China cracking down on Wall-Mart and Carrefour (French) for illegal scams
China has been cracking down on Walmart and the frog chainstore Carrefour, for price-fixing, scamming the public with false 'markdowns' (i.e. pretending the original price was higher and saying 20% off etc where in reality there is no discount), among other scams.
Good to see these ruthless scam-merchants are getting bad press. In the Chinese press, it is wide-spread and will really hurt their reputations. The fines, so far, are not that heavy...but their reputation is taking a big hit.
From the article:
GLOBAL chain retailer Carrefour as well as Wal-Mart are among vendors in China who may face a maximum fine of 500,000 yuan (US$75,188) for alleged price frauds, China's top economic planner said today.
The National Development and Reform Commission said investigations had found some Carrefour and Wal-Mart outlets in China fabricated original prices of goods on sale and lured customers into buying falsely discounted products.
The two retail giants are also accused for using misleading price tags and failing to comply with their pricing commitments, according to a statement on the commission's website today.
Their cheating practices were discovered during a pricing scrutiny in China's major cities after authorities received consumer complains.
Price frauds were found in Carrefour and Wal-Mart's stores in Changchun, Shanghai, Shenyang and Kunming, covering a wide range of products from garments to home appliances and food.