Nu Skin / Pharmanex / PhotoMax, etc. – Letters from Victims and Near Victims

CAI

Consumer Awareness Institute

Non-profit corporation

NOTE: Some of the more relevant excerpts from these letters from victims and near victims are highlighted. However, reading the whole letter will give you a better sense of what they experienced.

7-13-5 

Dear Mr Taylor

I live in Luxembourg . . I am very new [in Nu Skin] and have spent lots of money and not earned anything yet. Of course I started to think: this is may be wrong, but then they tell me it takes time etc.

Well . . .  I think you are right in all what you say in your MLM-the truth [web site]. My first reaction was ... like I felt so cheated by the people in Nuskin but it is not them, they just let themselves being brain washed and manipulated with their philosophy, their system, and then those that make money want more.

Well there is so much more to tell . . 

I have to admit Nuskin got me in mainly because I am unemployed and the presentations given were really excellent and I got hypnotized and then, shortly after, I signed and spent lots of money and this makes me mad.

Monica Aleman

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8-4-5   

Hi Jon,

I'm sad that my friend is so into Nu Skin that the moment he finishes work in office, he'll rush down to the local Nu Skin office and stay for the presentations / tea party till past midnite. He has 2 young boys (4 and 2) and he hardly sees them. He also travels to China and Indonesia to do recruitment. We used to meet up and catch up on things but now each time we meet, our conversations only centres on Nu Skin and Pharmanex and BioPhotonic scanner, etc.

Is there any way I can help him? It's like trying to get someone out from a religous cult....

Stefan Pfang

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Stacey Lish from Tennessee sent me a draft of a letter to Nu Skin executives. Here are some excerpts of her letter describing in detail how she was victimized:

Dear Nu Skin,

My name is Stacey Lish. I have been married for fifteen years and we have four children – ages two, six, seven and ten. I home school them. I am also a photographer. I began my home studio in late September of 2006, so I am still in my very fragile first year of business .My husband also is self employed with his own ceramic tile and hardwood flooring business, which provides our family with just enough to manage a growing family of six.

In late January of this year, a Photomax Distributor contacted me.  She had purchased my name in a leads package. She went through the scripted call with me, and I listened to the recorded voice on demand call made by Laura Kaufman. I was interested in Photomax as an addition to my new photography studio. It seemed possible to me that I could use the lab and sign people up as customers. I thought that I could earn a decent commission from all my new customers to help fund my new studio, as well as help with family needs.

According to Laura Kaufman’s voice recording I could get started in this business for next to nothing while using what she called “OPM “ or  “other peoples money” because “nearly every business gets started this way” and that “it only cost most people about $25 in interest to get started” with the $1350 Fast Track package This is the package which is meant for the “real go-getters” who “ want to quickly begin earning the bigger money faster.” According to Kaufman, going with that package would position me to, “begin earning several thousand a month quickly , earn higher commissions and be entered in a monthly bonus pool , which is like a profit sharing plan, with checks ranging anywhere from $1200 to over $20,000 a month -- on top of your regular commissions.”

I was led to believe that I could use the opportunity to help support my family. I was told I only need to bring two things into the business. These were “commitment” and “coachability,” which meant I needed to do everything my upline told me to do.

I was immediately sent out training information and training call schedules and told I should attend a minimum of two training calls a week and at least one prospecting call to be successful. I was also instructed to make a list of goals and set my time commitments. All of this I did. I also was told to provide a list of at least 30 people to contact; I then listened in on three way calls while my “success coach” called them for me. I was given a list of Lead resources and I listened to every recorded training available on the “Millionaire Max” web site. I was completely coachable.

I did not have an Internet connection fast enough to view the necessary websites, so I was told that DSL would be helpful to my business. I was also told I would need a good headset to use while making calls. After all suggestions I ended up getting DSL, a professional headset, a second phone line, a second computer, several leads packages and several types of marketing materials.

In April, a Leadership Conference was scheduled in Dallas. On all the training calls leading up to the conference, new recruits were encouraged to get to the conference (which was out of pocket to distributors) “even if they had to walk.” We were told that of all the things top income earners had in common, the number one thing was that they all attend every conference, no matter what. Our seriousness to our business was also questioned if we could not attend the conference. Needless to say, I packed up my family of six and drove from Tennessee to Dallas. My husband missed three days of work.

While at the conference, we were encouraged to become “a product of the product” and to purchase Nu Skin products whenever possible. They had grand prize drawings you could only be entered into with  $500 order -- all of which was commissioned to the conference sponsoring upline”.

Daily inspirations and motivational messages are emailed out, meant to encourage, but some with the underlying tone that “failure” is your own fault. The current best selling book The Secret is heavily encouraged and talked about. It was implied or stated in emails, that the reason I was not succeeding was that I did not “expect” to succeed. The teaching of the Secret says that the Universe will give you what you expect to receive. Therefore, if I was not getting recruits it was because of my thinking and not my work.

