Carrefour fined for price frauds
By Richard Fu and Jin Jing |
January 29, 2011, Saturday
|
Print Edition
Print Edition
SHANGHAI'S price authority yesterday ordered French retailer Carrefour to pay a fine for price frauds. It didn't state a figure but the maximum for such offenses is 500,000 yuan (US$75,954)
The fine follows the National Development and Reform Commission's announcement on Wednesday that Carrefour and Wal-Mart stores in China, including some Carrefour outlets in Shanghai, had been involved in overpricing and overcharging.
The Shanghai price administration said Carrefour had indicated false price discounts in the city and charged customers higher amounts at the check-out than had been indicated on price tags.
Along with the financial punishment, the retailer was also urged to correct pricing irregularities and refund illegal income.
The local division of the NDRC, along with the Shanghai Commerce Commission and the local supermarket chain industry association, yesterday ordered local supermarkets to check their prices ahead of the weeklong Spring Festival holiday which starts next Wednesday.
Retailers were also told to issue refunds where there had been overcharging.
Authorities said more inspections would be conducted citywide, targeting supermarkets, wet markets, department stores and the travel industry to safeguard consumers' interests during the busy shopping season.
Customers were also advised to report any problems, and the pricing administrations promised to severely punish any future frauds.
Carrefour has said it would refund five times any difference between the price indicated on the tag and the price charged at the check-out.
An industry analyst said it would be difficult for customers to get the five-times refund and that a 500,000 yuan fine was not enough to protect consumers' interests.
"A 500,000 yuan fine is little for big supermarkets like Carrefour," said economics commentator Ye Tan in a television interview.
"The punishment needs to be far higher than its illicit income so that it would have a warning effect," Ye said.
The fine follows the National Development and Reform Commission's announcement on Wednesday that Carrefour and Wal-Mart stores in China, including some Carrefour outlets in Shanghai, had been involved in overpricing and overcharging.
The Shanghai price administration said Carrefour had indicated false price discounts in the city and charged customers higher amounts at the check-out than had been indicated on price tags.
Along with the financial punishment, the retailer was also urged to correct pricing irregularities and refund illegal income.
The local division of the NDRC, along with the Shanghai Commerce Commission and the local supermarket chain industry association, yesterday ordered local supermarkets to check their prices ahead of the weeklong Spring Festival holiday which starts next Wednesday.
Retailers were also told to issue refunds where there had been overcharging.
Authorities said more inspections would be conducted citywide, targeting supermarkets, wet markets, department stores and the travel industry to safeguard consumers' interests during the busy shopping season.
Customers were also advised to report any problems, and the pricing administrations promised to severely punish any future frauds.
Carrefour has said it would refund five times any difference between the price indicated on the tag and the price charged at the check-out.
An industry analyst said it would be difficult for customers to get the five-times refund and that a 500,000 yuan fine was not enough to protect consumers' interests.
"A 500,000 yuan fine is little for big supermarkets like Carrefour," said economics commentator Ye Tan in a television interview.
"The punishment needs to be far higher than its illicit income so that it would have a warning effect," Ye said.
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