H&M fined for misleading Chinese consumers
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The fashion giant H&M China has been fined 260,000 yuan (US $ 40,200) for “misleading consumers” in its advertising.
According to the market control regime in Shanghai, the Swedish multinational apparel retailer tricked its customers with advertising that claimed that the featured products were only available in China.
Officials revealed that the investigation into the case began in February 2021.
Authorities have confiscated “illicit earnings from selling substandard products” worth 30,000 yuan ($ 4,638).
Regulators ordered the company to stop creating and selling items that do not meet quality guidelines.
This is not the first time the fast-fashion company has been criticized in China this year. In April, H&M agreed to change the “problematic map” online after criticism from the government in China.
After the US, the European Union, Britain and Canada imposed travel and economic sanctions on authorities over allegations of abuse in Xinjiang in the northwest of China, the ruling Communist Party held a barrage against H&M, Nike and other shoe and clothing brands.
The city government said: “Internet users report that H & M’s website has a ‘problematic map of China’ and the Shanghai Municipal Bureau of Planning and Natural Resources has ordered it to be fixed quickly.”
The company’s social media account stated that H&M managers “corrected the error as soon as possible” after calling to meet with regulators.
Questions & Answers
Q.What was the specific reason for H&M China being fined 260,000 yuan?
What was the specific reason for H&M China being fined 260,000 yuan?
H&M China was fined for “misleading consumers” in its advertising. The market control regime in Shanghai found the company claimed certain featured products were exclusively available in China, which was untrue.
Q.What other financial penalty was imposed on H&M beyond the main fine?
What other financial penalty was imposed on H&M beyond the main fine?
Authorities also confiscated 30,000 yuan in “illicit earnings from selling substandard products.” Regulators additionally ordered the company to cease producing and selling items that did not meet quality guidelines.
Q.Was H&M China criticised for any other issues in China this year?
Was H&M China criticised for any other issues in China this year?
Yes, in April, H&M was criticised for a “problematic map” on its website. The company agreed to change this online map after the Shanghai Municipal Bureau of Planning and Natural Resources ordered a correction.
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