USANA Health Sciences, Inc. has announced that China will be its next international market. Over 6,000 USANA Associates and guests were in attendance at USANA’s Asia Pacific Convention in Hong Kong to hear the announcement. This announcement was also broadcast live via a world-wide webcast to an additional 6,000 Associates in various USANA markets.
“For several years now we have been exploring the opportunity to enter China, which is possibly the largest direct selling market in the world,” said USANA Chief Executive Officer, Dave Wentz. “The fastest growing segment of our global customer network is among our ethnic-Chinese Associates. Many of these Associates have family relations or other ties to China which presents a significant growth opportunity for USANA, its shareholders and our independent Associates. We are excited about the opportunity to offer our nutritional products to the people of China and are pleased to see such an enthusiastic response from our Associates. We have increased our resources dedicated to opening China and continue to evaluate various strategies and timelines to enter this market.”
Source: USANA
Who are they trying to fool? USANA’s already conducting their pyramid scheme in mainland China. They already admitted in an October 2009 internal document that a LARGE SUM of product ends up in mainland China. That’s because they are allowing illegal recruiting to take place in mainland China.
Here’s the document: http://www.sequenceinc.com/fraudfiles/wp-content/uploads/2010/01/usanacompliance100609.pdf
MLM is banned in China, and the only way for USANA to enter China is to do away with their MULTI-LEVEL marketing structure. USANA will have to design a SINGLE-LEVEL marketing compensation plan just for China. But why bother? USANA’s products are designed to be overpriced and forced to purchase by their distributors in order to participate in the pyramid scheme. Without the incentive to recruit large downlines, there is no reason to purchase the product. Investors might see this announcement as a positive, and the stock will probably go up. However, everyone will soon find out that no entrance into China will happen. USANA will lose money if they change to a single level marketing structure.
So when will stockholders demand USANA to disclose how much product and how many active distributors are a result of illegal China recruiting? When will PriceWaterhouseCoopers do their job according to their code of ethics and require USANA to comply with SEC filing rules and disclose this “Large Sum” of product that was illegal sent to mainland China?