FTC Petition Re: NuSkin (Cont'd)

In the Matter of: NuSkin International, Inc. (now NuSkin Enterprises. Inc.), CJM, Inc. CST Management, Inc., and CK & C, Inc., corporations and Clara McDermott, individually and as an officer and director of CJM, Inc., Craig Tillotson, individually and as an officer and director of CST Management, Inc., and Craig Bryson, individually and as an officer and director of CK & C, Inc.

IT IS ORDERED that respondents NuSkin, CJM, Inc., CST Management, Inc., and CK & C, Inc., corporations, their successors and assigns, and their officers; Clara McDermott, individually and as an officer and director of CJM, Inc.; Craig Tillotson, individually and as an officer and director of CST Management, Inc.; Craig Bryson, individually and as an officer and director of CK & C, Inc., and respondents' agents, representatives and employees, directly or through any partnership, corporation, subsidiary, division, or other device, in connection with inducing or seeking to induce the participation of any person in any distribution, sales, or marketing plan, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

A. Misrepresenting, in any manner, the past, present, or future profits, earnings, income, or sales from such participation; and

B. Representing, in any manner, directly or by implication, by use of hypothetical examples or otherwise, that distributors earn or achieve from such participation any stated amount of profits, earnings, income, or sales in excess of the average profits, earnings, income, or sales of all distributors in any time period respondents may select, unless in conjunction therewith such average profits, earnings, income, or sales are clearly and conspicuously disclosed, and the percent of all distributors who actually achieved such stated profits, earnings, income, or sales in such time period is clearly and conspicuously disclosed.

Finally, the Order prohibits the respondents from:

1. Misrepresenting the past, present, or future profits, earnings, income, or sales of any person in any distribution, sales or marketing plan; and
2. Representing that distributors earn or achieve any stated amount of profits, earnings, income, or sales in excess of the average profits, earnings, income, or sales of all distributors unless in conjunction therewith the average profits, earnings, income, or sales are clearly and conspicuously disclosed, and the percent of all distributors who actually achieved such stated profits, earnings, income, or sales is clearly and conspicuously disclosed.

The proposed Consent Order also prohibits the proposed respondents from, (1) misrepresenting, in any manner, the past, present, or future profits, earnings, income, or sales from participation of any person in any distribution, sales, or marketing plan; and (2) representing, in any manner, directly or by implication, by use of hypothetical examples or otherwise, that distributors earn or achieve from participation in any distribution, sales, or marketing plan any stated amount of profits, earnings, income, or sales in excess of the average profits, earnings, income, or sales of all distributors, unless in conjunction therewith such average profits, earnings, income, or sales are clearly and conspicuously disclosed, and the percent of all distributors who actually achieved such stated profits, earnings, income, or sales in such time period is clearly and conspicuously disclosed.

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Appendix B: NuSkin's Naughty Numbers

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This page updated Sep-15-00