Shares of Herbalife Ltd., Nu Skin Enterprises Inc. and USANA Health Sciences Inc. tumbled on Monday over concerns that Chinese regulators will crack down on the companies’ marketing practices.
The rout followed a statement posted on China’s State Administration for Industry & Commerce website announcing a three-month campaign to police pyramid schemes. Though the agency didn’t name the companies, Herbalife and other so-called multilevel-marketing businesses have faced allegations that they use a pyramid sales model. Herbalife settled a case with the Federal Trade Commission last year that reined in its practices in the U.S.
Submitted August 15, 2017 at 10:13AM by BTC_is_waterproof http://ift.tt/2vFGj5S
