Nu Skin halts recruiting and reviews operations
Print Edition
Nu Skin Enterprises, a US direct selling personal care company, will suspend hiring of new sales people and direct sellers in China, and the firm said it will launch an internal review of its Chinese operations following a government order to probe its business.
The State Administration for Industry and Commerce said last week that it will order local government bureaus to look into the US company’s business operations in China.
Nu Skin said that after an initial review it found some of its sales people failed to adequately follow and enforce its policies and regulations.
Nu Skin reiterated that it prohibits attributing inaccurate endorsement to public figures or media reports and exaggerating product claims.
“We apologize for these unauthorized activities and will reinforce training and education for sales persons on the laws and regulations,” Nu Skin said in a statement yesterday.
The People’s Daily last week said Nu Skin is suspected of operating a “pyramid scheme” and has been alleged to organize “brainwashing” gatherings.
The administration said it will deal with the investigation according to the law and regulations if the situations are proven to be true.
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