USANA, PriceWaterhouseCoopers, and China - Post on Yahoo Forum

The other day a gentleman asked me a question regarding USANA and China. The Following is a copy of my response on that forum: Yahoo Posting

"it is so surprise as all know USANA is doing sales to china. how can hong kong do sales of so many sale with only small number of population." - Stevechu6264

Good observation. It does seem a bit odd that so many people in Hong Kong want to join USANA's MLM.

"what if someone tell china customs." - Stevechu6264

Fraud Discovery Institute did a couple years ago. They even have video of a USANA "employee" in Hong Kong trying to show how someone from mainland China can set up bank accounts in Hong Kong to hide under the radar.

"so risk to USANA distributor if usana is stop in china. why does sec care. is it illegal to stock because it keep going up? did company lie? why cant they get license to do legal job?" - Stevechu6264

China has banned all MLM companies from doing business within their country. They do not allow "Multi-Level" compensation plans because they are not stupid. China understands that it is a pyramid scheme. So because USANA is a Multi-Level business, they are not welcomed in China.

USANA can get a license to do business in China if they designed a Single-Level compensation structure for mainland China. But if USANA did that, they would never sell any product because the product is overpriced. The only reason USANA is able to sell product is because it is a requirement for all distributors to purchase at least $100 USD worth every 28 days if that distributor wants to participate in the compensation plan. So without the Multi-Level structure, USANA would never stand a chance.


Would you buy a $112 USANA Healthpak from a USANA distributor that lasts only 28 days when you can get the same exact USANA Healthpak off EBAY for $50 from USANA distributors who can't sell it? Both boxes are unopened and brand new.

The SEC should care because USANA has stated in an internal company document that a "LARGE SUM" of product ends up in mainland China. And the only way product is sold is to "Distributors". So USANA is recruiting distributors from Mainland China into their MULTI-LEVEL compensation plan. And doing so violates China's Laws. The SEC should care because USANA is breaking foreign law. Because USANA admitted a "LARGE SUM" of product goes to China, then USANA is knowingly withholding this information from their stockholders.

PriceWaterhouseCoopers is USANA's financial auditor, and it is their duty to make sure USANA complies with the SEC filing rules. It is PWC's responsibility to either force USANA to comply and report the amount of sales that went to mainland China, or PWC must resign as USANA's auditors. Because PWC was notified of this document many months ago and has not done anything about it, then PWC is now as guilty as USANA is.

So if the SEC ever decides to do their job and investigate this matter and finds USANA guilty, then PWC should also be held accountable.

Investors are being misled by USANA's E. Asia growth. No where else in the world is USANA expanding their distributor force. However, they are doing so in areas with small populations. I would bet the growth is from mainland China.