Comply with Company’s Policies & Procedures.
Say “NO” to Overseas Products

Edwin has been building his NU SKIN business for over a year and he has successfully achieved the title of Ruby Executive under his mentor’s leadership and his determination to chase his dreams. In order to achieve his goal of “Go Double” and have rapid business growth as quickly as possible, Edwin decided to start online advertising to promote sales as well as import NU SKIN products from the US and resell them in HK. He borrowed his friends’ US distributorship and also created distributorship in US with false identities to purchase a large quantity of products. Edwin believed that using online advertising and expanding the product scope by including US’s popular products would definitely help him  reach his goal of “Go Double” within a short period of time.

(Quiz Time)

Multiple Choice Questions:
1. Does Edwin’s act of promoting/selling US products in Hong Kong via online platforms violate NU SKIN’s Policies & Procedures?

(A) Yes.

According to Section 3.11 (Retailing of Products) of Chapter 2 (Operating Your Business) of NU SKIN’s Policies & Procedures, Edwin may only resell products in his Resident Country and the products that he resells must also be purchased from the Company in his Resident Country, and he may not resell products in his Resident Country that he acquires from the Company in a Non-Resident Country. Also, Section 7.6 (Internet Selling) of Chapter 3 (Advertising) states that “Products may be sold on the internet only through Company websites and may not be sold through Distributor websites of any kind or any other form of internet use, including internet video and audio, social networking sites, social media and applications, and other sites that have content based on user participation and user generated content, forums, message boards, blogs, wikis and podcasts (e.g., Facebook, YouTube, Twitter, Wikipedia, Flickr)…”

(B) No.

NU SKIN is a multinational company and Edwin is free to decide what overseas products to sell and through what sales channels to sell NU SKIN products.  

2. Is Edwin’s act of importing & reselling overseas NU SKIN products unlawful?

(A) Yes.

Unauthorized importation of NU SKIN products from overseas will be subject to sanctions of the laws and regulations of Hong Kong relating to importation, customs and licensing as well as taxation.

(B) No.

Importation of NU SKIN products from overseas for resale will not violate any laws and regulations of Hong Kong.

3. Does Edwin’s act of using false identities to create overseas distributorship for purchasing overseas products violate NU SKIN’s Policies & Procedures?

(A) No.

It is just a method to purchase overseas products. Thus, it is fine to use false identities to create distributorship.

(B) Yes.

According to Section 6.5 (Manipulation of Sales Compensation Plan) of Chapter 2 (Operating Your Business) of NU SKIN’s Policies & Procedures,
Distributors are not allowed to use false identification numbers, false names, false Distributorships, buy additional Product to maintain a pin level, warehouse products, or use any other form of manipulation that violates the terms and conditions of the Sales Compensation Plan or its spirit and intent.  

True/False Questions:

4. (  ) You can resell the NU SKIN products that were purchased from overseas authorized markets if you decide not to use them.

5. (  ) Using false identities to create overseas distributorship for purchasing overseas products is a convenient and quick way to accelerate business growth.

(Explanation)
The NU SKIN products that are being sold in each market must first complete all the relevant registration procedures as required by each market to ensure compliance with relevant regulations/laws. According to the Distributor Agreement, Distributors have the right to purchase products in a Non-Resident Country and may only purchase products in a Non-Resident Country for personal use or for demonstrating the Products for potential new Distributors. Unauthorized importation of NU SKIN products from overseas may violate the laws and regulations of Hong Kong relating to importation, customs and licensing as well as taxation in addition to NU SKIN’s Policies & Procedures and Distributor Agreement’s terms & conditions. Furthermore, using any methods to manipulate the Sales Compensation Plan like creating overseas distributorship with false identities to purchase overseas products, would violate Section 6.5 (Manipulation of Sales Compensation Plan) of Chapter 2 (Operating Your Business) of NU SKIN’s Policies & Procedures. Advertising/selling via unauthorized sales channels is also one of the prohibited advertising activities according to NU SKIN’s Policies & Procedures.
NU SKIN fellows should strictly follow NU SKIN’s Policies & Procedures, Distributor Agreement’s terms & conditions as well as the importation/custom regulations and other relevant laws or regulations of Hong Kong as it will help you develop your NU SKIN business smoothly. We hope all NU SKIN fellows make efforts in self-regulation and can be the model of integrity in the direct selling industry. Let’s work together to grow NU SKIN business in a fast and healthy way!
*Please refer to NU SKIN’s Policies & Procedures and the terms and conditions of the Resident Country Product Purchase Agreement in the Distributor Agreement, laws and regulations of Hong Kong relating to importation, customs and licensing as well as taxation for relevant provisions.

Answers:
1.(A) 

2.(A) 

3.(B) 

4.(X)

5.(X)