Direct sales return to be led by Avon

Avon has been given the go-ahead to become the first company to resume direct sales in China following an eight-year ban, the Commerce Ministry has announced. Direct sales were stopped in 1998 after consumers complained of difficulty in differentiating between legitimate sales networks and fraudulent pyramid schemes. A new set of rules relating to direct sales was introduced in December and the likes of Avon and Amway applied for licenses. The companies had been selling their goods in shops, although Avon was allowed to run a direct sales pilot program last year in Beijing, Tianjin and Guangdong.