The Ministry of Commerce said on Wednesday that it has been checking information contained in some media reports that Nu Skin Enterprises — a US-based company that sells cosmetics and health products in China — is involved in pyramid-style selling.
Spokesman Shen Danyang said the ministry has noticed the reports and will crack down on any enterprises that have been involved in pyramid schemes. It will protect the legal interests of enterprises doing direct selling, Shen said.
According to a statement from Nu Skin, the article that appeared in People's Daily on Wednesday contains inaccuracies and exaggerations that are not representative of Nu Skin's business in China.
Nu Skin said it has government-approved direct selling licenses to operate in most provinces in China.
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