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June 24, 2019

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Stores punished for breaking advertising and quality laws

Walmart, Zuoting Youyuan, Gome, Metro and Carrefour have been punished by market watchdogs for violations of China’s advertisement laws or for quality flaws.

Walmart East China Co was fined 90,000 yuan (US$13,103) by the market watchdog in the Pudong New Area. 

It claimed two linseed oil products branded Alligga and Hongjingyuan sold on its online store on were low fat, according to the Pudong New Area Administration for Market Regulation. 

However, the nutrition labels of the two linseed oil showed they contained 93 grams of fat per 100 milliliters and 99.9 grams of fat per 100 grams, failing to meet the requirement and condition of low-fat content based on China’s relevant standard, the administration said. 

Zuoting Youyuan, a beef hotpot chain restaurant in Shanghai, was fined 210,000 yuan by the market watchdog in Baoshan District for fake promotions. From the second half of 2017, the restaurant operator claimed its beef was freshly delivered and was original yellow cattle from Guizhou Province on its menu, soft decorations and radio advertisements, according to the Baoshan Administration for Market Regulation.

However, the restaurant operator started purchasing and serving three types of frozen beef from Canada and Shandong Province in June last year due to the short supply of the original beef. It did not change its menus or advertising.

The restaurant, which has 41 outlets in Shanghai, was ordered to rectify the situation immediately.

Home electrical appliance retailer Gome was fined 660,000 yuan by the market watchdog in Hongkou District for failure to review 22 illegal advertisements, which were published on

Among these illegal ads, the Wanfahe Trade and Business Co in Sanhe City, Hebei Province, used health care and medical treatment terms such as “anti-fatigue,” “enhancing immunity” and “curing premature ejaculation” to promote its essential oil, according to the Hongkou District Administration for Market Regulation. 

It also used wordings such as “good effect in treating arthrolithiasis and diabetes” and “curing premature ejaculation” to promote its spray, the administration found. 

However, both products were not registered as health products, or approved as medicine, the administration said. 

Both Gome and the company violated China’s advertisement laws, the administration said. 

In addition, the Jinshan outlet of supermarket chain Metro was fined 10,000 yuan by the Jinshan District market watchdog after eggs it sold were found to have excessive florfenicol for antibacterial purposes. 

And the Lianyang outlet of Carrefour in the Pudong New Area was fined more than 1,200 yuan by the market watchdog for selling substandard hand warmers.


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