The one thing I was coached on the first few weeks was the “Power of Four” model, which stated that if I signed up four recruits and helped them each sign up four recruits that I would earn over $15,000 within my first three months. This became my goal, which they taught me to envision.

It is now August and almost a full six months later, after hundreds of hours of work making thousands of calls and contacts, I have been able to sign up only one recruit who quit the first month, and I have received approximately $400 in commissions. Thanks to this Nu Skin scam, I now have a debt of  “OPM” (your OPM) totaling  $15,456.97!

That is not at all what the “Power of Four” model showed!

That is NOT what I signed up for. I have a young family that this company has preyed on by using an unethical method. Your company has distributors playing on peoples’ emotions and is causing great harm to families around the world. What you have with Nu Skin are a few people at the top making millions of dollars at the expense of middle and lower income people who are defrauded of their funds through one deception after another. There is a form of emotional abuse of distributors going on that is not only causing emotional pain, and family turmoil, but is causing financial ruin to many. What you have no matter how your attorneys word it is a pyramid scheme!  

Now I have to wonder as well about the supposed successful uplines like Kaufman and Limpert. Are they actually even able to retire? If they are making such great residual income and are now millionaires, then why do they continue to recruit? It is surely not out of the goodness of their hearts, as they would have their downline believe. . . .

I did not plan to fail and I will not fail! I will not let your monster company ruin my family relationships or businesses by adding this unnecessary debt to my family. . . .

Finally, if I am not expeditiously and properly satisfied, I will be contacting [she mentions several news organizations]. This type of scam needs to be exposed more fully to protect the public. . . .

Seriously,

Stacey Lish

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9-1-5   

I have read your info on how to evaluate if a company is a pyramid scheme and it seems to me that most all MLM’s out there are illegal pyramid schemes…so why is there nothing more being done about it? If I was to be doing something illegal I would be arrested in no time at all so why is this still going on.

I’m currently in NuSkin but I have tried other companies as well…I have worked very hard in the last 7 years and yet…I make no money!! So I’m starting to think that this is a scam.

– André St-Jean

Later Andre wrote:

I have read quite a lot of information on your site and you have opened my eyes quite very much. But I feel kind of sad for wasting so much money and time (years) pursuing this venture. . . .

I understand that there are a great many ways to generate income but most of them are very difficult with a great many things to learn and become good at and is very difficult for most people. That is what is appealing to people that get caught up into all the hype, we know that MLM as we know it hurts a lot more people than they help...financially. I mean I'm [not] talking about any products here.

Just imagine if their effort was rewarded by a decent pay check in a fair compensation plan with good and fairly priced products? How many people could be helped with an honest company like this...why not have a healthy alternative out there for honest people who are willing to put out an honest effort without all the negatives of all the network companies presently on the market who are taking money away from honest people and selling them the lie that if they work hard and long enough they will make it rich!

Man-o-man if feels to talk about this...thanks for listening!

André

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Complaints.com received the following consumer message on November 14, 2002:

From: Alice Wisdom

RE: NuSkin Enterprises - upsetting experience with “Proven Formula Income System”

On September 12, 2002, I signed up with a program called “Proven Formula Income System” with NuSkin Enterprises as the mother company. There are three divisions: Big Planet, NuSkin and Pharmanex. All providing products and services for the distributor to sell and make a profit from. Supposedly your upline and even the top big wigs were there to support the new members and to help them succeed in their new home-based business.

The recruiting process does not inform you that the initial sign up cost is not the final cost to you. They push the “Fast Track to Executive” plan, which costs around $1,800. The basic plan, which they do not encourage, is $500. No mention was made that the bills do not end with the sign up. You are led to believe that as long as you make an effort, you will succeed. If you have no ethics, then yes you can succeed, but you very likely will cause someone else a tremendous financial loss.

They tell you that if you decide that the program is not for you within 30 days, you can get 100% of your money back, or if you stick with it for a year and then decide to quit, you will get 90% of your money back. I wanted to quit within the 30-day trial; however, my sponsor/upline talked me into giving it a little more time. Actually, if I had been allowed to quit, they would have lost money.

On November 1, 2002, I finally quit. I had already added $2,500 to my credit card. Upon canceling my membership, I was also told that I would be billed for the toll free number again. The first bill I received was over $100 and that did not include the number of calls that they encourage you to make. Since I was already past the 30-day trial, I did not expect to get 100% of my money back; however, I soon learned not to expect 90% back either. I was informed that my refund would be $782.07.

I have since signed a petition “Complaint of Violation by NuSkin” online in which FTC ordered NuSkin and its distributors to stop misrepresenting past, present and future earnings of distributors. I also filed a complaint with the Federal Trade Commission. I intend to file complaints with the Texas Attorney General, the Better Business Bureau in my area, as well as the one in Provo, Utah where NuSkin Enterprises is located.

