Strictly Address Violations and Promote Lawful, Trustworthy Operations

On November 21, 2019, FACESUN held a disciplinary meeting for direct sellers in Tianjin, attended by the company’s mid- and senior-level leaders. This meeting was a significant step toward ensuring FACESUN’s standardized, honest, and steady development.

Recently, certain market distributors independently released false information at a Taiyuan meeting, promoting unauthorized incentive systems and making misleading claims about products, which damaged the company’s reputation and drew serious attention from senior leadership. During the meeting, leaders sharply criticized Zu Moumou for false product claims and expelled Zou Moumou for spreading misinformation about incentive systems. To prevent further violations, Zu Moumou conducted a self-review and criticism of the incident and proposed corrective measures: avoiding exaggerated product claims, firmly addressing those who violate company operational requirements and laws, establishing a disciplinary supervisor role, requiring distributors to regularly study compliance materials and knowledge, and other initiatives.

CEO Su Yongtao conveyed to all attending leaders and employees the directives from the State Administration for Market Regulation and the Ministry of Commerce regarding standardized operations for direct selling enterprises. He strongly emphasized the need for heightened vigilance within the company to recognize the severity of issues in the direct selling industry, strict adherence to legal boundaries in business activities, and rigorous implementation of corrective actions to maintain social stability.

Su Yongtao stated that FACESUN must consistently align with government policies during its operations, accept oversight from the market and legal authorities, and uphold its corporate image to ensure healthy growth under transparent conditions.

The meeting resulted in the following corrective measures: studying compliance management knowledge; holding specific individuals accountable; implementing compliance contracts for members; establishing a disciplinary supervisor role; regularly distributing compliance materials and reminders; standardizing promotional materials and prohibiting members from creating unauthorized content.

Disciplinary action is a means, while self-discipline is the goal. Implementing these measures is a timely, developmental, and wise decision. FACESUN is committed to building a disciplined, pragmatic, and high-quality team, enforcing strict regulations, and advancing steadily in the market.