Xiaomi is the first internet enterprise to be probed under the law which bans enterprises from using superlative adjectives.
Xiaomi is being investigated for violating China’s new advertising law. China Daily has reported that industry regulators have initiated an investigation into the smartphone manufacturer. The investigation is on grounds of suspicion of using phrases like “the best” to describe its products online. The company is the first internet enterprise to be probed after the law became effective from September 1.
The Beijing Administration for Industry and Commerce’s Haidian branch has said in a statement that Xiaomi’s behavior could violate China’s new advertising law. The law bans enterprises from using superlative adjectives in promotions. This is intended to protect consumers from advertisements that may exaggerate certain features of a product. The statement also said that law-enforcement staff had received a tip-off from a whistleblower and found evidence of suspect behaviour on the manufacturer's official website. Officials from Xiaomi or the Beijing Administration for Industry and Commerce were unavailable for comment.
Zhu Dalin, an analyst for Internet Consultancy Analysys International told China Daily that it is quite common for manufacturers to resort to superlatives during product promotion. He added that the new law will have a certain impact on internet companies, but not too much as customers are accustomed to clichés. Zhu said, “As an influential enterprise which boasts a sizable Chinese fan base, the company should have informed users of the panel issue beforehand, rather than wait until consumers dug out the truth."
It was also reported that that during the launch of the Redmi Note 2 in August, the phone was falsely promoted on e-commerce sites. It was said the the phone is equipped with panels from Sharp Corp and Taiwanese manufacturer, AU Optronics. Consumers later found that the screen is actually manufactured Tianma Microelectronics Co Ltd that is based in China’s Guangdong province. Xiaomi responded by saying that the information which appeared on third-party e-commerce platforms was wrong. It said that it was caused due to employee error and claimed that it never said that the panels were made by Sharp or AU Optronics.
Source: China Daily
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