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Nu Skin Enterprises

Coordinates:40°14′00″N111°39′37″W / 40.233437°N 111.660171°W /40.233437; -111.660171
From Wikipedia, the free encyclopedia
American multi-level marketing company
Nu Skin Enterprises, Inc.
Headquarters in Provo, Utah
Company typePublic
IndustryMultilevel marketing,personal care products
Founded1984; 41 years ago (1984)
Founders
[1]
Headquarters,
Area served
Worldwide
Key people
Products
Brands
  • Nu Skin
  • Pharmanex
RevenueDecreaseUS$1.73 billion (2024)
DecreaseUS$−152 million (2024)
DecreaseUS$−147 million (2024)
Total assetsDecreaseUS$1.47 billion (2024)
Total equityDecreaseUS$651 million (2024)
Number of employees
3,100 (2024)
Websitenuskin.com
Footnotes / references
[3]

40°14′00″N111°39′37″W / 40.233437°N 111.660171°W /40.233437; -111.660171

Nu Skin Enterprises, Inc. is an Americanmultilevel marketing company that develops and sellspersonal care products anddietary and nutritional supplements.[4] Under the Nu Skin and Pharmanex brands, the company sells its products in 54 markets through a network of approximately 1.2 million independent distributors.[5]

History

[edit]

In 1984, Nu Skin foundersBlake Roney, Nedra Roney, Sandie Tillotson, andSteven J. Lund launched a line ofskincare products using only natural ingredients.[6][7] The founders aimed to create skincare products and nutritional products without unnecessary fillers with the philosophy of “all of the good, none of the bad.”[6][8][9]

The company first served the United States market and expanded operations to Canada in 1990. In 1991, the company began operations in Asia, starting inHong Kong.[10] In 1996, the company listed on theNew York Stock Exchange.[11]

In 1992, Nu Skin settled with five states that accused the company of deceptive advertising and overstating distributor income.[12] In 1994, the company paid $1 million and signed aconsent decree with theFTC prohibiting it from making deceptive product claims.[13][14] In 1997, the company paid an additional $1.5 million to the FTC to settle allegations of unsubstantiated claims.[15]

In 1998, Nu Skin acquired Generation Health, the parent company of the dietary supplement company Pharmanex.[16] According toWomen's Health Letter, the Pharmanex device was designed merely to help sell more supplements, since per Nu Skin's 2002 annual report, "as customers track their skin carotenoid content, we believe they will be motivated to consistently consume LifePak for longer periods of time."[17]

In the late 1990s, Nu Skin invested in Big Planet, a multilevel marketing company selling Internet services.The New York Times wrote that Big Planet recruited people "even if they have little knowledge of the technology that they are supposed to be selling," with a Big Planet representative quoted: "I believe people who have never touched a computer before can become hugely wealthy in this business."[13]

In 2009, Nu Skin began working with LifeGen Technologies, agenomics company based inMadison, Wisconsin.[18] Nu Skin acquired LifeGen in December 2011. Nu Skin claims LifeGen'sgenetic database aided in the development of Nu Skin's products, launching the ageLOC brand.[19]

In 2016, Nu Skin paid a $47 million class-action settlement, citing failure to disclose that its Chinese subsidiary did not register as the direct seller.[20] Nu Skin paid $750k in fines to theUnited States Securities and Exchange Commission following allegations of a bribe that saw charity funds go to a Chinese politician.[21]

In 2021, Nu Skin's subsidiary Rhyz Inc. acquired social commerce company Mavely and acquired Dallas-based skincare company BeautyBio in 2023.[22][23] In 2025, the company sold the Mavely platform for five times what it paid for the company in 2021, in a $250 million transaction to Later, theSummit Partners company.[24]

Products

[edit]

Nu Skin was granted a patent on a device developed by Pharmanex called a "BioPhotonic Scanner", which is designed to measure thecarotenoid level in skin.[16] The company launched its ageLOC anti-aging brand in 2008.[25]

In 2014, Nu Skin launched the Nu Skin Facial Spa which received FDA clearance forover-the-counter cosmetic use.[26] In 2018, the company introduced the ageLOC LumiSpa, a dual-action skin care device that uses a soft silicone treatment head to gently cleanse away dirt, oil, and makeup.[27]

