Nu Skin Case: Some Thoughts On Influencer Marketing And Misleading Claims

• Published date: 09 February 2021
• Subject Matter: Consumer Protection, Media, Telecoms, IT, Entertainment, Advertising, Marketing & Branding, Social Media, Dodd-Frank, Consumer Protection Act
• Law Firm: Global Advertising Lawyers Alliance (GALA)
• Author: Ms Paula Fernandez Pfizenmaier (Bruchou)

Recently, the cosmetics and skin care company Nu Skin made the headlines, due to the AR$ 2.5 million (approx. USD 30,000) fine imposed on it for misleading advertising. Although the sanction resolution has not yet been made public, as reported through the platform argentina.gov.ar, the company Nu Skin Argentina has allegedly breached article 4 of Law 24,240 on Consumer Protection by not providing truthful, clear and detailed information about its products. Indeed, the company would have promised consumers "a full life and a feeling of youth" and promoted its products under stereotypical standards of beauty, which purposely confused aesthetics with health.

In this sense, it should be noted that Regulation No. 4980/2005 issued by ANMAT (Argentinean Food and Drug Administration) establishes the prohibition of advertising messages for over-the-counter medicinal specialties that may cause fear or anguish, suggesting that the health of an individual will be affected in the event of not using the product. Likewise, the Regulation establishes that advertising must not attribute to the product therapeutic, nutritional, cosmetic, diagnostic or any other kind of preventive actions or properties that have not been expressly recognized or authorized by the health authority. Finally, the regulations prohibit suggesting through advertising that a cosmetic product has therapeutic qualities. This regulation is also applicable, in many of its points, to medical devices.

As indicated in argentina.gov.ar, the Secretariat of Domestic Trade of the Nation would have considered that the company's advertising leads to believe that those who do not meet stereotypical beauty patterns may suffer health problems and that lack of use of its products may lead to different conditions. Furthermore, the specific health benefits of using the company's products would not have been specified in the advertisements in question.

It should not be forgotten that the advertising that Nu Skin carries out in the country is mainly by means of influencers through posts or stories on social media. Just going to Instagram shows countless influencers and celebrities using and promoting the so-called "little device" from Nu Skin. Many of the influencer's communications are spontaneous and their content is therefore very varied.

Is not the main purpose of this article to analyze the merits of the decision or its relevance, since - as we have mentioned before- the complete resolution has not yet been...