Amidst charges by Chinese government that its agents are running a pyramid scheme, NuSkin today announced that it is suspending all recruitment meetings in China (until further notice).
NuSkin is an American MLM but operates as direct sales in China... officially. However, many local newspapers have reported, since June 2013, that many NuSkin sales teams actually operate as Multi-level Marketing, which is ILLEGAL in China, complete with pyramid organization. Many were alleged to also make fradulent health claims, and employ cult brainwashing tactics on participants.
NuSkin announced only hours ago, on 21-JAN-2014 that it will suspend all recruitment meetings in China pending further review of training, and blames a few overzealous reps of using unethical tactics to drive sales. It maintains that the reports in Chinese newspapers are exaggerated and are not typical of its presence in China.
Critics noted that it does not preclude person-to-person recruitment.
http://www.businessweek.com/news/2014-01-21/nu-skin-to-review-china-practices-after-pyramid-scheme-claims
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NuSkin is an American MLM but operates as direct sales in China... officially. However, many local newspapers have reported, since June 2013, that many NuSkin sales teams actually operate as Multi-level Marketing, which is ILLEGAL in China, complete with pyramid organization. Many were alleged to also make fradulent health claims, and employ cult brainwashing tactics on participants.
NuSkin announced only hours ago, on 21-JAN-2014 that it will suspend all recruitment meetings in China pending further review of training, and blames a few overzealous reps of using unethical tactics to drive sales. It maintains that the reports in Chinese newspapers are exaggerated and are not typical of its presence in China.
Critics noted that it does not preclude person-to-person recruitment.
http://www.businessweek.com/news/2014-01-21/nu-skin-to-review-china-practices-after-pyramid-scheme-claims
