Appropriate product claims are essential to steady business development (2020.05.08)

Appropriate product claims are essential to steady business development

May 8, 2020

 

Social media is one of the best platforms for Brand Affiliates to open up the market. However, the same knife cuts bread and fingers. You may be faced with unnecessary risks if the wording of any content you released via social media is in violation of Policies and Procedures or local laws. Let’s study the following case.

Billy: John!I saw on Facebook newsfeed that you uploaded a lot of content sharing Nu Skin nutritional supplements.

John: Yes, the Novel Coronavirus is now prevailing, I would like to take this opportunity to recommend Nu Skin high quality products to everyone, hoping to help them fight against the disease. Hence, I uploaded several articles page about the Novel Coronavirus, how Nu Skin products can improve immunity against this virus on my Facebook.

Billy: Indeed, Nu Skin products can provide a variety of nutritional ingredients, but in my opinion some of the products claims you shared may incur crisis! For instance, you posted several sharing about ReishiMax GLP, claiming that it can improve the immunity and help everyone fight against the Novel Coronavirus and minimize the chance of being infected. Your another article stated that ReishiMax GLP has the effect of preventing cancer, blocking the formation of carcinogens, preventing cardiovascular diseases and so on... Don’t you think this content contains medical claims and misleading information?

John: I think it seems fine! Reishi mushroom has some health benefits originally. Since ReishiMax GLP contains reishi mushroom as one of its ingredients, I think it is fine to claim that it can prevent or treat certain symptoms.

Billy: Nu Skin products are nutritional supplements only and we must not claim that a product will diagnose, treat, cure, or prevent any disease or health condition. All claims must be complete, truthful, and not misleading and must be consistent with the applicable Nu Skin Product Information Page, marketing and training guidelines that govern the product. If the Company finds out content like the above, you will be imposed with disciplinary actions. Besides, you may violate the Trade Descriptions Ordinance and bring negative impacts to yourself and the Company.

John: Wow! It sounds so serious.

Billy: Yes, promoting products with medical claims has a price to pay.

John: Then I have to review my Facebook posts carefully and correct all inappropriate product claims. Thank you.

Sharing product efficacy and product testimonies on social media can promote the excellence of Nu Skin products, but the published content must comply with Policies and Procedures, other Nu Skin approved marketing materials and guidelines and relevant laws and regulations. Only promoting products complying to policies and abiding to law can we bring Nu Skin products and our business opportunities to great height of development and can everyone develop their business more steadily.

 

The relevant sections of Nu Skin Policies and Procedures and relevant laws and regulations are extracted as follows:

Policies and Procedures

Chapter 3 Advertising

2 Product Claims

2.1 General Limitation

2.2 No Medical Claims

 

Relevant Laws & Regulations

Chapter 362 of ‘Trade Descriptions Ordinance’

To prohibit false trade descriptions, false, misleading or incomplete information, false marks and misstatements in respect of goods provided in the course of trade or suppliers of such goods; to confer power to require information or instruction relating to goods to be marked on or to accompany the goods or to be included in advertisements; to restate the law relating to forgery of trade marks; to prohibit certain unfair trade practices; to prohibit false trade descriptions in respect of services supplied by traders; to confer power to require any services to be accompanied by information or instruction relating to the services or an advertisement of any services to contain or refer to information relating to the services; and for purposes connected therewith.