China’s State Administration for Industry and Commerce (SAIC) has fined U.S. direct sale skincare and dietary supplement company Nu Skin Enterprises $540,000 for allegedly conducting illegal sales and making unsubstantiated product claims. The action follows a months-long investigation into the firm’s business practices apparently triggered by a report in the state-run People’s Daily newspaper, claiming that Nu Skin operated a “suspected illegal pyramid scheme” and “brainwashed” staff. According to a company news release, Nu Skin is “taking steps” to correct the issues raised in the SAIC reviews and “working diligently” to enhance sales representative training and supervision. The company also added that it would “seek direction from the government” before restarting normal business activities in China. Information about a securities-fraud claim recently filed against Nu Skin Enterprises, appear elsewhere in this Report. See Nu Skin News Release and Reuters.com, March 24, 2014.