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Nuskin.com, also known as Nu Skin enterprises, is a direct sales company that markets its products under the brand names of Nu Skin, Pharmanex, and Big Planet. It has been in business since 1984 and now takes in over $1 billion per year. The company markets skin care, personal care and other products such as photo preservation and organization items. It also runs the worldwide Nourish the Children program. The corporate office is located in Provo, Utah.


 


Nuskin.com says the company was built on integrity, trust and sustainability. It offers direct sales opportunities to those who would like to operate their own home enterprise.


 


The Consumer Awareness Institute reports that there are five red flags for identifying pyramid schemes, and that the Nu Skin business practices meet all five. The basic requirements for each of the red flags are:


 



 


Unlimited recruitment


Hierarchical advancement based on recruitment rather than appointment


Participants buy significant amounts of product, making them primary customers


Commissions and/or bonuses paid to at least five levels of hierarchy, creating much leverage at the top (Nu Skin has six levels)


The person actually selling the product makes less profit than the upline members


 


Some say that a high percentage of distributors quit in less than a year. In 1997 the company paid a civil penalty to settle charges made by the Federal Trade Commission that the enterprise had made unsubstantiated claims about its products. But the company does not have an unusually high number of complaints made about its business practices according to the Better Business Burueau.




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