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 Hi!  I am a former Diamond Executive of IDN [Div. of Nu Skin – now “Pharmanex”].  Ironically, I stumbled across your site by accident.  It was amazing to read your analysis of the company – everything you say is so true.  One thing I thought I would add to your analysis would be that IDN was touted as a completely separate company from NuSkin.  Therefore when it began it would offer the same "ground breaking" opportunity to people like myself willing to work hard full time to earn the incomes that the "NuSkin" Blue Diamond Executives made.  This was one of the biggest reasons I became active and spent tens of thousands only to find out that they are in FACT the same company.  The "Blue Diamonds" in IDN are actually Blue Diamonds in NuSkin. I read all the books you did when I was making my decision and I can add a couple...Faith Popcorn's  Popcorn Report, The Age Wave by Ken Dychtwald.  Both speak so favorably of Nu Skin that I was convinced that the management was not only exceptional but honest as well; therefore IDN should have been a "no brainer" for me. . .  

 As a Diamond executive who worked incredibly hard to accomplish that goal in two years, I can tell you that I not only suffered incredible financial hardship but also severe emotional upheaval.  I never received a "FED EX" check and after all that work and sacrifice I had to stare the devil in the face and admit that not only had I been stupid but that I had led hundreds and hundreds of people into a business that they would not make money on...nice people who had listened to me give what I considered an intelligent analysis of the IDN business and had trusted me enough to join me. Well, your analysis has helped me quite a bit with the self esteem issue of "stupidity".  Your formal education far exceeds mine and it is such a relief to see someone like yourself step up and admit they were taken in also.  These things are not supposed to happen to intelligent, well-educated and successful people such as you and I but in this instance they certainly did!  . . .

 Tell me, why isn't there some sort of class action lawsuit against the company to recoup some of our losses? Thank you again!

 Mary B. Reed

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 9-19-06   Read this pathetic story of Herculean effort and its bitter fruits from a Nu Skin victim who did not want to be identified:

 RE: My Extraordinary Experience with Nu Skin

Hi Sir,

 This is the past and I don't want anything to do with Nu Skin anymore as I want a peaceful life.  I'm not a US citizen.  This world is not fair anyway.  I don't think I'd get back what I have lost from Nu Skin anyway.  I failed very badly and I blamed myself for waiting for the Malaysian market to open...just wrong timing and how unlucky I am.

  have joined Nu Skin four times using two different names.  I was a foreign student studying in the San Francisco Bay Area from 1990 to 1996.  In 1994, my sister and I were partners doing its so-called “pre-market” in Malaysia (had some “pre-market” activities in South Korea too during the same period of time).  For some reasons, Nu Skin Malaysia could not open in conjunction with Amway Malaysia went public-listed during that year.  We quit eventually after making some big loss from investment in pre-market activities in Malaysia.  So, I just couldn't blame on our upline but my our luck(our upline was Alex Ma, Taiwanese living in the East Bay).

 [A few years ago], I joined Intensity!, an independent marketer of IDN (Interior Design Nutritionals – later Pharmanex) selling nutritional products in Retailing.  “Intensity!” used us, the naive college students or recent college graduate, to distribute their products.  The reason I refer it as “USE” because all the points from the volume were hidden to be used by them in maximizing the pay from the “real” compensation plan.  In another words, all the products I had sold in retailing were placed order under my account solely.

Not until I became Number 1 in sales among 400 others (even though I was a very shy young foreign chinese man, I had to work three times harder than anyone as I spoke broken English) in “Intensity!” for few months in a row, I was then being told to be promoted to “Manager.”  Many so-called “trophies” were won.  In becoming the so-called “Manager,” I could enjoy “a slot” of draw getting the walk-ins under me.  Also, I “must” sign a letter of intent to become an “Executive” under Nu Skin.  It was only then I had realized that IDN was a division of Nu Skin.  I was under NS groups.  I was about three levels down of Antony Antoneli, John Greco and then Nathan Ricks & Scott Tillotson.

Because of my sister’s BIG help, I was able to sell many Nu Skin products to her former existing nu skin product user.  The total volume of what I had produced in IDN and Nu Skin was able to win me 4^th place in the 1996 Convention Retail Contest in the USA. 

During the period, I made many trips from San Francisco to Nu Skin HQ in Provo, Utah.  I was being “brainwashed” by the leaders of NS group (Nathan Ricks and Scott Tillotsons) as to prepare for the new opening in Thailand.   And in every trip to Provo, I’d bring some Thai entrepreneurs living in the bay area to make visits to Nu Skin HQ office, warehouses, and labs.

