nu skin
A crucial Supreme Court ruling, FTC strategy shifts and social media challenges impact direct selling in an eventful year.
January Headlines
FTC Launches ‘Operation Income Illusion’
The Federal Trade Commission (FTC), along with 19 federal, state, and local law enforcement partners announced a nationwide crackdown on consumer scams promising income and financial independence. Although no direct selling companies were targeted by this operation, it marked a beginning to the COVID-19-era scrutiny of work-from-home-scams, pyramid schemes and coaching courses, among other businesses.
DSA Rolls Out New Compliance Certification Program
The Direct Selling Association (DSA) began a comprehensive compliance program to be made available to member and non-member companies. The Direct Selling Compliance Professional Certification Program (DSCP-CP) was created for individuals and does not certify an entire company. The program includes four three-hour online sessions for a total of 12 hours and is designed to be taken over several days. Modules include topics such as “Claims Substantiation and Disclosures”; “Product Claims”; “Monitoring and Removal of Claims from Social Media Platforms”; “The Role of Compliance in Your Organization”; and “Conveying the Right Marketing Message.”
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A direct selling veteran talks about the importance of technology and leadership in building global companies
By: David Bland
Dallin Larsen, a former Ernst & Young National Entrepreneur of the Year and Utah CEO of the Year, founded Vasayo in 2016. Prior to Vasayo, Larsen founded MonaVie in 2005 and grew that company from zero to nearly a billion dollars in annual sales in less than five years. Under Larsen’s direction, Vasayo’s philanthropic partnership with Hearts & Hands for Humanity has generated enough contributions to build more than 130 wells in Tanzania, Africa, delivering clean water to hundreds of thousands of people.
Founded: 2016
Location: Pleasant Grove, Utah
Website: vasayo.com
SSN: Tell us about your history in direct selling.
My first experience with network marketing was with Nu Skin in 1988. I was in my late 20s and living in San Diego, California. I fell in love with the industry and what it could do for me and my family as well as others. About a year later, a gentleman called to tell me about a new company and asked that I meet with the founder. So, I interviewed with Myron Wentz, the founder of USANA. One thing led to another, and the next thing I knew I was heading up sales for that company. We launched USANA in 1991, and I was with them for roughly 10 years. That’s where I cut my teeth and gained a lot of valuable experience.
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Channel watchdog counsels companies, maintains dialogue with regulators
By: David Bland
For the cases that get to the level of a DSSRC referral, usually there’s an issue of systemic patterns of behavior that are going on—particularly with the claims; it is rarely a one-off post, and, with respect to earnings claims, in particular, it’s often the tip of the iceberg that leads the FTC to a much deeper rabbit hole.
— Peter Marinello, Vice President at BBB National Programs and Director of DSSRC
In 2019, the direct selling channel officially became a self-regulated business sector. Two years on, and the channel is reaping the benefits. Founded by the Direct Selling Association (DSA) and administered by BBB National Programs, the Direct Selling Self-Regulatory Council (DSSRC) is an independent, non-profit organization that is continuing its mission of oversight through monitoring, investigation, and enforcement of the regulations and ethics standards that have been set in place for direct sellers by the Federal Trade Commission (FTC) and the DSA.
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Two major nutrition companies lower projections as growth slows
As the third quarter of 2021 drew to a close, several public direct selling companies made announcements to their shareholders. Both Herbalife and USANA disclosed downward revisions to their 2021 outlooks, while Medifast, Mannatech and Nu Skin announced dividends.
Herbalife Lowers Expectations in Advance of Investor Day
In advance of its 2021 virtual investor day presentation, Herbalife announced on Sept. 13 that it is revising its third-quarter and full-year 2021 projections. The global nutrition company detailed lower than expected sales growth from its distributors despite the number of actively selling independent distributors increasing by 10 percent for the months of July and August compared to 2020.
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PEOPLE ON THE MOVE – August
Camelle Kent, Thirty-One
Thirty-One Gifts has named Camelle Kent as CEO. Kent assumes the role from Elizabeth Thibaudeau, who joined Thirty-One as acting CEO last July. Thibaudeau will remain a board member. Kent’s career spans over 25 years, and she has grown global brands including Gillette, Timberland, and Avon. Most recently, she was CEO at WellPet.
Dave Nash, 4Life
Dave Nash has been promoted to senior vice president of global markets at 4Life Research. Previously vice president of Greater China, Nash was hired by 4Life in 2018. He has spent considerable time in Asia on behalf of the company and will now continue his work in Asia while broadening his focus to include global sales and operations.
PEOPLE ON THE MOVE – July
Blake Schroeder, Medical Marijuana
Medical Marijuana Inc., parent company of Kannaway, has appointed Blake Schroeder as CEO and president. Schroeder will replace Dr. Stuart Titus, who is semi-retiring. Schroeder joined the company in 2016 and was formerly CEO of Kannaway. He also has worked for Forevergreen and MonaVie.
Organizers block channel representatives from contributing
By: David Bland
There were a number of factors that led us to think that the timing was right for this type of conference, including indications from the Federal Trade Commission that they are tightening focus on the MLM industry.
—Douglas M. Brooks, Attorney
Anti-MLM influencers appear to be more interested in fostering a cottage industry of their own than they are to an inclusionary dialogue on how best to promote entrepreneurship.
—Direct Selling Association
For decades, direct selling’s opponents have worked to challenge the channel from the relatively confined spaces within their respective legal, academic and media circles.
The occasional high-profile court case would generate publicity for a few news cycles, and newspaper and magazine articles would follow with passing coverage.
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PEOPLE ON THE MOVE – June
Mark Schissel, Herbalife
Herbalife Nutrition Ltd. has appointed Mark Schissel as chief operating officer. Schissel will oversee worldwide operations for the company as well as global business services, finance, IT and infrastructure, and cyber and global security. Most recently, he served as executive vice president of worldwide operations.