Auction Website is not a Tool to Open Your Market (2019.05.10)

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Auction Website is not a Tool
to Open Your Market

May 10, 2019

 

20190510

Hello everyone, it’s time for NU SKIN compliance lesson again. Nowadays, with the well-developed information technology, almost everyone would use internet for interaction with each other, and most of them have their own accounts on social media platforms like Facebook and Instagram. In response to the trend, NU SKIN has also released the policies such as “Social Selling Guidelines” to teach business partners to open markets through social media platforms in the right ways. However, please keep in mind that auction websites are not platforms authorized by the company to do business. Today we will share a case with you.

Sara is a brand affiliate who is engaged in Nu Skin business on a full-time basis. As her business has just started, Sara was actively promoting through social media platforms in order to quickly promote the quality products of Nu Skin and attract like-minded business partners. Meanwhile, Sara created an account on a popular auction website to sell Nu Skin products online. She never realized anything wrong until one day when she received a letter...

 

Sara: Bill, please help to take a look! I received a letter from the company saying that my sales of the products through auction website is against the company’s policies, but I just wanted to have one more channel to promote products and drive my sales volumes.

 

Bill: How could you open the market through the auction website? Nu Skin has policies in place expressly prohibiting the products from being sold through auction websites!

 

Sara: I thought it would not be a violation as long as the selling price of the product is consistent with the retail price set by the company.

 

Bill: This is your misunderstanding. The company will not interfere with your resale prices. The key problem is that you used the wrong platform. Auction website is not a sales channel authorized by the company.

 

Sara: Will the company penalize me for posting Nu Skin products on the auction website like this?

 

Bill: It is imperative to remove all the posts selling Nu Skin products as soon as possible. As far as I know, involvement in such violations may result in disciplinary actions up to termination of brand affiliate account in case of severe circumstances.

 

Sara: Oh, so serious! I just began to achieve some results in my business. It is unwise to take the risk of being terminated like this. I will remove all product posts right now and respond to the Business Conduct Compliance Department.

 

In order to maintain a benign competition, a fair and orderly market environment, Nu Skin has been committed to monitoring and preventing all sales activities through unauthorized sales channels. In addition to continuous education on business ethics to brand affiliates, it will also take strict disciplinary actions against the substantiated violations without any leniency. The fairness of the market needs to be safeguarded by the partners and the company together. Let us make joint efforts!

 

The relevant articles of Nu Skin Policies and Procedures are extracted as follows:

Chapter 3: Advertising

Section 7.1 Use of the Internet in Brand Affiliate Business

Section 7.2 Permitted Internet Activities

Section 7.6 Internet Activities

 

Please scan the following QR code to find Nu Skin Policies and Procedures and Social Selling Guidelines!

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