NuSkin (NUS) dodged a major bullet with a financial slap on the wrist by Chinese regulators, with NUS stock leaping 19% in early morning trading on the news.

NU Skin Enterprise was fined $500,000 by China for illegal product sales and  misleading consumers with false information about its products.

China’s State Administration for Industry & Commerce also said employees mislead consumers and sold items outside the permitted range.

“The company is already taking steps to correct the issues raised in the SAIC reviews, and is not aware of any other material enforcement investigations currently pending in China,” NU Skin said in the statement.

Via Reuters:

Direct sales firms have come under fire in China, with the official People’s Daily newspaper saying in January NU Skin had organised “brainwashing” gatherings, prompting SAIC to launch a probe. This dragged down NU Skin’s shares, as well as rivals Herbalife Ltd and USANA Health Science Inc.

NU Skin has been fined $540,000, while six sales staff will also face individual fines totalling $241,000, the U.S. firm said in a written statement. The company has previously said it has taken steps to resolve the matter and said last week it expected to face a fine in China.

The company was bracing for far worse results from the probe, but now NuSkin is set to begin talks to restart normal sales in the country.

China bans “pyramid selling” and closely monitors direct sales in the country.

NuSkin is down 31% year to date.