Personal-care products maker Nu Skin Enterprises (NSE) has been punished in China for numerous offenses including exaggerating product effects to mislead consumers.

The State Administration for Industry and Commerce (SAIC) said Monday that the direct-selling company has conducted business beyond its permitted scope and overstated the value of its products. Some sellers were found to have deceived consumers.

A total of 3.36 million yuan was confiscated or taken in fines by SAIC Shanghai, while the Beijing SAIC fined the firm 1.5 million yuan.

The New York-listed company has been instructed to regulate its business practices and step up training and supervision of its sales team.

Headquartered in the U.S., Nu Skin began operations in China in 2003. It was among the first foreign companies to receive a direct sales license.

While its business in China has grown steadily, the company has been frequently suspected of illegal multi-level marketing.

The SAIC said it will work to strengthen supervision on the direct-selling market and strictly punish illegal practices.

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