Iran's commerce and culture ministries dubbed the company illegal last week in addition to blocking its local Internet site. Oriflame maintains that Iran's actions are due to the fact that Oriflame employs women as sales consultants.
A recent update on Oriflame's web site states that "business conditions in Iran have deteriorated in recent months. 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.".
Radio stations in Iran reported that the company had violated tax regulations and custom law, by operating an illegal marketing scheme. According to an Iranian newspaper, the company was accused of supporting opposition members in Iran.
Such allegations were rejected in an interview with the Associated Press news agency by Oriflame's chief financial officer, Gabriel Bennet.