Nu Skin launched ageLOC LumiSpa iO, the company's firstconnected device, in 2022.[28] LumiSpa iO is a smart treatment and cleansing device for customized skin care, popularized byVenus Williams.[29][30][31] Nu Skin launched Nu Colour “Lash + Brow” in 2023, marketed as free ofprostaglandins.[32] In 2022, Nu Skin launched a line of Nutricentials Bioadaptive Skin Care Pumps.[33] In 2024, the company launched Nu Skin RenuSpa iO, an FDA-cleared microcurrent body device with a connected app to view live insights during treatment. RenuSpa iO is the company's first integrated beauty and wellness device.[34][35] In 2024, Nu Skin launched MYND360 as a supplement and topicals product line for cognitive health.[36]

Reception

[edit]

Nu Skin Enterprises' is amulti-level marketing business.[37] Each distributor markets products directly to potential customers and may also recruit and train customers to become distributors. Distributors are paid on the retail markup on products they are able to sell, as well as a performance bonus based on the sales of recruited distributors.[38] In the early 1990s, Nu Skin was investigated by Connecticut, Pennsylvania, Florida, Illinois, Ohio, and Michigan over allegations of misleading marketing practices.[12] In 1992 the company settled with five of the states, admitted no wrongdoing but agreed to pay the states' investigative costs, refund distributors, and revamp its promotional practices.[39][40][41][42] TheConnecticut Attorney General did not agree to those terms and sued Nu Skin, alleging the company misled its distributors and operated apyramid scheme.[12][43][44] Nu Skin admitted to no wrongdoing or violation of law and settled with the state for $85k forconsumer-protection programs.[45]

In 1997, theAttorney General of Pennsylvania alleged in a lawsuit that Nu Skin operated a pyramid scheme through a subsidiary, QIQ Connections and that distributors paid for the right to market technology services that did not, in fact, exist. Nu Skin discontinued the QIQ subsidiary, allowing those who had paid QIQ to move to Big Planet, a Nu Skin investment marketing Internet technology. The president of Big Planet described the allegations as a matter of "a few distributors who in their enthusiasm have been overzealous in some of their marketing activities."[13]

In 2010, Nu Skin was listed amongForbes "100 Most Trustworthy Companies".[46]

In 2011, two Utah-incorporated business entities linked to top executives of Nu Skin each made a $1 million contribution toRestore Our Future, aSuper PAC established by former aides to U.S. presidential candidateMitt Romney to support his bid for the White House.[47][48][49]

In 2012,Stanford University apologized for an misunderstanding following acease and desist letter sent to halt the use of the name of one of its researchers, Dr. Stuart Kim, in Nu Skin's advertising.[50][51] Also in 2012,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 multilevel marketing scheme."[50] Nu Skin dismissed the claims, calling its sales model in China "kosher" and stating that it had no plans to change its business model.[52] In 2014, The Chinese government investigated Nu Skin following aPeople's Daily newspaper report calling it a "suspected illegalpyramid scheme." Following the investigation, the Chinese government fined Nu Skin for $540k due to illegal sales and making false product claims.[53]

In February 2014, a press release shows aclass action lawsuit filed in theU.S. District Court for the District of Utah against Nu Skin Enterpriseson behalf of investors who acquired stock of the company from July 2013, to January 2014.[54]

In aLast Week Tonight with John Oliver segment that covered multilevel marketing companies, Oliver criticized Nu Skin for the fact that in 2015, 93% of its distributors did not earn a commission check in a typical month.[55] Nu Skin says it pays approximately 43 percent of its product revenue in sales compensation.[56] In 2025, Nu Skin was named to USA Today's list of "best customer service."[57]