In 1997, I resided Bangkok, Thailand and also began my pre-market activities in Malaysia (as I was told by NS group that Malaysia was going to open soon, and I really trusted that after what had happened in Thailand).  I even signed up many “Malaysian” distributors under Australian “Dummy” accounts.  In NS group, we used 5-kits systems asking the prospects to invest and L.O.I. immediately. 

But in the same year, I was approached by dozens of so-called “Blue Diamond” (BD) and “Hawaiian Blue Diamond” (HBD) executives from many countries.  As I couldn’t resist the temptations offered by them, I finally chose to join a Taiwanese HBD as his BB leg just because of what supports he could give to me if Nu Skin did open in China.  I was offered a training centre and also a 3-room President Suite in a 4-star hotel for long-term stay in Bangkok.

I was also offered hundreds of new Thai distributor membership.  I was taught to swap my existing members and also “steal” from other groups using different names.  All the changes was successful even the numbers had gone up to hundreds.

However, this group of hundreds collapsed as time passed from bottom to the top.  Meanwhile, I was VERY exhausted going in and out of Thailand and Malaysia servicing my product users in both countries.  I waited and waited for China and Malaysia to open.  Even my HBD upline withdrew from offering me to stay in the hotel.  From 1999 to 2000, I was all alone struggling just to maintain my Executive status.  I refused to quit because of how much money, time, and efforts I have put in.  I continued to borrow money from friends and relatives.  I rented an apartment at about 5-6000 baht and continued to believe in Nu Skin.  I continued to serve my clients in mainly Bangkok, Hatyai.

At that time, the whole Nu Skin market in Thailand was so spoilt and badly affected due to its massive Pre-market activities and also its low cost of the membership at 150 baht.  Thousands of “left-over” products were even sold below the wholesales price.

I was VERY down.  I had done whatever I had to do according to all the so-called “Blue Diamond” and “HBD” executives.  Until I was fed up with what I had learned, I went to every successful BD in searching for the “secrets.”  Not even one could give me the answers that I wanted or had not learned before. 

After so many years, I finally got my answers that I had never learned in Nu Skin World.  Dr. Lang Chou was a very kind and humble man.  He was my 4^th level up.  He and Betty Song(his ex-wife) were the 1^st Chinese who joined Nu Skin.  Between Dr. Lang Chou and I, there were 3 Hawaiian Blue Diamonds under the 12^th leg of Dr. Lang Chou.    Dr. Lang Chou sympathized and was willing to help me to see the whole picture and the negative side of the Nu Skin nature mainly because I was that silly Malaysian guy who never gave up on Malaysian Market to be open and I was said to be the last foreign distributor lived in Thailand.  He drew me many “true” graphs of Nu Skin Business.  He explained the truths behind each illusion of the “duplication” system of 5 kits.  That was why he only encouraged people to focus on the products.  In my case then, he advised me to focus solely on the products and then identify business builders from the product users.  He explained the-second-wave came when my product-oriented group would begin selling products to those orphans left by many who quit.  I followed exactly what he taught me.  Even now I have to thank him many times as he has changed the lifes of my former downlines.  His drawing diagram in network is so different from others.  Until now, I have never seen others drawing the same as his.  (I don't know how to explain it clearly in English...ok, I try...he'll draw a circus..then in the outer circus, there are many lines like "Sun"...and that represents product users...from product users, u identify your business builders..then a longer line linked to another circus like sun...I could see he was trying to emphasize on the importance of product users).  Therefore, I followed exactly what he had taught me.

 From my product users, I identified a lady called Khun Miao (Paugpaka) and her downline called Apicha.  I helped her to do home party almost everyday and worked very hard on Apicha, the man who did very poorly at home parties in the beginning.  Because of his strong beliefs in Dr. Lang Chou’s message, Apicha let go his ego and continued to find product users through many home parties.  After several months, both GSV hit 5,000 to 8,000 naturally.  Even when they had downline executives broken away, they would still maintain the GSV at 5000.  Their downlines duplicated them and generated more than 5000 in GSV naturally.  I did the same to my other strong legs in Bangkok and Hatyai.  At the same time, I also helped them to do pre-market in Singapore.  We signed quite a few of Singaporean using Australian accounts.

However, I still couldn’t make enough income as a strong Lapis or on-and-off Ruby to cover my travelling expenses (even economically on coach and train).  I was VERY exhausted mentally and physically.  I was dead-broke and heavily in dept.  Worse, my dad was hospitalised critically every now and then.  I was still headstrong and asked him to be patient with my strong beliefs in Nu Skin.   I was under so big pressure that I had to think Malaysian market would not open again after being rejected once in 1994.

