China takes aim at car industry’s fraudulent advertising tactics
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Chinese authorities released a document that listed offences such as exaggerating the specifications and qualities of vehicles and batteries.
PHOTO: REUTERS
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Chinese regulators have launched a three-month campaign to crack down on advertising practices carried out by automakers and media companies that they describe as illegal and which may have contributed to “online chaos”.
The offences include carmakers exaggerating the specifications and quality of their vehicles and batteries, according to a document released on Sept 10 by six agencies, including the Ministry of Industry and Information Technology and the Cyberspace Affairs Commission.
Some media companies have also used reviews and model testing to blackmail manufacturers for favourable feedback, it said.
The move is the latest in a series of actions by Beijing to stamp out unhealthy competition in sectors such as electric vehicles and solar panels.
An extended price war and overcapacity in China’s auto industry have eroded automakers’ profits and pushed smaller companies into bankruptcy.
The intense rivalry has also sparked concerns over whether the quality and safety of cars is being compromised.
While the agencies on Sept 10 did not specify what the punishment would be, the China Advertising Association last week said that serious cases of fraudulent product promotion may be punished with a prison sentence or detention of up to two years and fines.
Its statement called for a stop to “unscrupulous” car promotion. BLOOMBERG