References

[edit]
  1. ^"4.46 million shares of Nu Skin sold for $114 million". Deseret News. Retrieved4 December 2023.
  2. ^"Nu Skin CEO Ryan Napierski Reveals Strategy for 2022". Direct Selling News. 6 January 2022. RetrievedSeptember 10, 2022.
  3. ^"2024 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 14, 2025.
  4. ^"NOX Tech being bought by Nu Skin unit". Philadelphia Business Journal. Retrieved2018-08-14.
  5. ^"Nu Skin Enterprises - 10K (2015)". United States Security and Exchange Commission. March 2, 2015. RetrievedOctober 9, 2015.
  6. ^ab"Nu Skin has evolved into giant — and changed Provo area". Deseret News. 15 January 2024. Retrieved26 January 2024.
  7. ^Tavss, Jeff (2020-10-23)."Utah's Nedra Roney, co-founder of Nu Skin, dies at 65, friend says".FOX 13 News Utah (KSTU). Retrieved2025-09-19.
  8. ^"2011 UV50 TOP 10 Revenue Companies".Utah Valley BusinessQ. March 10, 2011. Archived fromthe original on November 27, 2011. RetrievedNovember 18, 2011.
  9. ^"Nu Skin Enterprises: Innovation in a Brave Nu World". October 2017. Retrieved3 November 2023.
  10. ^"Nu Skin Enterprises, Inc. - Company Profile on Nu Skin Enterprises, Inc". Archived fromthe original on 2012-01-14.
  11. ^"Nu Skin Asia Pacific Stock Soars in First Day of Trading".The New York Times. Retrieved3 November 2023.
  12. ^abcRomboy, Dennis (January 3, 1992)."Nu Skin still has wrinkles to iron out in Connecticut".Deseret News. RetrievedFebruary 21, 2012.
  13. ^abcDavis, Ruth (May 28, 1998)."Selling Sites Like Soapflakes".The New York Times. RetrievedFebruary 21, 2012.
  14. ^"Consent Order C-3489"(PDF).Federal Trade Commission. 1994-04-01. Archived fromthe original(PDF) on 2012-10-09. Retrieved2010-12-25.
  15. ^"Nu Skin to Pay $1.5 Million Penalty to Resolve FTC Charges Over Fat-Loss Claims for Supplements".Federal Trade Commission. August 6, 1997. RetrievedDecember 26, 2008.
  16. ^ab"Nu Skin to Acquire Generation Health".Bloomberg via Los Angeles Times. October 7, 1998.
  17. ^"Don't fall for this scam".Women's Health Letter.14 (11): 5. 2008.
  18. ^"LifeGEN Technologies".
  19. ^"Nu Skin Enterprises Acquires LifeGen Technologies".PR Newswire (Press release). December 14, 2011.
  20. ^Long, Josh."Nu Skin Reaches $47-Million Agreement to Settle Pyramid Scheme Lawsuit".Natural Product Insider. Insider Law. RetrievedDecember 16, 2016.
  21. ^Ganapavaram, Abhijith (2016-09-20)."Skincare products maker Nu Skin settles SEC probe".Reuters. Reuters. RetrievedDecember 16, 2016.
  22. ^"Why One DTC-Skincare Brand Decided to Acquire Its Own Social Commerce Solution". 20 December 2021. Retrieved17 January 2024.
  23. ^"Dallas Skincare Trailblazer, BeautyBio, Acquired by Nu Skin Subsidiary". Dallas Innovates. 15 August 2023. Retrieved3 November 2023.
  24. ^"Nu Skin Shares Rise Premarket on Sale of Mavely Platform". MarketWatch. Retrieved24 January 2025.
  25. ^"Nu Skin Continues to March on a High-Growth Path". Cosmetic Design. Retrieved7 June 2024.
  26. ^"6 Beauty Tools that Contour and Sculpt the Face without Makeup". New Beauty. Retrieved7 June 2024.
  27. ^"Beauty Products that You Should Be Wrapped Up in a Blanket Trying Right Now". Bustle. Retrieved7 June 2024.
  28. ^"Launch List: The Best Skin Care Launching in November". New Beauty magazine. 16 November 2022. Retrieved8 March 2024.
  29. ^"A Super-Inside Look at the Life of Venus Williams, aka the Icon We All Need Right Now". Cosmopolitan. 8 September 2021. Retrieved8 March 2024.
  30. ^"What Venus Williams Can't Live Without". New York magazine. 29 April 2022. Retrieved8 March 2024.
