Avon Hid Changes to Credit Terms for Brazil Reps, Suit Says

Avon Products Inc. changed its credit terms in an attempt to recruit more representatives in Brazil and inflate growth, investors said Feb. 14.

Avon, which sells beauty products to representatives who then resell the products to consumers, didn’t disclose that it “significantly loosened” credit terms for its Brazil representatives, the would-be class complaint filed in the U.S. District Court for the Southern District of New York said.

Brazil is the company’s largest market, the complaint said. The credit term changes let Avon “inflate its reported revenue and representative growth metric,” the investors said.

Avon in 2016 told investors it was ...