HBW Insight is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By


Nu Skin Under Investigation In China For Pyramid-Scheme Allegations

This article was originally published in The Rose Sheet

Executive Summary

Chinese officials are investigating allegations that Nu Skin has perpetrated “illegal multi-level marketing activities” in the country. Nu Skin is conducting its own review, having already identified policy infractions among its sales representatives during the firm’s recent period of rapid growth in China, and is putting its recruitment efforts on hold to cooperate with regulatory authorities and improve its training programs.

You may also be interested in...

China Probe Finds Issues With Nu Skin Compliance, Not Business Model

Nu Skin’s direct-selling model in China, the legality of which some investors have questioned, was not cited in fines levied on the company totaling $540,000. Firm says it “is not aware of any other material enforcement investigations currently pending” in the country, which accounted for nearly half of Nu Skin’s fiscal 2013 fourth-quarter sales.

Nu Skin Projects 20%-24% Growth In Q1 Despite China Regulatory Probe

Analysts have faith in Nu Skin’s strategy, and future prospects, as it works with Chinese officials to resolve an investigation into its business practices in China. While the firm’s recent explosive growth is expected to fall off substantially in the first quarter of fiscal 2014 – to a more modest 20% to 24% – Nu Skin is confident that the steps it is taking in China “will make our long-term success more likely.”

Herbalife Works To Rewrite Pyramid-Scheme Narrative, Improve Transparency

The multilevel marketer of weight-management shakes and other nutritionals says its independent distributor network, far from being a pyramid scheme, is in fact essential to helping people lose weight and adopt healthy lifestyles. Herbalife is implementing changes to clarify its business model for investors.

Related Content

Related Companies




Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts