Iran prohibits Oriflame
Source: Obtainer media
Authorities in Iran have prohibited Oriflame’s business activities in their country and arrested three executives among which there is thought to be a Swedish citizen. The Iranian Oriflame office in Tehran was closed on Sunday August 22 2010. The three people were arrested without being given a specific reason so that Oriflame is not in the position to provide any information on the background of the authority’s decision.
Swedish television has reported on the arrests and on the business’s prohibition nevertheless, at this stage the information is only based on speculations. According to Oriflame’s head of finance Gabriel Bennet the company certainly wants to continue business in Iran. This is in fact of great interest to Oriflame as since 2007 around one fifth of the Asian market’s turnover was generated in Iran. The cosmetics business is particularly worthwhile in Iran. Every year this market segment in Iran generates a turnover of approximately 2 Billion Dollars – where only Saudi Arabia is stronger within this region. Oriflame was founded in 1967 and is meanwhile conducting.
Oriflame workers detained in Iran as operations shut
Iranian authorities have closed the Tehran operations of Oriflame Cosmetics and detained five workers, the Swedish firm has said. The reasons for the move were disputed, with Tehran alleging fraud and Oriflame saying the authorities disliked it employing women in certain roles.
Last week, Iran's commerce and culture ministries called the company illegal and blocked its local internet site. Oriflame said the move could be because it employs women as sales consultants.
According to a statement on the company's website on Monday, business conditions in Iran have deteriorated in recent months.The statement continued: The authorities have now closed operations in Tehran. The authorities have also detained three members of staff and two sales consultants without disclosed reasons.
Oriflame has not at present access to detailed information relating to the background to, or effects of, the current situation. In Tehran, state radio reported that the company had violated tax regulations and custom law, and operated an illegal marketing scheme.
An Iranian newspaper, Kayhan, accused the company of supporting opposition members in Iran.
In an interview with the Associated Press news agency, Oriflame's chief financial officer, Gabriel Bennet, rejected the allegations. Of course this is not true. We are running a business in Iran like anywhere else in the world, according to good international code of conduct, he said.
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