Nu Skin Addresses Controversy

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Nu Skin, a company that develops and sells anti-aging products, such as skin-care treatments and dietary supplements, is under fire for its marketing practices. A Chinese Communist Party paper reported that the company's multilevel marketing strategy is "akin to brainwashing" and likened its bonus practices to that of a pyramid scheme. 

In response, Nu Skin defends its practices and accuses reporters of providing inaccurate information: 

Nu Skin

Since the report, Nu Skin's stock dropped 33%. 

Discussion Starters: 

  • What is a pyramid scheme? How does it differ from multilevel marketing?
  • Analyze Nu Skin's statement. What works well, and what could improve the company's image?