BEIJING Jan 16 China's State Administration for
Industry and Commerce (SAIC) on Thursday ordered local
authorities to investigate media reports that allege skincare
products company NU Skin Enterprises Inc distributes
false information and conducts illegal business in China, state
news agency Xinhua said.
Xinhua quoted an SAIC spokesman as saying the administration
would take legal measures against any legal violations if
investigation results showed the media reports were factual.
The People's Daily, the Communist Party mouthpiece, said on
Wednesday that NU Skin had been exaggerating its influence and
creditworthiness in company brochures by passing advertisements
for news reports, and organising "brainwashing" gatherings.
On Thursday, the newspaper said the company was suspected of
conducting illegal multi-level marketing activities.
NU Skin said on Thursday that the article published the
previous day contained "inaccuracies and exaggerations that are
not representative of NU Skin's business in China". It did not
believe, it said, "that the article was the result of any
particular government inquiry".
State media took many foreign firms to task last year over
pricing, poor quality and shoddy customer service. They include
Starbucks, Apple, Samsung Electronics
, the KFC restaurants of Yum Brands Inc and
British drugmaker GlaxoSmithKline PLC