In the Matter of Nu Skin International Inc. (1997) , FTC Docket No. C-3489

Violation of a previous consent decree is a serious event. Nu Skin settled for $1.5 million, suggesting that the potential fine after a trial would have been higher. A company's legal obligations shou

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The FTC alleged that NU Skin had violated a previous consent decree with the Commission. The company had previously agreed to cease claiming that their nutritional supplements were effective in the absence of reliable and competent scientific evidence. The FTC claimed that Nu Skin had resumed this practice in violation of the earlier agreement. Violations carried a penalty of $10,000 per occurrence.

Full case and case summary also available at: www.mlmlegal.com/legal-cases/InTheMatterofNuSkinInternationalInc-1997.php

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Topics:  Efficacy Claims, FTC, Marketing

Published In: MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:Federal, Federal Circuit | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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