China's State Administration for Industry & Commerce (SAIC) has fined NU Skin Enterprises (NUS) $540,000 for illegal product sales and misleading local consumers, while six sales staff have been penalized a total of $241,000.
NU Skin now plans to consult with the government about renewing its regular business activities in China after having suspended promotional meetings and accepting applications for sales representatives.
For its part, China intends to strengthen the regulation of its direct-sales market, which is a bit of a grey area.
NU Skin shares are +26% premarket. (PR)