Gome accused of price fraud
By Zhao Wen |
July 30, 2012, Monday
|
Print Edition
Print Edition
DOMESTIC electronic appliance retailer Gome is under investigation for price fraud after a branch company of Gome in eastern Zhejiang Province allegedly indicated false discounts during big sales.
Price authorities in Hangzhou, capital of Zhejiang Province, said yesterday that it found the Fuyang branch of Zhejiang Gome Electronic Appliance Co was involved in price deception during an inspection starting on July 16.
Authorities told Xinhua news agency that Gome indicated false discounts by labeling three home appliance products at prices that were the same as normal. The products included electric fans and refrigerators of brands like Haier, Electrolux and Rongsheng.
Gome was among the three companies whose price offenses were deemed to be very serious by the Hangzhou price bureau and are now under investigation for alleged illegal pricing.
Hangzhou Hengji Optical Co was said to have faked original prices during a sales promotion of sunglasses and Hangzhou Guanyang priced the tickets for a swimming pool without authorization from the government.
The three companies will face fines if found guilty, price authorities said. The price check targets seasonal goods such as air conditioners, summer sleeping mats, electric fans, sunglasses, sunscreen, mosquito-repelling products and beverages. The inspection will last until August 20.
Last year, Carrefour SA and Wal-Mart Stores Inc paid a combined fine of 9.5 million yuan (US$1.49 million) across China after being found guilty of cheating consumers.
Price authorities in Hangzhou, capital of Zhejiang Province, said yesterday that it found the Fuyang branch of Zhejiang Gome Electronic Appliance Co was involved in price deception during an inspection starting on July 16.
Authorities told Xinhua news agency that Gome indicated false discounts by labeling three home appliance products at prices that were the same as normal. The products included electric fans and refrigerators of brands like Haier, Electrolux and Rongsheng.
Gome was among the three companies whose price offenses were deemed to be very serious by the Hangzhou price bureau and are now under investigation for alleged illegal pricing.
Hangzhou Hengji Optical Co was said to have faked original prices during a sales promotion of sunglasses and Hangzhou Guanyang priced the tickets for a swimming pool without authorization from the government.
The three companies will face fines if found guilty, price authorities said. The price check targets seasonal goods such as air conditioners, summer sleeping mats, electric fans, sunglasses, sunscreen, mosquito-repelling products and beverages. The inspection will last until August 20.
Last year, Carrefour SA and Wal-Mart Stores Inc paid a combined fine of 9.5 million yuan (US$1.49 million) across China after being found guilty of cheating consumers.
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