract.php?id=199810153
  13. ^ Pugmire, Genelle (June 5–6, 1996). "Nu Skin introduces ethnobotanical products". Deseret News. {{cite news}}: Check date values in: |date= (help)
  14. ^ "LifeGEN Technologies".
  15. ^ "Nu Skin Enterprises Acquires LifeGen Technologies". PR Newswire date = December 14, 2011 (Press release). {{cite press release}}: Missing pipe in: |work= (help)
  16. ^ Xardel, Dominique (1993). The Direct Selling Revolution. Understanding the Growth of the Amway Corporation. Blackwell Publishing. pp. 1–4. ISBN 978-0-631-19229-9.
  17. ^ "Utah Jazz Cheerleaders". best-basketball-tips.com.
  18. ^ Walch, Tad (August 29, 2008). "New scoreboard means no more stiff necks at BYU". Deseret News. Retrieved February 21, 2012.
  19. ^ http://www.freedomfestival.org/get-involved/sponsors
  20. ^ America's Freedom Festival At Provo. David A. McDougal Publishing. 1989. p. 16.
  21. ^ Antos, Sarah (July 19, 2011). "Nu Skin Epoch Products preserve cultures and ancient traditions". Sarahantos.com. Retrieved May 3, 2012.
  22. ^ "Nu Skin Enterprises, Inc". Funding Universe. Retrieved May 3, 2012.
  23. ^ "Nu Skin Third Party Review – Product Effectiveness Farce? 3 of 3". Online Network Marketing Success. Retrieved May 3, 2012.
  24. ^ "About Us". Nu Skin Force for Good Foundation. Retrieved May 3, 2012.
  25. ^ "Nu Skin settles complaints with 5 states". Pittsburgh Press. Associated Press. January 3, 1992. Retrieved February 21, 2012.
  26. ^ Yeomans, Adam (January 3, 1992). "Nu Skin settles suit with state". Ocala Star-Banner. Retrieved February 21, 2012.
  27. ^ 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)
  28. ^ "Nu Skin will pay 5 states in pyramid-scheme case". Philadelphia Inquirer. January 4, 1992. {{cite news}}: |access-date= requires |url= (help)
  29. ^ "Connecticut sues Nu Skin". Boston Globe. January 3, 1992. Retrieved February 21, 2012.
  30. ^ Waggoner, John (January 3, 1992). "Nu Skin signs up for a makeover". USA Today. Retrieved February 21, 2012.
  31. ^ Deseret News. June 3, 1992 http://www.deseretnews.com/article/230162/CONNECTICUT-AND-NU-SKIN-SIGN-PACT-LIMITING-COMPANYS-SALES--PRACTICES.html. Retrieved May 2, 2012. {{cite news}}: Missing or empty |title= (help)
  32. ^ http://www.reuters.com/article/2012/08/16/us-nuskin-stanford-idUSBRE87F13W20120816
  33. ^ "School of Medicine statement regarding its relationship with Nu Skin Enterprises". Aug 17, 2012. Retrieved Oct 30, 2012. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  34. ^ http://www.reuters.com/article/2012/08/16/us-nuskin-stanford-idUSBRE87F13W20120816
  35. ^ Reuters. August 16, 2012 http://in.reuters.com/article/2012/08/15/us-nuskin-china-idINBRE87E1C920120815. Retrieved October 30, 2012. {{cite news}}: Missing or empty |title= (help)
  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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