Some people do report a small initial breakout with the Epidermx, but from everything I have read, it usually goes away pretty quickly. Spend some time checking out the posts at greatnewskin, other people's experiences will probably put your mind at ease.
Personally, I never experienced a worsening of my skin with any of the Epiderm products or camellia oil. I suppose it is possible to be having an allergic reaction, but the ingredients in these products are all natural and very gentle.. I for one have some of the most fickle and sensitive skin in the world and it didn't give me an allergic reaction, but that is not to say that it works the same for you. Are you sure maybe this isn't just a breakout that was bound to come out anyway? Maybe using the Epidermx every night as a treatment is not compatible with your skin, try it JUST as a scrub for a couple days and see how that goes.
I wouldn't call it quits just yet!
I don't think you wasted your money. Maybe you just need to back up a bit on the products and see how that goes. Also, try contacting Amy from greatnewskin, or better yet you can call and she will talk to you personally. My mom just did a few days ago and they actually ended up talking for an hour!!! She is so helpful. I am sure she can give you better insight than I can on what to do and what is causing this sudden breakout.
I hope this helps!! Hang in there and keep us posted.