A Chinese city administrator has slapped a RMB380,000 ($55,000 U.S.) fine on a subsidiary of used-car marketplace Guazi.com for false marketing and doing down its competitors, local media report.
The used-car brokerage stands accused of peddling false information, claiming, for example, that a secondhand car marketplace in Beijing has 8,300 sources of cars for sale, whereas the Guazi’s actual number is eight times as high, “there are no geographical restrictions and there are more choices.”
Among other things, the Beijing regulator found the claim derogatory and resembling false marketing.
Chinese regulators are notoriously sensitive about propaganda and move to action at the slightest suggestion of such. Previously, Guazi (also known as CheHaoDuo) had to cough up RMB4 million in compensation to rival Renrenche for false publicity, report Sina and Beiduolab.