In 2000, My dad passed away and I finally quit Nu Skin after all these!!!!!!!!!  After several months, Nu Skin Singapore was open and her female downline that I had been working on during the pre-market became an Emerald executive.  Soon, Nu Skin Malaysia was open.  Again, many HBD and BD approached me.  But then I was so scared of joining Nu Skin again.  Only semi-retired HBD Winnie Maa (the front level of Dr. Lang’s 12leg) came to me and gave me no pressure at all.  She finally signed me up as her BB leg with no commitment from me.  She even gave me US$1000 a month just to stay-in the service apartment she had rented for long-term.  Honestly, she gave me no pressure at all.  In repaying her kindness, I had to force myself to sign up a few cousins.  I had totally no energy to do Nu Skin anymore.  I even couldn’t stand seeing the logo of Nu Skin, especially the striking blue Nu Skin bag.  I just hated it.  Even worse, my former downlines Khun Miao (Paungpaka) and Apicha became Blue Diamond and Diamond respectively when they were in Malaysia.  I actually moved out from the luxurious Service Apartment after only one month and didn’t want to get involved with Nu Skin anymore...not even the sights of Nu Skin. It’s like a phobia every time when I heard about Nu Skin or encountered any signs of Nu Skin logos.  Even worse, when I accidentally found out that Khun Miao had finally reached the USD million-pin-level 2-3 years ago, I couldn’t sleep well for months…

It finally took me 5 years just to recover from all these nightmares…blaming myself with regrets…REGRETS!!!!

THE VICTIM

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9-20-6 Atticus describes his recovery from Nu Skin partiipation.

RE: I'm stronger than ever

Hi Jon,

Atticus is just my English name that I only use in Malaysia.  My real name is Soon-Biew Yap.  But please do not investigate it deeper anymore as this is the past and actually make me stronger than ever.  I only share with you because you'd be the only one who understand.  As a quiet and reserved man (with less ego now), I now feel happy that someone knows about my story.

 THAT experience with Nu Skin has actually made me a very strong person, especially in sales. . . After so many years of blaming myself or Nuskin, I now finally wake up...

 Perhaps, this MLM world is "unfair" as the more you misinterpret, the more successful you can be.

 For the past few years [after leaving Nu Skin], I had been in many industries.  I even had insomnia problems or STRONG phobia when I came across the striking blue Nu Skin bag. I had cried with no tears for hundreds times!!!  ONLY until last year, I've fully recovered.  Today, I don't care 100% if my former downlines would earn the 10 million-pin someday...totally no regrets anymore.

 Even if I don't get what I want, I'd still live through the day.  It's either "happy" or "unhappy" options to live through the day anyway.  I must as well choose to live through the day happily.  It is my mind that controls how I feel and see in life. 

 All the while, my sister, who is now living in San Francisco permenantly as she was married there, has been helping me to forget my past with Nu Skin and my deepest regrets.  It took me 5 long years to let them go.  No worries as I'm now stronger than ever!  Even now I don't go after my dreams in the past I had (before getting into selling IDN and Nu Skin). 

(that's what most chinese do...really..never complain or bother others because we always appreciate how lucky we are to live in other people's land...even here, I'm still a minority living in Malaysia.  The only way to show we are worth living in their land is to work three times harder especially for our next generation to EARN (not gain) a better living and them to be treated better). 

I had this American Dream to live in the "beautiful country" (USA in Chinese, "Mei Guo" actually means "beautiful country"...the only country name in Chinese has meaning...others are just translated through their pronouciation) just like my sister now.  But I don't chase after this dream/illusion anymore.  If not this life, next life!

Today, for 1 year already, I've been working for a local trading company sourcing for promotional products for large corporate companies. Mainly imported from China.  I brought in most (80%)of the sales from big Clients in Malaysia such as Citibank, Samsung, Standard Chartered, and HSBC.  At least now I have a basic salary and small commission. . . Of course, we can't compare our pay to the more developed countries with higher cost and standard of living.  I'm happy to survive in my motherland.  No more American dreams to chase after now.  I may not be rich financially now or perhaps this entire life or even next life.  But I have wisdom that always stay with me and experience to guide me to the real happiness in my life I can feel now.

The Best is yet to come!

Atticus Yap

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5-21-7   From Bob Meyer

RE: Your Review on Nu Skin & Company

Jon,

             I would like to applaud you on your review of Nu Skin Enterprise, Big Planet and PhotoMax. I would also like to share with you and your readers my first and last excursion into the Multi-Level-Marketing ( MLM )/Networking Marketing Schemes.