  31. ^"These "Smart" Beauty Devices Can Track Your Skincare Journey". Women's Health. 22 January 2024. Retrieved8 March 2024.
  32. ^"This Lash and Brow Serum Delivers Results in Just 4 Weeks, According to Clinical Testing". New Beauty. February 2024. Retrieved8 March 2024.
  33. ^"Launch List: The Best Skin Care Launching in August". New Beauty. 15 August 2022. Retrieved8 March 2024.
  34. ^"Best Microcurrent Facial Devices". Cosmopolitan. Retrieved7 June 2024.
  35. ^"Net Sales for Nu Skin Declines 13.3% in Q1 2024". Happi. Retrieved7 June 2024.
  36. ^"Nu Skin Unveils the MYND360 Supplement and Topicals Line". TrendHunter. Retrieved23 January 2025.
  37. ^"Direct selling and the big impact it has on the Utah economy". KSL News. 17 August 2022. Retrieved4 December 2023.
  38. ^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.
  39. ^"Nu Skin settles complaints with 5 states".Pittsburgh Press.Associated Press. January 3, 1992. RetrievedFebruary 21, 2012.
  40. ^Yeomans, Adam (January 3, 1992)."Nu Skin settles suit with state".Ocala Star-Banner. RetrievedFebruary 21, 2012.
  41. ^Elmore, Charles (January 3, 1992). "Coming clean: State drops pyramid probe as Nu Skin agrees to refunds".Palm Beach Post.
  42. ^"Nu Skin will pay 5 states in pyramid-scheme case".The Philadelphia Inquirer. January 4, 1992.
  43. ^"Connecticut sues Nu Skin".The Boston Globe. January 3, 1992. Archived fromthe original on February 1, 2013. RetrievedFebruary 21, 2012.
  44. ^Waggoner, John (January 3, 1992)."Nu Skin signs up for a makeover".USA Today. Archived fromthe original on January 31, 2013. RetrievedFebruary 21, 2012.
  45. ^Romboy, Dennis (June 3, 1992)."Connecticut and Nu Skin Sign Pact Limiting Company's Sales Practices".Deseret News. Archived fromthe original on April 21, 2014. RetrievedMay 2, 2012.
  46. ^Coster, Helen (April 5, 2010)."The 100 Most Trustworthy Companies".Forbes. Archived fromthe original on July 31, 2012. RetrievedMay 2, 2012.
  47. ^Martin, Jonathan;Kenneth P. Vogel (July 31, 2011)."PAC brings in $12.2 million for Mitt".Politico. RetrievedAugust 4, 2011.
  48. ^Farnam, T. W. (September 12, 2011)."Donation helps Romney get some skin in the presidential game".The New York Times. RetrievedDecember 17, 2011.
  49. ^Cottle, Michelle (January 24, 2015)."The Media's Best Friend".National Journal Magazine. RetrievedFebruary 15, 2015.
  50. ^ab"Exclusive: Nu Skin told not to use researcher's name".Reuters. August 16, 2012.
  51. ^"School of Medicine statement regarding its relationship with Nu Skin Enterprises". August 17, 2012. Archived fromthe original on November 5, 2012. RetrievedOctober 30, 2012.
  52. ^Wahba, Phil; Bases, Daniel (August 16, 2012)."Nu Skin CFO calls China model 'kosher', plans no changes".Reuters. Archived fromthe original on December 23, 2015. RetrievedOctober 30, 2012.
  53. ^China Fines Nu Skin $540,000 for Illegal Sales and Claims,Business Week, March 24, 2014.
  54. ^"Saxena White P.A. Files Securities Fraud Class Action Against Nu Skin Enterprises, Inc".Wall Street Journal. February 5, 2014. RetrievedFebruary 5, 2014.
  55. ^Bort, Ryan (November 7, 2016)."John Oliver Says Multilevel Marketing Companies Like Herbalife Are Pyramid Schemes".Newsweek. RetrievedDecember 11, 2017.
  56. ^"How do participants in the sales network earn money with Nu Skin?". Nu Skin Enterprises. May 6, 2013. RetrievedMay 22, 2013.
  57. ^"Which companies have the best customer service? Amazon, Shein, Costco among top-rated brands". USA Today. Retrieved16 May 2025.

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