11:55 am October 27, 2011, by Christopher Seward
If you’re old enough, you might remember a popular Avon slogan that followed a door bell: (ding-dong) “Avon calling”.
The cosmetics company now finds itself answering a doorbell of its own: (ding dong) “SEC calling.”
The Securities and Exchange Commission, which keeps publicly traded companies in line, is investigating Avon and its relationship with analysts, those Wall Street experts who research publicly traded companies and recommend to investors which company stocks or bonds they should add to (or remove from) their portfolio.
Avon, which has seen sales struggle in the U.S. and abroad, where it makes most of its money because of the weaker dollar, didn’t disclose the nature of the investigation, only that it involves its contact with analysts.
The company also didn’t provide details of an SEC bribery investigation in China.
After cutting prices to spur sales, the skin care and makeup company has had to increase prices to cover the rising cost of raw materials.
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