Beauty goods company slammed for illegal sales
Print Edition
THE city’s market watchdog has fined a United States-based beauty products company 3.35 million yuan (US$541,000) for illegal sales and misleading its customers.
Following an investigation, Nu Skin was found to have sold products without the proper authorization and to have made exaggerated claims about the efficacy of its products, the Shanghai Industrial and Commercial Administrative Bureau said.
As well as the financial penalty, the company was ordered to take steps to improve its internal management.
Nu Skin was also fined 1.49 million yuan by the Beijing Industrial and Commercial Administrative Bureau after six of its salespeople were determined to have sold products outside of their permitted geographical areas.
The company yesterday issued an apology to the public for the improper practices of some of its salespeople.
In January, People’s Daily reported that Nu Skin was suspected of operating a pyramid scheme and had organized “brainwashing” gatherings, triggering an order by the State Administration for Industry and Commerce to local government bureaus to look into the company’s operations in China.
The report also highlighted misleading advertising and marketing practices.
After a review, Nu Skin admitted that some of its salespeople had failed to follow its policies and regulations.
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