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Fortune Hi-Tech Complaint Could Intensify Scrutiny Of Multilevel Marketers

This article was originally published in The Tan Sheet

Executive Summary

FTC worked with state authorities in an investigation of multilevel marketer Fortune Hi-Tech that led to a court order shutting down the firm. Meanwhile, nutritional and cosmetic product firm Nu Skin offers a defense against criticism of the multilevel business model after investors target Herbalife.

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In Brief

Vitamin Shoppe buys Super Supplements; investor Ackman wages war on Herbalife; NPA cancels MarketPlace show; Herbalife acquires N.C. facility; Capsugel expands quality control; AHP releases aloe vera monograph standard: more news In Brief.

Nu Skin Unfazed By Allegations Of China Violations, Projects More Growth

Following allegations from short seller Citron Research that it operates a “pyramid compensation scheme” in China, Nu Skin gives investors a peek into its business model. The firm recorded sales growth of 40% in its second quarter, driven by a 152% jump in China, and “the best is yet to come,” Nu Skin says.

Activist Investor May Push P&G To Sell Non-Core Brands, Oust CEO McDonald

Changes may be ahead for Procter & Gamble following William Ackman and Pershing Square Capital Management’s investment in the consumer products giant. Analysts suggest the activist investor may push to replace CEO Bob McDonald and divest non-core brands.

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