I am a 54 year old Information Technology/Computer Specialist (with16 yrs experience.) who was permanently laid off from my job at a Fortune 500 Company. They say one thing, I say Age discrimination. I have been unable to find gainful employment in my field (Age discrimination), so I started my own Computer Repair Service. Things are slow and through no fault of my own while surfing the Web I unwittingly answered a survey on a Work from Home Ad. I was contacted by a Distributor for PhotoMax. It started to sound like a good solution for additional income, yet the whole time I had this uneasy feeling about it. It definitely sounded like a Pyramid scheme but when I questioned the Distributor she had a million ways to say it wasn’t. Being the OCD that I am I searched out all the info I could on Nu Skin Enterprise, Big Planet and PhotoMax. I checked the New York Stock exchange, they’re listed, they’re also listed with an A1 credit rating with Brad & Dunn, I also checked with the Better Business Bureau of Utah (what a joke), Department of Justice and the FTC among others. What finally sold me on not getting involved with Nu Skin & company was found in a letter on the Federal Trade Commission site titled Nu Skin’s “2004 Distributor Compensation Summary” ( http://www.ftc.gov/os/comments/businessopprule/rebuttal/522418-13241.pdf ). After reviewing both commission charts (the original and the rebuttal) it shows without a doubt my or anybodies chances of making a living from Nu Skin Enterprise, Big Planet and PhotoMax are next to zero, and my or anybodies chances of losing a lot of money is prohibitively high.

             I would not have known this had I not searched it out myself. The Distributor I talked with, to my knowledge, did not know of this letter, If they did they were not going to tell me as I asked for information on when I could realize a $2000.00 per month profit, what were the different Distributor levels and a break down of commission by each level. I was told that distributors were not to discuss what they or others were making outside of those highlighted on Nu Skin Enterprise and Big Planet’s web sites.

             I truly believe there should be a law to protect those who fail to investigate, (be it naïve or “Pie in the Sky” dreams), as the loss of personnel assets to the degree of what could be lost to some if not many, and this may sound harsh, is tantamount to murder. I personally know of at least two people who committed suicide due to monetary loss by their own doing and there are many more people in financial crunches that could fall for these Multi-Level-Marketing ( MLM )/Networking Marketing Schemes.

             So please take heed. No matter how great the offer sounds, dig deep and through for information and then spend several days before deciding.

 Keep Up the Good Work

  Signed:   Almost Screwed Up

 You have my permission to Your Review on Nu Skin & Company reprint this letter, in part or in its entirety.

  __________________________________________

 10-17-5 

RE: NuSkin/Pharmanex Strikes Again in Kuala Lumpur Malaysia

 Dear Dr Taylor,

 I read your article "Reports on Violation" with great interest. Just a month ago, a company under the disguise of  "Griffin Asia" with office based in Kuala Lumpur called me out-in-the-blue-moon, claiming that I have been selected to be part of a team (sponsored by an American company), with a mission set-up a new business in Malaysia. I was selected "based on recommendation by others, that I am an entrepreneurial and determined sale person in my current industry".  Their 5-minute "no more questions" sale pitch was just so convincing that I decided to drop by their office, which is located at a prime area (in front of the KL Twin Towers).

 They started off talking about this new technology "Biophotonic Scanner" that can detect the antioxidant levels in a human's body, hence giving early indication of one's health level. I was suitably impressed, thinking that they wanted me to part of their start-up venture.  After they heard that I'm interested, they starting saying in order to participate I need to purchase their "LifePak" which is manufactured by Pharmanex. The name sounds sophisticated enough, but I asked myself: why must I buy some nutritional supplement?? I thought I'm here to promote this "Biophotonic Scanner" the medical institution and family homes?...

 What follow next was a complex process of getting me to sign-on to their network building program... and that i need to subscribe to a monthly purchase programme of their Life-Pak and if possible a range of their other products.  The products like TeaGreen, etc have similar cousins in the market but at lower prices... and finally when they handed me my first purchase, it was in a "NuSkin" paper bag! In the end, I concluded that it's a MLM scheme... So I did my own research on the Internet and found your site.

 Have to say this: I'm grateful that there's someone out there like you who is doing the public a great service!!! Thanks for your tremendous effort in trying to warn the public.  Unfortunately I suspect your voice hasn't reach my fellow citizens yet.  I'm quite disgusted at NuSkin/Pharmax's ploy to cheat the poor souls in Malaysia.

 What are the actions I/we can do to obstruct (if stopping is not possible) NuSkin's expansion scheme in Malaysia?

 Best regards,

"Gary"

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 10-27-5   Complaints.com received the following consumer message on November 14, 2002:

From: Alice Wisdom

RE: NuSkin Enterprises - upsetting experience with “Proven Formula Income System”

On September 12, 2002, I signed up with a program called “Proven Formula Income System” with NuSkin Enterprises as the mother company. There are three divisions: Big Planet, NuSkin and Pharmanex. All providing products and services for the distributor to sell and make a profit from. Supposedly your upline and even the top big wigs were there to support the new members and to help them succeed in their new home-based business.

