Boston, MA 03/24/2014 (wallstreetpr) – Nu Skin Enterprises, Inc. (NYSE:NUS) has been found guilty of engaging in unlawful product sales while also providing misleading information to consumers, by a watch dog in China.  As result, the company has been fined $540,000 as the watchdog tries to strengthen regulations in the country’s sales market.

Nu Skin Enterprises was being accused of selling its items outside the permitted range and also overstating its potential results from the sale of its products. This is according to a statement by China’s State Administration for Industry &Commerce (SAIC). Some of the company’s employees are also being accused of engaging in unsanctioned sales that mislead some consumers.

The recent past has seen many direct sales firms come under fire in China as a result of being accused of organizing “Brainwashing” gatherings aimed at increasing their sales through unconventional and unaccepted ways.

Nu Skin Enterprises, Inc. (NYSE:NUS) stock stabilized in the market surging by a high of 20% as a result of the Chinese authorities saying no further action would be taken on the company, after imposing the fines.

Fines also imposed on the Company’s Staff

The latest probe has also seen some of Nu Skin Enterprises, Inc. (NYSE:NUS)’ staff face individual fines totaling $241,000 with the company promising to take immediate action to correct the issues in the SAIC reviews.

The company was also fined a further $16,000 on products that SAIC considered to lack enough supporting documents for use in the general market. Nu Skin Enterprises has also been asked to carry out enhanced supervision of its sales representatives to prevent any future repetition of the same matter.

Nu Skin Enterprises Planning to Restart its Operations

Nu Skin Enterprises, Inc. (NYSE:NUS) intends to seek direction from the Chinese government on its plans to restart its operation, having suspended them to comply with the regulatory reviews. Nu Skin Enterprises had previously suspended its promotional operation in the country amidst the heightened litigation case against it.

Chinese laws only allow direct sales under limited conditions, there are also laws targeting people and companies which don’t sale many products but at the same recruit new members.