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Nu Skin to pay FTC fine

By DAN DELLENBACH

Nu Skin International has agreed to pay a $1.5 million settlement rather than face litigation with the Federal Trade Commission regarding claims on some of Nu Skin's nutritional products.

According to Nu Skin News, 'The settlement centers on the FTC disputing implied claims of energy production, body fat reduction and/or the preservation of lean muscle mass made about chromium picolinate and L-carnitine.'

'The main ingredient challenged by the FTC -- chromium picolinate -- was developed and patented by the United States Department of Agriculture. Currently there are at least six other nutritional companies facing charges by the FTC for claims associated with chromium picolinate,' according to Nu Skin News.

FTC officials could not be contacted to explain exactly what they disputed.

Kara Schneck, a media relations manager for Nu Skin, said this is 'basically a disagreement in science.'

'Though Nu Skin ... remains confident in the effectiveness of ingredients used in its Interior Design Nutritional products, the company will pay $1.5 million to comply with the terms of the settlement,' according to Nu Skin News.

Schneck said discussions with regulatory agencies are common for companies like Nu Skin.

'That's part of doing business,' Schneck said. 'We've moved on in the best interest of our employees and distributors.'

Nu Skin will continue to distribute all the products related to this dispute.

Schneck said the FTC focused on the claims made by some of Nu Skin's promotional materials.

'As a result of the settlement, Nu Skin will tone down some of its claims,' Schneck said.

According to the FTC history webpage, 'The Federal Trade Commission enforces a variety of federal antitrust and consumer protection laws. The Commission seeks to ensure that the nation's markets function competitively, and are vigorous, efficient and free of undue restrictions.'

According to Nu Skin's webpage 'In general, the Commission's efforts are directed toward stopping actions that threaten consumers' opportunities to exercise informed choice.'