Defendant Name:
Avon Products, Inc.
Defendant Type:
Public Company
SIC Code:
2844
CUSIP:
05430310
Document Reference:
comp-pr2014-285
Document Details
Legal Case Name
SEC v. Avon Products, Inc.
Document Name
Complaint
Document Date
17-Dec-2014
Document Format
Civil Proceeding
Case Number
14-cv-09956
Federal District Court
New York, Southern District of New York
Federal District Judge
Katherine Polk Failla
Allegation Type
Foreign Corrupt Practices Act
Document Summary
On December 17, 2014, the SEC filed a complaint charging Avon Products, Inc. ("Avon") with violations of the Foreign Corrupt Practices Act ("FCPA") for failing to put in place controls that could have detected and prevented payments made to Chinese government officials by employees and consultants at an Avon Chinese subsidiary from 2004 through the third quarter of 2008. According to the complaint: "Avon Products China provided cash and things of value, including gifts, travel, and entertainment, to various Chinese government officials, including government officials responsible for awarding a test license, and subsequently a direct sales business license, that would allow a company to utilize direct door-to-door selling in China. Avon Products China was, in fact, awarded a test license and, then, the first official direct selling business license in China. Avon Products China also adopted an internal 'no penalty policy' and provided cash and things of value to Chinese government officials to avoid fines and other penalties in order to maintain an ostensibly pristine corporate image." Additionally, "Avon Products China falsified its books and records so as to conceal the cash and things of value provided to government officials."