Amway claim a dealer is to blame after a woman died allegedly after taking the company's slimming products.
The dealer gave inappropriate instructions to the 41-year-old victim, Amway said.
And Amway refused to pay compensation of 1.23 million yuan ($198,387) required by the victim's family, according to a Xinhua report.
Liu Yunzhi, assistant manager of public relations at Amway China, said the dealer, Huang Yanfang, should bear the responsibility, not Amway.
Quan Hong'e, who came from Hunan province, died on May 21. Her husband Jiang Huajun found his wife had been taking the slimming products before she died.
Quan attended a weight-loss course from May 17 to 19 and purchased more than 4,200 yuan worth of sliming products from Amway.
Jiang said Quan suffered from diarrhea on May 19, but the dealer Huang allegedly told her it was a normal reaction after eating the slimming products.
But the dealer denied this.
Huang said she never told Quan it was normal reaction to have diarrhea after eating the slimming products.
And Quan had hidden her history of coronary disease, Huang said.
Liu and Huang agreed to offer compensation of 200,000 yuan.
Police and relevant departments have launched an investigation.
Jiang and Quan, who have lived and worked in Guangzhou for more than two decades, have three children.