Shares of multi-level marketing company NuSkin are getting slammed this morning after an article in “The People’s Daily” in China criticised its marketing practices.
Shares of Nu-Skin were last trading down more than 17%.
A spokesperson for NuSkin said the article in “The People’s Daily” is full of “inaccuracies and exaggerations.”
“The article contains inaccuracies and exaggerations that are not representative of our business in China. The publication did not request any information from Nu Skin nor did it attempt to verify any information that it has since reported as fact.
“We are dedicated to operating in full compliance with applicable regulations as interpreted and enforced by the government of China. Nu Skin has an 11-year history of doing business in China under these regulations, and the government has regularly reviewed our business activities. Nu Skin has received direct selling licenses to operate in various provinces and municipalities in China. The most recent government licensure in July expanded our direct selling footprint to include 19 of the country’s 32 provinces and municipalities.
“We actively educate our sales force to follow all regulations and company policies and procedures. Any member of our sales force not operating in accordance with local law or with our company policies is subject to discipline.”
Here’s the stock chart:
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