Avon Faces $132 Million Bill To Settle U.S. Bribery Invetigation

Cosmetics company Avon Products said it may have to pay up to $132 million to settle a bribery investigation by the U.S. government into its overseas expansion. In 2011, the U.S. Securities and Exchange Commission and the U.S. Department of Justice began a probe into allegations of improper payments in China. Conducted under U.S. law as defined by the country’s Foreign Corrupt Practices Act, the investigation has caused Avon at least $300 million so far. Avon reported sales declined 10 percent to $2.7 billion while operating losses rose to $17 million, driven by weaker sales in North America and in emerging markets including Mexico, Russia, and China.