Nu Skin, a company that develops and sells anti-aging products, such as skin-care treatments and dietary supplements, is under fire for its marketing practices. A Chinese Communist Party paper reported that the company's multilevel marketing strategy is "akin to brainwashing" and likened its bonus practices to that of a pyramid scheme.
In response, Nu Skin defends its practices and accuses reporters of providing inaccurate information:
Since the report, Nu Skin's stock dropped 33%.
- What is a pyramid scheme? How does it differ from multilevel marketing?
- Analyze Nu Skin's statement. What works well, and what could improve the company's image?