Arata v. Nu Skin Intern., Inc.

5 F.3d 534 RICO Bus.Disp.Guide 8377 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. Patricia ARATA, on behalf of herself and all others similarly situated, Plaintiff-Appellee, Charles C. BROWN, Plaintiff-Appellant, v. NU SKIN INTERNATIONAL, INC., a Utah corporation; Clara McDermott, Defendants-Appellees. No. 92-15380. United States Court of Appeals, Ninth Circuit. Submitted July 14, 1993. * Decided Aug. 24, 1993. Before WALLACE, Chief Judge, and D.W. NELSON and O'SCANNLAIN, Circuit Judges. 1 MEMORANDUM ** 2 Nu Skin is a self-styled "multi-level marketing program," in which distributors, lured by the promise of big money earned through little effort, purchase cosmetic and hygiene products in an effort to ascend a ladder of marketing positions. It is, in other words, a pyramid scheme. Distributors' earnings depend on product sales and commissions for recruiting new participants. To remain in the distribution ladder, and thus earn commissions from "downline" distributors,…