The recruiting process does not inform you that the initial sign up cost is not the final cost to you. They push the “Fast Track to Executive” plan, which costs around $1,800. The basic plan, which they do not encourage, is $500. No mention was made that the bills do not end with the sign up. You are led to believe that as long as you make an effort, you will succeed. If you have no ethics, then yes you can succeed, but you very likely will cause someone else a tremendous financial loss.

They tell you that if you decide that the program is not for you within 30 days, you can get 100% of your money back, or if you stick with it for a year and then decide to quit, you will get 90% of your money back. I wanted to quit within the 30-day trial; however, my sponsor/upline talked me into giving it a little more time. Actually, if I had been allowed to quit, they would have lost money.

On November 1, 2002, I finally quit. I had already added $2,500 to my credit card. Upon canceling my membership, I was also told that I would be billed for the toll free number again. The first bill I received was over $100 and that did not include the number of calls that they encourage you to make. Since I was already past the 30-day trial, I did not expect to get 100% of my money back; however, I soon learned not to expect 90% back either. I was informed that my refund would be $782.07.

I have since signed a petition “Complaint of Violation by NuSkin” online in which FTC ordered NuSkin and its distributors to stop misrepresenting past, present and future earnings of distributors. I also filed a complaint with the Federal Trade Commission. I intend to file complaints with the Texas Attorney General, the Better Business Bureau in my area, as well as the one in Provo, Utah where NuSkin Enterprises is located.

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 2-14-5

Jon-

Give this some serious thought; the company [Nu Skin] states in the annual report that they pay out 42-43% commission! These figures do not add up? If you are a Blue diamond you are averaging around 30% of the total downline sales so how do they get 42-43%???

 I asked once a Nu Skin executive about NON EARNED PV and he started to shake like the king of Rock n Roll and became very distressed.

 Sorry but the 42-43% commission pay out of total revenues does not add up, but it looks good in the books and for the newcomer to the business.

Take care,

Halldor  

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Read other reports linked from Nu Skin's Naughty Numbers - including the "REPORT OF VIOLATIONS" of the FTC Order for Nu Skin to cease its misrepresentations.    

To contact site sponsor Jon Taylor directly, email to - jonmtaylor@juno.com

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AN OPEN LETTER TO NUSKIN DISTRIBUTORS WORLDWIDE 

– from Nu Skin International Victims Committee
Web site - http://www.nuskin921.com.tw/letter7.htm

Is your Nu Skin business protected?
Employees are protected by Labour Laws.
Are there any laws that protect your Nu Skin business?

Dear fellow Nu Skin distributors,

We once shared the same dreams – to achieve success in the Nu Skin business, to enjoy a life of freedom…The road to success in the Nu Skin business is not an easy one. However, to realise our dreams, I believe you are doing what I did – that is, to promote the Nu Skin business whenever and wherever you can as if it's a ‘religion’.

      Let me take this opportunity here to express my deepest regret for the difficulties you face as a result of the damaging publicity about the court case between the Blue Diamonds Team and Nu Skin, and alleged tax evasion by Nu Skin. If Nu Skin were reasonable and sincere about the resolution, the Blue Diamond members would not have fought so ferociously. After all, we are a group of distributors who once dedicated our lives to the Nu Skin business. In return, what we got was Nu Skin's unfair, unhuman, brutal and bullying treatment.

More important than monetary losses, they caused a severe blow to our self esteem. Some Blue Diamond members who have been cut off bonuses that support their livelihood are thrown into financial hardship, some contemplated suicide, their properties and cars repossessed by the banks, families fall apart. They have nothing left to their names despite having dedicated years to Nu Skin.

Tens of Blue Diamond distributors who once devoted their lives to Nu Skin had been struck off the list for some bogus offence. Their bonuses stopped.

There is no protection to the Nu Skin business we worked a big part of our lives to build. How about yours? How can you be sure you won't be the next bullying target?

Of all the American network marketing companies that adopt the integrated global compensation system such as Amway, …, none of the distributor agreement is with the US head office. All of them are between the joining party and the Taiwan local distribution company. The agreement states that it's bound by the local Taipei jurisdiction. Therefore, the local Taiwan distribution company should bear the legal responsibilities for any disagreements in rights with its direct sales distributor. Nu Skin is the only company that has two distributor agreements. The main agreement is with the American head office bound by laws in Utah. Nu Skin recruits distributors in Taiwan but claims that the distribution business is in the U. S. Disputes between Nu Skin and its distributors have to be dealt with in Utah. Nu Skin Taiwan has no legal responsibility to deal with disputes. These are all referred to Nu Skin in the U. S.

My fellow distributors – please take note – if our distributor rights are violated by Nu Skin, we cannot sue Nu Skin U. S. in Taiwan for compensation, because Nu Skin U. S. does not have a trading address, business registration or asset in Taiwan. Nu Skin Taiwan is merely the Nu Skin U. S's product agent and is not directly related to Nu Skin U. S. Can you imagine us taking on Nu Skin U S in the courts of Utah? The Nu Skin business that we give our lives to build is not protected. Does yours have any legal protection?

