EX-99.1 2 ex99-1.htm RELEASE BY NU SKIN CHINA DATED JANUARY 21, 2014















Dear consumers and everyone who cares about Nu Skin China,

Nu Skin is dedicated to maintaining a healthy and stable long-term development in China, and has always actively cooperated with the government. We are committed to operating our business in compliance with the laws and protecting the rights of consumers.  We take seriously the recent media reports about Nu Skin China. We appreciate the media giving us constructive criticism and guidance, and have immediately made a profound reflection and self-examination.

As part of our initial review, we were disappointed to learn that during our recent rapid growth, there were instances where some of our sales people failed to adequately follow and enforce our policies and regulations. We sincerely apologize for these unfortunate and unauthorized activities. We are undertaking an internal review of the practices of our employees and sales force, and fully intend to take corrective actions.

We will also provide additional training to reinforce our existing policies which, among other things, prohibit:

inaccurately attributing endorsements to public figures or media reports;

exaggerated product claims; and

improper descriptions of Nu Skin's distinct business model in China that confuse it with Nu Skin's business model in other markets.

We express our sincere apologies to the public for any impact that this has caused, and we hope that the public and the media will give us an opportunity to improve ourselves in order to reinforce our policies and procedures, enhance a sound supervision system, and enhance our commitment to excellent customer service.

Effective immediately, we have voluntarily decided to take the following measures in China in order to cooperate with the relevant authorities, demonstrate our commitment to our policies, and enhance the long term stability of our operations:

reinforce training and education for sales persons on relevant laws and regulations;

to focus additional resources on training and education, we will temporarily suspend all business promotional meetings, and at the same time temporarily suspend accepting applications for any new sales people and direct sellers; and

to strengthen our commitment to consumers, we will extend our current direct selling product refund policy to cover both our direct selling and non-direct selling products sold through our company's retail channel.

We will continue to undertake our responsibilities to the public, actively communicate with the relevant government authorities, and report to them on the implementation of the above-mentioned measures.  At the same time, in order to cooperate with the verification by the relevant government departments, if any individual or any behavior has been found to be in violation of regulations, the Company will take actions in accordance with the Company's policies.

After reflection and self-examination, we recognize the importance of maintaining the trust and confidence of relevant authorities and the public.  Nu Skin China reaffirms its commitment to conduct business in China in compliance with applicable laws and regulations.

We look forward to our continued success in China under the supervision and inspection by the relevant authorities and open dialogue with the public in order to ensure healthy and sustainable growth and to warrant the public's trust of Nu Skin.