The U. S. federal government charged Avon Products Inc. (the global beauty products company) with violating the by failing to put controls in place to detect and prevent payments and gifts to Chinese government officials from a subsidiary. Avon agreed to pay $135 million to settle the SEC charges and a parallel criminal case. a. Foreign Corrupt Practices Act b. Clayton Act c. Sherman Antitrust Act d. Replogle Act e. Lanham Act

a.Foreign Corrupt Practices Act

Explanation:

Foreign Corrupt Practices Act is a legislature that seeks to outlaw bribing of foreign government officials with a view of gaining some advantage for their business.

The act is mostly binding on publicly traded companies and their officials.

There has been much criticism about this act, as some businesses see it as a way to discourage investment in foreign assets.

Avon Products Inc failed to put controls in place to detect and prevent payments and gifts to Chinese government officials from a subsidiary.

This is a violation of Foreign Corrupt Practices Act

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