Speech spreads fast on Internet
Be aware of your words and behaviors

After getting to know NU SKIN, Frankie has been committed to developing a successful NU SKIN business. During the past year, he actively participated in the events held by NU SKIN, learnt from mentors modestly and recommended NU SKIN products and business to his friends and relatives every day. Finally he became a Star as he wished. Frankie became more and more confident and, believed that he could soon Create Stars, Duplicate Stars smoothly, until recently...

Frankie's good friend's father felt sick unfortunately and was sent to hospital. Frankie went to visit and sent his condolences. During his visit, and with good intentions, Frankie said to his good friend and the relatives who were present, "Life is priceless. Prevention is better than cure. I suggest that you start taking NU SKIN’s ReishiMax and LifePak to prevent various diseases. My father has been taking them, so he does not have any disease now.” Frankie’s good friend was shocked. Frankie had never expected the serious consequence that his words would bring. His good friend was so angry that he removed Frankie from his friend list on Facebook and shared on Facebook what happened during the visit to the hospital. Frankie knew that “the one promoting direct sales products beside the bed of a patient” was him, though his name was not directly mentioned. “The one promoting direct sales products besides the bed of a patient” was criticized by internet users. Some people said that he was not ethical to make use of a patient to promote products. Some said that supplements are not divine pills. People should not exaggerate their benefits in order to make profits. Some even forwarded the screenshot of the sharing, leading to more negative comments. There are even discussions on the internet about boycotting direct sales, as well as direct sales products.

Although Frankie gave the suggestion with good intentions, his speech was indeed inappropriate and exaggerated the product efficacy, resulting in the public’s criticism. Besides, his speech has also violated NU SKIN’s Policies and Procedures and Hong Kong’s Trade Descriptions Ordinance because NU SKIN’s ReishiMax and LifePak are supplements, but not medicines. “Preventing various diseases” is a medical claim. Frankie should not have claimed that NU SKIN products have such efficacy. (Please refer to sub-sections 2.1 and 2.2 of Section 2 of Chapter 3 of Policies & Procedures and Chapter 362 Trade Descriptions Ordinance of Hong Kong laws for details).

NU SKIN would like to remind our business partners that the internet is a very complex and sensitive environment. Speeches posted on the internet could always be misunderstood and elaborated, and therefore, business partners need to be aware of your words and behaviors when you are developing NU SKIN business. Especially when it comes to some controversial topics, such as birth, ageing, illness and death, social issues, environmental pollution, we would particularly need to keep empathy and business sensitivity to make an appropriate expression. Inappropriate speech and over-claims will not only violate NU SKIN’s Policies and Procedures (please refer to sub-section 1.3 of Section 1 of Chapter 1 of Policies & Procedures), but also ruin the image of yourselves, the Company, products and your whole direct sales team. The power to spread negative publicity on the internet is enormous and is hard to be erased. Please be alert.  We hope that business partners would be aware of your words and behaviors and do not over-claim the product efficacy while operating NU SKIN business. Familiarizing yourselves with the benefits of product, promoting products properly and building up a professional image is the key to develop NU SKIN business successfully. You will then be close to Creating Stars and Duplicating Starts.
 
In order to let all of you learn the benefits of products correctly and avoid product over-claim, please check which of the followings are the correct descriptions of product benefits? Which are wrong descriptions? (Please see the answers at the end of the question.)
 
1. ageLOC^® Galvanic Spa^® Facial Treatment Package can facilitate the transport of key ingredients to the skin and let you experience the luxury and convenience of anti-aging spa benefits at home.
2. ageLOC^® Galvanic Spa^® Facial Treatment Package can help in lymphatic drainage, reducing fat, detoxification, breast enlargement, relieving all kinds of pain. It is multi-functional.
3. ageLOC^® R² is effective for hair regeneration, treating eczema, improving the pregnancy rate, relieving menstrual pain. It is the best supplement.
4. ageLOC^® R² features exclusive ageLOC^® technology, it promotes healthy gene expression of the Youth Gene Clusters(YGCs) related to cellular purification and cellular energy production towards a more balanced and youthful state.
5. With ETHOCYN^®and antioxidant ingredients, ageLOC^® TRU FACE^® ESSENCE ULTRA helps to promote skin firmness and facial contours, and forms the antioxidant network to defend against the external aging damages.
6. ageLOC^® TRU FACE^® ESSENCE ULTRA is the only skincare product in the world that can supplement the collagen and elastin, while it can change U face to V face at the same time.
7. ReishiMax GLP^® is a proprietary blended with red reishi extract (Ganoderma lucidum) incorporating 100% reishi broken-spores. Clinical studies proved that it supports healthy immune system and protects liver function.
8. ReishiMax GLP is effective for preventing various diseases. It’s a good medicine for anti- against cancer.

1.(True) 2.(False)  3.(False)  4.(True)  5.(True)  6.(False)  7.(True)  8.(False)

NU SKIN Policies and Procedures
Chapter 2 Operating Your Business
Section 1 Business Ethics
1.3 General Ethics
When you are engaged in business development activities or sales activities, you shall not perform any of the following:
(i) an act that causes or will likely cause annoyance, strong dislike or interference to the person being contacted;
(ii) an act which damages or will likely damage the brand name, image or reputation of the Company; or
(iii) an act which results in or will likely result in the general public having a negative perception of the Company.
 
Chapter 3 Advertising
Section 2 Product Claims
2.1 General Limitation
You may only make the specific Product related claims and representations published in the Company’s Business Support Materials, and Company literature, and that have been approved by the Company for use in Business Support Materials in the Authorized Country where you are making the claims.

2.2 No Medical Claims
You may not make medical claims, or state or imply that any Product is formulated, designed or approved by the Company or any regulatory authority to treat any disease or medical condition. These representations imply that the Products are drugs rather than cosmetics or nutritionals. You also may not compare Products to drugs, or make drug or medical claims. Any such representations, claims or comparisons by you may result in your personal liability.

Chapter 362-Trade Descriptions Ordinance of Hong Kong laws and regulations
Section 6(2) -an oral statement may amount to the use of a trade description or trade mark or mark.
Section 7(1) -subject to the provisions of this Ordinance, any person who (a) in the course of any trade or business (i) applies a false trade description to any goods; or (ii) supplies or offers to supply any goods to which a false trade description is applied, commits an offense.
Section 7A(1) – a trader who (a)applies a false trade description to a service supplied or offered to be supplied to a consumer; or (b) supplies or offers to supply to a consumer a service to which a false trade description is applied, commits an offence.