After an article in the People's Daily, a Communist-run newspaper in China, suggested that Nu Skin ran a pyramid operation in China, the company is fighting back by issuing the following statement.
"The article that appeared in today's People's Daily contains inaccuracies and exaggerations that are not representative of Nu Skin's business in China. The reporters did not attempt to verify any information with Nu Skin. We do not believe that the article was the result of any particular government inquiry.
"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. Our business activities are regularly monitored by the government in this rapidly growing marketplace. As is our practice, we will communicate openly with regulators to address questions arising from this article.
"Nu Skin has government-approved direct selling licenses to operate in a majority of provinces in China. The most recent government licensure in July further expanded our direct selling footprint to include 19 of the country's 32 provinces.
"We actively educate our sales force to follow all regulations as well as company policies and procedures, and any member of our sales force not operating in accordance with local law or with our company policies is subject to discipline."
Analysts have noted that if Chinese regulators step in, it could hurt Nu skin as well as other multilevel marketers with operations in China.
To get a rough translation of the People's Daily article, visit http://news.xinhuanet.com/fortune/2014-01/15/c_118968583.htm and drop the URL in Google Translate.