Nu Skin Enterprises said on Tuesday it would likely be fined by China’s regulators investigating whether it distributed false information and conducted illegal business in the country.
The producer of personal care products and nutritional supplements also said in its annual report filed with the US Securities and Exchange Commission that it had temporarily suspended promotional meetings and accepting applications from prospective new sales representatives in China.
The Utah-based company said that in addition to fines, it could potentially face sanctions in China, such as a formal suspension of its ability to recruit new salespeople and a temporary suspension of its right to sell products in various markets.
In January, China’s State Administration for Industry and Commerce ordered local authorities to investigate media reports alleging misconduct by Nu Skin.