Network marketers always have a united front. Network marketing companies and network marketers should also be united. But Nu Skin often has an opposing stand to its distributors. Recently, Nu Skin brought out an even harsher policy demanding Blue Diamond members sign an agreement – that if any downline members break any rules, then six generations of uplines will be penalised. In serious cases, their agreements can be terminated. Why should the uplines be penalised for the downlines’ offences? My fellow distributors, where is the protection for the Nu Skin business you devoted your time and lives to develop?

     The monetary loss and psychological damage to me is small when compared to the damage Nu Skin does to the smaller individual distributors around the world bullying them with its financial prowess. I haven't exposed the truth to avenge Nu Skin's treatment. My only intention is to warn all Nu Skin distributors and the general public. That you should open your eyes and see the truth so that you won't follow our footsteps – devote years of hardwork to build a business that has no protection, only to suffer financial losses and damage to yourself physically, psychologically and spiritually.

Nu Skin's Four Way trap?

One
There're two agreements between Nu Skin and the joining parties. The Independent Distributors Agreement with Nu Skin U. S. with bonus schemes. The Purchase Agreement with Nu Skin Taiwan only for product purchase but without the bonus schemes. Nu Skin Taiwan which has a total registered capital of Taiwan Dollars 8 millions, is only the Taiwan product distribution agent for Nu Skin U. S. The two companies are completely separate legal entities. However, Nu Skin promotes Nu Skin Taiwan as a subsidiary of Nu Skin U. S. to its distributors.

Two
The International promotions part of the Independent Distributors Agreement is governed by Utah laws. To avoid legal responsibilities, Nu Skin Taiwan requires senior ranking distributors who have disputes with Nu Skin (over issues such as termination of distributor rights and bonuses) to take legal action in Utah. Nu Skin can make up any policy violation cases to terminate the distributors bonuses unilaterally without consultation with the distributors themselves. What legal protections are there for the rights of the high ranking distributors?

Three
The compensation plan is signed with Nu Skin U. S. Nu Skin Taiwan testifies in Taiwanese court that” Nu Skin Taiwan is only an agent for Nu Skin U. S, distributing bonuses on their behalf. However, Nu Skin Taiwan does report these payments on behalf of Nu Skin U S as commissions under their own business expenses, which according to the tax laws of Taiwan, is tax avasion and therefore illegal.

Four
After terminating the bonus payments of high ranking distributors using bogus reasons, Nu Skin further attacks its victims personal image. Not only do the victims suffer significant financial losses, they're also subjected to psychological torture.

Those who set up traps will eventually fall into their own traps. What goes around comes around. Those who appear to be winning cannot escape the Laws of Nature forever. I appeal to all of you fellow Nu Skin distributors, who have suffered as a result of Nu Skin's unfair agreements, to join our International Nu Skin Victims Committee. I will assist you based on my knowledge about the legal prosecution procedure against Nu Skin's unfair and unreasonable contractual arrangements to press charges through the Tax Office and other relevant departments in your country.

Let us unite together to fight for the distributors rights for ourselves and our downlines. More importantly, for a more just society.

Best wishes to you all, physically, mentally and spiritually.

Meiling Chen
Taiwan Hawaiian Blue Diamond Million Dollar Club distributor

nuskin921@yahoo.com.tw 
(Nu Skin International Victims Committee)

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See also the complaint by Catherine from New Mexico on Ripoff Report (www.ripoffreport.com/reports) about unexpected and/or unauthorized use of her credit card to order products in her name.

Read other reports linked from Nu Skin's Naughty Numbers - including the "REPORT OF VIOLATIONS" of the FTC Order for Nu Skin to cease its misrepresentations.    

 _______________________________  

SEARCH CHALLENGE: 
There are many blogs and sites giving positive and negative information about NuSkin. Just do a Google search - enter in "Is NuSkin a scam" or "Is NuSkin a pyramid Scheme?" and see what you get. You would be wise to do a lot of reading of the experiences of others - negative as well as positive - before joining their program - or any MLM. And be sure to read the reports linked from our home page.

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GENERAL NOTE RE MLM DECEPTIONS:  
These types of deceptions allegedly promulgated by NuSkin promoters are not unique to Nu Skin.  A complex set of deceptions is routinely used by MLMs of almost every stripe – with the possible exception of some party plans. This is not necessarily because MLM promoters set out to deliberately deceive those they target for recruitment, but because MLM is inherently flawed and must utilize misrepresentation and deceit to succeed and survive. Please do yourself a favor and read “30 Typical Deceptions” (used in MLM recruitment).

To contact site sponsor Jon Taylor directly, email to - jonmtaylor@juno.com

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