Seeking Alpha
  • Adam Gefvert, CFA
    How is NUS any different from the other MLMs in China? I don't get Citron's argument.
    8/9/12
    Reply (10)
    • Ian Bezek: MLMs are illegal in China. Which other MLMs in China are you referring too? And do any of them have sparkling growth rates like NUS?
      8/9/12
    • Ian Bezek: For example: USNA has had issues with this too: http://bit.ly/P7F06I They specifically cannot sell product there through MLM...
      8/9/12
    • Adam Gefvert, CFA: There's Amway, Avon, and Herballife to name a few.
      8/9/12
    • Ian Bezek: HLF operates as a direct seller, not an MLM in China. http://bit.ly/P7F06I
      8/9/12
    • Ian Bezek: Avon got busted for bribing people in China http://on.wsj.com/NlBhPI
      8/9/12
    • Ian Bezek: Amway was forced to switch from MLM to direct marketing as a result of the law: http://bit.ly/MCdHBP
      8/9/12
    • Adam Gefvert, CFA: OK, so you think HLF's selling structure is different from NUS's in China?
      8/9/12
    • Ian Bezek: They all have to be direct sellers. HLF and NUS both claim to be direct sellers. Citron seems to have proven NUS is lying. HLF, I don't know
      8/9/12
    • Adam Gefvert, CFA: Certainly a shady business, but effective in getting the products out I guess.
      8/9/12
    • Ian Bezek: Yep
      8/9/12