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Avon in Talks to Settle Foreign Bribery Probes

Avon Products Inc. is in talks with the U.S. Securities and Exchange Commission and the Department of Justice to settle probes into whether executives bribed foreign officials.

“We are in discussions with the SEC and DOJ regarding mutually resolving the government investigations,” New York-based Avon said today in an SEC filing. “There can be no assurance that a settlement will be reached or, if a settlement is reached, the timing of any such settlement or that the terms of any such settlement would not have a material adverse effect on us.”

The world’s largest door-to-door cosmetics seller and the government have been investigating potential violations of the Foreign Corrupt Practices Act, which outlaws bribing foreign officials. Some executives have departed the company in connection with the probe.

Avon also said it is unable to estimate the amount of loss it could incur if there was an unfavorable outcome to the government investigations, compliance reviews and its own internal probes.

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