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Carrefour and Wal-Mart fined for price fraud
By Jin Jing |
February 23, 2011, Wednesday
|
Print Edition
Print Edition
CARREFOUR SA and Wal-Mart Stores Inc have paid a total fine of 9.5 million yuan (US$1.44 million) after being found guilty of cheating Chinese consumers, the National Development and Reform Commission said yesterday.
China's top economic planning agency said each of the 19 outlets of the two retailers has been fined 500,000 yuan, the maximum amount under related laws, after they were found guilty of price deception. The fines have been collected by local pricing authorities.
In a notice on January 26, the NDRC said stores of the two retailers across the nation were involved in overpricing and overcharging consumers. After price inspections, Carrefour was accused of dangling fake price discounts in its outlets by using deceptive tags and then charging consumers a higher amount at the check-out counters.
Carrefour and Wal-Mart were the only two foreign retailers found to be involved in price fraud during the nationwide checks, incurring the wrath of critics who accused them of ignoring consumers' interests in China.
The central government watchdog has instructed its local branches to conduct regular price checks on supermarkets and seriously deal with any irregularities that may hurt consumer interests.
Wal-Mart and Carrefour said they will refund five times the price difference to make up for consumers' losses. They also vowed to boost internal price inspection.
The price fraud is the latest cloud over Carrefour in China. In December, it was entangled in a commission row with Tingyi Holding Group, the maker of Master Kong noodles, that led to a halt in deliveries to Carrefour.
The retailer's negotiations with China National Cereals, Oils and Foodstuffs Corp for an edible oil contract, including a higher commission, were also deadlocked.
China's top economic planning agency said each of the 19 outlets of the two retailers has been fined 500,000 yuan, the maximum amount under related laws, after they were found guilty of price deception. The fines have been collected by local pricing authorities.
In a notice on January 26, the NDRC said stores of the two retailers across the nation were involved in overpricing and overcharging consumers. After price inspections, Carrefour was accused of dangling fake price discounts in its outlets by using deceptive tags and then charging consumers a higher amount at the check-out counters.
Carrefour and Wal-Mart were the only two foreign retailers found to be involved in price fraud during the nationwide checks, incurring the wrath of critics who accused them of ignoring consumers' interests in China.
The central government watchdog has instructed its local branches to conduct regular price checks on supermarkets and seriously deal with any irregularities that may hurt consumer interests.
Wal-Mart and Carrefour said they will refund five times the price difference to make up for consumers' losses. They also vowed to boost internal price inspection.
The price fraud is the latest cloud over Carrefour in China. In December, it was entangled in a commission row with Tingyi Holding Group, the maker of Master Kong noodles, that led to a halt in deliveries to Carrefour.
The retailer's negotiations with China National Cereals, Oils and Foodstuffs Corp for an edible oil contract, including a higher commission, were also deadlocked.
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