China Bans Door-to-Door Sales.(move affects US firms Amway Asia Pacific, Mary Kay Cosmetics, and Avon Products)

Chemical Market Reporter, May, 1998 by Harvilicz, Helena

LAST MONTH, the Chinese State Council banned direct sales throughout that country US Companies affected by the ban in elude Amway Asia Pacific ltd., Avon Products Inc. and Mary Kay Cosmetics, all of which rely primarily on door-to-door sales. The Chinese government claims the ban is a response to disreputable companies that have bilked unsophisticated con sumers and salesmen However, others say the ban was imposed because authorities in the communist country fear the revivalist fervor of some direct sellers.

Official Chinese media link pyramid schemes to an increase in the proliferation of religious sects. None of the US companies have been cited by the government. Avon and Amway both plan to turn distribution centers into direct sales outlets. Last year,...

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